| Company Growth Rate = Distributors
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| | already received information about the
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| Success
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| | business opportunity before you even talk
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| Although the statement above is obvious,
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| | to them.
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| far too many MLM companies fail to
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| | A good personal and professional
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| understand and implement, that in an ever
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| | recruiting Website can:
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| changing environment and saturated
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| | Beat the 2% - 3% ratio of surfers to
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| market, they have to take a more active
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| | prospects
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| role in their distributors' success.
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| | Provide high quality leads
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|
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| | Becomes a source for the cheapest
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| So let us analyze "mathematically" what
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| | possible leads
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| is distributor's success:
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| | Provide a fresh and unlimited source for
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|
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| | leads
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| Distributors' Success Analysis
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| | Having a recruiting website is a must!
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| For the sake of this discussion, let us
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| | However, since no one can expect that a
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| introduce the following three equations
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| | recruiting Website will provide all the
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|
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| | leads required from day one, a mix of
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| Equation 1: Distributor's Success =
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| | advertising channels should be
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| Company's check
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| | considered.
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| Equation 2. Company's check = Sales
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| | Conversion rate: Converting leads to
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| Equation 3. Sales = Organization size
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| | active distributors - for some extent -
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| Distributor's Success = Company's check
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| | is personal. Some people are more gifted
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| While success as an employee is
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| | than others and enjoy a higher than
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| sometimes subject to interpretation,
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| | average conversion rate. However when the
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| status, wages, point of view or attitude,
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| | human factor is isolated, the common
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| there is no doubt that for an MLM
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| | denominator remains "technical": How well
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| distributor, the size of the check
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| | and professionally these precious leads
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| received from the company is the ultimate
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| | have been handled.
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| yardstick of success.
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| | As time goes by, and the list of
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| Company's check = Products' Sales
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| | prospects lengthens, even the most
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| At the end of the chain there are
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| | talented sales person will find it
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| customers who buy the company's products.
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| | difficult to handle it without an
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| The company's turnover is the sum of all
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| | effective management system.
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| these sales. A percentage of this
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| | USA MLM Market
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| turnover is used to pay the company's
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| | Here is a snapshot of the USA market:
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| sales force - the distributors. This
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| | 2000 Companies
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| system of remuneration is the company's
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| | $28 Billion annual turnover
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| "Compensation Plan".
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| | 13 million distributors
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| Products' Sales = Organization size
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| | Being one of the most competitive and
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| Distributor's commission is derived from
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| | saturated markets worldwide, MLM
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| the overall sales of their organization
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| | companies need to make sure that their
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| according to the specific compensation
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| | distributors are well equipped when they
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| plan. On average, the company's turnover
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| | approach potential customers and
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| divided by the total number of
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| | prospects.
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| distributors in the company represents
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| | Traditional Support to Distributors
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| the average sales per distributor.
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| | Usually, MLM companies provide some
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| Hence, the number of distributors in
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| | support to their distributors. This
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| ones organization determines - on average
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| | support can be divided into tangible and
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| - the company's check size, or:
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| | Non-tangible support:
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| Distributor's Success = Organization
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| | Tangible
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| size
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| | Training
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| The New Distributor: Situation Analysis
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| | Marketing material (brochures, product
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| Beginners have a lot on their plate. To
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| | information, surveys, articles....)
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| become successful, they have to master
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| | Incentives
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| all aspects of their new work: Company,
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| | Non-tangible
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| products, sales, systems, etc. To boost
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| | Communication between its distributors
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| their confidence in their new line of
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| | Information (down-line performance, own
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| work, they need an early success.
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| | production, commission, Flow of business
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| To start growing their organization,
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| | etc.,)
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| they need the tools and framework to
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| | Organization culture, sense of belonging
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| enable this early success.
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| | The above support, as much as required,
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| Since most distributors lack this much
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| | is only part of what a distributor needs
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| required framework, it does not come as a
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| | to succeed in today's competitive market.
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| surprise that currently 80% - 90% of them
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| |
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| dropout in the 1st year.
