MLM Lead Generation
MLM Lead Generation is a key skill of top earners. If you want to create a tsunami of momentum in your MLM business, you must have a systematic process to generate or acquire leads. A lead is someone who expresses interest in either your products or business opportunity. Your ultimate goal is to convert leads into retail customers or distributors. There are many different ways to generate MLM leads. Some of the more common MLM Lead Generation techniques include:• Newspaper advertising • Prospecting • Door Hangers • Capture Pages • Direct Mail • Arts & Crafts Shows in Local Area • Purchasing Leads • Radio and television advertising Let’s cover these in a little more detail: • Newspaper advertising: You advertise your products or business opportunity in the classified section or help wanted section of different newspapers. In my opinion, it’s better to advertise your products instead of your business opportunity. Start with inexpensive ads and test your results before rolling out a large campaign. • Prospecting: With this method, you initiate conversations with people you meet in everyday life. You find a need and fill it. The best way to do this is to ask them questions to determine a problem area in their life. This includes a health problem, a problem at work or financial problem. Once you find a problem, you offer a solution to their problems. Your solution is tailored around your products or business opportunity. • Door Hangers: You can create inexpensive door hangers and leave them on a large amount of doors. A small percentage of people will respond by calling you or visiting your website. Please keep in mind a few callers will be angry too. And make sure you don’t leave door hangers where there are no soliciting signs posted. • Capture Pages: This is a one page website designed to capture people’s contact information. Your goal is to offer free products, special report or something of value in exchange for their contact information. People will type in their name and email and get the free item emailed to them automatically by your auto-responder. • Direct Mail: In this example, you can purchase a mailing list of leads. You create a flashy postcard with your offer and mail it to a portion of the list. You test your results. If you get a good response, you can mail to the rest of the list. In this example, you can expect a 1% to 5% response rate. On average, each mailing will cost $1 to $1.50 once you factor in the postcard design cost, mailing cost, production cost and lead cost. • Arts & Crafts Shows in Local Area: You can attend local craft shows, job fairs and other events in your community. You simply set up a booth to meet new people. You will meet potential distributors and customers. You can offer free products samples and business literature in exchange for their contact information. After the event, you follow up with the leads. • Purchasing Leads: If you are great on the phone, this is probably the best MLM Lead Generation technique. You simply purchase lots of leads and start calling. If you know what you are doing, you can expect a 1% to 3% sign-up rate. The more calls you make, the more people you sponsor. The only downside to this is you don’t know how old the leads are. Also, you don’t know how many other MLM distributors call them about a business opportunity. • Radio and Television Advertising: This form of MLM Lead Generation is quite expensive. But, it can be an effective way to build a downline if you are already established in your MLM Business. And if you earn $1,000 or more per new distributor, it might be an effective MLM Lead Generation source. Once again, the secret to success is to test your results before you roll out a major campaign. Additional Information Each of these MLM Lead Generation techniques can be very effective. You secret to success is to know your key metrics. You must have a thorough understanding of your business metrics. For example, what percentage of your leads become distributors? Also, what percentage of your leads become retail customers? More importantly, how much is a new distributor worth to you? How much does your company pay you to sign up new distributors? Once you know these key metrics you can determine how much you can afford to pay for your leads. That way you can get a positive return on your investment. Knowing Your Numbers To get started, you should test several different methods and compare results. Your primary goal is to determine how much it cost to recruit a new distributor using each method. For example, let’s suppose you spend $500 to purchase MLM leads from a lead company. That $500 buys you 200 leads. Of that 200 leads, you recruit 5 new distributors. In this example, it cost you $100 per new distributor ($500/5=$100). If you earn $100 or more for every person you sign up, this example is a good deal. However, if you only earn $50 per sign-up, you won’t stay in business long. How much your leads cost you is irrelevant, because some lead sources are better than others. Just because you can buy leads for a cheap price doesn’t make it a good deal. It really comes down to conversion rates. Find What Works for You There is no “one fits all” solution to MLM Lead Generation. You must find what’s best for you. I’ve tried just about every method. I’ve purchased leads before and had some success. I’ve also used capture pages for MLM Lead Generation. Newspaper advertising works fine too, for local MLM leads. The ideal situation is to generate MLM leads for free. This form of MLM Lead Generation is very effective. The best way to do this is to use free marketing techniques. This includes worth of mouth advertising. Another great way is to set-up a capture page and focus on article and video marketing. In this example, you simply write articles and create videos to post online. Each article or video provides a link to your capture page. If people enjoy your articles and videos, they might click on the link and visit your capture page. A small portion of these people will leave their name and email and become a lead. The major downside to the “free sources” is that it is very time consuming. Also, the results are not immediate. That means you must be patient and wait for your leads. Following Up and Generating Sales Once you get leads, you must have a systematic process to follow up with them. The best way to do this is in person or by phone. In person is better. If you can’t do either of these methods, you could send an email or mail something at the post office. Whenever possible, face-to-face interaction is the best. When you talk with your leads, make sure you focus on your products first. That way, you can at least generate a customer. Remember, you don’t get paid to recruit people. You get paid to sell products. If you only focus on recruiting, you won’t sell many products in your downline. And you won’t get paid much either. So focus on customers first and let the ones who want to join as distributors do so. Don’t force your business opportunity on people. That’s a quick way to turn people off. Final Thoughts In summary, MLM Lead Generation is a key skill of top earners. There are many different ways to generate leads. Some of the more common methods include newspaper advertising, word of mouth, prospecting and the Internet. Your secret to success is to test different methods and compare your results. Focus on the source that produces the highest percentage of customers and distributors. That’s the only number that matters.
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