Network Marketing Recruiting – Why Important?
by Samson Itoje
Recruiting or sponsoring is a core part of the network marketing business model.
When a network marketing distributor recruits a new downline or team member, he is said to have duplicated himself.
Why do network marketing companies require distributors to recruit new distributors (or new independent business partners) for the company?
Simple reason . . . more distributors EQUALS more sales and more profit.
You see, network marketing companies do not advertise.
Instead of spending huge amount of dollars on advertising, they give distributors opportunity to advertise the company’s products and business opportunity. How effectively each distributor does that (and how effectively they convert prospects to customers), determine their level of income.
Consequently, there are three broad ways network marketers make money as partners of mlm companies.
MLM company distributors make money by . . .
1. Buying at distributor price from the company and then selling at retail price to the public
2. Referring customers to the company through their affiliate or distributor web sites and earning customer purchase bonus from the company and
3. Enrolling (or recruiting) new affiliates or distributors through their distributor web sites and then earning commission based on purchases and sales by their enrollees or downlines
How To Make The Most Money
From MLM Business
Take a moment to look at the three ways to earn money from an mlm business opportunity listed above. Which path do you think will make an mlm company distributor the most money?Correct Answer:
A network marketing company distributor will make the most money from the mlm business opportunity by sponsoring or recruiting new distributors into his team or sales organization.
Simple reason: When you recruit a new distributor, you basically duplicate yourself or increase the number of sales people in your team. And more sales people EQUALS more sales and more money.
The mlm company also makes more money when you recruit more sales people into your team because, as mentioned above, more sales people EQUALS more sales, which EQUALS more profit for the company.
This means that recruiting or sponsoring new distributors benefits both the sponsor and the mlm company he represents.
Therefore, mlm companies give special bonuses to distributors based on purchases and sales by people they recruited into the company’s affiliate program.
Bottom line.The more ACTIVE distributors you can recruit into your sales organization, the more money you will make from the network marketing company you choose to partner with.
So, do you want to make the most money from your network marketing business opportunity?
If your answer is yes, then you must balance retailing the company’s products with recruiting new distributors into your team.
Retailing products of your mlm company gives you instant profit, what is called retail profit. And retail profit is the difference between the price at which you bought from the company and the price at which you sell to the public.
On the other hand, when you recruit new distributors into your team, the new distributors buy directly from the company and the company pays you bonus on each product purchased by people you enrolled.
Second, the company also pays you bonuses on the purchases by ACTIVE distributors enrolled by people you enrolled and those enrolled by those they enrolled . . . and on and on.
Third, the number of active distributors you have personally enrolled into your team is also used to determine which bonus you qualify for or NOT.
Do more than just retail company products. Also give serious attention to recruiting new active distributors into your team.
Here’s another important must do task.Make sure you read the compensation plan document of your company carefully to understand the number of active distributors required to qualify for the different level of bonuses available.
Since the number of active personally enrolled distributors in your team determines the bonuses you will qualify for, it is best to ask this key question before joining any mlm company.
The question is: “How many active distributors will I be required to personally enroll to qualify for ALL the available bonuses in compensation plan?”
Asking that question before joining will ensure you join a company that has easier targets in terms of number of personally enrolled distributors to qualify for specific bonuses. And this could significantly increase your earnings.
Want to join an mlm company that has easier targets to meet?
Want to give yourself a chance to make good money from network marketing?Click HERE to join the top mlm company