When you are starting your MLM, direct selling, network marketing, or party plan business, you’ll find that recruiting experienced distributors is often essential to your company’s success. And if you don’t have the background yourself, as a successful recruiter, you need to budget for a Sales Manager position for an individual who does have that capability.

Your ability to recruit directly equates to your success. If you have a background in recruiting and a background in direct selling, then your need for capital will be substantially lower. Recruiting top distributors will enable your company to have the capital to stay afloat and even grow. If recruiting is slow then you will need to raise one to three years of buffer capital in order to support your company in the event of stagnation or loss. And remember, the remuneration that is offered to top distributors will be effective in their decision to stay and help grow the business.

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Contributor of Forbes, Jody (Coughlin) Greene reestablishes that success in MLM is significantly based on sponsorship and mentoring in her article titled “Success and Mentorship.”

In multilevel marketing, individual consultants (or representatives, or distributors – which all generally mean the same thing) act as sponsors by recruiting other consultants beneath them, and then the process is repeated. The process of multilevel marketing produces a system in which top-tiered consultants benefit from the sale of products by downline distributors. In fact, multiple distributors can benefit from the sale of one product. Ms. Greene believes that the consultants who experience the most success are those who received mentoring by their recruiting sponsor.

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