Some companies state that you can’t recruit people that you didn’t personally sponsor. If you personally sponsor a friend or family member then why can’t you recruit them to join you at your new company?
The short answer is that company policies have evolved over the years resulting from a combination of increased raiding by distributors who switch companies, on the one hand, and secondly, direct selling companies have become more rigid in trying to retain their sales force, sometimes with good reason, and sometimes appearing to be an “overreach.”
Leading direct selling companies, for instance, around 20 years ago, maintained a policy that required consultants to only offer the opportunity to people that they personally sponsored. That policy was common 20 years ago.
Over time that policy changed. With the increased ease of communication due to technology, many companies asked that consultants not participate in raiding anyone in their organization while they were active with a company. The policy morphed again to require consultants not to sponsor anyone in a new opportunity except for those that they personally sponsored upon leaving for a new company. Then the policy changed again to where companies required that consultants who left a company not sponsor anyone into the new company. In a few instances, some companies have provided non-compete agreements, which aren’t considered fair and not

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MLM attrition is high. This is a fact of life. All of those distributors, who you have signed up, have competing demands on their time. So, if they go passive, it is not your fault. If that happens, you should give it a good shot to encourage them to reengage. However, after a few attempts, you should realize that you may be wasting your time. Hopefully, the value and quality and service proposition of your company’s products will allow you to convince the passive distributor to remain as a preferred customer.

At some point, however, you need to move on and focus on finding new recruits. One company executive succinctly captured the strategic decision in a metaphor when he said, “You can throw alarm clocks at the cemetery, but you won’t wake up the dead; it is easier to make babies.” Although a bit crass, this point is well taken. You should invest your time and effort where it will pay off.

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In everyday life, roughly nine out of ten successful people had a mentor.

In everyday life, roughly nine out of ten successful people had a mentor.

Multilevel marketing companies are built on the mentorship model where top-tier salespeople recruit salespeople below them to sell products and services. The top-tiered salesperson makes a commission on the products and services that they sell, as well as on the sales of those in their downline. This model encourages recruiting of new salespeople, while also allowing new recruits to have a mentor who will answer questions and provide examples of success.

In everyday life, roughly nine out of ten successful people had a mentor. Whereas, those who don’t have strong mentors in network marketing are those whom are more likely to fail or quit. Therefore, when it comes to choosing a sponsor/mentor, the best thing to do is to look for one that is seasoned, successful and willing to provide the critical network marketing mentorship that you need to be successful. And when it comes time for you to sponsor and mentor, be sure to train your recruits in the successful ways that you’ve been taught. Their success equates to your success.

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Recruiting in Rocky SoilIt is not just about you…

Too often, network marketers are tone deaf as they recruit and sell. It is easy to fall into the easy path in which talking points, which extol the virtues of the product and opportunity, are presented to potential customers or recruits without first understanding the mindset of their audience.

Standing in the shoes of your customer and recruit is essential. There is a reason that Fortune 500-brand companies engage in significant market research and focus group activity before launching products. They understand that “having a good product” is not enough to close the “bonding” loop. Unless, you are the rare genius of Steve Jobs, who was able to create a new product, for which there was no market, and to anticipate that “if we build it, they will come,” then there is no escaping the hard work of finding and preparing the “soil” for planting.

And it’s not about the coffee…

And, as good as the product or opportunity may be, one must realize that the relationship may be the driving factor in success. In a recent book by Starbucks’ President, Howard Behar, It’s Not About The Coffee, Mr. Behar explains that the success of Starbucks was stumbled upon; ie., that Starbucks is not a coffee seller that seeks relationships with its customers, but rather it is a company that fosters store experiential environments that bond relationships with customers first, and a company that sells coffee, second.

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Most direct selling, network marketing, MLM companies will be lucky if they can retain 15 to 20 percent of their recruited consultants on a long-term basis. Therefore, MLM company owners and their consultants should consider this information of great importance.

How do you retain your distributors? Special treatment can make all the difference in whether a consultant or customer stays or leaves the company. It’s important to encourage upline distributors to give their downline consultants and customers attentive treatment and service in order to ensure that they will stick around. The handling of people through quality service is priceless where advertising and marketing costs may not produce the same effect.

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Consultants often hit a dead end once they’ve exhausted family and friends as their first customers. Yet, some consultants make tremendous amounts of money without having rich (and supportive) relatives. How do they do it? Here are a few tips on how you can grow your MLM business:

1)      Never stop selling. Connect with people at the park, at your kid’s school, at your church, at parties, and at any other event where networking happens naturally. Ask for email addresses and phone numbers and make sure to keep a stockpile of catalogs, newsletters and business cards handy.

2)      Create goals for yourself. If you want to make “X” amount of money per month then do the math. How many parties will you need to have and what are the average sales you’ll need for each party? If you need two successful parties per month, then you set a goal and stick to it.

3)      Reach out to your customers. Keep track of your customers, what they bought, and when you think they might run out of product. Be sure to touch base with them to make sure that your customers become and stay repeat customers.

4)      Get organized. Use a business journal or computer program to keep track of your customers, including their names, what they’ve purchased, when they’ve purchased it, their contact information, and your general thoughts on their interest in the product and being repeat customers. At the very least they will appreciate that you’ve kept them in mind.

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