Friday, February 29, 2008
MLM Conversion Rates
Why are MLM conversion rates so important to know? How can conversion rates build your downline?How many people can you convert from being a prospect to an MLM partner, a member of your downline and onto being an MLM Star? What are your conversion rates of prospects to being your MLM downline partner. A lot of MLM members may say 10% 20% or 30% yet some will say 50%. What is the difference?Conversion is difficult. Like people wanting to loose weight. A LOT of people need to loose weight, but how many actually do? Many people want to make an extra income but how many actually do? Kids in school love to think that they may one day be a sports star. They play their sport in Elementary School, Junior High School. Some go onto play it in Senior High School. A few of those go onto play it in University and very few of them go onto become stars of their sport. Many become to treat the sport as a hobby.Don't be disappointed if your conversation rate is low. Helping people is sometimes a difficult thing, even when they know it's better for them! If you spoke to 10 smokers how many could you get to stop smoking? If you spoke to 10 overweight people how many could you get to lose weight? Alcoholics? Convert to a religion? Buy a certain car?What is your conversion rate?Most MLM members don't even take statistics on their conversion rate. Have your members keep records of how many prospects they talk to over the month. Have your members keep records of how many members they then get over the month.What is good about this is that they will have their own personal conversion rate using their current recruiting techniques. Why is this good? Let's take a simple conversion rate of 10%. So you have a guy in your downline prepared to note his conversion rate and he says that his conversion rate is 10%. He know knows that if he talks to 10 prospects that atleast one of them will join his downline.One new member out of 10 prospects may or may not sound good, but actually it doesn't matter. What this new guy now knows is that if he wants 10 new members this month that he must present his MLM to 100 people this month. Sounds like a lot? Is it?Conversion rate is 10% ( one out of 10 people will join his MLM ).He wants 10 new members this month.To get 10 new members this month he must talk to 100 prospects this month.A month has 30 days.100 prospects divided by 30 days.To get his goal of recruiting 10 new downline members this month he needs to talk to three (3.3) prospects a day.If he makes $100 per new member sign up, then he makes $1000 a month.If you divide the $1000 by the 100 people he spoke to he is averaging $10 per person he speaks to. He now knows that he is getting paid $10 for every NO he gets and $10 for every YES he gets. Now your new member doesn't care if the person says YES or NO. Now knowing that he'll be paid the same for a YES or a NO stops him from appearing hungry to sign up the prospect. This will in fact increase his conversion rate! He is now looking for a quick Yes and a quick NO. He doesn't care which he gets. He knows his conversion rate! He shows the prospect the business opportunity and then takes it away from them. Not what the prospect expected. The prospect now sees that the opportunity is not for the guy to sign him up but for the prospect to get into the MLM business. I think conversion rates are important, do you?
A Paper MLM Downline
Have you ever heard of a paper downline?The term "Paper Downline" was first made by Michael Brymer the owner of www.mlmbuff.com and can be used as a system to build a huge downline.
The paper downline can be used in the country you are in or in the country you intend to build a downline in but due to your MLM restrictions are unable to currently build a paying downline in.
Let's take the example of situation where your company is going to open in let's say Japan next year. Your MLM doesn't currently allow members to sign upmembers in Japan until the official opening of your MLM in Japan.
Let's also say that the company's name is Super MLM Success Millionaires. Now you can't go to Japan and sign up Super MLM Success Millionaire members now or your company will more than likely cancel your membership and give your downline to your upline.
So step one is not to use the company name. Think of a different name such as Friends Of SMSM.
Step two is to make an application form for Friends Of SMSMOn the application form you will need a few basic things.
1. Name of applicant.
2. Name of sponsor.
3. I.D. number ( usually the applicant's full phone number - cell phone is best )
4. Home address.
5. Email address ( 2 if possible )
You could do this on the internet but not everyone is on the net.Going to Japan may not be an option for you at this stage. So the best thing for you is find an English speaking person, whether Japanese or not, but someone who speaks the local language. The SMSM application forms will also have to be in the local language which means a translation.
