Have you ever had one of your MLM prospects say something like “I’m very interested but it’s just too expensive to join – is there a cheaper option?”
I bet you have.
In a world where many people seeking opportunity to make money from home don’t understand the basics of what it takes to fund a real business, this isn’t surprising. Many don’t think realistically about the costs of starting a real business than can make them a lot of money over time.
Many network marketing opportunities offer two distinct startup options.
- an option to start with a very basic package that is little more than some paperwork and an annual fee required to be a distributor who can buy at wholesale
- a “standard” startup package that typically includes product samples, premium business tools, MLM training on DVD’s, and more
The difference in pricing can seem significant to some of your MLM prospects. A typical example might be a basic signup package that costs $59, vs a complete startup package that costs $400.
Now, understand that some people looking at your network marketing opportunity will be thrifty by nature and interested in starting as cheaply as possible – not because they don’t have the money, but perhaps because they don’t feel the additional marketing and business tools provided with a standard startup package are a necessity.
Other people really don’t have the money, at least not sitting in their account right then where they can spend it freely.
You’ve heard that people who REALLY believe they can make money with your opportunity can FIND the money somehow, right? I believe in many cases that is true. If your prospect can’t come up with $300-$400 to start a home business, what are the odds they would be able to support normal ongoing business expenses and actually have a shot at success? I’m just saying….
So how do you deal with this “too expensive to start” objection from you MLM prospects? I ran into this issue yesterday, which inspired me to write this post. I had a very excited prospect who wanted to sign up now, but he strongly objected to starting with anything other than the basic kit (paperwork and right to market the product and opportunity only).
After explaining to him some of the essential business tools he would NOT get with the basic kit, I closed the conversation with this.
Fred, I understand where you’re coming from. I realize you feel that $400 is too much to pay in order to get started with our business. However, I cannot recommend that you start with the $60 basic package, because it doesn’t give you access to many of the most important tools and resources that our business success plan is built around. I wish you the best, and if anything changes, I’m here to help.
That’s where I left it. Over the course of your career, you’ll run into many MLM prospects who will object to investing more than whatever it takes to get started right with your opportunity. A home business that could make them thousands of dollars a month if they get serious with it. I suggest being honest and walking away. Be professional and leave the door open, because circumstances change and these same prospects could take a fresh look at a future time.
Did you get some value from this post? If you did, I would really appreciate you sharing it with others! And, your comments are welcome below!
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About Eldon Beard
Eldon,
Interesting that you say that. I can generally guess my belief in a new project on whether or not I want to put up the money. If I feel it would be a waste I let the person know that I do not believe that I will be putting in the effort necessary to help them out with their endeavor. They might put up a few objections initially, but it is better than toying with people for months as I do nothing.
Andy
Agreed, Andy. Many times people can come up with the money, but their belief that they can actually make money with the business is weak, and in that case it is an expense they feel they can’t afford.
There are times when closing the door in this way can be a good move for both parties involved – by being honest and saying you cannot recommend the basic option you are really positioning yourself to say “I can and will help you IF you chose to commit and help yourself, but if you are sat on the fence I’m not going to waste my time trying to get you to come down from it!”
Some can and do make it from the basic starting position but statistics show (in companies and teams where stats are in place ) that your chances of success are much greater when you invest both financially and mentally in the right way from day 1.
Good post Eldon and solid advice as always..
Thanks Neil. Sure, it is possible for people to start at the very basic level in any business without all the tools, but it makes it so much harder, plus they will tend to sponsor people to do the same thing. It can be done, but the odds of long term success and financial reward are very slim.
True Eldon.
I read recently from one top earner that over a sixteen year period, his own stats have shown that 50% of people starting out at the top end (with the business package that is) succeeded in his companies business model. Those coming in cautiously were far more likely to fail – perhaps this tells a story in itself about mindset.
Neil
—-> perhaps this tells a story in itself about mindset.
That’s it. Thanks Neil.
The direct sales company I used to work for had an enrollment fee of $10 (they’ve since raised it to $20 -gasp!) and we STILL had people complain that was too much! I understand that sometimes people are nervous about making commitments, and maybe even unsure of themselves … but I tend to agree with your approach Eldon. Ultimately it’s about business – leave the door open, but let them at least make the effort to reconnect if the decide to take the next step.
Problem is Marquita, those people who complain about paying $10 or $20 to start a business have no concept of business and what it takes to build it up and make money, and likely would never invest anything into advertising and promotion. That’s why I just pass on opportunities to work with people who have that attitude, but I do leave the door open.
Hi Eldon,
I’ve found that people that are in a limitation mindset think that any amount to set up a business is to much. When you really explain that a brick and mortar business cost tens of thousands, and you are getting set up to win in a network marketing business, there mindset still won’t grasp the power of network marketing because of their limited thinking.
I you have to beg, forget em! lol
Thanks Eldridge, some people just don’t get it at all, and really have no interest. I wish everyone the best, and work with those who are hungry for success and opportunity when the time is right for them.