MLM Downline Builder

Recruiting for an MLM Downline in a Recession

 

Written by: Nicole Foxx

 

A recession by definition: is a period of reduced economic activity. Inevitably, in a recession there are less available jobs and job markets are highly competitive.  Currently, companies are down sizing and there have been layoffs from an array of corporations such as; General Motors, DHL and Fed Ex Kinko; just to name a few. However, there are always opportunities in Multi Level Marketing (mlm), even in a recession.

 

Individuals that are open-minded and are willing to pursue career paths outside of Corporate America are perhaps more likely to be successful in a mlm downline.  With that in mind, everyone isn’t suitable to be a recruiter for mlm downline.  There are numerous alleged success stories from individuals that have climbed the ladder in mlm and have become millionaires. Their stories often inspire others to sign-up to recruit. However, it is also true that many fail to carry out the commitment of recruiting.  It is one thing to be inspired by someone’s testimony but realizing the requirement for consistent dedication of the recruiting is another. 

The concept of mlm is relatively simple. Recruit a certain number of people to sign up with the program, those people then need to recruit others and so on and so forth. The idea behind mlm is that the chain reaction will continue thus; allowing one to acquire residual income. A selling point of mlm is that there are only a small number of people you need to recruit before you reap the benefits of residual income. Other ideas behind mlm is being an entrepreneur, building your own wealth and being able to retire sooner.

 

How is recruiting for mlm different in a recession? People are generally skeptical about mlm. Typically, because people were taught “if it sound too good to be true then it probably is”. More often then not, mlm programs are associated with pyramid schemes which are a red flag for many, especially when it comes to investing start-up money.  Nonetheless, as a result of a slowing economy and a 6.7% unemployment rate (November 2008), presumably more and more people will be receptive to the idea of mlm.  Clearly, people have a different mindset in a recession; many have a higher level of urgency and desperation.  The obvious is “bills” and other financial obligations that don’t stop coming in a recession.  We are all still responsible and most of us would like to enjoy the same type of lifestyle that we have grown accustom too.  Some may see mlm as light at the end of a dark tunnel; hope.  Many workers have received pay cuts as a result of their employers attempting to cut cost in an effort to stay afloat. To some mlm could be a means to gain more discretionary income. Controversy, for the most part in a recession discretionary income is less and this could prevent many from being able to invest financially in an mlm down line. There is a great deal of fear centering around the idea of mlm as well as the current recession. Will fear lead more people toward recruiting for mlm downlines or is there still much skeptiscm? 





By: Nicole Foxx

Fact: “90% of network marketers fail within their first 3 to 5 months”.

Why is the attrition rate so high in Network Marketing? What can be done about it to curtail this detrimental factor in an organizational downline?

If I were to pick a single reason why most people fail to recruit, retain, and have a guaranteed MLM downline is because you are taught to present your products and/or services in terms of how much money your potential prospect could make, you’re taught to sell the opportunity instead.

Have you tried to entice a family member or a friend to look at your MLM company based on how much money he or she can make? When you do that, the obvious and natural question comes up:

Well, how much money are you making with that business?

At that point you have three choices:

1. Lie flat out to your prospect about how much you are making

2. Tell them the truth or

3. Tell them about your upline leader who is making the big bucks

I will never advise anyone to lie to a prospect to get them into your MLM dowline simply because that lie will surface early on. Once that person realizes that you misrepresented yourself, that’s it, your credibility goes out of the window and to regain it back is extremely difficult, in many cases, it’s just impossible.

If you tell them the truth, they would be left wondering…Well, if this business is as good as you say it is, why are you not making those big bucks yourself? How credible your business could be if you yourself are not making it? You can dodge the question, but your prospect will see right through.

The third case is even more damaging to your image because the minute you edify your upline leader as the person who is making all the money, you become a gopher, someone’s running boy in other words.

You become someone who is bringing his/her warm market prospects so that this upline leader grows his/her network marketing downline even larger. I am sure you didn’t sign up as an Independent Representative to wind up as someone’s gopher, growing someone else’s organization.

The sad part of leading with the opportunity to recruit someone into your business is that it gives you a false sense of hope, meaning that even if you manage to get that prospect into your marketing downline, the minute he realizes the money does NOT materialize immediately, he will quit the business, leaving you with that feeling of frustration, disappointment, and often times with thousands of business dollars totally wasted.