OK, let's assume that you have a contact in the country and the application form is in the local language. It's now up to you to work with you contact to get things going. All people in the country really have to know is that a big new MLM is coming and they have the chance to build a downline before it arrives.
The overseas contact then starts recruiting as in any normal MLM but should target MLMers in that country first. Signing up people should not be too hard as it is not costing them anything and they have the prospect of gaining a huge downline in a new MLM business opportunity in their country.
You could use a paper downline system in your country, build a large downline and then hold meetings and decide what MLM is best for the group. The meetings could discuss possible MLMs that the group may consider. It doesn't really matter what MLM the group joins as you'll be at the top anyway.
If you have a large contact list of people interested in MLM than you'll always have the opportunity to make money in MLM.
The paper downline can be used in the country you are in or in the country you intend to build a downline in but due to your MLM restrictions are unable to currently build a paying downline in.
Let's take the example of situation where your company is going to open in let's say Japan next year. Your MLM doesn't currently allow members to sign upmembers in Japan until the official opening of your MLM in Japan.
Let's also say that the company's name is Super MLM Success Millionaires. Now you can't go to Japan and sign up Super MLM Success Millionaire members now or your company will more than likely cancel your membership and give your downline to your upline.
So step one is not to use the company name. Think of a different name such as Friends Of SMSM.
Step two is to make an application form for Friends Of SMSMOn the application form you will need a few basic things.
1. Name of applicant.
2. Name of sponsor.
3. I.D. number ( usually the applicant's full phone number - cell phone is best )
4. Home address.
5. Email address ( 2 if possible )
You could do this on the internet but not everyone is on the net.Going to Japan may not be an option for you at this stage. So the best thing for you is find an English speaking person, whether Japanese or not, but someone who speaks the local language. The SMSM application forms will also have to be in the local language which means a translation.
OK, let's assume that you have a contact in the country and the application form is in the local language. It's now up to you to work with you contact to get things going. All people in the country really have to know is that a big new MLM is coming and they have the chance to build a downline before it arrives.
The overseas contact then starts recruiting as in any normal MLM but should target MLMers in that country first. Signing up people should not be too hard as it is not costing them anything and they have the prospect of gaining a huge downline in a new MLM business opportunity in their country.
You could use a paper downline system in your country, build a large downline and then hold meetings and decide what MLM is best for the group. The meetings could discuss possible MLMs that the group may consider. It doesn't really matter what MLM the group joins as you'll be at the top anyway.
If you have a large contact list of people interested in MLM than you'll always have the opportunity to make money in MLM.
What Ethical Strategy is a Win-Win For Everyone?
“Men must be honest with themselves before they can be honest with others. A man who is not honest with himself presents a hopeless case.”How do you rate yourself when it comes to ethics?I believe all people can be categorized using the following five statements:
a) I am always ethical.
b) I am mostly ethical.
c) I am somewhat ethical.
d) I am seldom ethical.
e) I am never ethical.
Which one best applies to you? How would you characterize yourself?Why Ethics Really Does MatterHere are some observations I want to share with you related to how people look at ethics:
1) The majority of people place themselves in the first or second category.
Most of us try to be ethical most of the time.
2) Most people who put themselves in the second category do so because of personal convenience. Conflict is inconvenient. Practicing discipline is inconvenient. Losing is inconvenient. Some people in category 2 are there because they don’t want to deal with those inconveniences.
3) Most people think that being “mostly ethical” is fine – unless they are on the losing end of someone else’s lapse in ethics.
4) One rule can help people move from “mostly ethical” to “always ethical” and close the gap between the first two categories.
