Top Seven Mistakes Most New Distributors Make In Network Marketing or MLM Business
By Jackie Khor
29 August 2008
Network Marketing allows ordinary people to enter into a home based business at a relatively low capital cost. This rather humble beginning may one day be giving you a huge international distributorship from many countries that will provide you with a residual income for a life time.
Most people introduced to network marketing are often sold by the big dreams of the riches before being coached and trained properly as to what it really requires to become successful in this business. There are certain factors that do play a critical part to determine whether you are going to make it a hobby or build this into a huge Direct Sales business that will give you the time and financial freedom that you are seeking.
Some of the most common mistakes network marketers make are made BEFORE they join a network or MLM company. This article will reveal the top 7 most common mistakes most newbies make in network marketing or MLM.
Before Joining
# 1 Mistake:
Choosing the wrong sponsor. Often times, new distributors have no idea what it takes to build a successful home business especially if that was the very first time they were about to enter into the entrepreneurship world. Consequently they don’t know what attributes a quality sponsor should have. Most of the time, a sponsor seeks after them. They were being hunted instead of being the hunters. Very often they join because they have a good relationship with that sponsor. Because of their limited exposure to the direct sales industry, it is rather difficult for them to gauge the quality of potential sponsors and the MLM companies they represent. I was in that position. Even though I have worked with large corporate strategy and accounting forces during most of my career, direct sales industry requires a different set of skills. I did not have a clue.
I suggest to new people who are looking for a home based business before they sign on with any sponsor, they should prepare a list of questions which may help them to reveal the sponsor’s experience and strategy for building the business. The downside of this is they may not know the important questions to ask.
#2 Mistake:
Joining a sponsor that relies on the “traditional methods” of marketing. These include setting up home and hotel meetings, calling purchased leads and inviting friends and relatives for home parties. These strategies are highly ineffective nowadays and have much to do with the high attrition rate in network marketing. Attraction Marketing is a better marketing strategy where you learn skills to become a leader in your field so that you become the hunted instead of the hunter. You are able to add personal value and provide solutions to other people’s needs. As a result prospects are attracted to you. They are curious to know how you do it and wanting to have the same success you achieved.
Attraction Marketing is a FREE members site that coaches people from all walks of life to do this business successfully. It is unique and it is NOT about selling and convincing.
After Joining
#3 Mistake:
Talking too much and trying to sell to everyone. It is best to learn how to ask prospects open-ended questions so that you don’t come across as ‘desperate’ to try to convince them. Instead be in a relaxed and confident position that you are a leader and this causes the right people to want to work with you. An open ended question such as …”what do you mean by pyramid selling” gives you a chance to speak less and make your prospect to talk more.
The reality is most people you talk with are not who you are looking for. They may appear to be keen “prospects” but actually they are only suspects, not prospects. They don’t have the drive, the persistence, the commitment or the focus to be an entrepreneur. They like their dreams but is not committed to do something to get to their goals.
Black Belt Recruiting is an inexpensive course that will help you to get out of “Sales Mode” and to be efficient in sponsoring without rejection. This course will help you to ask the right questions and thus will enable you to detect the right person to recruit.
#4 Mistake:
Talking big. This is a common mistake when a distributor oversells the business opportunity that they will be rich overnight or in a couple of years’ time. Most sharp people will detect this as phony and thus they will say no to you. Another consequence of big talk is imagine: a new distributor you recruited makes some quick money at the beginning and then nothing happens after that. What would he do? Probably quit in frustration.
What if you were to mention to the new distributor that to begin with this is a part time home business that may take 3 to 5 years to grow a residual income stream. During that time the prospect has new skills to develop. So if the person joins you and can see an increase in income over the months, it is less likely that he/she will quit as he/she understands that it will be a just matter of time before he/she reaches his goal of financial freedom.
#5 Mistake:
Talking too deep. Often times, new distributors will take upon themselves to want to learn everything before they talk to a single person. When your prospect hears your opportunity in such detail, they will back off. They have doubts in their minds, “Can I do this?”….”Do I need to know all this stuff before I earn a dollar?’
