Before I begin, I need to define terms.  When I refer to Old School MLM I am referring to the tried and true method of home meetings, hotel meetings, making a list of 100 friends and family, conversating with strangers to pitch your MLM, buying leads and cold calling.

When I refer to New School MLM I am referring to using marketing, direct response marketing to build your downline.  Using methods such as the internet and its vast resources and millions of people on it, getting those people to our websites and sales copy to attract prospects.

Now that I have defined these terms, you will obviously know after you learn from this website, that I am a fierce advocate of New School MLM methods.

But by being a fierce advocate of these New School methods, I am going to come across at times as being against Old School.

Let me make it clear, I am not.  If I had a downline member who was a master at prospecting friends and family, or people within 3 feet, or a master of cold calling bought leads, I would be singing his praises.

I am just a fierce advocate of the New School MLM because I have tried and failed at the old school methods.

I have tried the friends and family.  I have never felt so uncomfortable or my conversations felt so contrived then when I did that.

Or the 3 feet rule.  You don’t know how many times I tried to muster up the courage to pitch someone I didn’t know about my opportunity and felt like a complete idiot.

Or buying leads.  I have spent thousands on leads, because I must confess, I did find moderate success doing that.  But in time, my ROI, return on investment, slowly dwindled down as the quality of the leads dropped since those leads were sold over and over and I was the 10 millionth caller to that lead.

There is nothing more energy draining and unmotivating as sitting on a phone dialing for 3 hours straight, only to talk to 2 or 3 people.  And of those 3 people, they were all either broke or disinterested.

So that left me with needing to find a new way to build my organization.

And what I found is what I call the New School MLM methods.  It consists of the using the powerful advertising medium called Direct Response Advertising, the internet to generate leads, and a funded proposal that would fund your advertising.

So what is Direct Response Advertising?   Basically it is using sales copy, powerfully written, that elicits an emotion in your prospects that compels them to take action.  Whatever action you want them to take.  More often than not, in our business of Network Marketing, the action we want is either to generate a lead, or make sale.

Second part of the method is using the internet.  In an industry that is built on finding people and building relationships, it is shocking to realize that so much of our industry does not fully understand or use the power of the internet.  Here we have a vehicle, the internet, that has millions of people on it, that is not being used to find prospects.  Used properly, and you will have an endless supply of highly targeted leads.

And finally the funded proposal.  If you have never heard the concept, it is the idea of using an inexpensive information product and selling that product to our prospects, our target market.  That product would be information that addresses and solves common problems facing our market. 

By approaching our prospect with a product that offers a solution to their problems we accomplish several things.

  • First, we make money on the front end.  This money and sale is what is going to cover all of our advertising expenses.  And if done correctly could actually be a business in and of itself that makes a profit.
  • Second, it is easier to sell an information product that solves a problem rather than selling our opportunity.
  • Third, we now have a highly qualified prospect willing to spend money on their business.  No more deadbeat leads with no money.
  • Finally, we position ourselves as the expert.   In this industry, people want to join experts.  They want to join leaders.  That is ultimately the determining factor when people join business opportunities.  By positioning yourself as the leader and expert, you now have a prospect willing to join your business.

That is the funded proposal in a nutshell and basically the 3 components of the New School MLM methods.

And once I discovered the secrets of this New School MLM, my business, my mind, and my organization have never been the same.

I don’t have to spend my money on prospecting overpriced, unqualified leads.  I could actually make money on my prospects whether they joined me in my business or not.

When I did talk to prospects, it was them who wanted to talk to me.

I now literally had prospects calling me wanting to know what I was doing.  How would you like to have that problem?

I was now the hunted vs. the hunter.

I attract like minded individuals vs. the old way of prospecting people who want nothing to do with network marketing.

Once you understand the power of using the internet and it’s millions of people online.  Using direct response marketing to help them solve their problems.   And positioning yourself as the expert.  You will see a massive spike in your downline.  Network Marketing will be the fun and profitable business it is meant to be.

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Lesson 2 – Understanding What Home Based Business Your Are In