What it really takes to succeed in an MLM business
The question : «How to succeed in business?» is timeless. There are university, college and private training programs around the world which exist for the sole purpose of answering it.
When that question is applied to MLM businesses, the answer, not surprisingly, is very similar. The difference, I find, is that most people treat their MLM business like a hobby instead of like the business it actually is, which is the perfect recipe for failure.
If you have ever owned an MLM business, there is a high probability that the success advice you got on day one sounded like this: «Make a list of 100 names, call each one with your sponsor, write down your goals, attend company presentations, learn about the products, sell the products, etc.»
But how many of us got the actual 411 on the real investment needed to succeed, right off the bat? Very few, I’m sure. So here’s the truth about the actual costs of building a successful MLM business from someone who’s been there (more than once).
«A goal without a plan is just a wish»
Antoine de Saint Exupéry
Although the technical aspects of building a business are essential, it really does not give us the big picture. Even worse, it makes it sound as if an MLM business can make you rich quickly, with very little work and a few hundred dollars invested. This is a myth created and maintained by independent associates that are either not trained properly or will say anything to recruit you.
I have been working for almost two decades at raising awareness about the importance of ethics, diligence and professionalism in the Network Marketing and MLM industry. For example, when I meet a prospect that I find would be a better fit with another company, I refer them to associates I know in that company. It profits everyone to maintain a good reputation for our professional industry.
Obviously the first thing you need to do is evaluate the quality of the business and if it is the right fit for you, but that will be the subject of another Phoenix Alliance business segment. But I will share with you a few things that people don’t usually talk about, at least not in the beginning (which is when it would be the most useful).
You will hear «duplication is the key», and it is, but what does that entail? It means you need to choose your sponsor and your team very carefully. Why? Because the foundation of your business, which will determine if you will be successful or not, is Training. And although every good MLM company offers excellent training, the fact is you will need a hands-on trainer, and preferably a whole team, that has experience and that is ready, willing and able to share it with you. So this is one thing you definitely want to invest in.
This brings me to the financial aspect. Yes, if built properly, an MLM business will be very lucrative. But it is common knowledge that «It takes money to make money». This is no different. In a traditional business, we are taught to make sure we have enough start-up capital to last five years before seeing profits. In the Network Marketing world, that same rule applies, except the timeframe is one year. With good training, you will most probably see returns within a few months, even a few weeks. But it is wise to hope for the best, while planning for the worst. You need to calculate the business purchase price, the training cost, the monthly consumption requirement, the prospecting costs, the travel costs, and general business expenses, all of it for one year.
As you can guess, this also means you have to invest one year of your time, energy, and focus. It’s like when you start taking nutritional supplements; you are advised to keep taking them for at least 6 months to a year so your body can enjoy the full benefits, at which point you are in a position to evaluate the effectiveness.
But what will you be doing for that year (aside from marketing, of course)? Recruiting, Training, and Developing Leadership. This means taking the time to carefully choose a few good team members, not signing-up everyone you meet. Then you need to properly train them so their business, and by extension yours, will have a stable growth. And finally you need to develop your own leadership, mostly by emulating a leader you look up to, and inspire leadership in your team.
I’d like to debunk one last myth: «You can make millions sitting at home in front of your computer.» The reality is that with all our 21st century technology, people need human contact. And the best way to develop a strong and lasting MLM business is still through offline connections. The online tools are amazing to help people connect, but at some point, discussing over a coffee and croissant creates a kind of relationship computers just cannot. In the end, it really does take a certain level of charisma to network and to market.
On a final note, I truly believe in two social math equations.
The first one is 4 x P = Persistence + Patience + Purpose + Plan.
The second one is Y > X = your WHY must be greater than your EXCUSES.
I invite you to visit this page of our website as an example of the financial, time and personal investment required to succeed.
For more in depth and detailed information, Phoenix Alliance offers a FREE specialized «What to focus on, in order to succeed in an MLM business» seminar to its registered members.
Interesting outside link: « How can you succeed in MLM? »
