Richard Quek’s Blog

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Richard Quek

Every year, thousands of people attempt to make a small fortune through multi-level marketing (MLM) or network marketing businesses. Unfortunately, not everyone succeeds. One of the most common reasons for failure is that many people simply fail to follow up on the connections that they have made. Those people who succeed know the importance of effective follow-up.

In a MLM or network marketing business, distributors representing a product recruit more distributors, who likewise recruit even more recruiters. Distributors receive a commission from the sales of the people they recruited, so in order to be successful, a distributor must recruit a large number of people. And, in order to recruit a large number of people, distributors must constantly work to expand their list of connections and potential recruits.

When prospective recruits are first approached by a distributor, they are usually unsure of whether or not they want to join the MLM or network marketing business. In fact, prospective recruits will usually remain undecided for the first several meetings. Therefore, distributors must be persistent. At the same time, distributors should be careful not be so aggressive as to scare people off. Good follow-ups will be friendly and informative. Distributors should allow some time to pass in between follow-ups, since this provides an opportunity for the potential recruits to think about their options. However, a distributor should not allow too much time to elapse in between meetings, lest the potential recruit forget about the opportunity or look for similar opportunities elsewhere.

A distributor will be juggling communications with several prospective recruits at any given time; luckily, follow-ups do not have to be formal or time consuming. A simple email or phone call will often be enough, although sometimes a more personal touch (for instance, meeting for coffee) might be preferable.

In order to stay on top of all the necessary follow-ups, a distributor needs to be very organized. Ideally, the distributor should have a planner used solely for the MLM or network marketing business. This planner should include the names and contact information of all potential recruits. It should also include the past meetings and planned future meetings. Additional information, such as the questions and concerns of potential recruits, would also be helpful.

Being a MLM or network marketing distributor can be a very rewarding, profitable experience. However, in order to be successful, persistence is necessary.

By Richard Quek

Pyramid schemes are illegal businesses that con people out of money by promising them financial success. The organizers of pyramid schemes will usually try to pass off their business as a legitimate multi-level marketing (MLM) business. However, despite some similarities between pyramid schemes and MLM businesses, there are crucial differences.

In a pyramid scheme, a member must pay a fee for joining the business. Then, that member must recruit more members, who will also have to pay a fee. Pyramid schemes received their name because the business develops as a pyramid structure, with the original member on top, the people recruited by the original member on the second level, those people’s recruits on the third level, and so on. Members receive money from the fees of the people on the levels below them.

The problem with pyramid schemes is that eventually, they will run out of potential recruits. When this happens, the most recent members will not be able to make back the money that they paid in fees. For every successful member, there has to be a number of unsuccessful members who lose rather than make money. Therefore, pyramid schemes are considered fraud.

Despite the fact that pyramid schemes are illegal and destined to fail, people continue to join them for two reasons. First of all, the promised riches are extremely tempting, and people know that such riches are possible, even if they are unlikely. In this sense, joining a pyramid scheme is a lot like gambling, another popular past time. Secondly, the organizers of pyramid schemes try to disguise their business as a legal MLM business.

MLM businesses take on the same pyramid structure as pyramid schemes. However, MLM businesses actually sell a product. This is a very important difference. Because MLM members are selling a product, they have a source of continuous profits and a way to maintain the business. As a result, MLM businesses are not destined for failure. Additionally, MLM members need to spend a lot of time recruiting and training new sellers; success is not immediate and does take hard work, just as success in any honest business venture does.

Individuals who are considering joining a MLM business should research it thoroughly to make sure it is legitimate. People should also be wary of organizations that promise instant money with little effort; if it sounds too good to be true, it probably is.

Training is an extremely important, yet often overlooked, part of multi-level marketing (MLM) success. In MLM companies, distributors of a product recruit other distributors who will likewise recruit more distributors. MLM companies are very common and often appeal to individuals with no previous business experience. Often, individuals are hoping to get rich quickly and without putting forth much effort. However, the success of a MLM company is neither guaranteed nor easy. In order for a company to be successful, the individuals who make up that company also need to be successful. In order to achieve individual success, training is usually necessary.

First of all, a MLM distributor needs to be able to recruit other distributors. This requires a high level of professionalism as well as good communication skills; a distributor must make prospective recruits feel comfortable and assure them that they are in the hands of an expert who can help them. Then, the distributor must be able to give a convincing sales pitch and
convince the potential recruits that joining the MLM company will be a lucrative experience.

In addition to recruiting a large number of people, a distributor also needs be careful to recruit people who will contribute to the MLM company. If new recruits are not successful – if they fail to recruit others – then the original distributor is not successful either. Therefore, distributors must develop a keen sense of judgment, and recruit only those people who will add to the success of the company. Once promising individuals are recruited, distributors need to keep those recruits motivated.

All of these required abilities – professionalism, sales, judgment, and motivation – should be developed during training. Some distributor may resist the idea of training; after all, they are trying to make money, not spend money on classes. However, proper training will increase a distributor’s chances at success.

Distributors, or prospective distributors, who wishes to train for MLM success have several options. A quick web search will reveal numerous website, books, classes, and lectures that teach the basic skills needed to succeed as a MLM distributor. When picking a training program, distributors should look for programs that have a good track record. MLM Insider Online (http://mlminsider.com/besttrainerresults2004.htm) offers a list of the training programs that were voted the best.

The compensation plan is usually the first thing you look into when researching a multi level marketing opportunity. With so many multi level marketing opportunities around today, it is important to understand that not all compensation plans are created equal. The first thing to look into with any MLM (Multi Level Marketing) compensation plan is, will it meet your needs and any desires you may wish to fulfill? The second thing to look at a compensation plan for is a realistic view. What will it take to be compensated at the level you wish to be? How long of a wait until you get to that level? How much time or energy are you willing to put into the project in the first place? Answering these questions will help you decide if the compensation plan for that specific MLM is worth it for you.

Compensation plans very greatly. Some of the different types of compensation plans are as follows:

Binary- This is also known as the “leg” system. Basically, those under you who generate sales counts towards your compensation.

Unilevel- Unilevel is probably one of the easiest to understand compensation plans. With a set number of levels that have unlimited width it is a great plan for those less knowledgeable in the world of multi level marketing.

Matrix- There are various forms of the matrix compensation plan. Some like this system and some simply don’t want to have anything to do with it. The advantage lies in the spill over effect since only a certain number can be on the top levels, people can easily have compensation from those who they had no part in bringing to the company. The matrix can actually be a great compensation plan if you are familiar with how it works and what form you are working with in your particular MLM opportunity.

Stairstep- Last but certainly not least in any way, this compensation plan is the most common in the MLM industry. This compensation plan accounts for most of the bigger profits in MLM companies. This form which is a breakaway form is pretty basic. When you reach the level that gives you the opportunity to break away and become at the top of your own stair steps, you may bring those who are on the steps below you with you. In some cases the person you break away from can keep someone from your chain as compensation for you breaking away.

Whichever compensation plan you work with it stands to reason that there are pros and cons to all of them. You can make any of them work for you with a little knowledge and the willingness to work towards your goals.