I think that there are as many different methods to build an MLM as their are people. Or rather, there are as many different PROSPECTING methods as their are people.
And there is a big difference between creating customer profits and enrolling distributors.

If you are working with a consumable products based company and the products can help people you know – including friends, family and the dry cleaner – then why NOT share the info? We are talking about customer profits here -
not expecting the warm market list to actually be business builders.
Your new recruits can get into profit most quickly with customer referrals as well -
to NOT give them this method or recouping their money is crazy.

Stevie, I think you know that I have chosen to build my business online as well. I generate 99.99% of my leads online. Would you be surprised to know that I have quite a few of my warm market as customers? To not share with them what I do would have been silly.

The problem is when people hammer their warm market thinking everyone will want in on the deal to make some money – when in fact most people want absolutely nothing to do with sales of any kind.

So poke me in the eye Stevie, I’ve stepped into Old School shoes and have found it profitable

Melanie Milletics

This is a great article and does make sense, however you will step on some toes, as I can see you have TommyJ above.

It is hard for self proclaimed mlm gurus to realize they are using the wrong marketing methods to grow their teams.

Most folks have never stopped to ask where the “make a list” method comes from?

Yet, when we look back at the launch of our great profession we can see that ALL of the first direct marketing companies who used compensation plans with more than one level, we neither “multi-level” or “network marketing” compensation plan companies (and by the way, there are two different definitions to those words, they are not inter-changeable.)

They were party-plan companies, who used the “warm market list” as a way for the distributor and the host to send out invitations for the party.

Glen Turner’s company “Dare To be Great” and “Koscot” may very well be the first companies to really take the “warm-market” list method to the masses. But, it was Amway who made it the profession standard for recruiting.

Back in the 70’s when Glen went to prison and Amway became the new kid on the block, they implemented the “warm marketing list” method, because back then people were still meeting in homes.

And when we look at the 80’s the companies who were growing the biggest were companies like Herbalife, Mary Kay, A.L. Williams, PrePaid Legal and Excel Communications. These companies could use the “warm market list” method because they were breaking new ground and focused on saving people money, not asking them to buy a higher priced item.

By the 90’s the companies and teams that were growing the fastest, had moved from “JUST” using a warm market list, to using local advertising like post cards, 30 sec TV spots and radio to drive folks to hotel meetings.

It was also the launch of an industry I know very well – MLM Lead Generation! People had seen all the negative press about Glen Turner, Art Williams and Mark Hughes, that distributors were looking for ways to expand outside their warm market, so they did not have to have their friends and have them say “is this Amway!”

But, by the turn of the century, email marketing was replacing the warm market, and folks were growing like crazy. But, like all marketing methods, email marketing has now been replaced with Web 2.0 marketing, which includes Social Marketing Sites, Video and Audio marketing campaigns, and blogs (which you have a great one here.)

So no matter how blessed a person has been in the past, if they are staying on top of the marketing trends that are working today, they will watch their volume start to shrink.

Another point you made is that mlm is not for babies and wimps. And I fully agree with you.

Knowing TommyJ’s success I am truly amazed that he disagreed with you on this issue. But it could be that the definition of babies and wimps are different.

I remember when I was 18 and signed my first distributor agreement. I was taught, that there are only two types of people in this profession. Leaders and potential leaders. When I asked, what about those who aren’t leaders or potential leaders? Art Williams said “They don’t stay in this profession.”

And if you talk to anyone on my team, or anyone who I have trained, they will tell you “Troy only has two types of people on his team – leaders and potential leaders.”

From reading TommyJ’s post I can see he has been very successful, and sure seems like a fantastic dad.

But, what about his team? See, when it comes right down to it, it is not about our success from a monetary standpoint. It is about how many leaders have we built.

In my primary company I am never the top producer, top recruiter, top money earner, every month. However, I have been blessed to override the top producers, top recruiters, top money earners every month, for the last 36 months.

