MLM Sponsoring Tip: Focus On Customers

MLM is an industry that seems to always have secrets they want to share. It is like someone has invented something new, and because they are a great person they will share what they have learned with you....

And anyone else willing to read what they have wrote, or is willing to talk to them. This certainly applies to MLM sponsoring secrets, or as they are also sometimes called, MLM recruiting secrets.

I think it's safe to say that we can cut to the chase and say there really are no secrets in network marketing. The fact that you do, or do not know something does not mean that it's not out there for you to find.

Something I've always felt that was true was the fact you would sponsor more people into your MLM business if you focused on customers first and recruiting second. This just makes good sense from a business standpoint because every business needs customers.

In MLM there are two kinds of customers.

1. Retail customers.
2. Wholesale customers.

Retail customers buy at full price and you earn a commission when you sell the products. Wholesale customers buy at a discounted price because they have become distributors of the products.

Retail Customers

Let me give you an example of what you can make when you sell products at the retail level. In this example let's talk about a product that costs $20 and you earn a 50% commission on it.

This means that every time you sell that product you earn $10. In network marketing many products are set up on an autoship basis.

This is a great benefit to you as the seller because the product will automatically be delivered to your customer every month. You earn a commission every month as well and this is known as residual income.

You do your work one time you get paid over and over as long as the customer's product is shipped to them. This can be true whether it's a physical product or digital product.

Wholesale Customers

Some of your best prospects should be existing customers.

When you focus on happy customers as potential distributors this provides several advantages to you.

1. They trust you. Your customers are already dealing with you and they trust you because you've established a relationship with them.

You don't have to sell yourself because you have already done that.

2. They like the product. You do not have to sell the customer on the quality of the product because they already like it. They have been been purchasing it every month so they know the pros and cons of the product.

3. Would they like to save money? If your wholesale customer becomes a distributor they get to buy the product at a discounted price. You won't earn the retail commission, but you will gain a new distributor and earn money on their wholesale purchase.

4. Would they like to make money? Some of your customers not only want to save money on a product they are purchasing, but they want to make money selling to other people themselves.

This is an easy person to sponsor because they are product focused. It's easier for you to sponsor them because they know you and you have an established relationship with them as a satisfied customer.

Can You Sponsor Two Retail Customers?

Whenever you look at the compensation plan of a network marketing business you see duplication in action. As an example, I would ask if you could sponsor two existing customers to become new distributors?

The odds are stacked in your favor. If you have 10 customers at least two of them might be interested in building a business selling a product they like and would like to make money with.

This is a very good way to duplicate what you're doing. You teach people to get 10 customers and focus on providing good customer service.

Then they approach their customers to see if they would be interested in being a distributor. Chances are they will be able to find at least two retail customers who would like to be distributors.

Then the process repeats itself over and over!

Most Never Sponsor More Then Two

I read somewhere that the reason most people fail in network marketing is because they never sponsor anybody. Of the people who do sponsor someone the average is around two distributors.

I think anybody who is willing to become a distributor based on a business opportunity can sponsor 2 new distributors. You teach them to focus on getting 10 customers and then sponsoring two of those to become distributors.

This is actually very easy model to duplicate and a better long-term approach to building your MLM business. It certainly is better than constantly focusing on sponsoring new distributors from a cold market.

Difference Between Cold and Warm Market

A cold market is people that do not know you.

To be truthful with you this is the way network marketing is being built today. There's certainly nothing wrong with using the Internet to your advantage to build an email list and then prospecting from it.

However, the primary problem with this continues to be that people never generate meaningful traffic to their website. In the case of a cold market this is who I write for now.

Many network marketers start a blog, but do a poor job in driving traffic to it. From a credibility standpoint having a blog is great, but there's nothing better than targeting a warm market.

In this case your warm market is not potential distributors, but rather it's people who are already satisfied customers. This means that when you're contacting your warm market you're doing it to see if they would be interested in trying your product first.

At this point it just becomes a numbers game. If you have a good product a certain number of people would be willing to try it.

Out of those a certain number are going to continue to use it. Then, as I have stated you can contact them see if they might be interested in being a distributor.

A certain percentage of those are going to be interested in being a distributor. They will do this either to save money on the product at the wholesale level, or to get their own customers and build their own downline distributors.

I'll think this really is an MLM recruiting secret. It certainly is an MLM sponsoring tip if this is not how you approaching your own MLM business! Be customer focused first and recruiting focused second from your existing customer base.

Related Video: How To Find Customers & Prospects Online That Are Already Interested In Your Business