MLM Success: Harnessing the Power of Leverage to Build Your Business
Building one’s own small business is a goal of many Americans. However, not everyone has the time or the capital to start a new venture. Multi-level marketing (MLM) is an attractive business opportunity as an MLM program can be done in one’s spare time with minimal start up costs. However many people still struggle to achieve MLM success.
The power of MLM lies in the concept of leverage. When one person works for himself, he can only accomplish so much because there are only 24 hours in a day. Large corporations accumulate vast amounts of wealth because they leverage the time of many employees to get more done. MLM allows this same principle to work for people without the money to hire a staff through an independent representative’s downline.
A downline is basically represented by those people who the MLM representative personally signed up to the program or who were brought in through someone that MLM person signed up. The downline can exist many “generations” below the representative. An MLM program compensates people on the basis of not only what they do in terms of selling products, but also all the sales downline members make. This creates the same sort of leverage that corporations take advantage of; you are getting compensated for not only your work, but the work of others.
The key to success in MLM business is to cultivate your downline and create a reproducible prospecting method that you can teach to them. The less dependent it is on your particular skill set, the better. Think of trying to produce a series of methods like a franchise that can be used over and over again by following some simple instructions.
One thing you want to consider is how you can train your downline as efficiently as possible as it grows. One way of doing this is recording a series of video trainings that can be made available in a private members’ area on the internet. This way, many of the basics can be explained without a lot of personal time devoted by you. People you sign up can give these videos to people they sign up, and so forth. To answer questions, you can hold a webinar or Google Hangout once per week so that everyone gets the benefit of hearing the questions and answers.
These same principles can also help to improve the prospecting process itself. Many people might have a difficult time “selling” a particular MLM system. However, you can create a series of videos explaining the advantages and disadvantages of a program and send that to your downline. This can be then placed on their personal websites or Youtube channels. This methodology can also help to rapidly tweak your marketing funnel as you can test different videos to see which ones work the best.
New leads are an important factor or secrets in achieving MLM success. Most MLM marketers start with their friends and family. However, this can often be disastrous because getting rejected from someone you know hurts a lot worse than rejection from a complete stranger. Friends will also usually serve as a negative influence giving you all sorts of reasons that the “MLM scheme” will not work. For this reason, you need to seek out a diverse source of leads from people that you do not know.
There are many sources of new leads. Some lead brokers are constantly getting the names of people looking for small business opportunities. These names can often be purchased at an inexpensive price.
Internet advertising is also quite effective in generating leads. Facebook ads can be targeted a people within a certain group or demographic that has the highest probability of being interest in your MLM program. For example, if your MLM product helps people lose weight, advertise only to people who “like” groups associated with losing weight. You can also achieve similar targeting by using Google pay per click advertisements that show when certain keywords are searched for.
MLM is a great way for ordinary people to make money. However, most people who try MLM are not successful at it. As a result, you need to try to establish a reproducible sales funnel fueled by a constant stream of new leads. When the right funnel is found, it can be easily shared with your downline, allowing you to harness the power of leverage to build your small business empire.