MLM Systems For Marketing, Recruiting And Lead Generation
At its core, a MLM system is a consistent method of operating your MLM business. Every successful business is built on a system. Without a system, you cannot identify the causes of success and failure, and you cannot improve the performance of your business.
A successful MLM system enables you to reach the following goals for your MLM business:
- Acquire product customers at a profit
- Have high customer retention and continuous product sales for residual income
- Find business builders
- Train them to duplicate your own success
With these goals in mind, let’s look at some common systems:
Powerline Systems Generate, Recruit And Train Opportunity Seekers
Powerline systems are highly automated. They are generating signups from opportunity seekes by advertising and delivering a free copy of the system. Members are placed in sequence one below the other, but only paid members receive commission.
Once a member converts to a paid member by signing up for the opportunity, all free members above are notified of the amount of commission they have missed. This creates fear of future loss and promotes conversion.
The system recruits and trains only opportunity seekers. To operate the system you need to know how to drive traffic to your site. Most of your members will not be able to recover the cost of driving traffic, and drop out.
Funded Proposal Systems Generate Opportunity Seeker Leads
Funded proposal systems are less automated. Examples are the systems promoted by Mike Dillard, Ann Sieg and Daegan Smith. They are generating phone and email leads, and are designed to fund themselves through the sale of an affiliate membership to the promoter’s program. With enough internet savvy, you can actually make a profit by generating leads.
Neither the power line system nor the funded proposal lead system are giving you the tools to market your products and to train your downline to do the same. Experience shows that it is difficult to build a stable organization in this way.
Direct Marketing Systems Acquire And Retain Product Users At A Profit
A direct marketing system consists of a proven set of tools and procedures, designed to market your products. You are doing this by establishing direct contact with people who are likely to look for the benefits of your product. An effective marketing system has automated components, but it will also require that you interact with your customers on a personal level.
Direct marketing allows you to allocate precise cost of acquisition to each customer. Thereby, you are able to test and improve your marketing strategies. This is important to ensure that you are making a profit. You will also enjoy a high retention rate, because your customers joined you for the benefits of the product, and not for elusive financial gain.
Direct Marketing Systems Empower New Business Builders To Market Successfully
A direct marketing system allows you to build a stable base of product customers and make a profit. Once you have established a profitable business, you begin to prospect for new business builders from your product costumers.
With a tested and profitable system in place, you can now train your new distributors to duplicate your success. In this way, a direct marketing system is meeting all of the goals for you MLM business.
The Success Of Your MLM Marketing System Depends On You, Not Your Product
A direct marketing system delivers on your goal, but it takes skill and leadership to execute. You need to gain:
- 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 requires your personal decision to take full responsibility for your business. Confidence as a leader come through practice and the experience of success.
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August 28th, 2009 at 2:13 am
You insights are better than other ideas on growing mlm business. It anchored on lasting and stronger foundation of mlm. But here in the Philippines, we are growing our mlm through frequent home meetings, rarely use the advertising as mentioned in your website. Can you give ideas on our mlm practice here in the Philippines? All aspects.
August 31st, 2009 at 3:35 pm
Jhun,
Home meetings will work well in your country, when you have strong ties to your wider family, friends, and neighbors. A home meeting is just one way to deliver your market message, the internet or the phone are some other ways. The important thing is not so much the way in which you deliver your message, but rather your message itself, and the way you are choosing your audience.
And for your message and your audience, I think that the same marketing principles apply in the Philippines as in the US. Network marketing is a way of distributing useful products and services, so your most important task is to market your products. Make sure that you are truly meeting the needs of your customers, and let them know that you care. It is most important for you to win and keep their trust.
It is also true that network marketing is a very good way in which the average person can build a strong home business. The problem comes when people are told that they can make money quickly without much work, and when they are joining and buying products because of that promise. You mav be able to add a lot of people quickly that way, but they will drop out quickly. In the long run, this will destroy your reputation and the reputation of the network marketing industry.
So, my recommendation is to lead with your product, and always offer true value and service to your customers. Then you will have lasting success, and you will be able to train successful distributors for your down line.