Building your MLM business – should you sponsor everyone in?

by Charlie on November 22, 2010

If they’re breathing, sponsor’em! Well we don’t do that anymore….or do we? Many companies still push ‘recruit, recruit’, even if the methods are more tailored to the 20th century and the internet. So let’s look at some points:

  • Should you always lead with the business?
  • Indeed should you lead with everyone you meet?
  • Who do you want in your team?

Let me share my experience of a conventional business I started back in 1981. Some of you know I had a small construction business then. In my first couple of years I used to take on pretty much any work that came my way. Full order books; wrong strategy; not profitable. I wasn’t focused on a niche and I was doing work for which my skills were not best suited.

Then I learnt what my strong points were. I developed the courage to turn work away and I became profitable, without ever needing to advertise.

‘So what,’ you say, ‘this is network marketing.’ But there are parallels so let me explain.

Most people get into this profession and they think that the secret is to sponsor as many folk as possible. Always lead with the business because at least you will get a customer if they don’t want to join your team. Whereas, so the argument goes, it takes too long to convert a customer into a business builder.

So how do you really build this business? You find a number of committed distributors; build a culture of friendship and community; help each other to establish a solid team where attrition is at a minimum and product is being sold. If you just sponsor them in, there will be a high drop out rate.

If someone joins you as a raw, green newbie, they must understand what it takes to be successful and they must be coach-able. Of course you encourage them to grow as leaders and develop their critical thinking but you must all work in harmony with the system you use and the ethos of your team.

Art Jonak, one of the industry’s 7 figure earners, often advises people to work on developing just 1 leg at a time till it is really strong and past the point of collapse. Of course this strategy may depend on how your compensation plan works. Neither is Art suggesting that all lead generation and sponsoring stops dead while you work on that line. You need a balance.

Did I mention selling products? At my weekly team meeting, which is online as we are world wide, the first part is dedicated to product testimonials and customer building (health & wellness). Don’t forget that MLM is just a different way of getting products to the end consumer – sales. Without plenty of committed, long term customers, there will be no residual income to enable you to spend your time on a sun soaked beach. Our team leader constantly hammers this point and as he happens to be the top earner in my company, I tend to listen to him.

The second two bullet points overlap. I have heard so many stories of people reaching the top, despite not seeming to have the qualities we expect in a successful network marketer. I’ve seen it too. It is wrong to pre-judge as we never know the steel and determination that someone has inside despite appearances.

But here are some things to think about:

  • Would you like to be on a 30 day cruise with them? You might not become intimate friends, but you will have to work closely together.
  • Are they coach-able, willing to learn and to be part of a team? There is no place for pride and ego in team building.
  • Do they truly want to change their situation?
  • Are they prepared to do whatever it takes to succeed? Far more than just doing their best.
  • Do they have a long term vision?

I’m sure you will feel there are other and maybe more important considerations so I would love you to share your thoughts. Leave me a comment.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts:

  1. MLM Home Business – building blocks to your success
  2. Building your business fast
  3. Network Marketing – a risky business
  4. MLM Business Building Tips – Action and Procrastination
  5. MLM Business Mentoring – putting others first guarantees your success

{ 25 comments… read them below or add one }

Ana/Traffic Generation Cafe November 23, 2010 at 5:01 am

Hello Charlie,

Very well said. We cannot just recruit or sponsor anybody to build an MLM business. It’s all about looking for few individuals who are committed,dedicated and have a teachable heart. This is the key in having long term business relationship and in succeeding as a team. Even if you have many recruits, but they are not willing to learn and work, then you will just waste your time with them because nothing will happen. Every member of your team must shared the same vision and goal so that you can work together, build each other and reach the top.

Thanks for sharing. Keep it up,

Ana

Reply

Charlie November 23, 2010 at 1:49 pm

hi Ana

yes working closely together is to the benefit of all. People shouldn’t be like robots but working in real harmony is best for everyone.

thanks for your comment
Charlie Holles

Reply

Roisin November 23, 2010 at 7:15 am

Hi Charlie,

That’s perfect for where I’m at this morning.
If you can’t see yourself working closely with this person for years to come, well, you shouldn’t be sponsoring them.
It can be easy to get pulled away from the obvious in our quest to serve as mentors with a servants heart. That’s why being part of a strong team with “integrity” is vital.
Thanks Charlie.
Roisin.

Reply

Charlie November 23, 2010 at 1:53 pm

hi Roisin

team support is vital at difficult times. The support of team should be a consensus. It is always good to brainstorm with several team members as one person’s perspective may not be enough to help.

best wishes
Charlie Holles

Reply

Jym November 23, 2010 at 10:10 am

Hey Charlie,

Great to read your thoughts on this. I especially love the breakdown right at the end… I think that list you’ve made is also a good checklist to apply to ourselves to, to maintain our dedication and focus.

Am I still doing whatever it takes? Am I staying true to and developing my long term vision? … But back to your point, I agree wholeheartedly. Sponsoring the wrong people is a waste of time and resources both for you and for them.

Thanks for sharing your wisdom on this point.

All the best,

Jym

Reply

Charlie November 23, 2010 at 1:55 pm

Hi Jym

definitely the checklist should be applied to ourselves as well.

Good to hear from you
Charlie Holles

Reply

Marcus Baker November 23, 2010 at 12:11 pm

HI Charlie,

You make perfect sense as usual,,,

I think the reason why far too many people get involved in this industry than should is due to the D word – Desperation.

There are too many sponsors desperate to sign anybody up for the sake if a name on a down line list and far too many opportunity seekers desperate to make a quick buck.

