Recruiting for network marketing question

I've recently signed up with a very reputable network marketing company. Not usually my style, but I'd been a customer for a couple of years and believed in the product, it fit the needs of the same target market I was reaching in other parts of my business, and the lady who recruited me made me an offer I couldn't refuse--she takes care of all the sales calls, followups, and recruiting--all I have to do is provide leads!

Here's the problem. When she talks to the recruits, they often sound very excited ("I could sell bacon to a pig" was one enthusiastic comment.) And then, they never call back. So she follows up, and more than once now, she's gotten a "this isn't a good time" response. In one case she got that response twice in a row; in a second case she asked when would be a good time and got a "please don't call me" response.

This lady has done sales before, and she's very nice, so I can't imagine she's doing anything to push these people away.

Any ideas? How is recruiting for sales people different than selling and what selling techniques could be helpful? -Terri Zwierzynski

Hi Terri,

I'm not involved with network marketing myself. However, for the past couple of decades that field has dominated the direct selling industry. The history of traditional direct selling has always been an interest of mine because of my family background. What I discovered was that the training and information available from the top experts in network marketing seems to be a cut above most of the stuff in traditional sales.

One thing really surprised me. These experts appear to be unanimous in saying that professional sales people do not make the best network marketers. But they do get a lot of "enthusiastic" response in the early stages which disappears quickly. It's possible that you and your upline are experiencing that.

It is also possible that she is unable to adequately follow in your own footsteps which appear to have the ability to get someone to at least listen because of the trust and respect they have for you personally.

One of the biggest tools that the network marketing people use is edification. In your case that would mean that you would nurture the introduction of another personality (third party) into the picture. Nurturing and edification work very well also in advertising, a field that I have more experience with because of my direct response marketing lead generation.

I hope that is helpful. -Gary Boye

A few things are crucial to be successful in network marketing. One is to be with a respected and growing or beginning to establish itself company with strong management committed to a long term vision for the company. Another is to have unique products with a market waiting. Also, the structure of the compensation plan rewarding people for their efforts is crucial.

One more thing you can't do without is training and support from the company and those you work with who have a vested interest in seeing you be successful.

Hot, warm, and cold market come into play including conventional marketing and promotion.

When it comes to warm market meaning people you know that requires the right approach.

Before all that comes training and appreciation for the business you are in, the company, etc. meaning that sometimes weeks or months have gone by before you begin to market - some would disagree with this and be correct as methodology can vary as well as learning curve.

Nevertheless, next comes making contacts to inform people of an opportunity to see if it's something they want. With warm market, introducing someone you know to a successful person is important. If Gary and I joined forces in his business and our business was about bringing in new people I'd want to introduce people to Gary - to defer to his experience and ability.

I'd do warm introductions [face to face or ear to ear] and up front let my contacts know the purpose is an introduction to my business partner Gary to see if my contact wants to continue after that.

There are other things that can also be done.

There's some thoughts. -MitchM

Mitch, has your experience as a teacher been one of the things that have made you successful in your field? I know that's getting off the subject of recruiting, but Terri obviously has excellent communication and coaching skills. Is that a better fit than, say, sales experience? -Gary Boye

That's a simple question and can have simple or more fascinating answers. For one, Gary and Terri, yes, communication and coaching skills are typically a better fit than sales skills.

On the other hand, having teaching experience is no guarantee to network marketing success nor are sales skills necessarily a detriment to network marketing success.

Learning a company specific system and working with it is most important - but so are the coaching and communication skills especially listening, probing, not pushing or pulling, etc.

Jacque Werth's book http://www.highprobsell.com/ has been especially useful BUT our company specific business model has been to "find motivated people, not try to motivate people" [similar to JWs perscription in my experience] meaning what we have is what they want so the motivation is theirs.

In the end, longevity is everything in network marketing and so is teaching people to become teachers - Gary is on the right track with his question, Terri.

I gotta run - big family birthday party - my dad turned 85 yesterday.

Hope that helps some. -MitchM

To build and have long lasting security both wide and deep in your organization, the best approach is to listen for a need and then present the oppurtunity as a solution to that need.

The MLM/network marketing industry has so much bad wrap because of all the over agressive and competitive attitude that so many companies push. -msanti85

I thought MLM was like pyramid schemes and Avon. Is that true? -bridger480

Thank you, Gary! :)

You have all enlightened me! Definitely some things for me to think about and share with my upline.

One dichotomy that has always struck me in network marketing, is that the most successful aren't those that can sell (although that's a plus), but rather those that can recruit those that can sell (and/or can also recruit). That definitely brings the teaching angle in, too -- sometimes you have to teach those that you recruit, how to be successful.

This is definitely a new adventure for me--thanks for all your insights. -Terri Zwierzynski

Please forgive my stupidity...What IS a network marketing company (what do they do?) :o -RainMaker

Please don't call it a stupid question. Many people new to business or the industry in general don't understand the full concepts and power behind network marketing.

A network marketing company utilizes word of mouth referrals made by other people to their product. People work as independent distributors and are compensated for referring new people to a company's product line.

There is a lot of negativity and a lot of hype out there in the industry, however, which is very unfortunate.

However, when done correctly, it is a beautiful model. Warren Buffett has even invested in two different companies.