What if you were given a code of conduct to govern all your ethical decision-making, would you use it?What if this criterion was available to the masses and transcended all cultures? Now would you use it?Do you think a global measuring stick really exists? I suggest that one does: It exists nicely in what we have coined as the “Golden Rule.”Asking the question “How would I like to be treated in this situation?” is an integrity guideline for any situation.Are you considering dismissing my assertion? If so, then you may be caught in the quagmire of modern thinking on ethics.Let me explain why the “Golden Rule” can be used for your ethical navigation and why it will always point you in the right direction.Individual rules? How about one rule for everyone?A version of the “Golden Rule” exists in just about every culture. Take a look at the results of some research that shows how many variations on the “Golden Rule” exist:
This list has been put into alphabetical order, so that this article’s message is not interpreted to be religion-based.Bahai,
“And if thine eyes be turned towards justice, choose thou for they neighbor that which thou choosest for thyself.”, Epistle to the Son of the Wolf, 30, quoted at www.fragrant.demon.co.uk/golden, July 1, 2007.Buddhism , “Hurt not others with that which pains yourself.”, Udana-Varga 5, 1, quoted in ibid.
Christianity, “Whatever you want men to do to you, do also to them. “, Matthew7:12
Confucianism, “What you do not want done to yourself, do not do to others.”, Analects 15:23, quoted in ibid.Hinduism, “This is the sum of duty; do naught unto others what you would not have them do unto you.”,
Mahabharata 5, 1517, quoted in ibid.Islam, “No one of you is a believer until he loves for his neighbor what he loves for himself.”,
The traditions of Mohammed, quoted at www.thegoldenrule.net, July 1, 2007Jainism, “A man should wander about treating all creatures as he himself would be treated.”,
Sutrakritanga 1.11.33, quoted at ibid.Judaism, “What is hateful to you, do not do to your fellow man. This is the entire law; all the rest is commentary.”,
Talmud, Shabbat 31a, quoted in “The Universality of the Golden Rule in World Religions,”
www.teaching-values.com, July 1, 2007Yoruba Proverb (Nigeria), “One going to take a pointed stick to pinch a baby bird should first try it on himself to feel how it hurts.”, Ibid0Zoroastrianism, "Whatever is disagreeable to yourself, do not do unto others.”, Shast-na-shayast 13:29, quoted at www.thegoldenrule.net, July 1, 2007There are really only two points when t comes to ethics. The first is a standard to follow. The second is the will to follow it.It is clear that the Golden Rule cuts across cultural and religious boundaries and is embraced by people from nearly every part of the world. It’s the closest thing to a universal guideline for ethics as a person can find.“Ethics is about how we meet the challenge of doing the right thing when that will cost more than we want to pay. There are two aspects to ethics: The first involves the ability to discern right from wrong, good from evil, and propriety from impropriety. The second involves the commitment to do what is right, good and proper. Ethics entails action; it is not just a topic to mull or debate.” Good Reasons Why You and I Should Adopt the Golden RuleThe golden rule is accepted by most people. You already have an idea of how widely accepted the Golden Rule is. But if that isn’t enough for you, a case can also be made for the Golden Rule based on common sense. It is very difficult for people to justify demanding better treatment from others than they can give. One of the first rules in human relations is to seek common ground with others. That’s a good guideline whether you are exploring a new friendship, meeting with a client, teaching a student, connecting with children, or arguing with your spouse. Comparing similar experiences and discovering shared beliefs can pave the way for successful relationships. The Golden Rule can be used to create common ground with any reasonable person.The Golden Rule is Easy to Understand People often have difficulty understanding the subject because it seems complex and intangible. One of the wonderful things about the Golden Rule is that it makes the intangible tangible. You don’t need to know the law. You don’t need to explore nuances of philosophy. You simply imagine yourself in the place of another person. Even a small child can get a handle on that. There are no complicated rules and no loopholes. That’s not to say every ethical situation can be solved instantly by using the Golden Rule. Sometimes the hardest part of asking “How would I like to be treated in this situation?” is identifying who might be affected by the situation and the impact it might have on them. But even for the most complex issues, if you give the matter some thought, you can almost always figure it out.The Golden Rule is a Win-Win PhilosophyHave you met people who believe that to be winners, other people must lose? They see everyone as an enemy who must be crushed.I treat you as well as I want to be treated, you win. If you treat me likewise, I win. Where is the loser in that?The Golden Rule is a Compass When You Need Direction There’s harmony and inner peace to be found in following a moral compass that points in the same direction regardless of fashion or trend.The Golden Rule does more than just give people wins. It also has internal value for anyone who practices it. It gives solid, predictable direction every time it’s used. And best of all, the Golden Rule really does work. That’s the Fundamentals of Ethics.Insights for "The Responsible Network Marketer“How would I like to be treated in this situation?”What a great question to be able to ask yourself when you come up against a situation where you are unsure of how to do the “right” thing.Could you imagine if your downline actually used this same question under similar circumstances?Once you have answered this question, I recommend asking the next question:“What could I do, so that I give back more than I would wish to receive in this situation?”Always looking to give back more is another strong relationship builder.The adoption of the “Golden Rule” for you and your business is a no-brainer!It is accepted by everyone, easily understood by everyone, poses a win-win philosophy, and will help you navigate through just about any situation.See You on the Beaches of the World,Kevin "K-Man" McNabb"The Responsible Network Marketer"
a) I am always ethical.
