Direct Sales and MLM

Recruiting vs. Sponsoring

By
Kevin Thompson

< src="https://dev-thompson-burton-wpms.pantheonsite.io/mlmattorney/files/2010/05/cards_image.jpg" alt="" width="360" height="305" class="alignleft size-full wp-image-87" />There's a difference. One is about slinging warm bodies in a downline. Participants are required to buy the products and immediately asked to turn over their contacts and recruit more participants to engage in the cycle of consuming, recruiting, etc. Recruiting is primarily self-serving. When there's a small chance for making sales to customers due to pricing issues, the participants focus on the only thing that brings them income: recruiting. And when the primary means for earning income is via recruitment, there needs to be a recruitment engine that makes it easier for participants to jump into the stream of activity and repeat the cycle. This leads to an ill-informed group of participants that are oversold on the merits of the business and uninformed about the expenses and sustainability of the behavior. Companies with heavy recruitment cultures flame out within a few years (or several if they're lucky), or worse, get shut down.Sponsoring is about taking personal responsibility for the new participants in the business, ensuring they have a good understanding of the responsibilities associated with owning their own business, educating them about the product and mentoring them along the way as they make sales and sponsor other participants. Sponsoring is about caring and education. It creates a win/win relationship between the sponsor and the enrollee.The ultimate safeguard a company can put in place to ensure a healthy balance between recruiting and selling is a retail sales rule. In Amway, a distributor is purportedly required to make a certain amount of retail sales before they can earn override commissions on their downline volume (their recruit's volume). Before the participants can benefit from their recruitment efforts, they need to demonstrate a proficiency in selling.Businesses that require constant recruitment is a deck of cards. It's cool in the beginning but it has a violent end. It's nirvana when things are going well, but when recruitment slows just a tad, the whole thing comes crashing down. Customer sales is the best way to fortify a business. And to accrue customer sales, there needs to be a marketable product. What do you think?

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