Why MLM Companies Need To Think Of Members As Team


When people think of multi-level marketing companies, they tend to consider the pyramid-shaped commission system in which each participant can “hire” further members and increase their commission earning ability. As per definition, in MLM businesses, the workforce is typically non-salaried. That’s precisely where you shouldn’t refer to them as employees, but instead as consultant, salespeople, distributors, or even participants. The idea is that the participants join the company on a member basis.

Think of it as a club in which successful promoters can create an independent business to boost its revenues. When you consider the pyramid-selling strategy at the heart of the MLM business, the key to success is to recruit further members who will in time recruit members, and so on. In other words, you are constantly in a prospecting situation, trying to reach out to potential leads and to convince them to join the business. What this means is that every single member within the pyramid is a former prospect.

At which point did they lose their appeal as prospects? Some might say that as soon as they’ve joined the MLM company, they are no prospect anymore. However, it’s fair to say that in a pyramid-shaped commission business, the top of the pyramid relies on the lower levels to earn a commission – similarly, any triangular relationship between member within the company follows the same principle. What happens though when the lower tier becomes disenchanted with the business?

The answer is simple: They quit and take away the earning potential from the pyramid. That’s precisely why you need to look after your prospects at all times, even after they’ve joined. Indeed, maybe the only thing stopping your MLM company from growing is your member strategy. Perhaps it’s time to think of them as a team.


The key about prospects is to understand them

As surprising as it might sound, most of the prospecting strategies you would use to get in touch with potential future members who already know about your company – aka warm market prospecting – remain valid to manage your existing member.

It is foolish to assume that new members would be able to stay motivated when they enter a business model with no previous client or experience of pyramid selling. Ultimately, it takes skills, dedication, strategic planning, and a lot of patience to build a regular and reliable source of revenue.

New members whose sole experience might be your current results are unaware of the journey you’ve taken to get there. Don’t let them discouraged. Instead, learn to listen to their concerns without trying to sell the pyramid strategy to them.

The more you maintain your relationship to your existing members, the more likely you are to help them navigate around obstacles. Staying close to your members is all about keeping them happy in the company.


Can you ultimately create positive business for them?

In the traditional perspective of MLM companies, each participant handles their activities like an independent business. With a multiple of siloed businesses, it can be tricky to create a shared, positive culture. However, it could be advantageous to introduce shared facilities and employee perks to add a feeling of caring.

The bottom line is that your pyramid business is the sum of all its members. If you manage to make them feel appreciated, especially as they are trying to set up themselves as new promoters, they are more likely to stick around and invest their skills and expertise further into the business. Indeed, a lot of new and unprepared members can struggle at first and feel isolated.

By focusing your efforts on making the business work for them, you can not only humanize the company but also increase productivity and success.


Can you help them to improve?

Can you remember the first thing you received when you started?

As a new participant in an MLM company, you will get two things. You’ll get a free or discounted starter kit with marketing material to launch your independent business as well as a handful of products too – either to test or to sell. You are more likely as well to be invited to a training session or an open workshop that introduces the business principles.

Training, as it happens, is a vital part of success in any business, and that includes multi-level marketing companies too. Untrained members deliver only low value. If you have gone to the trouble to find and convert prospects, there is no logical reason why you couldn’t help them to become the best they could be.

After all, you’re going to benefit from their success too! Additionally, new marketing trends and ideas can be beneficial, even for your most senior and successful members. So, why not do like any other business and provide on-going training for your members?



Make them feel part of the team again

Training is all about sharing experiences and expertise with the sole purpose of improving everyday business and transaction strategies. But, as far as your members are concerned, they still work isolated from each other.

Admittedly, each independent company has a presence of its own. However, as each salesperson is encouraged to start their independent business, it would be foolish to pretend that there is no connection between them. When member A recruits members B and C, who in turn recruit members D, E, F, and G – and so on – their combined success profit to the company. Building a sense of belonging to a wide team can help to tackle sensations of loneliness and isolation among your members.

Additionally, as they get to know each other, they can also become more creative by exchanging ideas and being more open about their business strategy. Ultimately, team building is not just for typical office-based companies. It can work for you too!


The turnover is high

Last but not least, despite the popularity of MLM, the turnover rate is pretty high. Your income potential is affected by each member who quits. But the idea of looking after your members, providing guidance and support is, by far, the best thing you can do to protect your business model and your revenue.

Togetherness is often portrayed as an HR principle for offices. While the world of MLM companies has typically ignored such principle, there is a lot to gain from building a team of members that belongs, learns, and grows together.

Are you part of an MLM company?

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