Everything rises and falls on leadership!!!!

Never Give Up,

Troy

p.s. TommyJ is a great leader and does grow great leaders. I used what he wrote as an example to show what should be the main thing… Growing Leaders.

Interesting, however, it may be more insidious than you realize. I’ve been at this 17 years, have done over $100 million in sales, and maintain over $10 million in yearly sales. It is not just the names list, it is what the names list is being used for. It comes back to a motivation of compensation. Much of the carnage you address is a direct result of bogus MLM comp plans that pay more for recruitment and for customer acquisition. A robust names list and a stealthy networking approach to those people would yield increased sales volume (the cornerstone of any business) and no violation of the sacred interpersonal heart/wallet barrier. (see my video trainings under MLM Training on my HelloWorld Media Vault http://www.HelloWorld.com/tommyj for how I have successfully help hundreds of people network to a warm market and still have someplace to go for Thanksgiving Dinner)

Respectfully, I submit to you that you may be missing an understanding of this industry that comes from being around it for nearly two decades. Namely this; it is about many people doing a little. The true leaders conduct their business in a way that is empowering to the masses. It is not true that “MLM isn’t for babies or wimps” as you put it. I have over 30,000 babies and wimps in my downlines and I am very appreciative of them. I work very hard for them to empower them. It is the same as any other business and until people (leaders and leaders-in-the-making, as you put it) understand this simple fact about business they will not make it in MLM or most any business.

Yes, you are looking for leaders. I’ve been doing that for 17 years. But you need worker bees if you are going to gather the Honey. Imagine if you were starting any “traditional” business. How many leaders (CEOs, COOs, CFOs, VPs, Board Members, Senior Managers) are you going to hire befor you go looking for the all important GSM? (Guy Swinging the Mop). I come from a family of multi-million dollar producing business building people. I’ll give you one example: My uncle Tom is an owner of Campbell Roofing here in San Diego. Single jobs run into the tens of millions of dollars and cover acres of roof. There a handful of “leaders” run an army of workers. ¾ of the leaders used to be GSMs. When they started they were babies & wimps until uncle Tom started loving on them. My uncle works harder for his people than anyone else I know. He spends every day talking with as many of the GSMs as he can asking one main question; “What can I do to make your job easier?”

Unlike traditional marketing (which I have been involved in for 30 years) MLM is a marketing business composed of a sales force that is mostly in love with your product, knows nothing about marketing, hates sales, and are willing to give you a few hours a week AFTER they have given their best 40-50 hours to their boss. I don’t look at them as wimps, I love these people. My first act of respect is realizing that they are not “business people” they are successful “job” people. So I don’t try to cram a business down their throats when the only thing they want down their throat after work is a beer

I praise them for having been successful in their job, for being able to keep their family off the streets and all. Then I give them another “job” not a business that requires them to understand new skills and a whole new way of thinking. (that comes later after I have helped someone make a few thousand dollars) For these “worker bees” it is about the list ESPECIALLY if they have fallen in love with your product. Remember, they know nothing about marketing, noting about the numbers game. As a leader, if I can jump out in front of them and protect them from joining the NFL I have done a great service for them & the entire industry. It is not the “list” that has caused such carnage, it is most of the leadership in the industry. Most MLM companies are started with no plan what-so-ever of being in business for more than 3-4 years. Honest people, selling honest products that provide real value to end consumers can use a warm market list very effectively AND very respectfully. B.S. MLMs on the other hand are all about the sign-up or recruitment fees and the list is simply a cost of doing business when you step up to the greed machine.

In your quest for leaders please send your babies and wimps my way ; )

I will love on them and develop them in to leaders with heart who also make a fair amount of money. But only if they want to be that. I will also love on them as customers/distributors who buy my products every month and may get me on a 3-way call one every 3-4 months. There is room in my organization for another 30,000 babies and wimps who just want some extra money, doing an extra job.

Keep posting Stevie, your awesome
tommyj