Find Prospects That Will Make You Money! (written August, 2014)
For years, I have warned that having new distributors trying to recruit their warm market creates failure and a negative impression for this industry. The family and friends in the distributor’s warm market are often the most critical people they know. Although they may be willing to support the new distributor by switching brands and purchasing distributor’s products, they usually do not share the same vision or desire for the income opportunity. Besides the warm market’s warm market is usually made up of much the same people. When the warm market does not go to work building the business opportunity as the duplication process is taught and how the new distributor was told it would happen, their sales organization ceases to grow. The new distributor’s warm market downline drops out and becomes convinced they were right – MLM does not work.
However warm markets are great to retail to. Purchasing products requires far less commitment in time and money than working an income opportunity. A new distributor can often earn more money faster from retailing than recruiting in the first place. They can start retailing and earning income while building a sales organization and building a substantial long-term residual income. The retail market is more familiar to most people than recruiting and creates a sense of a legitimate business too. The distributor’s warm market that offers a party plan marketing method prove this. A new distributor can easily earn $1,000 by conducting two two-hour parties a week. Even with paper work, recruiting and follow-up, to achieve this income level only requires 12 to 16 hours a week.
The trouble with the party plan method of marketing is that distributors do not want to recruit new distributors. They do not want local competition for parties, especially from their market, who would be inviting the same guests. This puts a heavier burden on the company and a few business builders within the company to market, advertise and build nationally.
Who are good recruits then?
If most people in your warm market do not make good recruits, then how do you build a sales organization? First you must understand how big sales organizations are really built. Most large sales organizations have about 90 percent of the downline built by an average of five business builders. This is true for top distributors and companies both. It is much better to find five distributors who will help you build your business than a hundred people from your warm market whose businesses you have to build!
Where do you find those business builders? There are two sources: The first and perhaps best sources are experienced business builders. These are distributors who have had repeated successes in direct sales/network marketing and know how to build sales organizations. As in many industries, many direct sales/network marketing fail within two years, so business builders are always looking for a new opportunity. You just to have to know these experienced business builders or have a means to attract them. This can be done by purchasing lists of experience networkers and calling, mailing or e-mailing them. There are many sources that generate such names.
You may also advertise in a trade publication, which is a targeted publication that finds network marketing business builders. You can think of them as the “help wanted” publication for the industry. Although placing ads can be less expensive and is a lot easier than doing massive mailings or calling, advertising can still cost more than a new distributor can afford. Ad co-ops can help make advertising affordable for most. Nevertheless, following this second method costs less and has an additional advantage.
Also look at your daily interactions…….
Most people have interactions with business people on a weekly, if not a daily basis. These people usually have business experience and often sales or training experience. They are, more often than not, willing to do what is necessary to be successful in all of their endeavors. They also are usually ambitious. Depending on the economy, car sales persons, real estate sales people and those who already own their own small businesses are good prospects. Teachers frequently look for ways of earning additional income, especially during the summer. Alternative health care providers also earn less income than others in the medical field and are often looking for extra income. Teachers and alternative health providers like to share and teach more than recruit and sell. Teachers in network marketing have often been successful because they too become good uplines.
These people may not be in your warm market. You may not even know them when you join the direct sales/network marketing program, but you meet them all of the time. I have always found them to be good prospects because they understand business and are willing to work. They will partner with you and help you build your business. They also offer a second advantage in that they are local. You can meet with and work with directly. They can provide the physical help you need for conducting opportunity meetings and training. Distributors have often formed lifelong relationships and friends from building a successful business team. They can provide each other moral support and inspiration. These prospects are everywhere. All you have to do is ask them how their business is going and listen. Most of these sales people live from one sale to the next. Ask them if they have slow periods. Ask them if they would like make more money and earn a more consistent residual income. Since these types of small business sales persons’ and professionals’ incomes fall when they are away or off, which results in them seldom taking a vacation, ask them how they would like to take frequent vacations and keep earning without always having to be there? Ask them if they would like to learn from other people’s businesses without having to invest a lot of money or have the headaches of hiring and managing a lot of people. Ask them if they would like to join a team that will help them build a bigger, independent business that can do all of this.
Both teachers and these types of business people are self starters that will be willing to learn, work and teach. They understand the need to learn how to do the business and are willing to invest money and time. They are willing to work with you to build a large sales organization and sale volume. They don’t want a hand out, just an opportunity and a hand up. This is how you can find prospects who’ll make you money!
The author of this article is Larry Costello, President of All-American Print & Mail, 2200 Wilson Blvd #102-57, Arlington, VA 22201.