Because we are globally-connected, you are bound to become involved in long distance sponsoring.

Embrace the opportunity to recruit beyond your city walls. You never know if – in a city a thousand miles away – long-distance sponsorship will be your most productive downline.

Like everything else in this business (in life); however, there are right and wrong ways to go about long distance sponsoring.

In a Business Start-Ups magazine interview, a national developer and producer of marketing and training materials for MLM companies and distributors, notes that “a conscious game plan may make all the difference in effective long distance sponsoring.” The interviewee points out that the helter-skelter approach to sponsoring (“go wide and see where it goes”) won’t necessarily yield the best results for your time and effort. Using this approach, he says, people are told to sign up anyone “as long as they breathe.”

Like any other important financial decision, the interviewee goes on, give it thought. “Just because you know a guy in Ohio, doesn’t mean you should sign him up, particularly if he is going to do nothing in your organization but draw on your time.”

This approach may support a few heavy hitters at the top of a network marketing organization, but not the average distributor. The interviewee points out that the top people in a network organization always try to put active, motivated people on their organization.

Here are 10 tips to help you when it’s time to cash-in on long distance sponsorship:

1) Know your craft: Before you start sponsoring long distance, make sure that you’ve mastered sales and recruiting in your own locality. The interviewee advises, “Know what you are doing and what you are going to teach.” Be a deal closer!

2) Choose wisely: If you want to increase your chances of success in long distance sponsoring, look for people who are “wired to win;” independent people with a track record of success. In fact, the further the distance, the more independent and reliable that person must be. The interviewee parallels the long distance sponsoring relationship to that of a long distance romance, saying, “If I am in LA, can I have a successful romance with someone in NY? Perhaps if I choose wisely.”

3) Create a system: You should start off with a comprehensive plan of attack and communicate it to your downline distributors so that you are all singing from the same song sheet. This is best accomplished at the beginning of the relationship by emailing them your proposed plan of attack.

4) Agree on responsive commitments: When you first establish relationships with long distance recruits, take some time to qualify the candidates. You need to talk to them, says the interviewee, and determine what they want, how much they are willing to commit in time, money and resources, and in what timeframe. Although you are all operating independent businesses, you are somewhat dependent on one another. Once you find the right person, develop an agreement that details your respective commitments – at the very least – in an email dedicated to the subject of business goals and plans.

5) Establish a long distance sponsoring budget: You have to spend money to make money. Long distance sponsoring is going to create expenses you don’t normally have when you sponsor distributors locally. To determine whether it will pay off for you, you’d better understand the costs involved. The first obvious expense is of calling charges and data rates on phone plans that don’t have unlimited data. Are you going to be mailing support materials to downline distributors? Plan on postage and mailing expenses for communication and shipping expenses for support materials. Are you planning on flying out to meet your downline or join an event? Plan a travel budget to support your downline group. This is obvious, but must be mentioned anyway: Make use of free technology (email, Skype, messaging services, etc.) to cut down on your long distance communication expenses.

6) Get some support from your company: If it looks like long distance sponsoring will be a real winner for you, you should take a close look at the multilevel marketing company you are working for to see if it has systems that will work to support your efforts. These may include voice messaging systems, national conference call service, digital communications and documents, email services, distributor website, as well as engaging materials to support retailing and team building.

7) Make sure the company training program supports long distance growth: Although this has been a problem in the past for some network marketing companies, many MLM companies today are developing new systems to support essential training for long distance recruits. Just take a look at their marketing materials.

8) Build your downline in geographical areas supported by your company: When you build your organization long distance, try to build in areas where the company is supporting growth through tours, rallies, events, and training. It’s much easier (and less expensive) to arrange meetings if most everyone in your downline is located around the same regional area.

9) Focus on areas where other successful distributors are located: Geographical areas where there is an infrastructure of successful distributors should be your first focus. It is particularly helpful if you can develop a reciprocal relationship where you support distributors of long distance recruits in your city in exchange for your distributors being supported by successful leader outside your city.

10) Provide the personal touch: The interviewee suggests that “training is everything and three-way calling is the name of the game in long distance sponsoring.” Be sure that you are on the phone with the first 10 contacts your new, long-distance distributor calls. This bonds potential customers to your organization from the very beginning. And also – when your distributors contact their potential customers – your new recruit will have the opportunity to listen to your presentation, gather information, learn how to overcome resistance, learn how to close the sale, and begin to build their own successful business.

