Lead generation is the lifeblood of any MLM business. The bottom line is people fail because they do not sponsor anyone into their business. They do not get many retail customers either.
Succeeding in an MLM business comes down to 2 things.
1. Retail customers.
2. Sponsoring new distributors.
Finding people to buy your products at the retail level is good for your cash flow. Many people get into direct sales of a product just so they can make money selling it.
However, most people join an MLM company so they can build their own business, and to do that they need to sponsor people on their frontline and into their downline.
What stops them?
Leads, leads, and more leads!
Wikipedia says “lead generation is the initiation of consumer interest or inquiry into products or services of a business”.
We could define lead generation for an MLM business as the initiation of a prospects interest into your business opportunity. In layman’s turn it just means finding people who would be interested in hearing about your business opportunity.
It’s much easier to define what lead generation is then to actually go about doing it. Until you develop a skill for generating new leads this is a lot of hard work.
Especially if you’re doing it face to face. There are still people who build a prospect list of potential distributors based on people they already know.
That means sitting down and writing out a list of family members, friends, and acquaintances. I would submit that’s actually the worst thing you can do if you want to build a prospect list.
Today you can capitalize on social media as a way to generate new leads for your business. However, what’s interesting is you’re not directly contacting people, but rather you’re putting yourself out there whey they can contact you.
How do you do that?
1. Start a blog. The first thing I would say is start a blog and put a lead capture page on it.
Use your blog is a way to enhance your credibility and encourage people to subscribe to your email list. Use Aweber to build your list in.
Make it beneficial for them to do so. Create valuable information that somebody who’s looking for a way to make money, or start a business of their own, would be interested in.
2. Join social networks. Facebook and Twitter would be at the top of the list. Next I would join You Tube, Instagram and Pinterest if you have time.
Let me correct that. I definitely would start a YouTube channel to publish videos in.
I would also post the videos on my blog and learn the simplest ways to do that. Animoto is what I use for video creation and publishing on You Tube.
3. Buy leads? You can purchase leads from a lead generation company and begin contacting those people.
The business opportunity you join may have a source for purchasing leads, or a co-op advertising program you can join.
This is something you can do in conjunction with blogging and social media marketing.
The nice thing about purchasing leads is you have people to begin contacting right way.
You do not have to wait for somebody to contact you via social media or from reading your blog post.
The downside is you have no relationship with these people, so whether you’re emailing or telephoning it is a cold call. The actual success rate for cold calling is much lower than working your warm market of people who know who you are.
I do not have a personal source for buying MLM leads. When I did a Google search for “best sources to buy mlm leads” this company came up first.
– Elite Leads: http://www.elitemlmleads.com/
Credible MLM trainer, writer and speaker Doug Firebaugh had this blog post: 15 MLM Lead Companies in Network Marketing
4. Email list. Build your own email list on your blog and by promoting landing pages. I personally think this is the best long-term strategy because an email list of names and emails of people you can contact will always be there for you. Again I recommend Aweber.
Simply put an email list of subscribers who know who you are is a valued asset you can continue to capitalize on far after you initially add them to your list.
In network marketing you simply will not succeed unless you can sponsor new members into your business opportunity. Initially when you first start the majority of your time should be spent on lead generation for your frontline.
Hopefully your upline and MLM company will have a system in place that you can tap into. Once you begin to build your prospect list you will start to sponsor people on your front line.
Then you can begin to work with people in your downline. If you like people, focusing on personal sponsoring, and working in your downline, can be extremely gratifying, not to mention profitable!