Recruiting vs Sponsoring

Here is a little note from one of my marketing sponsors that I wanted to share with you all.

Recruiting vs Sponsoring

Every time I take a step back and really think about Network Marketing and what the potential is I often wonder if we are making Network Marketing to hard? After working from home on a full time basis now for well over 10 years you would think I would know the secret to success. Well I have good news for you I believe I do know the secret to success and yes we are making Network Marketing to hard. I am going to break this down into 3 steps: Recruiting vs Sponsoring, the secret formula for success, and give it time.

Recruiting vs Sponsoring: I think that not understanding the difference between Recruiting and Sponsoring is one of the biggest problems in the industry. Let start by giving a brief explanation: Recruiting is simply the act of bringing someone into your business. Sponsoring on the other hand goes several steps farther. It includes the sign up process and then the mentoring, training, and supporting necessary to help your new distributor attain their goals. This is a long term commitment to your new business partner.

When I look back at my biggest success over the last 10 years, building an organization of over 75,000 active distributors in 24 months, I only sponsored 3 front line distributors and I put all of my focus in helping those 3 people reach their goals. The interesting thing was within 24 months all three of them were making a multiple six figure residual income and they were not relying on me much at all. They had their own business and things were great. That is an example of what can happen if you understand the difference between Recruiting and Sponsoring.

Now let me tell you the mistake I made next. After selling that business I started over. What was I thinking? I turned the American dream into the American nightmare. This time I thought I was going to take my business to the next level. I put together a huge advertising budget, set up several e-mail servers, and even a 100 line auto dialing system. I turned this machine on and started generating 100’s of fresh leads a day and turned that into 30-50 new distributors a month. I thought that I had finally figured out the secret to success, boy was I wrong. I continued on this path for almost 5 years sponsoring 30-50 distributors per month, month in and month out working harder than ever before trying to take my business to the next level. After five years my group had well over 100,000 sign ups. The bad news is only around 10,000 were active and only one person out of the 1000’s that I personally recruited was making a six figure residual income. What was wrong with this picture? I worked what seemed to be twice as hard for 3 years longer made less than half the money and had less than 1/5 of the active distributors. The reason I am writing this report is to help make sure you do not make the same mistake I did while trying to take your business to the next level. My new plan this year is to sponsor 5 people and mentor, train, and support them so they can attain their goals. Why five? Well really no particular reason that was just the number that I felt I could work with on a daily basis to give them the support they will need to get their new business up and running. I do want to point out one interesting thing though. The greatest thing about Network Marketing in my opinion is leverage. Leverage is really what this business is all about. Let me explain how this works, Network Marketing in a perfect world is a lot of people doing a little work. This short exercise will show you the power of a lot of people doing a little bit and how that can turn into massive leverage.

Let’s say you sponsor just 2, 3, 4, or 5 people and duplicate this effort 4 times.

Level 1: 2 Level 1: 3 Level 1: 4 Level 1: 5

Level 2: 4 Level 2: 9 Level 2: 16 Level 2: 25

Level 3: 8 Level 3: 27 Level 3: 64 Level 3: 125

Level 4: 16 Level 4: 81 Level 4:256 Level 4: 625

Total: 30 Total: 120 Total: 340 Total: 780

This is a simple exercise to point out how big of a difference one person can make. Even though when you look at these numbers they are hundreds apart the real difference between each group is only one. Once you understand this I think it will make a lot more sense why you want to become a great sponsor and not a great recruiter.