MLM Downline
MLM Downline: A Downline Building Strategy Of Marketing Products, Not The Business Opportunity
Are you struggling to build your downline? You are not alone. 94 % of MLM distributors never succeed In building a stable organization. What is missing, what is the key to building a downline in MLM?
Money in MLM is only made by selling products. Every dollar of commission paid out has been made by someone buying product. This means that among the members of your organization, only a small percentage is able to receive any income.
With this in mind, let us look at the two ways you can build a downline:
Marketing Your MLM Opportunity Gives High Drop-Out
If you are marketing your opportunity, people are joining as distributors for the income potential. However, almost all of your new distributors will not make any money, and most will drop out after two months. Some will continue to use the products.
Because of your high drop-out rate, you need a large pool of prospects from which to recruit. There are two ways of getting new prospects:
- You have a large downline to begin with. The warm markets of your new distributors then give you a large pool of prospects.
- You are using opportunity seeker leads. Because of the cost of buying leads you must be very effective in recruiting for this strategy to work.
The first approach is used by your company and your top leaders. You are asked to contact your friends and relatives and refer them to your upline via three-way calling. This works well for the company, but it does not give you enough prospects to build your own business.
The second approach is promoted by top recruiters such as Dani Johnson and Peter Sales. Following their strategies, you can gain enough skill of persuasion to sign up opportunity seekers effectively over the phone.
The problem with both approaches is that most of your signups will not be able to duplicate your success, and drop out quickly. You are creating a population of failed distributors, counting on the fact that some of them will continue to use your product.
I believe that God calls us to build our business success on promoting the welfare of others, not on their planned failure.
A variation of the second approach is the funded proposal strategy promoted by Mike Dillard, Ann Sieg and others, where you offset the acquisition cost by marketing the promoter’s generic system to your leads.
Here you are selling generic recruiting tools to a population of opportunity seekers. The success and ethical issues are the same as for the phone recruiters.
Marketing Your Products Leads To High Retention
If you are marketing your product, your new customers are joining you for the benefits of the product, not for the expectation of income. This means that
- They will stay as long as they are seeing benefits. You will have a low drop-out rate.
- You will build your organization more quickly and with larger return on your advertising cost.
You find your prospects by advertising the benefits of your product to a targeted section of the general public. Because of your low drop-out rate, you have a higher overall income and can absorb the cost of advertising, while still making a profit.
This strategy of marketing effectively to a selected group is known as direct marketing. It is a science and art that you must learn.
Recruit Successful MLM Business Builders From Your Product Users
Once you have built a base of product users, you begin recruiting new distributors from among your customers. This approach is very successful, because:
- Your customers have experienced the benefits of your products, and are bringing this personal expertise to their business.
- You are able to train your new business builders to duplicate your own success, by using lead sources and marketing tools that you have already developed and tested.
This cuts their own learning curve and brings them into profit quickly. They will stay with you, and continue to add new product users.
The Growth of Your Organization Depends Only On You, Not On Your Opportunity
What does it take to run a successful marketing campaign that will build a profitable base of customers? The key is not so much in your product or opportunity, but in your personal qualities as a business owner and leader. These are:
- Marketing skills
- The mindset of a business owner
- Confidence as a leader and expert in your market
Marketing skills involve insider knowledge that is never fully revealed to the public. The mindset of a business owner and confidence as a leader come through practice and the experience of success.
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2 comments
Karim Kinch on November 14, 2009 at 2:12 pm
Great post! this stuff is right on the cutting edge of MLM marketing.
Kai on November 14, 2009 at 7:10 pm
Karim,
thanks for your comment. You can find a recent update on MLM downline strategies at http://mlmsuccessnews.com/ .
Kai