Wednesday, March 12, 2008



The most COMMON MISTAKE that most MLM distributors often commit is underestimating the role of product in MLM. Most people land up thinking that the product sales can be done without and that sponsoring people alone can earn them better dividends.

The factual requirement is that PRODUCT must be moved. MLM is not a chain letter concept. You and your downline must tell people about the product line and why they should want to use these products for themselves and how by sponsoring enough people they too can earn a great deal of money. Due to the peculiarities of human nature, however, you usually have to sponsor fifteen or twenty people to find three or four good ones. The rest fade away with inertia within a short time unless you contact and motivate them constantly- and even then, a good percentage will still drop out.

Unfortunately, many people are jumping on the MLM bandwagon without the remotest idea of what they are getting involved in. just as in any business, you have to know how to play the game. There is a way to win and a way to lose. There is, however, no free lunch. People, who make it in multilevel, must put forth effort, energy and concentration to build their organization. The difference between MLM and conventional marketing techniques is that often in just a few years a successful downline will do most of the work for you and you can “retire”. Howzaaattt…..!!! Great! Isn’t it?


Once you decide that you are interested in MLM, there are several things you need to do. First, you must do some research on the company you are considering joining. There are thousands of MLM companies, if not lakhs and the number is growing by every passing quarter or so. Though the majority are honest and reliable and have excellent products, many of them will be out of business because of poor financing or inexperienced management. Unless you are among the three percent of the population who enjoy selling, you will want to represent a product line that will literally, sell itself.


1. Ask yourself, if the product line is the one that you will use.

2. Find out if the company has good financial backing. This is a major factor and it is a major reason why MLM companies fail. Find out the name of the company bank and the organizations and associations it belongs to.

3. Also check the top management. What’s their background? How long have they been involved in MLM? How successful have they been? Much of this information is available through the MLM “grapevine”- other MLMers.

4. The company you want to join should be a progressive one. This is where the real ground floor opportunities exist. The company should make it easy for you to participate. Products should be shipped directly to each distributor so that you do not have to carry inventory except for yourself and your personal retail customers.
There should be a minimum of paper work- computers are omnipresent in this age of cyber world, and should be used to do all of your paper shuttling for you, and pay all commissions and bonuses directly to each distributor.

5. Carefully check the MARKETING PLAN. Generally, you want bonuses to be paid on, at least, four or more levels. Usually, the easier the Plan is to understand, the better it is. You also want to evaluate it to make sure that you don’t have to maintain impossible quotas in order to receive good bonus cheques.

6. Look at the company’s sales aids and literature. Successful, progressive companies represent themselves in print with the same image they want to project, in person.

7. The company should require little or no investment in order for you to get started. However, if you want to be successful, plan on buying a distributor kit and sales aid. Without these, you won’t have company and product knowledge or anything to show people whom you want to sponsor.

Finally, see if you can determine the philosophy that guides the company. How committed are they to the success of their distributors? The basis of MLM sales is many people moving small amounts of merchandise. If the company is not concerned about the “little” distributor, it is not the company for you.

Once you have chosen the company, stay there! One of the worst things new MLMers do is attempt to become distributors for several companies at the same time. Don’t fall into this trap of dissipating the primary focus of your concentration. Nor do you want to become part of the “MLM Club of the Month” by switching from company to company looking for more “greener grass”.


Now, that you have joined the company of your choice, after reassuring yourself about the company’s stature and standard, the next thing you need to know is how and whom to approach/contact for sponsoring some distributors for your organization. Well! The process and method of doing exactly that is known as PROSPECTING. Here’s how to do it:


This should include everyone you know, plus new people you come in contact with. You should be adding to the list constantly. Eventually, you will narrow it down, but right now, just write down names. This stimulates your mind to keep thinking of more and more people- many of whom will be suitable prospects. Your list should include family members, friends, co-workers, acquaintances, shopkeepers, people in the same business as you, people you meet at a party, your doctor, your mail person, car mechanic, people you buy from or sell to, the waitress/waiter at the restaurant where you have lunch- everyone. However, not every prospect will be a suitable candidate for you downline. The ones you actually want in your organization need to be enthusiastic with POSITIVE ATTITUDES. You want people who expect to work for their success- not those who will wait for success to come to them. You don’t necessarily want “sales people” types. The most important thing that anyone can bring to your organization is their desire to have more out of life and their belief that this opportunity is their opportunity.

You want people who are eager to learn about the company and the Marketing Plan, people who ask a lot of questions. You don’t want those who you have to convince and cajole to join. They won’t do any work and will drain your energy. When you sponsor people who are motivated and excited, help them as much as you can. You’ll also notice that these people will appreciate your attention. When you call to find out how they are doing, they know you are interested in them. The people, who are not going to make it in MLM, will let you know that you are nagging and bothering them with your phone calls and visits. It is a mistake to try to indiscriminately, sponsor everyone you know. You need only four or five solid people. That means you should sponsor people who will commit themselves to carry out the program. And, of course, they must teach their people to do exactly the same. Duplicating yourself will help your generations in the business, succeed, thereby, helping you accomplish your GOALS, as well.

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