What’s Wrong with MLM?
This is quite a bold statement for someone in the Network Marketing industry! By its very nature this assumes failure to some degree or another. MLM, or Multi-Level Marketing, has been considered the corner-stone behind network marketing for some years now. Whether you are in the health or publication industry, or any other MLM scheme available (and let’s face it there are thousands to choose from) you know that it is never as easy as the founders would have you believe.
So what is wrong with the MLM industry? Well it assumes that you will follow the same old production line that everyone else uses, paying higher daily rates for PPC advertising, converting fewer and fewer of your calls or DMs (direct mailers). “This is the system we all use and have made $XX,XXX per month, every month”. Heard this one right? The fact is, that for every 100 leads you slave to generate, if you’re lucky you might sponsor 2 or 3 at best. This means that you are losing up to 98% of your ‘targetted’ leads. That is simply suicide!
So what should you do to improve this?
Well for a start, STOP! Don’t spend another cent (or penny for my UK audience) until you understand how to increase your conversion rate by 5 times. This is not a typo - I really do mean five times increase. How do you do this? Well the answer is fairly simple really: Make money off those you don’t convert into your scheme. This has 2 fundamental upsides:
- You get more cash back to fund your advertising campaigns or spend, whichever you prefer.
- Now you have 5 times as many qualified prospects, ones who actually spend money, who you can sell to again and again.
Bingo!