10 Easy Steps to Creating Your Own MLM Business
Hundreds of multi-level marketing companies pop up and go under year after normally leaving people feeling foolish, angry and in some most cases financially worse than when those people entered the latest and greatest business opportunity. Sucks for those people but it normally works out great for the people who created the multi-level marketing company in the first place. Heck, even if the company manages to last a short period of 12-18 months the company would have normally generated enough money to leave the creators millions of dollars better off which was the intent to begin with. With that being said, why join a MLM company when I’m going to give you 10 easy steps to create your own MLM business?
1. Come up with a service or product that sounds revolutionary. It could be some sort of new drink, networking website, marketing system or just about anything just as long as you hype it enough. Making your product or service sound like something amazing, although it is not, will lead people to want to investigate it more.
2. Create a super awesome and utterly confusing compensation plan but make sure that the person who registers with your company can get paid as many levels down as you can but that also keeps you in the black. For example, 20% than 10% of the 20%, 5% of the 10%, 2% of the 5% and 1% of the 5% all the way down to 10 people. The people who sign up first will obviously make the most money but they will go out and tell anyone and everyone they know about how much money they are making allowing them to not only recruit new members but have those people that they recruited recruit new members. The most important thing is that each and every time someone joins your company you will be making the lion’s share of the profit.
3. Compare your product or service to a well-known and successful product or service and show why your product is better. The easiest way to do this is to show that the successful service provider or maker of the successful product is not allowing their subscribers or consumers to take part in their financial success while you are. For example, if you are creating a networking platform that could be compared to LinkedIn give examples of how much profit linked in makes and show how much of that profit you are going to share with your members as opposed to keeping it all for yourself. People will think that it’s awesome that you’re doing so and will make it that much easier for them to drink the Kool-Aid that you’re serving.
4. Although your MLM business is a multi-level marketing business you want to stay far and away from the actual term of MLM. MLM has a bad name, for good reason and marketing your new business as yet another MLM business will make it more difficult to get off the ground. You can use terms like residual monthly income stream opportunity, global share program revenue model, viral marketing compensation method or anything you like just as long as you stay free and clear from the term multi-level marketing. Coming up with a name for your business system is not hard at all as I came up with the 3 above as a typed this post.
5. Credibility is key and you need to make your company sound credible and align yourself with people who sound credible. An easy way to accomplish both goals is to join a professional sounding organization, the Direct Selling Association for example, and to obtain testimonials from your highest earning members who also happen to be working professionals such a certified public accounts, lawyers, ceo’s and people who may be a higher up in a marketing firm. People who do not have professional titles will see those who do promoting your company giving you instant credibility. For example, “Wow, Doug Johnathan Davis has been a CPA for over 20 years and he’s promoting the company. He’s a professional and must know more than me!” Devote a section of your website to testimonial videos so people researching the opportunity can get that much more excited about the earnings potential but being sold on people who have obviously already been sold on what you’re selling.
6. A high price is the best price! Regardless of your product or service you need a high price point as it serves two important purposes. The first purpose of setting a high price point is to create the illusion that your product or service is ultimately more valuable than the well know service provider or product provider that you are comparing your business to. The second purpose is to assure that you can remain profitable even though you are paying thousands upon thousands of people multi-level commissions. Twice as high as the well-known will work well as your company is at least twice as good as the next.
7. Set up compensation requirements that are difficult to achieve but sound easy. For example, when a member first registers with you make a requirement that the person must recruit at least 10 new members within the first 30 days in order to being receiving commissions on the next level. If the person fails to register 10 people within the first 30 days the person must recruit 10 new members the following month, so on and so forth. “10 members are not that hard to achieve. You should be able to register at least 20 per month which is only 5 people per week. If you can’t this is probably not the right business for you!” If you have 100 new members who fail to hit their 10 per month goal that could potentially turn into thousands of people who are making revenue that you don’t have to pay additional commissions to. If you would like to go a step further, although I do not recommend it, is to make a quarterly goal requirements. For example, in order for a member to remain active the member must make at least 5 sales per quarter. Failure to do so will result in the member becoming inactive which will result in the elimination of that members commissions. In order to reactivate the member’s commissions, the inactive members must recruit 10 new members within 30 days. Taking it a step further will create a sense of urgency to the member who will promote much harder for fear of losing out on everything that member has worked for. Again, I do not recommend taking it a step further but many companies do this and manage to get away with it.
8. Stay in constant communication with your members. You want to create the illusion that you care about each and every one of your members and are creating a new avenue i.e. jobs for thousands of people. An easy way to stay in touch is to send out a few emails per week that inform members of how many new members the company has obtained, who the top earners are and any improvements the company has planned for the future or is in the process of rolling out. Be sure to include a little sentence at the bottom of each email blast that will entice members to communicate with you. For example “If you have any ideas on how we can improve but emailing us at….” Many people will actually look forward to receiving these emails and will use some if not all the information provided to recruit new members and to stay in touch with the members they have recruited.
9. Create a training or member’s area on your site. Many companies choose to charge for training as a way to increase revenue but a smart thing to do is to give this area to your members for free or at minimum include the area as part of the monthly member fee. Create flyers and have them posted so that members can download them along with business card templates, training videos and email templates that members can use to promote your company. Remember, you care about these people which are why you are helping them achieve their financial dreams by providing this area to them in the first place.
10. Event, events and more events. When you first begin you will obviously not be able to hold live events but that doesn’t mean that you can’t talk your members into holding them. Talk about how holding events is a great way to obtain new recruits. Once your company has enough members and you have enough data to know that you have a few hundred thousand members with a 20 mile radius of a major city it’s time to hold a company event. The smart thing would be not to charge for the event to assure that as many people who are involved show up. Make sure to record the event so you can post a video of that event on the company website. If you’ve successfully completed the above 9 steps this will be easy to do. Even if you’re MLM based business is never able to arrive at this step you would have already made enough money to pull the plug and live the rest of your life in the lap of luxury just as longs have abided by MLM laws and don’t have to worry about the feds taking you into custody.
There you have it folks, 10 steps to creating your own MLM business. It is not all that difficult to do and you don’t need a ton of seed money to begin. If you’re wondering why I have not personally started a multi-level based business if I know so much on how to start a multi-level business it’s because I have no desire to become wealthy through unethical means. I may be a lot of things to a lot of people but I am in no shape or form a crook. The risk in that even ONE (1) PERSON becoming financially ruined, possibly for life, as a result of my desire to become wealthy would not allow be to enjoy the wealth created.