MLM is a unique approach to selling products. It harnesses the power of networks of people to promote, market, and distribute products. This is why individual efforts and team collaboration form the core of the MLM business.
Without motivated individuals and active networks, it’s almost impossible to achieve success in network marketing. Therefore, it’s paramount to maintain the balance between team building and personal sales. In fact, the synergy between these two aspects is the key to unlocking remarkable results in the network marketing industry.
It’s a guiding principle for distributors enabling them to better allocate their resources for team-building and personal sales.
In this post, we will explore the 70% Rule in more detail and understand how it can power your MLM business. Let’s go!
Before we delve deeper, it’s crucial that we first establish a clear understanding of the 70 Rule. In essence, the 70% Rule stipulates that MLM distributors should allocate a significant 70% of their resources, time, and energy to team building and cultivating strong relationships among team members.
And the rest of 30% of their efforts should go into personal sales and achieving individual targets.
It’s because of the unique business model of network marketing. The success of an MLM business stands on a robust network of distributors and downline members. Incidentally, the 70/30 split facilitates strong team building, empowering distributors to forge a self-sustaining network that not only helps but significantly contributes to the growth of MLM businesses
Here’s how a strong downline contributes to MLM success;
At its core, the 70 rule brings to light the importance of resource allocation to achieve desired results. It ultimately leads to strong team building, plus it also empowers the team member to achieve greater success.
The primary focus of the 70 rule is on team building. Let’s understand why team building is important in MLM business;
- A robust downline team is strongly motivated, therefore, works hard to bring better results.
- The team’s hard work, therefore, brings consistent sales, ensuring long-term business success.
- A motivated and efficient downline actively recruits new members, facilitating network expansion.
- Active team members bring fresh ideas and innovation to the business process leading to more sales.
- A robust team understands the value of customer loyalty, thus working hard for customer satisfaction. This, in turn, leads to better customer retention.
It might be evident by now that MLM is all about leveraging the collective effort of a network. Furthermore, the effort of each member in the downline benefits the entire chain and helps the MLM business grow exponentially.
Moreover, the most significant advantage is the residual passive income – once a strong team is in place, it consistently generates sales, ensuring long-term business sustainability and ongoing income.
It’s indeed essential to have a strong team in MLM, but how to build one? Let’s explore the strategies for team building;
- One effective way of kicking off the team-building process is by starting with family or friends interested in the business.
- Leverage online platforms like MLM forums, social media, etc., to meet potential recruits.
- Actively participate in networking events around your area. By doing so, you can meet like-minded people there and, more importantly, possibly convince them to join your network.
- Utilize content marketing to effectively engage with people interested in MLM. Additionally, consider creating a blog showcasing the numerous opportunities and remarkable success stories within the MLM sector.
- Additionally, collaborate with influencers in MLM to tap into their network and potentially earn some members for yourself.
- Organize webinars and deliver educational content regarding MLM to potential recruits.
You can recruit top talents, however, unless they are aware of how things are done, they won’t be of any use to your business. As a result, it’s vital to provide training and support to the downline.
By ensuring proper training, you equip the downline with the necessary skills and knowledge to derive sales, recruit new members, and excel in their roles. Furthermore, consistent support plays a crucial role in making members feel valued.
This, in turn, fosters a positive work culture and encourages downlines to overcome challenges. Ultimately, a highly trained downline translates to consistent business growth and long-term success.
Here are some tips to keep your downline motivated;
Just like the collective efforts of Downline members, personal sales of distributors heavily contribute to MLM business success too. First of all, personal sales of distributors motivate the downline members to perform better.
Moreover, it ensures instant income for distributors – this boosts the company’s overall sales volume. Similarly, a high personal sales number of distributors inculcates confidence in its leadership and demonstrates its commitment to the company and the product. It also boosts the credibility of the distributors and projects him as a leader.
For distributors, Direct selling can be hugely beneficial. Here’s how;
- It helps them achieve a broader reach to different markets.
- It facilitates direct and personalized customer interactions leading to enhanced customer loyalty.
- It enables word-of-mouth marketing, leading to free publicity and more sales.
- Additionally, direct selling helps with on-the-spot feedback, which can be valuable in improving the product’s quality.
- It helps distributors project themselves as trusted brands and solidify their reputation as credible sellers.
Neglecting personal sales could lead to some potential pitfalls;
- Neglecting personal sales may lead to doubts in your commitments towards the company and the company, negatively impacting your credibility.
- You will miss valuable customer insights crucial to maintaining product and service quality.
- Neglecting personal sales will limit your exposure to new customers impacting your team-building efforts.
- Not enough focus on personal sales could lead to downline demotivation, as they could question the criticality of sales efforts.
Well, personal sales are crucial, but the question remains, how to bring sales through individual efforts? Let’s delve into some effective working strategies.
🔰 Know the product inside out.
🔰 Improve your communication skills, be clear and persuasive.
🔰 Avoid pushy sales tactics; instead, be genuine.
🔰 Provide top-notch customer support.
🔰 Focus on personalization and mold your approach as per customer needs.
🔰 Offer additional value for customer retention, like after-sales support.
Sales are all about convincing people regarding the product. This is particularly true when you know the product inside out. Not only does this facilitate effective communication, but it also instills confidence and radiates positivity in your approach.
Furthermore, it helps you resolve customer queries, which is a crucial aspect that could significantly boost sales chances. It’s important to understand that customers favor well-informed salespeople; this element is essential for building trust and, ultimately, leading to more sales.
In conclusion, mastering the 70 rule bolsters your chances of building a strong MLM network as well as brings increased personal sales. Incidentally, building an active team is a bedrock of success in MLM.
Therefore, 70% of all your efforts should go towards this aspect. At the same time, focusing on personal sales leads to a deeper connection with customers, more loyalty, and a motivated downline.