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| | The solution
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| Organization Manager: Situation Analysis
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| | We now go back to the beginning of this
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| Once a distributor has added a few new
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| | article: Company Growth Rate =
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| down-lines, he becomes an organization
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| | Distributors' Success. When a company
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| manager. Since dropout percentage is
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| | decides to play a more active role in its
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| high, organization managers are in
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| | distributors' success, it can now add to
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| constant pursuit to recruit new
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| | its support mix, a recruiting and
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| distributors on one hand, while
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| | management system. This system will
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| maintaining and supporting their existing
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| | provide:
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| organization.
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| | A framework for new distributors
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| The need to control their administration
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| | A possibility to manage organization
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| and sales time-share, becomes a major
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| | Competitiveness in a saturated market
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| issue.
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| | Save time and money resources to its
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| Growing an Organization: Facts
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| | distributors
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| Let us deal with the harsh facts which,
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| | Lower the dropout percentage
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| governs the building process of an MLM
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| | The Company's Benefits
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| organization:
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| | When company uses its buying power to
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| Fact #1: 2% - 3% of people exposed to
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| | implement such a solution it can achieve
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| the business opportunity become
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| | the following benefits:
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| prospects. This figure relates to the
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| | Saves time: Comprehensive professional
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| best recruiting Websites where figures
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| | solution is available now
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| can be measured. The figures are much
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| | Tailors the solution to its needs
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| lower when using other advertising
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| | Increases growth rate and distributors
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| channels such as newspapers, stickers,
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| | loyalty.
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| flyers etc.
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| | Increases bottom line at no cost.Summary
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| Fact #2: 1% - 2% of prospects become
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| | Let us summarize the arguments in this
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| distributors. This is an average figure
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| | article in a few short sentences:
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| and depends on many factors. Some of them
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| | 1. The company success is derived from
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| are personal factors, where others relate
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| | its distributors success
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| to the lead's quality and source.
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| | 2. Distributors success is directly
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| The bottom line is simple: A distributor
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| | related to the size of their organization
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| has to expose his business opportunity to
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| | 3. New distributors need a framework
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| some 1000 to 1500 people to recruit ONE
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| | that will enable them to achieve early
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| (1) down-line.
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| | success. This will reduce the current
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| Conclusion: Recruiting is a numbers
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| | high dropout percentage
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| game!
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| | 4. Organization managers need a system
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| Winning the Numbers Game!
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| | to support their organization and as a
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| To win the numbers game two components -
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| | mean to lower the dropout of new
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| exposure and conversion rate - has to be
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| | recruits.
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| increased!
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| | 5. Building an organization is a numbers
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| Exposure: There are many channels of
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| | game. To recruit 1 distributors 1000
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| exposure to the business opportunity:
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| | people has to be exposed to the business
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| business cards, flyers, publicity
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| | opportunity
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| buttons, stickers, Newspapers, Internet
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| | 6. Winning the numbers game, can be
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| ads, recruiting Website - to name some.
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| | achieved by increasing both exposure and
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| However, before practicing a specific
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| | conversion rate.
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| method, the following important questions
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| | 7. The market is highly saturated and
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| have to be asked:
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| | competitive, and the traditional support
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| 1. What is the cost effectiveness of
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| | provided by MLM companies is not enough.
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| this method? How much time and money I
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| | 8. Companies should use their buying
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| need to invest to get 1 lead (prospect)?
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| | power to provide their distributor with
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| 2. What is the quantity of prospects I
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| | current technology of recruiting and
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| can achieve using this method? How many
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| | management system to accelerate growth
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| prospects I expect to add to the pipeline
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| | and benefit from distributors loyalty.
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| in a month? Is there a limit to the
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| | Nili Raam is a renown expert in her field
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| number of prospects I can find this way?
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| | in Israel, as a Communication Consultant
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| 3. What is the prospects' quality this
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| | for business, professional and executive
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| method produces? High quality leads are
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| | improvement. She is author of a few
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| informed prospects. These people have
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| | published books and many articles. .
|
