The 3 P’s of Multi Level Marketing

Building a successful multi level marketing business takes dedication and focus. Just like any business, there is the opportunity for failure if the business is not run well. In order to improve your personal levels of success, follow the three P’s or profitability, pipeline and prospecting.

Profitability

The key to a successful MLM business is your bottom line, otherwise known as your profit. It is easy to get away from focusing here, putting your attention on recruiting, marketing or sales. While each of these items are also extremely important, if your MLM business is not generating a profit, you are not going to be able to have long term sustainability.

When you are looking to calculate your MLM profits, consider your revenues, your training overhead, your writing expenses, your online marketing expenses, your website expenses and any other expenses that may be easy to overlook. If you are not keeping track of both your income and expenses, you are setting yourself up for failure. Also, it is important to have a quarter end and a year end profit goal as well as a sales goal. Be sure to determine what your MLM business goals are, outline them and track your progress to give yourself the best opportunity possible of achieving them.

Pipeline

One of the key drivers to success is your ability to manage your pipeline. You will spend a tremendous amount of effort to get new prospect leads for your MLM product and new potential downline members. If you don’t effectively manage them over time, you will run the risk of losing touch with them, ultimately driving down your conversion rates. The best way to ensure that you keep up with your pipelines is to use automatic software programs. Set up automated programs for both your lead management and your contact system. There are many online sales tools like salesforce.com that will help you to manage your customer lists and prospect lists. Also, there are automatic email services that will work to send out emails to your prospects, keeping them warm over time. My personal favorite is AWeber.

Prospecting

The last key to success as an MLM business owner is to constantly prospect. This is one of the most common points that causes failure for people that enter this business. You must constantly be prospecting for new customers and new downline members. There will always be a natural attrition rate in your downline and you will not convert all of your prospects to paying customers. Prospecting is the highest paid task in the MLM business, so it should dominate your weekly schedule. Spend time following up with your leads, managing your online and offline marketing efforts, reviewing your data so that you can make changes and researching for new marketing techniques. Ensure that you are constantly performing this task, even when you don’t feel like it. Your results will improve dramatically and in proportion to the amount of time per week you dedicate to prospecting.