Network marketing can be referred to as relationship marketing, matrix marketing or multilevel marketing. It is all one in the same. -msanti85

MLM are not like pyramid schemes.

Pyramid schemes are simply recruiting other people for a so called "business oppurtunity" and then taking people's money. There is no transfer of any tangible product or service.

Multilevel marketing companies, on the other hand, offer products. They are based on word of mouth or referrals from independent distributors for the company and then are compensated for referrals for people who actually buy the product.

A true pyramid is the corporate structure. Think about it..

You have the officers (CEO, CFO, etc) and Board of Directors at the top making the most money. Then you have middle management which consists of more people. Then on the very bottom is the employee doing the most amount of work and receiving the least amount of money typically. -msanti85

I forgot to answer the second part of your question.

Avon is a good example of a network marketing company. As well, other examples are those like Quixtar (Used to be Amway, but Amway exists only at the international level and do not operate in the United States).

Another very good model is the tupperware parties thrown in the homes. At the end of very product demonstration, the host always asks if someone would be interested in throwing a tupperware party and be compensated for it as well. -msanti85

Thank you for clearing that up for me Msanti85. I hope I'm not the only one who didn't know the difference. :o

My neighbor wanted to sign me up for Quixtar once. As I remember it the basic idea was that I could buy products direct from Quixtar instead of a local company. I usually get what I need from Costco and the local Farmer's Market so that idea didn't make much sense to me.

I understood that if I signed someone up that I would earn money from their purchases too. You can probably see my challenge with that... why tell them to buy from Quixtar when you can simply go to Costco or the local Farmer's Market? -bridger480

The biggest idea is simply replace where you go shopping.Instead of going to the pharmacy to get a bottle of advil, the grocery store to pick up toliet paper, and Costco to pick up 1400 paper cups for that party that is coming up, you replace where you go shopping and spend your money. Essentially you are changing your buying habits. Instead of going to Costco, you save yourself TIME because you can order right off of the Internet and then have all you products delivered to your door in a few days.

A big philosophy of the financially independent and top 1% income earners in the United States is having complete control over their time and money. Quixtar, for example as you mentioned, allows you to not have to deal with getting in the car, driving to the store, shopping for an hour or two, waiting in line for ten minutes to pay for your items, waiting in line again at the door of Costco so they can check your reciept, loading up the car, and then driiving up. That's a lot of work compared to when you can just order from one website and they are willing to give you a percentage of what you ordered back.

Besides, Costco has only limited hours and you must plan ahead of schedule for that. A company offering goods for sale over the Internet can be ordered any time of the day.

You may have to do some searching as to whether this is right for you or not. Maybe it is or maybe it is not the right time. If you have any other questions, please feel free to keep asking. I hope thi all helps. -msanti85

Thank you for the great information Msanti85. :) -bridger480

Bridger, you're welcome. -msanti85

There are all the cliches and models, opinions, and buzz words anyone would want to put the business activity known as network marketing into a perspective of some kind. Some use conventional sales terms while others use MLM jargon [or a combination].

But just like in other kinds of business activity, what's inside all the lenses we look through the actual environment of network marketing is always worlds apart from the lense we use to magnify.

Of course products are purchased and sold and commissions are paid to distributors on the sale of products. But the model of duplication to produce layers of sales is unique to network marketing though some have compared it to layers of management in conventional sales and marketing - not necessarily a good comparison.

Also, network marketing as multi level layers of product distribution has been compared with franchising - home based franchising. In network marketing a business opportunity is marketed as well as a product and the quality of the network has a lot to do with the quality and quantity of distributors pursuing a business opportunity.

Teaching, coaching, mentoring - all of that come into play from what the company offers distributors trying to shape layers of distributors into their networks to what "sponsors" or business partners offer. Quality long term working relationships are crucial to successful network marketing. Without that sales alone will never build an income putting one in the top 1% or 3%.

People who join a network marketing company do that for all kinds of reasons often to purchase a product at a discount - also to be a part of something, for the friendship and social aspect - and the typical distributor or rep will earn $50 a month - maybe a few hundred dollars a month now and then.

It's a very small percentage who actually earn high five and six, or seven figure incomes - network marketing is typically a four or low five figure extra income business which is what millions of people who need that little extra income want.

But to be very successful in that high range where six figures turns into seven requires the same dedication, discipline, constant study and personal perfection as any high level sales or sport activity success requires.

In that regard, leadership along with a strong work ethic and longevity is what produces the high end and sustaining income earners in network marketing.

Direct selling/network marketing is a policed and regulated industry and compliance is an impotant issue both in product and business issues. Some companies are publicaly traded and have been scored high by leading business magazines in terms of growth, profit, and other markers. -MitchM

Terri did you come up with any other ideas? -SalesGuy

Well, in the time since I wrote that first post, we've had better success with our prospects. I think some of the comments above about coaching skills are right on. Listening and responding is the most important skill (didn't I write that in another thread? I think that's a theme...;) )

Ask about the person's needs, and see what happens. If you listen closely, you'll know soon enough whether they are a good candidate, and if so the relationship will evolve naturally as long as you don't "push for the close"! Let them close themselves. If they don't, it wasn't going to happen anyway. :)

Thanks all for your insights.

Peace,
Terri Z -Terri Zwierzynski

Sounds like a plan. ;) -SalesGuy