MLM Prospecting – Lead With Products or Compensation?

lead with products or opportunity?When talking about effective MLM prospecting, one of the most debated questions I hear is, “when approaching prospects, should I lead with the products or the compensation?”

In other words, when seeking to interest people in your opportunity, should you introduce them to your products first and then lead them to details about your business and how they can make money? Or vice versa?

Personally, I believe that products are the foundation and core of any successful network marketing business. Period. I know of many opportunities where a significant number of the reps focus on money and how much can be made. The products seem to take a back seat. This is interesting, because in some of these same companies I notice a higher rate of turnover (reps regularly leaving for other deals) than usual.

I believe that the best approach to MLM prospecting and sponsoring is a balanced approach. Help people see the quality and value of your products first, help them have a vision and enthusiasm for spreading the word. Show them how this leads to making money and doing whatever they want to do, i.e. achieve financial independence or work from home. Don’t just talk about how much money can be made with the products only an afterthought.

Some prospects though, no matter how you approach them, will tend to be focused on the fine details of the compensation plan. I’m talking about wanting to analyze all the percentages at all levels, to see perhaps how it “stacks up” to others they evaluating.

I think they are missing the point!

MLM compensation plans and how you get paid are important, but the key to success here is talking to people and introducing your products and your opportunity. That is where the focus of your MLM prospecting and recruiting should be. In any good company, money and compensation take care of themselves once you are doing the right things.

Here are some things I’ve observed (my personal experiences):

Prospects whose focus is on the compensation percentages and fine details rarely do anything if they sign up, if they even sign up at all. Many of the people I’ve sponsored who felt it necessary to understand all the compensation details and scenarios before they could do anything….never did anything.

A MLM prospecting approach that hammers the income stats and percentages tends to sponsor more people with less commitment, because their attraction tends to be more toward the “get rich” aspect of the business. When they don’t make a certain amount by a certain time they feel they should, they move on to another promising deal.

People who have joined my business with a focus on the quality and value of the products (and a desire to spread that word) tend to take more action and make more money.

So, bottom line, be balanced in your MLM prospecting approach and make sure prospects understand how your products (and their value in the market) drive the income opportunity. This helps present a more realistic vision of your business and how long term success is really achieved. Isn’t this what you want?


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Eldon Beard, Home Business Success Coach

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About Eldon Beard

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