Does it even make sense for MLM companies to restrict their reps to offline marketing strategies?

Let's face it guys. We are in a new era of internet marketing. People don't want to wait 2 to 5 years before they can live off of their residual income from their network marketing company. They want results quicker.

Network Marketing is a Leveraged Business

Remember in school when you learned about levers and how they work. In a leveraged business, you are using the the same amount of effort to create more results, i.e. recruit, sell product, than you would trying to create that kind of volume yourself. When it comes to network marketing we are shown an example of a simple lever. Like the one in this picture.

Now the problem most people have in a network marketing business is that they don't have a very large list and that list doesn't reach out very far. What do I mean? Well let's say you know 100 people like most NWM companies would like you to believe. Of those 100 people lets say 3 join. (Which is above average in most cases.) Now what is the likely hood that those 3 people are friends and their friends are your friends. I'd say at least 50% to 80% of the people on your list is on theirs. Take into account the law of diminishing returns and you are stuck chasing people in malls as a free strategy. That is why it takes a recruiting monster to make it in a traditional company and the reason why it takes so long. People drop out faster than you can recruit. So you need to move to a direct marketing system to generate leads for your business.

Internet Marketing and Network Marketing Combined

Now think of your leveraged business like a pulley system. Add the internet as one of your pulley's and you are able to generate leads and directly market to your customers all over the world for a fraction of what it would cost you to do it offline. For example the cost to run a classified ad in the business opportunity section can run $100 to $500 per week in your local paper. And I promise you, you won't get nearly enough qualified leads for your investment. Compare that to the internet where most of what we do here is free. Now there are things like pay-per click that require monthly expenditures that range fro $100 to $1000 per month depending on where you are advertising. But that is way better than running a local ad.

I said all that to say this. Companies that don't allow their reps to market online SUCK! Here is why:

1. What do you mean I can't tell people on Facebook?! First, I don't know how they can tell. Second, we are a mobile society and fewer people go to gathering places to create new relationships. Let's face it. It is far more convenient to meet friends online. I am not saying it is preferable I am just saying that is the reality. Now let me throw this one caveat in, don't spam your friends on Facebook. Build relationships and wait for them to ask you what you do.

2. Nobody likes doing it Old School. Look if you believe your upline did it Old School your wrong. They are building their businesses though generic funnel systems just like the internet marketers do. If they are in a newer company they bring their team from the old company. If they are in an old company they just sit back and watch their team recruit 1 or 2 a month. It's okay for them but what about you? Are you willing to give up all your nights and weekends for the next 2 to 5 years? Makes you say, "hmmm." Like I said before you need to be a recruiting monster to do old school.

3. The fastest growing companies are online. Take a look at one example of a company that allows it's people to market online, Numis Network. They have grown from 0 to over 10,000 active reps in less than a year. Now some of that can be attributed to their product but the majority of their reps have some kind of online presence.

4. Better results, faster. I am just going to point to examples of people who are marketing online that I work with personally. The first is Ray. He was in at the beginning, he does both online and offline and is the top earner in his company, has won several trips, and a BMW 7 series, all within the last year.

The second is my favorite, David, because it shows you that it is more important to build a list of loyal customers and followers than building up a single company. He was broke a year ago, had $200 to market online, got started and within 3 months was recruiting 2 to 3 people a day. (Now he recruits at will.) The company he started with, ILG, shut down it's network marketing model around March this year. He did a team huddle that day moved a good part of his team within a day. His business died and then was resurrected and he didn't have to wait 3 days! That is powerful. Don't get me wrong he has great skills and attracts people like hornets to a picnic but he would have had to start over again without the internet in a traditional system.

5. It's a waste of time, energy and resources. I know a story of a couple who have been with a company, for Legality reasons I can't say which, that after they had built their business lost their check for marketing online. Now I know what your thinking, they broke a rule. But it's a stupid rule. Where did that money go? Back to the people who bought? No. Look people don't join companies. They join people. That is the bottom line. Yes, there are great companies and products. However, people want to work with a solid team and with leaders to help them succeed. Period.

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About Author / Additional Info:
Robbie Johnson is an online business coach and helps new reps make money online with their MLM company. Learn what MLM CEOs don't want you to know at http://robsmlmunderground.com.
MLM CEOs got it wrong, find out why. http://www.youtube.com/watch?v=zoBoey72dy0