Balancing Corporate & Homesteading Lifestyles
MLM: Is Direct Marketing For You?
Multi Level (Direct) Marketing is not for everyone, and according to most statistics, only 1 out of every 100 people achieve MLM success. Those odds don't sound good and are a deterrent for many but statistics can be very misleading.
A quick personal story about my experience with statistics: While in college I wrote a term paper on cyber crime and hacking. One government entity reported that they had a 90% success rate of turning back hackers. What they didn't tell you was that they only detected 30% of attempted hacks (at that time) so the statistics meant that they stopped only 90% of the 30% detected hacks. Those are not very good odds. So in the big picture what does this statistic of 1 in 100 mean ... not very much. The numbers are easily skewed.
The facts about distributors:
(Source: 2002 National Salesforce Survey, Research International, Inc.)
- 82% of direct sellers have been with their current direct selling company for one year or more, and 47% for five years or more.
- 89% of direct sellers rate their personal experience in direct selling as excellent, very good, or good.
- 84% of direct sellers say that direct selling meets or exceeds their expectations as a good way to supplement their income or as a way to make a little extra money for themselves.
- 91% of direct sellers say that direct selling meets or exceeds their expectations as a business where the harder they work the more money they can make.
- 78% direct sellers who are in direct selling for less than a year report that they are very or extremely likely to continue as a direct seller in the future
In addition, research shows the following
- 25% -50%+ sign up to get a product for wholesale price.
- 10% -80% renew their contract, depending on the company.
- 50% -60% do not take business action.
- 10% -15% works the business.
- 80% of sellers say direct selling meets or exceeds their expectations.
- 74% of US adults have purchased products from a direct seller
- 50% -60% do not take business action.
- 10% -15% works the business.
- 80% of sellers say direct selling meets or exceeds their expectations.
- 74% of US adults have purchased products from a direct seller
The reality is that only 10% - 15% will actually work the business everyone else is treating it as a hobby. MLM businesses are NOT get rich schemes and are NOT going to get you a profit if you are not willing to put in the time, energy, focus, and commitment. Plus a good MLM business provides the opportunity to make back most if not all of the initial low starting cost (purchase of starter kit) within 90 days of starting.
So what does it take to be successful? If there was one word to sum it up, its commitment! This business model is a marathon, its NOT a sprint. If you are looking for a sprint, then MLM is not for you. You must commit to work and build your business and that takes TIME.
3.) Once you have chosen the product, choosing your sponsor is critical to your success. Can you do it without a supportive sponsor and upline? Yes, but it will be 100 times harder and who wants to make it harder. Your sponsor and upline are your resource for everything. They mentor, guide and are your biggest supporter. Your success is your sponsor's success ... it's a team effort. Your sponsor is very important in the beginning especially when you are learning the ropes but that relationships goes much further. A good sponsor will recognize and applaud your successes and lift you in the down times. They are the motivation when yours falters. From personal experience, being part of a "team" can be very empowering. And note: pay attention well because as you build your business and sponsor, you will be serving as a sponsor and mentor to one or many and your actions will influence and affect the success of your team. This means choose your "leader" well and learn to be a leader as the torch will be passed to you as your business grows. Remember sponsors don't recruit, they train and mentor.
4.) This goes with loving the product you have chosen to sell ... always be genuine and ethical. You may be able to fake it for a short time but people will see through the charade. It's okay to be new and inexperienced in sales and in
knowledge about your company's full product line. Don't pretend to know what you don't know. Be honest and genuine. I saw a post today that said something along the lines of if you were the most perfect and ripe peach, don't be disappointed if everyone doesn't like you, there are people out there who just don't like peaches no matter how perfect you are. You are not going to appeal to everyone so don't pretend to be something you aren't. And equally as important, be ethical. Your integrity will make or break you in direct marketing.
5.) Determine your target market. Your family and immediate friends are your potential market but not every one shares the same goals or needs. Look beyond the immediate and determine the market that you want to focus. Research marketing as there are so many resources out there and it's important to understand marketing and continuously learn and develop your marketing plan. You must get your business "out there" if you want to build a successful business.
6.) Share your business every day. Sharing does not mean in your face "buy this" but share what you are doing with the product and how it's benefiting you. Remember, your business is a marathon so you need to build a strong foundation. Utilize social media and talk about what you are doing and why.
You would be surprised how many people will start to associate your product with you and learn to recognize you as a resource if they run into something you talked about on an earlier date or that they have associated with you.
7.) Develop a business plan and set goals. It is important that you have something to measure your your success and how you are going to get there. For example, if you set a goal that you want to make $5,000 in 3 months then build backwards. This means you need to average $1,666 per month which breaks down to $400 per week. Next determine what actions you are going to take to generate the income. Maybe it is inviting 2 people per day to look at your business, which is 60 people in a month and 180 in 3 months. Perhaps out of those 180, you sponsor or sell to 18 and achieve a 10% success rate. Set measurable goals with an action plan to achieve those goals.
8.) Maybe one of the most important things is to figure out your "why." Why am I doing this? Write it down and keep it somewhere that you see it daily. Never forget your why. Your why will serve as an incredible motivator when you need it. There is going to be ups and there is going to be downs but if you're committed to the ride then your "why" will help a lot when you are feeling discouraged.
If you made it this far ... then you're doing good! If it's too good to be true, then it probably isn't ... but if you do you research and you're willing to commit for the long term and put in the work, then a multi level marketing business might be right for you. With minimal start up costs and a good plan in place and the dedication and focus, you just might be that 1 in 100! I know I am!!!!!
