Online management system for MLM distributors - Part 1

By: Nili Raam

Most articles discussing success in network marketing, mention issues such as selecting the right MLM company, compensation plan, attitude, recruiting methods and commitment among other things. However, online management system as a key working tool enabling success is hardly ever mentioned.

In the article “Network Marketing Training- The Top 10 MLM Tools for BLAZING MLM Success” there is a list of the top 10 tools distributors require to grow their organization:
1. Telephone
2. Voice mail
3. 3 way calling
4. Audios
5. Videos
6. Replicating Websites
7. brochures
8. Presentation book
9. Email
10. Business card and stationary.

I am sure there is no need to explain anyone why a telephone or a replicating Website is an important tool which may help in increasing ones prospects list, but managing these leads is a whole new ball game.
A “common” distributor may add to 2 – 3 prospects in average per day to his list. This adds 700 - 1000 prospects annually! All of them are the outcome of hard work and a lot of time and money invested.
At this point, traditional tools such as files, notes, contact lists or even excel spread sheets fail, and online management system becomes the only option.

The Beginner
Beginners have a lot on their plate. To become successful, they have to master all aspect of their new work as quickly as possible. Sales are essential for the existence and growth of every business, but for a new business it is a "make or break".
Consequently, the portion of time invested in sales and sales related activities reflects directly on the distributor’s success.

Lucky beginners are sponsored by good leaders. However, no matter how supportive the organization or the company you have joined, you are still pretty much on your own.
Administration tasks demand daily attention, which consumes an ever increasing share of your precious time.
Just think of the time needed to organize the list of prospects, prioritize, pencil down and arrange meetings, write notes, find telephone numbers, send emails, compose new letters, take care of advertising…
All this work must be done, yet it does not contribute directly to your bottom line.
As time goes by, prospects lists inflate and time dedicated to sales shrinks while support and administration activities expand.
No wonder that statistically, 80 – 90% of new distributors drop out within their first year of operation.

Organization manager
Once a distributor has added a few new down-lines, he becomes an organization manager. Since dropout percentage is high, organization managers are in constant pursuit to recruit new distributors on one hand, while maintaining and supporting their existing organization.
Let us analyze the process where a surfer visiting a Website becomes a distributor: statistically, 1% of surfers fill in an application form, and 1 – 2% of these leads become distributors. When you think of the quantities of people involved, attention, time and effort invested in turning these leads to distributors, 2 things become very evident:
1. The recruiting process should be professional, short and efficient
2. Lowering the dropout percentage is vital in supporting a healthy, stable and growing organization.

It is always more interesting and tempting to deal with real people than to spend time in administrative tasks. However, proper management becomes a more important issue than selling abilities on the way to make a real success.

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Nili Raam is a renown expert in her field in Israel, as a Communication Consultant for business, professional and executive improvement. She is author of a few published books and many articles. [email protected]

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