b) I am mostly ethical.
c) I am somewhat ethical.
d) I am seldom ethical.
e) I am never ethical.
Which one best applies to you? How would you characterize yourself?Why Ethics Really Does MatterHere are some observations I want to share with you related to how people look at ethics:
1) The majority of people place themselves in the first or second category.
Most of us try to be ethical most of the time.
2) Most people who put themselves in the second category do so because of personal convenience. Conflict is inconvenient. Practicing discipline is inconvenient. Losing is inconvenient. Some people in category 2 are there because they don’t want to deal with those inconveniences.
3) Most people think that being “mostly ethical” is fine – unless they are on the losing end of someone else’s lapse in ethics.
4) One rule can help people move from “mostly ethical” to “always ethical” and close the gap between the first two categories.
What if you were given a code of conduct to govern all your ethical decision-making, would you use it?What if this criterion was available to the masses and transcended all cultures? Now would you use it?Do you think a global measuring stick really exists? I suggest that one does: It exists nicely in what we have coined as the “Golden Rule.”Asking the question “How would I like to be treated in this situation?” is an integrity guideline for any situation.Are you considering dismissing my assertion? If so, then you may be caught in the quagmire of modern thinking on ethics.Let me explain why the “Golden Rule” can be used for your ethical navigation and why it will always point you in the right direction.Individual rules? How about one rule for everyone?A version of the “Golden Rule” exists in just about every culture. Take a look at the results of some research that shows how many variations on the “Golden Rule” exist:
This list has been put into alphabetical order, so that this article’s message is not interpreted to be religion-based.Bahai,
“And if thine eyes be turned towards justice, choose thou for they neighbor that which thou choosest for thyself.”, Epistle to the Son of the Wolf, 30, quoted at www.fragrant.demon.co.uk/golden, July 1, 2007.Buddhism , “Hurt not others with that which pains yourself.”, Udana-Varga 5, 1, quoted in ibid.
