Start Your MLM Right

Do your investment justice by preparing thoroughly for your business.

Q: I am just getting started in a network marketing program and want to make sure I do the right things in the beginning. How should I go about this?

A: Getting off to the right start takes some careful thought and planning. You should seek advice from your company, your sponsor and other industry professionals. Expect to get different recommendations from each advisor. They will not be all right, nor will they be all wrong. In fact, each advisor will give you their ideas based on their specific life experiences. You must determine what ideas fit your chosen opportunity, your own talents and personality. And you'll continually be experimenting to discover what does not work to get closer to what does work for you. Each time, you'll learn new success principles. So whether you're new to network marketing or you're recommitting yourself to your present company, you need to start with the right foundation.

Whether you're representing a product or a service, you should feel confident that the company delivers what it promises and that your upline sponsor can contribute to your success. Testing the product or service yourself to determine your own level of satisfaction is an obvious first step. But people rarely take the next important step: investigating the success and support of their sponsor. Most experts agree that network marketing is a people business more than it is a product business. Successful companies understand this--they know they grow their company by growing their people. The best distributors understand this principle as well, and will create an environment for downline growth and success. If you believe that many hands make for light work, you should make it a high priority to meet your sponsor's upline sponsor, that person's upline sponsor and so on. Their wisdom and experience can put you in high gear!

Before you sign the distributor application, make sure you don't become an orphan. Picking the right sponsor in the beginning is more important than thinking about whom you may sponsor later. And being directly under the company is usually not an asset, either. Company executives don't have the time to serve that function. They may place you under a good sponsor, but you won't have a choice in the matter. If you still have the choice, choose your sponsor carefully! You want a partnership that carries you through thick and thin.

If you're recommitting yourself to your current opportunity, I recommend that you find the most serious and committed upline person and build your relationship there. That may mean bypassing the support of your immediate upline in favor of someone who can be more supportive. This usually isn't a problem, since the company's compensation structure still rewards those in your upline tree. Maybe your sponsor or even his or her sponsor isn't as committed to success as you are.

Building a Foundation for Your Downline

Too many new distributors mistakenly believe that once thesignature dries on the application, the bonus checks will sproutwings and fly into their mailbox. Maybe that's why somedistributors foolishly purchase a stack of applications and sendthem to anyone who can fog a mirror. This is a business where youmust create a relationship with your potential enrollees. Remember,nothing is ever as easy as it sounds, so expect to invest time inyour own prospecting.

Start by building your library with the most highly recommendedbooks, tapes and current information to help direct your efforts.Know when and where local distributors meet in your area and thetime and phone number of the next company conference call. Nevermiss a meeting, and certainly never go alone. Make the companyrecruiting conference call a tool that becomes part of your systemto get prospects to company meetings. New distributors carry freshenthusiasm and will continually renew your own energy level.

Quality network marketing programs offer their customersmoney-back guarantees on their products and buy-back rules fordistributor inventory if interest wanes. Getting started usuallyrequires an investment in product inventory as well as your time.You'll need enough inventory and sales support materials tolast a couple of weeks. Even if the company direct-ships to yourdownline or customers, offering immediate delivery of product forthe initial order takes advantage of their immediate excitement orproduct samples may hold their interest until they receive theirfirst order. The necessary capital might be $50 to $500, dependingon how serious you are at this point. Realize that you are notspending money--you're investing it! And there isn't reallytoo much risk involved. As I mentioned before, most companies offera buy-back policy with a small restocking fee (usually 10 percent)if you feel overstocked or decide to get out of the business.

Now you must determine whether to "lead with theproduct" or "lead with the opportunity." This meansyou need to get into your prospects' head, determine what their"hot button" is and focus your approach on providingsolutions to their problems, needs or desires.

Do You Have aQuestion?
Visit our Expert Centerto ask our experts your most pressing businessquestions.

Most new distributors want to rush out the door with theirproduct or service and sell everyone they know. While this"direct sales" approach works with direct sellingcompanies, network marketing is usually a bit softer approachsometimes called "sharing." Selling is premeditated, andsharing is spontan-eous. You'll do better to find yourprospects' need and desire for your product or program beforeyou mention that you have it!

Of course, eventually finding a few serious distributors topersonally sponsor is critical to getting started. Your uplineshould be willing to help you talk to prospects in person or on athree-way call. However, only the most naive think everyone theysponsor will be as committed as they are. It is not uncommon tosponsor 10 or 20 people before you find your first seriousdistributor. That's OK--percentages will improve as time goeson. But for now, concentrate on duplicating yourself at least twotimes per month and teaching them to do the same until you'reat least four levels in depth. Eventually, you'll be able tosponsor, train and mentor more than two, but for your first sixmonths, concentrate on quality, not quantity.

You can safely assume that most people don't believe theycan "sell" and probably wouldn't even want to try.Most trainers say you should get a customer and simultaneously tryto recruit them by asking if they'd like to earn more money.But the customer has probably heard this approach before. Beforeyou utter another word, they suspect that you want them to go outand" sell" to their friends. While selling is animportant part of any successful network marketing experience, youmight be more successful if the process took on a softer focus.Think about your experiences to date. Could this be why you havetrouble sponsoring? Perception is reality to your prospect.Preconceived notions can build mental roadblocks that are difficultto overcome. If the prospect seems cold to the opportunity offer,many companies have a Preferred Customer program that is in betweenbecoming a retail customer and a distributor. This may be a goodplace to start, and you can then two-step them into a businessopportunity offer later once they bond to your products.

Getting off on the right foot is based on understanding properdirection, making a serious commitment to a specified goal,following a proven plan of success, and then giving it 90 days ormore of serious effort.

Michael L. Sheffield is the CEO of Sheffield ResourceNetwork, a full-service direct sales and network marketingconsulting firm. He is also the co-founder and chairman of theMulti Level Marketing International Association (MLMIA). He can becontacted through http://www.sheffieldnet.com.


The opinions expressed in this column are thoseof the author, not of Entrepreneur.com. All answers are intended tobe general in nature, without regard to specific geographical areasor circumstances, and should only be relied upon after consultingan appropriate expert, such as an attorney oraccountant.

Related Topics

Innovation

The Greasy, Glamorous Rise of Mascara

You won't believe the grimy gunk people used to smear on their eyelashes -- and still do.

Business News

Police: 82-Year-Old Woman Found Alive at New York Funeral Home After Being Pronounced Dead

The woman was found breathing almost three hours after she was pronounced dead.

Business News

An NFL Rookie Scores a $514,000 Jackpot in Las Vegas

Los Angeles Rams running back Ronnie Rivers sat down to play 3-card poker and left a half million dollars richer.

Business News

'Our Kids Aren't Even Safe To Order Food': Mother Outraged After DoorDash Employee Uses App to Flirt With Teen Daughter

One mom is going viral on TikTok after catching a DoorDash employee attempting to flirt with her 15-year-old daughter through the messaging service provided through the platform.

Business News

'Completely Absurd': The Average U.S. Male Can't Fit Into Universal Studio's New 'Blatantly Fatphobic' Mario Kart Ride

Mario Kart: Bowser's Challenge formally opens to the public as a part of Super Nintendo World inside of Universal Studios Hollywood on February 17.