Why don't distributors register in MLM companies
The heart of every network company is its distributors. And the more motivated and involved they are in their work, the faster the organization scales. Analyzing the experience of creating new MLM projects, we discovered that one of the most common problems is when leads do not reach the partnership stage. In the article, read about the TOP reasons for this situation and how to avoid it.
First of all, when considering the reasons why people do not register, it is worth dividing them into:
- nuances related to the human factor (belief in stereotypes, fears, personal qualities, etc.);
- company's shortcomings that prevent partners from reaching the registration stage (errors in website development, marketing, software, etc.).
Among the nuances related to the human factor, we can highlight:
- Doubts about the reputation and integrity of the MLM company. The more successful and well-represented the image of the company, brand, or person, the more trust and loyalty it gains from users.
When working on your project's reputation, it is important to openly talk about it and strengthen the brand image through presence on social networks, collaboration with brand influencers, media, etc..
In the article Network Marketing Promotion, we talked about how leaders of structures can attract newcomers to the team and work on building their trust.
- Misunderstanding the essence of network marketing. People are afraid of network business without even understanding what it is. This is a trend that has been observed for decades.
To influence the situation, it is necessary to systematically increase the level of education in society and talk more about the methods of multi-level marketing.
Even if you survey experienced networkers, a smaller part of them will accurately understand the essence of the industry in which they work. There are situations where leaders of structures cannot distinguish a matrix compensation plan from a binary one.
- The fear of starting something new or failing at it. This fear paralyzes and instead of trying to self-realize in a new area or project, a person prefers not to start anything at all.
A skilled networker knows how to turn every objection into a "pro" argument for network business. We recommend highlighting the nuances of dealing with objections in a separate section of the beginners' training program and constantly improving their communication skills.
We have written about the objections partners encounter when communicating with people in the article Why objections are good and how to use them to your advantage
- Desire to consume the product but not engage in the business. It is important to realize that not all people are ready to take on the role of an entrepreneur. Roughly speaking, the majority of visitors to your site (this figure can reach 90-95%) are potentially interested in buying the product, not in partnership.
When developing a strategy to attract partners, special attention should be paid to the audience that is already initially interested and actively seeking offers.
When listing the shortcomings on the part of companies that caused partners not to register, the most popular ones are:
- Lack of demand for the company's niche and product. To turn a small project into a corporation, it is important to approach the choice of business direction correctly. Often, this is a task that requires a creative approach and a sober analysis of the market situation.
Choosing a niche for a future MLM project can be guided by the "blue ocean" principle. We have written about what this strategy represents in the article How to Identify and Develop Your Own Market Niche
- Lack of strong leaders (sponsors). Each partnership structure relies on a backbone of TOP leaders who are highly involved in the project. Sometimes, co-founders of the company play a key role in the promotion strategy. In any case, a business needs a leader who will motivate, inspire, and unite the team.
We discussed how to attract high-class networkers who will ensure real growth of a new MLM project in the article How to Attract TOP Leaders to a New Network Project.
- Issues with website or software functionality. In network marketing, the viability of a project may depend on the quality of the website interface and platform functionality. Therefore, even if you are at the stage of implementing a startup idea, you need to focus on integrating reliable tools into your business processes that meet your requirements.
We previously discussed what affiliate marketing software is and why it is important to invest in its quality in the article Network Company Software
The success of a beginner MLM business directly depends on how thoroughly the project founder has studied the basics of marketing, sales, financial management, etc. Even after understanding all the nuances of creating a business, it is worth attracting an experienced contractor who will advise, help, and prevent mistakes.
Team FlawlessMLM will help you launch your network company, optimize business processes, and develop software based on years of experience and a large number of implemented network projects of various orientations. FlawlessMLM specialists take trading companies to a new level by automating their sales through MLM. Contact our manager in the website chat and get a free consultation on solutions for your business.
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