Personally I make it quite difficult for people to join me in business but also have very little dead wood so it works for me. :)

~Marcus

Reply

Charlie November 23, 2010 at 1:57 pm

hi Marcus

for sure desperation is no basis for a business. I think it is a wise move to make it hard for people to join you – an excellent filter.

all the best
Charlie Holles

Reply

Oliver Tausend November 23, 2010 at 4:24 pm

Hi Charlie,

if we want to complicate our lives, we certainly can sponsor anybody in our businesses.

If we want to make our lives a little bit easier we should be more picky, shouldn’t we ?

I recently told a prospect on the phone that I don’t believe that we are a fit for each other.

That’s the beauty about a duplicatable system because you can use it as a filter.

If someone pesters me with a whole bunch of questions nobody else ever cared about before I simply ask myself if that gets better once they join my team.

He even criticized me for pointing him to the system instead of myself answering the question.

Thanks for sharing your insights.

Take care

Oliver

Reply

Charlie November 23, 2010 at 10:16 pm

Hi Oliver

that certainly sounds like it is better he joins someone else :)

good to hear from you
Charlie Holles

Reply

Peter Fuller MBA November 24, 2010 at 3:26 am

Hey Charlie

Sadly , some in mlm think it is all about recruiting as many people as possible.

They think that will guarantee success, it won’t.

I like to think of my online business as a business, and I like to recruit people who in any other circumstance I would hire.

Peter

Reply

Charlie Holles November 24, 2010 at 11:20 pm

Hi Peter

that is exactly how I feel. Everyone must feel comfortable about sponsoring/being sponsored.

best wishes
Charlie Holles

Reply

Michael B Wilbraham November 24, 2010 at 6:20 am

Well said Charlie!

It’s this indiscriminate recruiting of “everything that moves” that causes the industry to reflect a 97% quit rate. If we were all to recruit the “right” candidates who started their businesses for the right reasons (after we’ve qualified them properly in terms of their “why”) then the attrition rate would be 20% at the most!

And those people would be leaving the industry for reasons other that having been recruited incorrectly.

Stay inspired!
Michael

Reply

Charlie Holles November 24, 2010 at 11:23 pm

Hi Michael

it is so important to start the whole process right, then together people can work through the challenges. As you say there would be much less attrition.

thanks for coming by
Charlie Holles

Reply

Hector Cuevas November 24, 2010 at 6:38 am

Hey Charles,

I completely agree with Ana – recruiting everyone and anyone will just make your job a lot harder. Even though I’m not into MLM now, I’ve had a bad experience with it; mainly because I recruited unqualified people.

thanks for sharing this post
great stuff
Hector

Reply

Charlie Holles November 24, 2010 at 11:25 pm

Hi there Hector

it is a shame when really bad experiences knock someone out of the industry. It is important to be selective.

regards
Charlie Holles

Reply

Soren Egstrup November 24, 2010 at 8:52 am

Hi Charlie,

I think the biggest challenge is – not – to recruit every person I can, but the people I really want to work with for many years, and off course some that I believe really want to build a business.

Cheers,
~Soren

Reply

Charlie Holles November 24, 2010 at 11:26 pm

hi Soren

thinking of people for the long term is the only way. It builds trust and security.

all the best
Charlie Holles

Reply

Robert David Strong November 24, 2010 at 3:26 pm

Hey Charlie,

I can really relate to your post and can agree that I was once one of those people that thought I needed to sponsor anyone with a pulse. I soon found out that so many people wanted to change their situation but were not willing to do the work to change their situation. I found those same people start complaining about their situation but still never willing to do anything about it.

I have now started really having conversations with people about “why” they are wanting to change their and have a real honest,candid conversation about what they are looking for and why they want a change.

I believe that the entrepreneurship gene is one we are born with and one that is sometimes dormant for many years but we feel it inside us, just cannot put our finger on what it is. It took me almost 35 years to figure out what this weird feeling inside me was, but now I know!

Thank you for the great post!

Reply

Charlie November 24, 2010 at 11:30 pm

hi Robert

nice to realise what the weird feeling was :) I like your way of really talking to people first and getting things figured out.

all the best
Charlie Holles

Reply

Sherman Smith November 27, 2010 at 7:09 pm

Hey Charlie,

It’s sad to think that a lot of companies preach “recruit, recruit, recruit” instead of “sponsor, sponsor, sponsor”. If we really want to become successful in our business there is a criteria in a person that we need to be looking for in order to bring in our businesses. If we’re just looking to bring anyone into the business then the business won’t grow, but if we bring Aces, then definitely success is inevitable!

Have a great weekend

Sherman

Reply

Charlie November 27, 2010 at 9:31 pm

hi Sherman

there is such a world of difference in recruiting and sponsoring – thank you for highlighting that.

best wishes
Charlie Holles

Reply

Eric Burnett November 30, 2010 at 4:15 am

Great Article, I really enjoyed the points and insights. Keep giving back great knowledge, thats what keeps this community alive.

Eric

Reply

Charlie Holles November 30, 2010 at 3:24 pm

thanks for visiting Eric

it’s good to share with people on the same path

regards
Charlie Holles

Reply

Frieke Karlovits January 5, 2011 at 7:47 pm

So true Charlie – business culture comprises selection. Unless someone is worthy as a partner it makes no sense to take them in. worthy meaning – being the person you first want to work with long-term, second someone who has a capacity for teamwork and is willing to learn and develop as a person. In no other branch of business the latter quality is as important as in network marketing where we lead by example and by being who we are.

Cheers
Frieke Karlovits

Reply

Leave a Comment

Previous post:

Next post: