This article is intended for network marketers who are looking for effective ways to improve their chances to succeed in the MLM industry.
In here, I will prove why recruiting is the only way to success in MLM business.
If you have read some of my previous articles that focus on MLM and network marketing such as:
- The Ultimate Truth about MLM nobody told you about;
- How to be Successful with Network Marketing and;
- How to Invite people in your Network Marketing Business,
Then you might already have a great insight into network marketing and multi-level marketing.
You probably even understand that your income in MLM business can only come from two options:
- profits from selling products or
- thru recruitment commissions.
I will focus on the recruitment side of the MLM business model.
I will prove to you why I think that recruiting is the only way to success in MLM. As a bonus...
I will also share with you some useful tips on how I managed to sponsor (recruit) people and build a big organization in my previous MLM company so that you could do it too.
Before we dive into the details, let's take a quick recap on the two ways you can make money with MLM.
Making Money in an MLM Business
Basically, there are only two ways you as a distributor can make money on any MLM company.
First is of course thru the profits you make by promoting your company products and services or Direct Selling. Second is by earning commissions thru recruiting other people to join your company commonly known as Recruitment.
In direct selling, you as a distributor can only make money by your own personal activities thru profits.
Every time you makes sales from your company products, you get to keep a percentage of that as profits.
However, whenever you recruit someone to join your company, most MLM companies will pay you an even better commission.
This commission will be rewarded on top of the profits that you make from selling the products.
And depending on the MLM compensation plan that your company implements, you might also get paid additionally every time your recruits make sales or, sponsors (recruits) new people into joining your company.
With just a quick look, you can clearly determine that in MLM, the fat paychecks will come once you recruit more people into the organization.
That's a fact!
Direct Selling - NOT a Reliable Source of Income in MLM
In addition to the fact that your income in selling and promoting your products and services is a linear source of income, there are many disadvantages to this kind of income stream.
#1 High Competition
Most MLM products belong to a popular niche. For example, most MLM company products today belongs to Health and Wellness.
Although Health and Wellness is a huge market, it is heavily saturated with different food supplements, weight, and loss management products; meal replacement shakes, vitamins, etc.
Having this much competition in your business will make it hard for you to sell your product to your target audience.
Your product will have to be genuinely innovative, backed up by Science and are proven to be very effective to stand out from the thousands of others.
#2 People Don't Need Your Products
Other than the fact that there is high competition for MLM products, the reality is only a certain percentage of the population needs and can use your products.
In Health and Wellness, most of your products would be food supplements or vitamins so you can accommodate the majority of the population (children, adult; men, and women).
However, vitamins are not considered by many people as essential to their daily lives.
Most people wouldn’t even dare to look at health products unless they are experiencing some health problems themselves.
#3 Expensive Products
Another thing that puts you at a disadvantage when selling MLM products is that they are usually much more expensive to their commercial counterparts.
It is common for an MLM product as plain as a Vitamin C to be 3 - 5 times more expensive than the Vitamin C tablets being sold in department stores and pharmacies.
Unless your product is truly innovative and has something unique from all the other similar products people ordinarily buy commercially, you will have serious trouble selling them.
#4 Hard To Make Sales
Needless to say, selling is an art, and not all people (including you) are comfortable in this environment.
For you to become an effective salesperson, you must study your products very well. You must know who your target market is and how to interact with these people.
Anything short than this would not be enough in this industry, and you might find yourself unable to make a single sales within days or even weeks.
I have been there!
From one MLMer to another, I highly advise that before you engage in any MLM companies, you must make sure that you are up for this task.
That selling is your forte. If not, then you might want to reconsider other options to make money other than MLM.
Recruitment - The Key to any MLM Success
Now that I have pointed out the hiccups that you must endure when it comes to selling your MLM products...
Allow me to turn my attention to the benefits of recruitment in any MLM business and as to why recruiting is the only way to success in MLM.
