Sunday, December 27, 2009

Sponsoring Almost As An Afterthought

Many multi-level marketing distributors make it their mission to sponsor, or recruit.  That is all they do.  They create a marketing plan to appeal to business people, have a one step or two step follow up, and give a wonderful presentation.  There is nothing wrong with this, but as I said before, the product is the opportunity.  The product must be sold along with the opportunity in order to make any money, because as we know, we earn nothing if product is not sold.

Selling the product first, then sponsoring, can be a great way to earn a quick profit and to find people who love the product first.  With a minor pitch the people who love the product can become great sales people in your organization.  The important thing is to know how to appeal to your customers to become distributors.  For instance, most people will be put off if you tell them that they should sell the product.  They are not sales people, how could they possibly sell the product?  We have found that telling the customer that they can save money on their own product purchases by becoming a distributor is usually very effective.

There are usually many questions a customer will have about becoming a distributor when you use this little pitch.  How much does it cost to sign up?  Will I have to pay my own sales taxes?  Will I have to fill out complicated paperwork for income tax?  How much product do I have to buy at once?  Is it complicated to order?  Be ready with the answers to these questions and take note of other questions that customers ask about becoming a distributor.

If you sell the product and that's all you do, you are missing out on a wonderful opportunity to build your business by recruiting other people.  These people will generate you passive income because you won't have to service them as customers, which takes much more time than supporting distributors.  Even if they never sell they will continue to order, continually generating commissions for you.  Often, though, customers who become distributors make great spokespeople and sell the product like crazy.

If you are with a company with products that people know and can buy elsewhere, it may be tough to lead with the product, but you may also need to sponsor in a special way to keep building your organization.  I would personally prefer to belong to an organization with a unique product or a unique quality of product that can be sold and have adoring fans.

Sometimes a company can be overflowing with a number of products.  It can be tough to sell 500 products at once so it is usually good to lead with one or two products and let the customer decide to purchase others within the product line.  Focus is definitely a good idea when selling, especially because you will get a lot of questions about what makes a particular product special.  Knowing everything about every product is tough.

Good luck with your sales efforts and make sure to follow up with the discount!

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