Remember, most people do not want another hard way of making money. They have struggled with just enough for most for their lives. Thus share with them just the basics of the financial opportunity and give them answers that are relevant to their questions.
#6 Mistake:
Talking bad about another MLM company. This is not only self-defeating but you appear to be unethical in your profession as a network marketer. Never try to run another company down by saying yours is better.
Instead of talking bad about someone’s products or business opportunity you could say that you once felt the same too but found this and that which lead you to make a decision for your current opportunity. Be humble and respectful to your prospect’s situation. He/she may listen to you or give you a referral.
#7 Mistake:
Losing money. Net cash outflow. Many times a new distributor has not got much to spend on marketing. Instead of wasting the time chasing a few quick bucks from someone who is unqualified, it is better to invest in learning a skill that will truly benefit other people. Having an opportunity to pitch is not a valuable exchange for money. Think of your MLM opportunity as a product. In some cases it may cost $500 to $1,500 to join plus monthly maintenance of, let say, $250 to remain active to receive the sales commission. This is a highly-priced product which may be difficult to sell. Don’t start with it.
Understand that the cheaper the product you’re selling, the easier it is to sell especially Internet online. This is because different people have different spending abilities and willingness to spend. Thus, the cost of your product and the number of buyers is undeniably inversely proportional.
Business opportunity seekers want to earn money. They don’t care about your company’s products and compensation plan. Thus give them some generic information or tips or anything that has got to do with solving their money problem. In exchange for your free generic information, ask them for their email address by designing a special yet simple to the point capture page that will grab the prospect’s attention immediately and entice them to leave their contact information.
But remember this: Even if you do a good job on the capture page, expect to lose a few visitors. The secret is to compel as many of your visitors as possible to just leave their email address.
Next your job is to earn some money by offering an inexpensive information product, let’s say, $20. You can get this type of information product through affiliate marketing ( that is selling other people’s product and you earn a portion of the sales) or do it yourself eBook. Just make sure the product is complementary to your primary product which is the business opportunity of your network marketing company.
With a little practice, you can get a few hundreds of visitors coming to your site daily and turning them into firstly “free product buyers” by offering them inexpensive products and then later on offer them higher cost products. With these free leads, you promote your business opportunity to this smaller but well able spending group.
Hence marketing your business opportunity is a drip by drip process. In this way you build a trust relationship with them to enable you to increase your personal value to them.
Write to Jackie and learn FREE on how she recruits online without selling. http://www.resultmakemoney.com/home-business-4.html
Want to learn how to set up a business on the Internet http://www.leadtraffic.resultmakemoney.com
Learn what to say on recruiting
http://www.recruit.resultmakemoney.com
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Hi Jackie,
That is great advice. I totally agree especially with choosing the wrong sponsor. It is the same as asking a mechanic learn you how to become a doctor.
Good stuff here, Jackie!
As far as “who” someone’s potential sponsor is … here’s my advice:
Simply do a really quick & easy Google search of the person’s name. If you have difficulty finding that person, chances are that you won’t be sponsored by a recognized, sought after expert. Look for someone else! Anyone who is truly successful in network marketing will be “branded” online.
I have witnessed all of the mistakes that you have mentioned in your article. Thanks for getting people on the right track and teaching them “HOW” to think.
~Melanie Kissell
http://melanie.bigmlmtruths.com
In a world in which computer networks are involved in nearly every facet of business and personal life, it is paramount that each of us understand the basic features, operations and limitations of different types of computer networks…
Awesome post !!
Here’s the truth.
The top leaders in MLM – lie – no lie – it’s the truth – they lie- the things they tell you to do – they don’t–
Take your talents here: http://thejakestershow.com
Jake
Free Unlimited Leads 4Ever
Free Business Listing
Thnaks for this very forthright article on recruiting miostakes. Talk big and talking too deeply are very common and ineffective practices. It’s nice to hear another voice of common sense in our industry.
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