MLM Sales Secret Revealed – How MLM Companies Make Money

As part of my new MLM training video course.  This video shows you how MLM Companies make money using traditional MLM marketing methods and why if you use these outdated methods your network marketing business will die while their business continues to grow.

Find out exactly what MLM marketing methods you can stop using and what you must know to increase your MLM Sales.

Network Marketing – Getting Started

Are you just getting started in the network marketing industry? It’s a great industry if you have access to good MLM training. However, most MLM Companies train their associates using old outdated methods that just don’t work in today’s market. Get started with the best marketing methods before you decide that network marketing doesn’t work or is a scam.

If you are like most people who get started with a network marketing company, you think that it will be easy to get people to join your company. It looks so easy, when you see how good the network marketing product is and the compensation plan; it really was not hard for you to make the decision to sign up at all.

Now that you are in and your upline or the MLM company training is telling you that you are going to have to talk to people, you are having a few butterflies roll around in your stomach at the thought of screwing it up. There are some marketers that will do anything to make a sale and there are some marketers that will not. They wouldn’t for any amount of money look like a fool trying to grow a home based business.

Some of the people who get started with their home based business think that they can grow a massive business using their computer. They will try sending out mass email, using voice broadcasting, pay-per-click advertising, or anything else they can thing of to avoid using the telephone and calling up a stranger.

Here is the truth about network marketing. Using the computer is a great way to grow a business IF you have the skills and IF you have the money and IF you are not in a hurry to make it happen.

Listen to me for a minute, please. If you want to grow a big home based business and you don’t want to go broke trying to make it happen, then the telephone is the least expensive and the most effective method for making sales. The best part about using the telephone is that since there are so many network marketers unwilling to use the phone, you can actually distinguish yourself from others.

With a good prospecting script, a good presentation, and some good leads (aka, a target market) you can do what others in this industry don’t get to do. You can actually make money being a network marketer.

Don’t worry if you aren’t sure how to get started but do yourself a favor and don’t spend yourself out of business trying to avoid the phone. Even if you decide to use the Internet to grow your business, you will eventually have to talk to someone. It would be better to develop your speaking skills sooner rather than later.

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MLM Secret – Limitations of Traditional MLM Marketing Methods

When I first got started in network marketing, I was taught by my MLM Company’s leaders to make a list of my friends and family, get more names from those people, talk to anyone close to me (known as the 3-foot rule), and hand out business cards and flyers.  The crazy thing is that I actually did it.  Once, I made it to the bottom of my list (that only took about one or two weeks), I asked my sponsor what I should do next and he said to make another list or prospect the list I already had again.  Using your warm market is a traditional MLM marketing method but it has it limitations.


The first limitation is that using warm market prospecting is untargeted.  It’s untargeted because you are talking to people that didn’t request more information about your network marketing product or service.   When it comes to marketing your business that is probably one of the biggest mistakes that you can make.  Can you find customers and business builders using this method?  Yes, you can and there are some that grow a large organization using just their warm market but that is the exception not the rule. 

One fundamental rule of marketing is to target your marketing.  The more your message relates to your prospect, the more likely you are to convert that prospect into a customer.  The problem with using your warm market as your leads is that you are trying to create interest in your network marketing product (or if you do what your MLM Company preaches, in the business opportunity) instead of them already being interested to begin with.  This traditional MLM marketing method requires a lot more time and energy to get sales. 

Another problem with using the traditional marketing methods that are taught by MLM companies is the limitation of using your warm market.   How many people do you really know?  Even if you can write a list of 100 names and you got everyone on that list to give you 20 more names (which isn’t likely to happen) you only have 2000 leads to work with.   And remember these are just names and numbers of people, they aren’t people that already have an interest in your network marketing product or service so you are going to have to try to create that interest. 

It doesn’t matter what business you are in, leads are the life blood of that business.  Without leads, your business is dead.  In order to grow your business to where you are making a good living every month, you will have to make a substantial number of MLM sales.  I can almost guarantee that you will NEVER close 100% of the time. 

Let’s say that you can convert 5% of your list into customers.  (I’m assuming that you are very good at sales when I use a number like 5% because the reality is that it would be closer to 1% when you are using untargeted prospects.) At a 5% conversion rate with your 2000 names, you will have 100 MLM sales.  Sounds pretty good doesn’t it?  But this is assuming that you actually get to talk to all 2000 people on your list, NOT likely to happen.  You would actually be lucky to talk to half of those people.  (Remember that the majority of those on your list are referrals.)  Let’s go with it anyway.  50% of 2000 = 1000 and you can convert 5% of them.  That gives you 50 MLM sales.  Still sounds good doesn’t it? 

It sounds good but the reality is that you will maybe get 3 sales from your warm market.  Assuming that you can make a list of at least 100 names.  3 MLM sales does NOT a business make and what do you do when you run out of names on your list?  Do you go selling door-to-door?  I’ve done door-to-door sales before, I can tell you that you have to have a very thick skin to make sales that way.


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Your MLM Company Thrives Even Though You Struggle

Today I want to talk about how your MLM company makes money and grows while the company’s distributors are struggling to earn enough to even pay for their network marketing product that comes on auto-ship and what you can do to turn things around with your home business.

 

Every company on the planet makes money the same way.  By selling their product or service to others.  Your MLM company is no different.  They make money each and every time someone purchases their network marketing product or service.  That’s why some companies prefer using the multi level marketing business model. 

Here’s how it works:  Your MLM Company gets you to join a business opportunity giving you the idea that you can make money from home by simply getting others to join YOUR business. 

You buy the network marketing product in order to get into a business opportunity and they make money every month because you are on auto-ship.  Now, they urge you to get others to join your business.  They don’t want to scare you and tell you that you now have to become a sales person so, they get you to make a list of everyone that you know.  With your list of 100-200 names, you are once again urged to contact everyone on that list and SHARE (not sell but share) your opportunity.  For every 100 names that you have, you will probably find 1 or 2 people that will join your business and for every person that you get to join, they buy the network marketing product and the company once again makes money. 

Sounds great right?  But now that you have used up your friends and family, what do you do?  Your company is still making money because you are buying product and the 2 that you got in are buying product and those 2 MIGHT get 2 who will also buy product.

This cycle goes on and on and on.  As you can see, your MLM company can make a killing using this method.  But you only got 2 people and those 2 might get 2 more or they may not.  How are you supposed to build a thriving business with only 2 people that don’t have any more skills at making sales than you do?

So how do successful network marketers make money?

When it comes to growing a home based business, we all have to start at the beginning.  The key to growing any business lies in your knowledge.  Knowing what to do, when to do it, and how to do it.

The first thing that you must have are Sales Skills.  You have to be able to identify your target market (here is a hint, it’s not the person standing within 3 feet of you)

You have to know how to get their attention (here is another hint, it’s not beating them up with stories of how much money you are GOING to make)

And you have to know how to close a sale (last hint – it’s not by 3-waying them in with your upline)

So, what exactly do you have to do to grow a business.  You have to have selling skills.  Now, if you didn’t happen to be born a natural born salesperson, then you are going to have to get some training.

At the very minimum, you are going to need training in:

  • Prospecting (the art of searching for customers who already want what you have) 
  • Presenting (the art of delivering a message to your prospects) and 
  • Closing the sale (the art of getting your prospects commitment to make a purchase)

That’s it.  It doesn’t matter what business you are in or what network marketing product you have, you have to know who your audience is, where to find that audience, present your audience a message, and finally ask for the money.

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