MLM Secret – What Makes a Lead Qualified?

Before you can make your first MLM sale, you have to have people to talk to.  Those people that we talk to are called either a “Lead” or a “Prospect”.  For the most part, network marketers will use them interchangeably.  Before we talk able what makes a qualified prospect, let’s first talk able what a lead actually is.

In sales (and network marketing is no different), a prospect or a lead is defined as someone that has expressed a need for your MLM product.  The key word there is “expressed.”

When you first joined your MLM program, you were probably told that network marketing isn’t “sales” and that everyone has a need for your MLM product.  If you have been in network marketing industry for any length of time, you know that that isn’t true.  Not everyone will want your product.  Even if they can benefit from using it.

So, instead of talking to everyone about your MLM product or your business opportunity and getting rejection after rejection, only talk to those prospects that have told you that they have a need for your product.

Now before you say “Amy, how will I know that someone has a need for my product if I don’t ask them?” let me tell you that there is a way.  You will know exactly who to talk to once you have identified your target market.

For example: you belong to a MLM program whose main product is a energy drink.  You may think that everyone could benefit from a little more energy but that wouldn’t be true.  There are some people that are perfectly happy with the level of energy that they currently have.

So, in this case, you will want to narrow your focus to people that have done something to tell you they want more energy.  If you aren’t sure what that something is, then you may want to make it a little broader by targeting mothers or business people that work a lot of hours.  You may find that your target market is of a certain age and gender or you may find that they are in a certain income bracket.  Once you know who your ideal customer is, you will know better where to find them.

When it comes to finding qualified prospects, you have a lot of options open to you.  The first thing that most MLM companies teach is to take some time and make a list of everyone that you know and then go and share with them what it is you are doing.  This network marketing method is okay for getting one or two customers but a business is will not build.

Once you have prospected your friends and family, you will have to look for other methods to getting qualified prospects.  This can be done both online and offline.  You will have to know where your strengths are before you go looking for your leads.  If you aren’t too good at using technology (the Internet) then you may want to focus on using offline methods for getting qualified leads.

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Amy Howard, December 9th 2009 | Tags: , , , ,
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Why Most Network Marketers Fail

Statistically speaking, the majority of people that get into network marketing won’t make any money.  Let’s take a quick look at some facts about the network marketing industry that you may not be aware of:

  • The success rate in this industry is less than 2%.  It doesn’t matter if you joined one of the top MLM companies, what your up line tells you or anyone else tells you, the chances of you making your network marketing business grow using what is currently taught is less than 2%.  Bugging your friends and family, passing out fliers (CDs, DVDs, business cards, etc.), dragging people to meetings and home parties, doesn’t work for most people and it isn’t likely to change just because you are excited about your opportunity.
  • The national average proves that most network marketers will put 2.5 people into their downline before they quit.  Why do they quit?  They quit because their MLM company only teaches them to use their warm market to market to.  Most people can make a list of their friends of family and come up with 100-200 names.  So out of that list you may get 2 or 3 people to sign up.
  • Most people quit working their network marketing business in 90-120 days.  Why would you stay in a business where you aren’t making any money? The retention rate goes to zero if you have nothing more to offer than a failing system.  After all of the hard work to getting people to join your network marketing business it is really discouraging to see so many people drop out.  How you are supposed to build momentum with such a high attrition rate?

These are the facts of network marketing that the top MLM companies don’t want you do know.  Do you want to know why the top MLM companies continue to teach things like making a list of your friends and family, passing out fliers and so on? 

There are two reasons.  First, your MLM company has to provide some sort of training or people wouldn’t join in the first place.  Most of the people that join a MLM company and become a network marketer don’t have any sales experience and really don’t want to become something that looks like a pushy used car salesman.  (I apologize if you happen to be a used car salesman.  I meant no offense.)  So, MLM companies teach you to approach your friends and family and hand out fliers or DVD’s and tell you that the network marketing product sells itself.

The second reason the top MLM companies teach this way is because it works for them.  Think about it.  For every network marketing distributor that joins, they know that 2.5 more distributors will come on board.  Yes, most of them will quit but almost 20% will stay and continue to purchase the network marketing product.  Besides, it’s not their money they are spending to grow your business.

Don’t get me wrong.  Your MLM company isn’t out to hurt you.  They are out to make money.  If they told everyone that you would have to learn how to market and sell your network marketing product, most people wouldn’t sign up.  So, they teach methods that are very easy and simple for everyone to use and understand.  And yes, there are some people that can make money using these methods.  In fact, I’m pretty sure that they are part of the 2-5% that do succeed in network marketing and make it to the top of their MLM company.

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Amy Howard, October 16th 2009 | Tags: , , , ,
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Do 3-Way Calls Work?

When I got started with my first network marketing company, I was told that I wouldn’t have to do any telling, selling or convincing.  I must admit that I was relieved to hear them say that because I didn’t have any experience in sales and frankly I didn’t really want to become a pushy salesperson.

At first I couldn’t understand how you were supposed to sell your network marketing product without doing any telling, selling or convincing but they were the experts and I was totally new to network marketing.  Part of the appeal of network marketing is that you are in business for yourself but not by yourself.  Your network marketing company will help you to succeed.  So, I was taught about:

Closing the Sale Without Having To Say A Word

Most network marketing companies call it the 3-way call.  This is where you call your upline sponsor while you have your prospect on the line and let them take over the sales process and do the closing.  You don’t have to say a word.  In fact, you are encouraged to keep your mouth shut during this process.

When I was introduced to this network marketing technique, I thought it was very cool.  I didn’t have to say a thing and someone else would make the sale for me.  I mean who wouldn’t want someone else to do the work and you get paid? 

Six figures, here I come.

I got prospects to a presentation and I was even able to call them back and talk to them.  But then I had a problem, whenever I tried to call my upline to do a 3-way call, they were nowhere to be found.  I lost those prospects, my time, and the money that I spent getting the leads in the first place.  Did I do something wrong?

Yep, I didn’t make sure that I had someone to 3-way with before I called my prospects back.  No problem, I’ll just make sure that someone is available before I make my calls.  Now, I have a prospect on the line and someone from my upline (not one of the top dogs because they don’t do 3-way calls unless they benefit directly from the sale) but he’ll do.  So, it’s time to ask for the sale and he doesn’t actually ask the prospect if they are ready to get started. 

With my next prospect, I get someone else to do the 3-way call with and this time they ask but they weren’t very enthusiastic about it.  I try someone else, and someone else, I get someone from my crossline and we make a pact to do 3-way calls for each other and ask for the sale and are available and still no sales.  I lost more prospects, more time, and more money.  Did I do something wrong?

MLM Secret – YOU have to close the sale

As much as I wanted to make those 3-way calls work, they just didn’t – at least not for me.  I’m sure they work for some people or the network marketing companies wouldn’t teach that technique.  The key to MLM selling is YOU.  YOU have to form the relationship with your prospect.  Your prospect has to be comfortable with YOU and trust YOU.  YOU have to be able to close the sale.

With that in mind, I am going to be writing more posts about closing the sale yourself.  Stay tuned for some really good stuff about creating the urgency to buy and some pretty cool closing techniques that I am excited to share with you.

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Amy Howard, October 12th 2009 | Tags: , , , , ,
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