Christianity, “Whatever you want men to do to you, do also to them. “, Matthew7:12
Confucianism, “What you do not want done to yourself, do not do to others.”, Analects 15:23, quoted in ibid.Hinduism, “This is the sum of duty; do naught unto others what you would not have them do unto you.”,
Mahabharata 5, 1517, quoted in ibid.Islam, “No one of you is a believer until he loves for his neighbor what he loves for himself.”,
The traditions of Mohammed, quoted at www.thegoldenrule.net, July 1, 2007Jainism, “A man should wander about treating all creatures as he himself would be treated.”,
Sutrakritanga 1.11.33, quoted at ibid.Judaism, “What is hateful to you, do not do to your fellow man. This is the entire law; all the rest is commentary.”,
Talmud, Shabbat 31a, quoted in “The Universality of the Golden Rule in World Religions,”
www.teaching-values.com, July 1, 2007Yoruba Proverb (Nigeria), “One going to take a pointed stick to pinch a baby bird should first try it on himself to feel how it hurts.”, Ibid0Zoroastrianism, "Whatever is disagreeable to yourself, do not do unto others.”, Shast-na-shayast 13:29, quoted at www.thegoldenrule.net, July 1, 2007There are really only two points when t comes to ethics. The first is a standard to follow. The second is the will to follow it.It is clear that the Golden Rule cuts across cultural and religious boundaries and is embraced by people from nearly every part of the world. It’s the closest thing to a universal guideline for ethics as a person can find.“Ethics is about how we meet the challenge of doing the right thing when that will cost more than we want to pay. There are two aspects to ethics: The first involves the ability to discern right from wrong, good from evil, and propriety from impropriety. The second involves the commitment to do what is right, good and proper. Ethics entails action; it is not just a topic to mull or debate.” Good Reasons Why You and I Should Adopt the Golden RuleThe golden rule is accepted by most people. You already have an idea of how widely accepted the Golden Rule is. But if that isn’t enough for you, a case can also be made for the Golden Rule based on common sense. It is very difficult for people to justify demanding better treatment from others than they can give. One of the first rules in human relations is to seek common ground with others. That’s a good guideline whether you are exploring a new friendship, meeting with a client, teaching a student, connecting with children, or arguing with your spouse. Comparing similar experiences and discovering shared beliefs can pave the way for successful relationships. The Golden Rule can be used to create common ground with any reasonable person.The Golden Rule is Easy to Understand People often have difficulty understanding the subject because it seems complex and intangible. One of the wonderful things about the Golden Rule is that it makes the intangible tangible. You don’t need to know the law. You don’t need to explore nuances of philosophy. You simply imagine yourself in the place of another person. Even a small child can get a handle on that. There are no complicated rules and no loopholes. That’s not to say every ethical situation can be solved instantly by using the Golden Rule. Sometimes the hardest part of asking “How would I like to be treated in this situation?” is identifying who might be affected by the situation and the impact it might have on them. But even for the most complex issues, if you give the matter some thought, you can almost always figure it out.The Golden Rule is a Win-Win PhilosophyHave you met people who believe that to be winners, other people must lose? They see everyone as an enemy who must be crushed.I treat you as well as I want to be treated, you win. If you treat me likewise, I win. Where is the loser in that?The Golden Rule is a Compass When You Need Direction There’s harmony and inner peace to be found in following a moral compass that points in the same direction regardless of fashion or trend.The Golden Rule does more than just give people wins. It also has internal value for anyone who practices it. It gives solid, predictable direction every time it’s used. And best of all, the Golden Rule really does work. That’s the Fundamentals of Ethics.Insights for "The Responsible Network Marketer“How would I like to be treated in this situation?”What a great question to be able to ask yourself when you come up against a situation where you are unsure of how to do the “right” thing.Could you imagine if your downline actually used this same question under similar circumstances?Once you have answered this question, I recommend asking the next question:“What could I do, so that I give back more than I would wish to receive in this situation?”Always looking to give back more is another strong relationship builder.The adoption of the “Golden Rule” for you and your business is a no-brainer!It is accepted by everyone, easily understood by everyone, poses a win-win philosophy, and will help you navigate through just about any situation.See You on the Beaches of the World,Kevin "K-Man" McNabb"The Responsible Network Marketer"
Thursday, February 28, 2008
Six Powerful Prospecting Tips
Sales are a contact sport and prospecting for new business is the name of the game! You will never meet a salesperson that failed because they had too many prospects to talk to. For the majority of salespeople, finding new customers is without a doubt the most difficult and stressful aspect of the profession. Prospecting should be viewed more as a mindset rather than merely as an activity. It is something you need to be constantly aware of because you never know where your next prospect will be coming from. It really doesn’t matter how competent you are or how well you know your product line, if you don’t have a qualified prospect in front of you, you don’t have a sale.
Prospecting for new business is similar to working out.
You know it is good for you and it will produce positive results if you do it routinely. Professional salespeople prospect daily. It is important to block-off specific time on your calendar for prospecting activities such as phone calling and emailing. Treat your prospecting time with the same respect as you would any other important appointment, otherwise, there is a tendency that it will slip through the cracks. This is not the time to check your emails, play solitaire on the computer, and make a personal phone call or chat with your associates. Stay focused and take your prospecting seriously. Set the tone by closing your office door and have your incoming calls held unless it is a call from a client or a prospect.
