About 97% of people who start a network marketing business fail and quit - usually within their first year but very often within their first 90 days. A recent survey of hundreds and hundreds of Utah-based tax preparers revealed that very few people actually make money in their network marketing business. Shocking, huh?
Typically, a new network marketer is over-the-top excited and highly motivated (I know because that was me!) She's seen the company's opportunity overview and is thrilled at the thought of quitting her 9 - 5 job. She's purchased her starter pack of product. She's listened to the weekly team call, made her list of names. Now she's ready to GO! So, she starts working her way down the list every night after work - smiling and dialing - presenting the product and business opportunity to the people she knows.
A few weeks into this and our happy networker has managed to get a few people to try the product and one distant unemployed cousin to become a distributor. So, she's signed up a total of three people, made about $25, and has run out of names. Her cousin, the new distributor, claims he doesn't know anyone and can't come up with a names list. What next?
Sadly, this scenario is all too common; in fact, the biggest reason why people fail in MLM is lack of prospects. They simply run out of people to talk to. And the friends and family they did talk to were never interested in network marketing to begin with. They were doomed to fail from the very start.
That's why having an effective prospecting system bringing in high-quality leads is the most critical component in building an MLM business that actually runs in the black. Here's the deal, in order for a distributor to make money, she has to enroll other distributors and get them to do what she's doing. In the industry we call that duplication. But what if her “system" is just approaching friends and family and distant acquaintances and presenting the product and opportunity? Then her few recruits run out of names just like she did and end up quitting right along with her. Without a lead generating system in place that anyone can learn and teach to others, duplication will never happen. . . hence all the quitting.
It may take you a while to learn how to generate your own leads. If it were quick and easy everyone would be doing it! But think about the alternative - failing in your MLM business. Quitting altogether. Telling your spouse that they were right after all. . . only the people at the top make money. Not only is that more than a little embarrassing, but it means abandoning your dreams of quitting your 9-5 and working from home. Failing at MLM means not having more time to spend with the people you love most. It means staying in the same rut you've been wallowing in for years.
How do you make sure you don't become one of the 97% that don't make it? By answering yes to all four of these critical assessment questions. . .
1. Are you using a lead generation system that brings high-quality prospects to YOU?
2. Are you offering something of value first that is NOT related to your MLM product or opportunity?
3. Do you have a system in place to easily and efficiently teach others how to do what you do?
4. Can your recruits easily and efficiently teach their recruits to do the same?
Were you able to answer yes to all four questions? If so - congratulations - you have created duplication in your business and are on a great path. If, however, you answered no to any or all of these four questions, your business is probably in trouble and you need to do something to change it.
How do you change it? By first figuring out what value-added informational item you can offer people. An eBook works really well for this, but don't despair - you don't necessarily have to create your own from scratch. There are many already written that you can represent if you become an affiliate for the author. Then, once you have this piece in place, you must learn the current Internet trends like Social Marketing to find those people looking for information on a home business. Things like article marketing, content sharing, affiliate marketing and blogging are just a few of the methods that can bring a steady stream of interested people to you. Creating a blog, for example, that includes highly searched keywords is a great, free way to generate prospects for your business.
You know, there are thousands and thousands of people on the Internet right now searching for information on how to build an MLM business. They're looking for the secret to MLM success. They need a system that works and someone knowledgeable to lead them. With the right set of skills, that leader could be you.
Melissa Sanford is a network marketing professional and MLM coach. She teaches people how to position themselves to their market and then promote themselves online using low-cost, effective prospecting techniques. Pick up Melissa's free report at http://www.LearntoAttractProspects.com