Acquiring and Attracting The Best MLM Leads
Multi Level Marketing, known as MLM for short, is a business model that relies heavily on recruitment in order for a person within the company to flourish. As such, attracting prospects as quickly and efficiently as possible is of paramount importance. However, before we dig into a conversation about the most effective means of acquiring these potential buyers, let’s first take a look at a basic MLM business structure.
Basic Business Structure:
When a person enters into an opportunity they will generally be presented with multiple buy-in or membership options. Normally the higher level purchased, the greater the potential profit opportunity becomes.
So a model could have three levels at a $99, $199, and $299 buy in point where the base level pays out 10% commissions, the second pays 20% commissions, and the third pays out 30% commissions. Of course at this point what we really have is just a basic affiliate marketing scheme. To make it multi level there needs to be payouts at the different tiers in the recruitment process. The payout structure listed above would be considered tier 1. The first tier represents people that you recruit directly into the business.
So what happens after tier 1? Tier 2 would represent people that your direct recruits referred into the company, tier 3 would represent the recruits of the secondary recruits, and so on down the line.
For simplicity sake let’s say the company pays 10% on all tier 2 recruits and 2% on all recruits starting at tier 3 and lower down to a maximum of 10 tiers. I realize that this may sound complicated, but it is actually a very basic setup. They can get far more complex than this with their compensation plans.
So why is it important to understand the company pay structure before we talk about how to get exclusive mlm leads? Because if you do not have a full grasp of your potential profit, then you can never adequately assess the value of a lead. You see not all leads are equal. some are going to be much higher quality than others. For each lead generation technique that you employ it is critical that you track your results in order to calculate your average cost of customer acquisition with a specific lead technique.
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Tracking MLM Lead Generation Techniques:
For example if you had a major push to recruit people into the opportunity at the $99 pay out level and you would receive a 10% commission at that level then you know that you will earn $9.90 on each new recruit. This means that each lead generation method you use must have an average cost of customer acquisition of $9.90 or less in order for you to not lose money in the process.
Each lead generation technique must be tracked separately in order to maximize your profits. If you did not track them separately what could go wrong? A lot actually.
For instance say that you were using 3 different methods to generate leads online using the mlm marketing system at the $99 level. On the first method you spend on average 1.25 to get a customer, the second you spend $1.00, and the third you spend $10.00. This means that between the first two techniques you are making a profit of $17.55, but on the third you are losing $0.10 per lead.
If you were not tracking all three separately all you would see is that you are making an overall profit of $17.45 and never realize that your third technique was eating into your profit!
So remember to always track you results individually for each technique that you are using to drive leads!
Acquiring MLM Leads:
There are literally dozens of methods that a person could use to capture leads. There is really no such thing as a “best” technique because it depends largely on the offer being presented.
With that said there are techniques which tend to do quite well over and over again. One method that tends to produce good results and is relatively cheap to implement is to have postcards put up in various places, like universities, coffee shops, hotels, and places of that nature. Basically you want to think of places where a lot of people routinely gather that are likely to attract people in your target audience.
With MLMs this is going to be people who want to make money from home. Hotels are good because they have a lot of business travelers. Universities are good because there are always students looking to earn extra money in their spare time to support their studies. Coffee shops are good because they attract both business people, students, and the general public.
As far as getting the postcards placed everywhere the easiest way to do this is by using a website called Fivver. On this site there are hundreds of people willing to do various tasks for just $5.00. This includes people offering to post fliers and postcards in a wide variety of places.
Another great technique for generating these leads if you are just starting out is to talk to your friends and family about it. Have them tell their friends, and just start expanding out in that manner. Put together a nice sales presentation and meet all of these people in person to go over the costs and benefits.
The last method I want to mention is to outsource the process to a professional calling center. This can get rather expensive, so it is really only suitable for high ticket MLM offers, but do not underestimate the power of a professional sales person to convert a lead into a paying customer!
The MLM business model is very powerful and can generate its members a tremendous amount of money very quickly if the member is able to master just a couple of lead generation techniques. Best of all, once the member has built a large enough downline with a handful of people pushing recruitment in their downline, then the profits become largely passive.