Network Marketing Distributors – Are you Building a Business or a Downline?


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network marketing distributorsNetwork marketing distributors, especially people who are brand new to the industry need to realize a few things about building a business in the network marketing industry. In the fairly short time i’ve spent in the industry (roughly 3 years) I’ve seen lots of companies and network marketing distributors come and go. Many network marketing distributors in MLM get involved in a company based on a great deal of hype. They see the industry as a lottery ticket and not a real legitimate business and they come in like a lion and go out like a lamb. Given the amount of times I’ve witnessed this exact senario play out you’d think I was a ten year industry veteran.

I was fortunate enough to learn the differences between building a business and just building a network marketing downline early on in my career. I was taught to focus on building a list rather than building one network marketing downline. I was taught the importance of creating multiple streams of income in my business. I was taught that my list was an asset that I owned and I controlled. Click here to learn how to build your own list, create multiple streams of income, recruit more reps into your business and get paid weather they join your company or not.

In actuality if you are in the network marketing industry building a downline you own nothing! Your entire business is based on the whims of that company. If the company owners decide one day to change the compensation plan in a way that favors them and not the field distributors your entire business can disappear in a flash.

I know that could never happen to you, right?

The fact of the matter is that network marketing companies go out of business all the time for a variety of different reasons. Less than 10% of companies in the network marketing industry last beyond the 5 year mark. Its crazy but its true.

The possibility of a company going out of business is not the only reason why you should focus on building a business rather than just a network marketing downline. If you are familiar with Robert Kiyosoki, T. Harv Eker or any other successful financial author, or if you simply have some common sense you realize the importance of multiple streams of income.

Would you rather get paid from six or seven income streams or just one?

When someone joins your network marketing company its like they are agreeing to mary you. Its a big step! In a way you are consummating your relationship. You must understand that no matter how great your company is and how revolutionary your product is, 95% of your prospects are going to say no to your business. Even though it makes perfect sense for you does not mean its going to make perfect sense to everyone else in the world. I hope you can understand that.

So since 95% of your prospects are going to say no to your business opportunity shouldn’t you have a way to monetize that 95 percent?

Well what’s the alternative? If they say no to your business opportunity does the relationship automatically die? That seems to me like a huge unnecessary waste of time and possibly money if you are doing any sort of paid advertising. You’re company is not going to be right for everyone and I think its part of being a leader in the industry that you have options for your prospects.

You want to come off to your prospects as a trusted advisor or a doctor who they come to in order to solve their problems. A doctor is not going to give out the same prescription for everyone who comes through his door because people are going to come in with different challenges and different problems. Can you imagine a doctor prescribing Advil for every ailment? Broken leg? Here’s some Advil… Oh you’re pregnant? Have some Advil! You’re Appendix is experiencing sharp pain?.. I have just the thing.. Advil! Sounds ridiculous, right? Thats how the majority of failing network marketers approach their business.

Network marketing distributors in MLM

Network marketing distributors in MLM and direct sales distributors in mlm could learn a lot from the Burger King business model. The Burger is the big selling feature. Thats what draws in the customers. But the majority of money made in a fast food restaurant like burger king is not made by selling burgers. Its made by selling the french fries and beverages as up-sells once the customer is in the door. Its known as a funded proposal and its used in many different business models.

When you lead with value, training and solutions in the form of a funded proposal you come across as a trusted adviser rather than some sales rep for XYZ company. You can make money off of the 95% of prospects who inevitably say no to your business opportunity and attract a higher quality prospect into your primary business opportunity. Its like getting paid to generate leads for your business and I would not approach my business in any other way.

Regardless of weather you are are a complete industry newbie or a seasoned direct sales distributor in the mlm industry it is important to focus on building a business and not just a network marketing downline. Not just for the security of having multiple steams of income incase something (god forbid) happens to your company, but also for the leverage of owning something. Your list. Work on building something of value that you own in your business so if the prospect decides not to join your business you can market various things to that person over a long period of time.

After all..  You went through the trouble of generating the lead. Don’t you want to get the most ROI for your valuable time and money?

Click here to learn how to build a list, leverage a “funded proposal” system, attract higher quality reps into your business opportunity and get paid weather they join your business or not!

Learn more about building your network marketing list here and if you took something of value from this post please let me know by leaving a comment below.

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