Friday, March 23, 2012

Avoiding the Management Trap


(The following information is taken from Your First Year in Network Marketing by Mark and Rene Yarnell.  I am providing you highlights in the next several blogs in hopes that you will be equipped to survive and thrive in your hardest year of your network marketing business – the first one.  Here are the highlights from Chapter 2.)

It is important for every new associate to know that MLM is based on team-building philosophy rather than a supervisory one.  A frequent cause of failure in MLM is the mistaken belief that we must manage our downline associates.

The Management Trap: After successfully recruiting several of their friends into the business, new associates stop recruiting and focus solely on helping their friends become successful.  It sounds logical, but it really is a trap.

There is a significant difference between managing and supporting a downline organization.  Managing your downline will cause you to spend a disproportionate amount of time on one leg of your downline to the detriment of the others.  It creates a false codependency instead of teaching and encouraging them to learn to do for themselves.

This does not translate to ignoring your downline; it simply means that you want to help them need you less and less as they learn the business.  Teach them to teach their downline, step back and support them only as they need it.

Managing your downline results in weak and lazy associates who will be quite content with you doing their work for them.  Also, while you’re managing them, you’re not recruiting new prospects.  Remember that continually sponsoring new associates is what adds vitality to your business.  Do not stop recruiting until you are earning enough to live on comfortably.

Supporting your downline involves responding to their legitimate requests, helping them close a prospect and giving them encouragement when they are struggling.

Learn to recognize the difference between productive activity and ineffectual, time-wasting practices.

Beware that signing up a family member and then managing their team will only lower your income, spoil your family member’s chances to succeed, and derail your recruiting and growth.

The Messiah Complex: This is similar to the Management Trap, but its emphasis is more on saving people.  Spending too much time trying to ‘save’ one person hurts the rest of your downline.

The reality is that your associates who demand the least amount of your time and attention are usually the ones who become the most successful because you have trained them to be self-sufficient.

If new associates finish their training and go to work without calling you every day and asking you to do everything for them, rejoice!  Those who lean on their uplines for everything are usually the ones who fail the most rapidly.

Rather than manage, provide a duplicable strategy for you new associates and then allow them to create their own success.  Help them stay focused on their ‘Why’ and coach them to keep moving in the right direction.

Go Wide Fast!

Recruit a wide base of associates.  Don’t be satisfied with minimums.  Keep recruiting until you are making at least $10K per month. 

Remember, MLM is basically a numbers game.  Keep doing what you see your successful upline leaders are doing and teach it to your downline. 

This is a duplication business.  Your associates will do what they see you doing.  If you manage them, they will manage their folks.  If you spend your time supporting them while recruiting new prospects, so will they.

The secret isn’t managing your people; it’s finding leaders, who will in turn find other leaders.  So, develop your leadership skills and teach your associates to do likewise.

Recruiting is the only viable way to offset the inevitability of attrition.  If you stop building your frontline (people you personally sponsor) before you have a solid income, you will fail in MLM.

Plan on recruiting 2 to 3 years before slowing down if you’re doing it full time; if you’re part time, it will take even longer.

While many people criticize MLM after they fail, it’s usually not the fault of the industry. 

Pitfall:  Never tell people that all they have to do is sign up, give you their prospect list, and you’ll do all the work.  It doesn’t work.

Help your new associates with their first few meetings and then cut the cord.  They are then forced to take initiative and become leaders.

MLM is about building leaders and training others to do the same.  Teach them how to work their list, help with closing, but don’t do it for them.

People who have the will to succeed, will succeed, regardless of their circumstances!

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