The real issue is…how can you recruit AND retain people in your MLM downline, right?

Answer: By leading with your products and/or with your services.

Sell the merits of those products to the consumers just like any other company that bases its business on the benefits of those products.

If you’re selling health and nutrition products for example, identify your market, your customers, and target that sector of the market place with your marketing campaign.

Treat the opportunity as a benefit of consuming those products. You need to get a person to become a lover of your products first and foremost and then out of that love, that affinity to the product you can get a new distributor.

When you lead with the merits of your products and/or services that shift does two things for you:

1. It ensures your residual income, because now you have a customer, based on his/her affinity to the products/services.

2. Your retention rate goes through the roof because you first build the loyalty by providing a good service/product.

That person does not join in just driven by greed like most opportunity seekers. This is how you can increase your retention rate by 40%, 60% and even as high as 80%.

Remember that your compensation is based on how much of those products or services your customers and MLM downline members consume. It does not depend on how many people you recruit, it’s all about customers. It simply depends on the consumption of your products or services.

Bottom line:

If nobody is consuming the products or services, then nobody gets paid a dime in your network marketing business.

Introduce the merits of your products and your services first to a hungry consumer market, as opposed to seek out greedy opportunity seekers wanting to make a quick buck.

One strategy is based on sound marketing principles while the other one is based on greed, hype, and pure emotional nonsense.





By: Wil Chirinos

For some time now, people admire the success of Network marketing companies like Amway and others. And for a time, multilevel marketing businesses gained a measure of success among people looking to build passive income that last.

It is sad that in the past few years, MLM has gained a a bad image that is ill-deserved. Most people look at MLM as a fake business, scams, and other undesirable elements. However, MLM is actually a good way to earn money if performed correctly.

The main reason why MLM has descended in its desirability is because too many people tried to come in and make a quick buck without really knowing what it takes to set up a good MLM downline and how to approach the business properly.

There are too many people that think that an MLM business entails making money without even working. There has been a large group of undesirable characters in the MLM business. Many try to make money by duping other people. And many other people drop out after investing in an multilevel marketing business due to frustration and lack of persistency.

These people, after investing much of their money in MLM’s, think they can relax and earn money just by doing nothing. They are suddenly disappointed when they find out that they are not actually earning anything. These people will often badmouth the MLM business as a whole.

Unfortunately, their failures are their own doing. However, if you approach an MLM business with the right mindset you are definate to gain a great measure of financial success. And the key to obtaining financial success in the MLM business is duplication.

Duplication involves creating a downline organization that is growing. Every one in your downline organization should be able to create his or her own downline. This means that every single member of your team is able to sponsor other people in return.

If you can create a downline that is as successful as you are, then you are sure to have a downline that will continue to earn money and make you successful.

But how do you a accomplish this? Here are a few tips.

1. Recruit like-minded people. If you want your downline to be successful you have to find people who are hungry for success. If you recruit people who are lazy and are just in the business for a quick buck, then you are in serious trouble.

You are supposed to recruit people who are persistent and goal oriented-just like you. If you can recruit people who are just like you, then they in turn will go on to recruit people who are going to be successful. This will build a veritable gold mine of recruiting agents.

2. Help others to become successful. The key here is to build a downline where not only you are successful. Ensure that everyone and every single member of your team can succeed and can make money. If everyone can have success, they will be motivated to continue building on that downline you started.

Some people are unfortunately selfish and care for their own success. In MLM’s, this should not be the case. If you only care for your own success, you’ll find that your downline will steadily decrease since you are being selfish. Remember, in MLM’s, everyone success is your success. If they succeed you succeed.

3. Good personnel Management. Think of your downline as a valuable resource and not just an object just to make money. If you learn how to value every single member of your team, you are sure to have an organization that is capable of accomplishing a mission. Duplication depends on the mindset of each and every member of this team. They should have a mindset just like yours-eager and raring to build their own downline.

With proper duplication you can achieve success in your MLM business.

If you learn how to encourage others and how to spur them on towards success, you can build a strong organization, which effectively invigorates them with the energy needed to continue persevering in their MLM business.

Conclusion

Don’t be satisfied to just to be able to assemble a hodgepodge menagerie of recruits. Ensure that each team member is built for the kill. With this you have duplication in your downline. Eventually you can have success in your multilevel marketing business.





By: Richard Quek