Multi level marketing businesses are sold to participants on the idea of growing a turnkey business, building a downline income and succeeding to the point where you get a boatload of passive income and can sit by your pool all day sipping martinis. Sounds nice. Which is why MLM’s sell so well.
But most network marketers are failing. They’re stuck in their jobs and not seeing any success with their MLM opportunities, they’re going to meetings and conventions, they’re taking their friends out for coffee to build a downline, they’re building websites that get no traffic, and they’re wondering why their business doesn’t grow. They’re not living the dream they had been sold.
I’ll tell you why. If you participate in an MLM, or if you are thinking about participating in an MLM, or if you are thinking about creating your own MLM, pay attention. to this. Solve this problem and you will grow a successful MLM business.
MLM SALES FUNNEL STARTS OUT LIKE ANY OTHER SALES FUNNEL
So here is a fairly standard sales funnel (drawn hastily with Word’s low-end but serviceable drawing tool) and we can assume that most MLM businesses should fit into it: You’ve got the marketing stage, which sends people to the lead stage (identified here as a single event like a name or phone number capture), which sends people to the prospect stage (identified here as 3 small events but it could theoretically be as many as you need), followed by the stage where they hand over their cash to become customers.
For MLM companies, this is the sales funnel for the product or service you’re selling. It doesn’t matter if you sell consumer products like cleaners, detergents, etc., or if you sell web space and hosting, or if you sell calling cards, or if you sell any number of products that MLM companies sell. This is the sales funnel.
THE REAL BENEFIT OF THE MLM SALES FUNNEL
But what makes MLM a really attractive opportunity for many people is the downline. MLM’s are sold over and over based on this downline concept. The downline is where you get other people selling the goods and services (as depicted by the multiple sales funnels, below) and you get a commission based on their sales (as noted by the dotted green lines).
With me so far? This is the plan. And a network marketer who can follow this plan will make a lot of money. A LOT of money.
BUT HERE’S THE PROBLEM WITH MLMS
Network marketers ignore their sales funnels. They skip over the all important steps of marketing, generating leads, and prospecting and they try to build a downline.
And they HOPE for this… where they don’t have to put in as much work but their downline makes money and they get the income.
This might be the goal, but it shouldn’t be the first step. When network marketers take this first step, they end up building a downline of people who have the same idea. So everyone ends up with a downline that looks like this…
Nothing is going on! The person at the top of the downline was hoping to build a downline so he or she didn’t have to sell the products. They built a downline and the promise of great downline-generated income compelled the downline people to do the same thing. NO ONE is selling any products or services and everyone is creating downlines that aren’t doing anything…
… And that is why MLM’s make no money, why network marketers run out of people to invite to join their downlines and why MLM companies get a bad reputation.
HOW TO FIX YOUR MLM SO YOU MAKE MONEY
Fixing your MLM is so easy. And it works. And it will transform how well it does. And you will never have to bug your family and friends to join your company. And if more MLM people do this, the industry wouldn’t have the bad reputation it has.
Here’s what to do:
- Forget building a downline for the short-term. Market the products or services. Make sales Increase your direct (“active”) income by selling products to people who can use them. Create a list of happy customers who love you. Do this over and over and over until you can’t believe how much money you’re making from just selling products and services with NO downline.
- When you become very successful selling the products or services (and not the downline opportunity), you will have people come to you to ask you what your secret is. (Believe me, successful people get asked about their secret to success all the time.)
- When someone asks you about your secret to your success, make them part of your downline.
- Train them to sell their products and to completely ignore their downline for a while. Get them marketing, selling, and building a happy customer base. Then people will be magnetized to their success and they’ll create an active downline the same way you did.