Another reason why MLM is different from Direct Sales is that in MLM, there is SPONSORING of other distributors. Most Direct Sales companies and some Multi-Level Marketing programs call it RECRUITING. But you should know that “sponsoring” and “recruiting” is certainly not the same thing.
When you SPONSOR in MLM, you bring them into the business and teach them to do what you are doing, which is for them to build a business of their own. We emphasize: there is a big difference between sponsoring someone and just “signing them up.” When you SPONSOR someone into the business, you are deciding to make a COMMITMENT to them. If you are not ready to do this, then you are not being fair to them if you just sign them up.
Sponsoring someone involves your willingness to put them on how to build their own business as well. You should be ready to teach them all you know about the business because their progress will contribute to your own progress. This involves how to order their products, keep records Things such as ordering products, how to keep records, how to get started, how to build their organization and how to train their team, etc.
SPONSORING is what will help your MLM business grow. This will help your organisation to grow and make you progress toward becoming a successful and independent entrepreneur. You will become your very own BOSS.
When you are with a Direct Selling company, you work for that company. If you eventually decide to quit working with that company and move to another area, you will end up starting all over again. Nearly all the MLM programs that I know about allows you to move to another part of the country or even outside the country and sponsor new people without having to lose the volume you have earned through the team or organisation you left behind.
In Multi-Level Marketing programs, you really can make a lot of money, as much as you want. Although it depends on the MLM Company you are working with but making money in this business comes with an organization, not focusing on the product.
Let me make this clearer. It is not that you would not make money if you decide to sell your products, you definitely will. In fact, you can make a good living with selling the products, but you could make a FORTUNE by building your organization, if you make this your primary function.
People usually get started in a Multi-Level marketing business with the idea of making just $100 or $200 per month and they would just suddenly realize that if they get serious about this business, they could start $1,000 or $2,000 or more in a just a month. Don’t forget, that is not the kind of money you make just by selling products, but by building an organisation.
That is one of the purposes of this blog – to help you develop certain proper attitudes about MLM and teach you how you can build your own organisation. If an individual thinks Multi-Level Marketing is not legal or thinks it is a pyramid, you will have trouble signing them up or sponsoring them. First, you need to teach them the facts that will help them eliminate their impression or attitude of seeing a genuine MLM organization as being a pyramid scheme.
As an example, you could show them the illustration above. In pyramid, the organisation is built from the top down and only it is those that got in at the beginning can EVER be nearer to the top. In Multi-Level Marketing, every person starts from the bottom. They also have the opportunity to gradually and rapidly build a large organization.
In fact, an individual can build an organization that is many times larger than the organisation of his or her sponsor, if that is what he or she wants. As long as the person is in the right Multi-Level Marketing program.
The main objective is that you should make sure you properly discuss exactly what MLM is with your prospects and be sure to further explain the meaning of Retailing, Direct Sales, and Multi-Level Marketing along with their differences in your discussion. With these, sponsoring in mlm would be easier. This will be a good start for you to sponsor them.