Be prepared, get organized and take good notes.
It is critical to have a computerized contact system to record remarks and suspense future contacts or appointments.
Use a script - don't shoot from the hip.
There is only one thing worse than listening to a salesperson read a script over the phone and that is to listen to a salesperson without a script. Obviously, it is important to not only have a script but to practice it until it sounds smooth and natural. Set aside time to role-play with an associate over the phone. By taking turns presenting and critiquing you will gain confidence, polish your script and be more effective. When prospecting, avoid the temptation to sell over the phone. Your objective is to gather information and make the appointment.
Strike while the iron is hot!
When working with a new prospect, it is important to make contact quickly. Prospects are perishable. No matter how interested a prospect may appear, don’t wait for them to call you. You are only one of many competing interests for your prospect’s time and money.
Keep the high ground and avoid the temptation to badmouth your competition.
While it is fair to make head-to-head comparisons, you should avoid personal attacks. Attacking your competition makes you look unprofessional and petty. Emphasize the benefits of your product or service by guiding your prospect through a comparison of quality and price. Play to your strengths and not the weakness of your competition. Let your prospect draw their own conclusions from a well-presented comparison.
Rejection is a natural aspect of the sales process so doesn’t take it personally.
Learn from rejection, use it as a feedback mechanism and look for ways to improve your presentation. Salespeople who take rejection personally lack perseverance and seldom make the sale. Sales are a numbers game pure and simple. As a professional baseball player, if you can average four hits out of ten times at bat you are heading for the Hall of Fame. Research indicates that in sales you can expect your prospect to say no five times before they buy. With this in mind, realize that with every sales rejection you receive, you are one step closer to making the sale!
by John Boe
Prospecting for new business is similar to working out.
You know it is good for you and it will produce positive results if you do it routinely. Professional salespeople prospect daily. It is important to block-off specific time on your calendar for prospecting activities such as phone calling and emailing. Treat your prospecting time with the same respect as you would any other important appointment, otherwise, there is a tendency that it will slip through the cracks. This is not the time to check your emails, play solitaire on the computer, and make a personal phone call or chat with your associates. Stay focused and take your prospecting seriously. Set the tone by closing your office door and have your incoming calls held unless it is a call from a client or a prospect.
Be prepared, get organized and take good notes.
It is critical to have a computerized contact system to record remarks and suspense future contacts or appointments.
Use a script - don't shoot from the hip.
There is only one thing worse than listening to a salesperson read a script over the phone and that is to listen to a salesperson without a script. Obviously, it is important to not only have a script but to practice it until it sounds smooth and natural. Set aside time to role-play with an associate over the phone. By taking turns presenting and critiquing you will gain confidence, polish your script and be more effective. When prospecting, avoid the temptation to sell over the phone. Your objective is to gather information and make the appointment.
Strike while the iron is hot!
When working with a new prospect, it is important to make contact quickly. Prospects are perishable. No matter how interested a prospect may appear, don’t wait for them to call you. You are only one of many competing interests for your prospect’s time and money.
Keep the high ground and avoid the temptation to badmouth your competition.
While it is fair to make head-to-head comparisons, you should avoid personal attacks. Attacking your competition makes you look unprofessional and petty. Emphasize the benefits of your product or service by guiding your prospect through a comparison of quality and price. Play to your strengths and not the weakness of your competition. Let your prospect draw their own conclusions from a well-presented comparison.
Rejection is a natural aspect of the sales process so doesn’t take it personally.
Learn from rejection, use it as a feedback mechanism and look for ways to improve your presentation. Salespeople who take rejection personally lack perseverance and seldom make the sale. Sales are a numbers game pure and simple. As a professional baseball player, if you can average four hits out of ten times at bat you are heading for the Hall of Fame. Research indicates that in sales you can expect your prospect to say no five times before they buy. With this in mind, realize that with every sales rejection you receive, you are one step closer to making the sale!
by John Boe
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