#1 Leverage your Business
By recruiting new people to join your organization, you will be leveraging your MLM business.
Not only will you have more than multiple income streams other than your self, but you will also effectively have other means to make money other than your own efforts.
Similar to recruitment, you can also leverage your MLM business if you learn how to automate your business or take your business online.
Do you want to learn more about Network Marketing business automation? Get a FREE webinar here.
#2 Create Multiple Sources of Income
As I have discussed above, by recruiting people to join your company you will have multiple sources of income. Whenever your sponsor makes sales, you get a percentage of their total earnings.
Every time your sponsor managed to recruit new people into the company, you get paid.
This is all in addition to your personal earnings in selling and recruiting.
#3 Source of Passive Income
One of the best advantages of recruiting people in your company is that in the event that you do not make sales on your own, you still get a percentage for every sale that was made by your sponsors.
We are human beings (you and I) and there will be a time that you get sick. There will also be times when you can’t go out to sell your products or promote your services due to some unexpected circumstances.
Moreover, most compensation plans of MLM companies will pay you huge commissions whenever your sponsors manage to recruit new people without you being there.
This is the secret to MLM success!
With the reasons above, I believe that recruitment is the key to success in MLM. The larger your organization becomes, the better your potential income will be
And although it is true that a distributor can still earn money from selling products...
It is undeniable that the huge paychecks in MLM will come from recruiting people. This is absolutely why recruiting is the ONLY way to success in MLM companies.
How I Managed To Grow My MLM Network
Just like selling products, successfully recruiting people and making a person join your organization is less about luck but more on your actual skills.
Here are some pieces of advice that I would like to share with you on how to become a good network marketer.
First of all...
Avoid getting rejected all the time! You must clearly identify your target market. Learn more about the truth of MLM and accept the truth about this industry.
One of which is that not all people are your prospect! Focus your efforts on your target market and the right people for your business.
#1 Invest in Yourself
To be an effective network marketer in any MLM company, you need to have the skills not only to sell your products but more importantly, on how to recruit people into your business.
There are plenty of network marketing training programs today will help cement your path to success in MLM.
Take a look at these Top 5 best MLM training programs.
However, there is this one training program in particular that I personally use. It has been the instrument of my success in network marketing. This program allowed me to get unlimited high-quality prospects that eventually became part of my team.
If you are interested to learn more about this program, you can contact me directly.
Or, you can start with this training program today!
#2 Get the "Right" Coach/Mentor
Many people in the MLM industry fails to recognize the importance of having a proper coach and mentor in this business.
I have learned this lesson the hard way, and I don’t want you to experience what I have been through.
With so much information about MLM available today, so many “effective” strategies and bulletproof programs to guarantee your success in network marketing...
You will need someone who can see through all the BS and fake promises.
By getting a proper coach, someone who is a seasoned veteran in the MLM industry, you will be properly guided on the steps you need to take and warn you about shady strategies.
You will have someone to monitor your progress and lead you to your goals.
#3 Learn Attraction Marketing
Last but not least, to become an effective network marketer and for you to grow your network, you must learn more about Attraction Marketing and how to use it on your business.
Attraction Marketing will teach you how to properly brand yourself so people would come at you on their own will to learn more about your business and your products.
Attraction marketing will also teach you how to identify your target market and how to get endless prospects every day in your business.
To learn more about the things above, you might want to read the previous article I wrote about the 12 Powerful Tips in How to Become a Good Network Marketer.
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Thank you for taking the time to read this article about why recruiting is the only way to success in MLM.
I hope that I provided you with some helpful insights on how to process with your business. Meanwhile, if you find this useful, kindly share this information to the people who might need this.
On the other hand...
If you do not share the same sentiments with me as to why recruiting is the only way to success in MLM, please share your thoughts in the comment section below.
Your ideas will be much appreciated and highly honored. Until next time.
Jack is an experienced online marketer who has a passion to help beginners succeed online.