7/01/2011

Making Money in MLM - Lead With Your Business or Your Product?

This question is part of an age-old debate in the network marketing profession. Different comp plans are geared toward different activity. However, ever solid MLM companies designs their comp plan to motivate certain behavior.

Comp plans are designed this way so that the company profits and the distributor field profits. Not all pay plans are created equal and it's a good reason to know and understand yours. Most reputable companies that have a track record usually have a comp plan that works - after all, if you don't profit, the company won't stay solvent long. That's part of what makes this business so smart and profitable for everyone involved.

Every MLM comp plan is designed for team building. It's what multi-level means, getting paid on multiple levels or tiers in a commissionable structure. Very similar to any sales organization where people are incentivized by helping others. So, for a big paycheck, team building is the way to go.

Before you bristle (if you always lead with product), hear me out. Usually when people bristle it's because team building terrifies them. Often that's because they're afraid they're going to have to be the salesperson everyone crosses the street to avoid. Not so.

You can build a team and maintain your integrity and build your bank account. Think of yourself as owning a multi-million dollar potential business. Because you do. Then think of surrounding yourself with the best talent you can find to help you build your company. That's the mindset of a successful builder.

You introduce your business proposition for people to take a look at and they decide they're interested enough to learn more or they aren't. Simple and when repeated often enough, this one action builds a team and makes you money. Best of all, it provides you one of the key benefits of building an MLM business - it gives you leverage.

Think of it this way - you can only do so much yourself and most people building an MLM business are not working full time. That's OK; the model is designed for that. When you build a team, you get the advantage of getting a portion of everyone's effort. If you have ten hours each week to devote to your business and you find 10 other people who have the same, your business is being worked on 100 hours and you're putting in the same ten.

That's the power of leverage. If you're just selling product, you have to constantly look for new buyers - you alone. Every product and brand loses buyers over time. Do you ever change brands? So will your customers. By having a team and lots of people buying through many different people, you leverage your chances of growth outpacing attrition and you start to build momentum.

Building a team is the best way to realize a big paycheck, and help the most people - people who are generating income and people who are benefiting from the products the MLM company you represent offers. Its win-win and lucrative.

Amy Posner is co-founder of Savvy Sponsoring.

Savvy Sponsoring is a professional MLM coaching organization offering top level MLM education and the hugely popular Savvy free MLM Newsletter.


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