In network marketing, long distance sponsoring opens a world of opportunity. If you’re willing to do it right, it can be an extremely profitable world. Remember, it takes time. It take a lot of effort and patience. And, above all, it takes determination.

Learn more about recruiting from Attorney Jeff Babener!

What is the benefit of recruiting experienced distributors? Video!

What’s the difference between sponsoring and recruiting? Video!

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1) In your first year, what is your objective as a distributor? It is important to establish long-term goals and remind yourself of them frequently. If your objective is to sponsor 25 distributors in the first year, then you must recruit an average of two people each month. Once you develop long-term goals it is easier to see, and therefore reach, the short term goals.

2) How many people are you going to need in your organization? If your answer to the first question is monetary, then you will need to determine how many people you will need to recruit in order to meet your sales goals. Be sure to study the company’s compensation plan to understand what you need to do in order to succeed.

3) How much time do you feel it will require each week? Depending on your objectives, you may decide to spend ten hours a week or 30 hours a week recruiting, advertising, and selling. Keep in mind that most companies state that home parties average around 1.5 hours. 

4) What strengths do you have that will assist you in reaching this objective? Whether you are part of a community group or church or are great at approaching people, realizing your strengths will contribute to your success.

5) What weaknesses do you have that might inhibit you from success? Knowing your weaknesses are just as important as knowing your strengths. If you are honest to yourself about your weaknesses then you will be able to improve on them. Late-risers wake up earlier, the unorganized get organized, and the shy become speakers, for instance.

6) Do you have realistic objectives? If you plan to make $100,000 the first year and don’t know any people that may be willing to attend a party, then is a $100k sales goal realistic? Be realistic and start with goals you know you are capable of achieving.

7) Ask yourself how you would feel if you failed to reach your goal? It’s okay to fail; the key is to restructure your objective list and retry until you’re successful.

8 ) Vividly imagine yourself reaching your objective? How does it feel? Remind yourself regularly of that feeling.

9) Are you going to need the assistance of significant others in your life? What steps can you take to ensure their assistance? Remember to consider each individual’s strengths when you answer this question.

10) What will you need to invest in sales aids and inventory to do business? Be sure to budget sales aids, inventory, office space, gas, travel, and other expenses into your overall budget.*

* This is an excerpt from the book The Network Marketer’s Guide to Success available to order here.

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Although the terms sponsoring and recruiting are often used interchangeably, they are actually have two very different meanings. Recruiting is the act of searching and soliciting for new distributors for the downline sales organization of an existing distributor. Of course, the activity carries important responsibilities, such as compliance with company and statutory guidelines on earnings representations, product representations, and representations as to the business opportunity of the company.

Once a recruit has agreed to join the company, a recruiting distributor becomes a sponsor. Almost all company policies set forth very specific duties and responsibilities of a sponsor, including supervision, training, and communication with their downline sales organization. In addition, all companies have specific rules on cross-sponsoring and respectful relationships with other sponsors and distributors.

Watch the video for a detailed explanation by Jeff Babener, Editor of MLMLegal.com. View all of our new videos and more on our new and improved website: MLMLegal.com!

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Promoting your network marketing business can be done in many ways. Here are three ways to begin promoting your MLM business:

1. Warm Market

Most network marketers first approach their warm market, that is, their friends, family and acquaintances. Friends and family can easily become your first customers, and in some cases, will also join the company in your downline.

2. Social Media

Secondly, social media is an excellent way to advertise your business. Create a Facebook page and Twitter account used only for business purposes. Invite your existing friends and family to “like” or “follow” you on your business pages. Update your feed frequently with company promotions and special product pricing. Another underutilized method to advertise your business on social media is online groups. Search Facebook for local moms and dads groups if you are selling a parenting-related product. Search for business groups and groups that allow for business promotion and join them. Make sure the group allows sharing of businesses before you begin to post. Or, start your own Facebook or Google+ group! Online groups are great ways to network and share your home business with like-minded individuals in your community.

3. Online Advertising

Thirdly, there are many online advertising websites that offer free classifieds posting. Write an ad and post it online for free. To find online classified websites, Google “free classifieds online” and choose one of the many websites that allow advertising of MLM products and services.

The key to success in any business is being able to sell to anyone and everyone. Successful consultants sell products to teachers at their child’s school, neighbors who they meet at the park, and even other parents at the PTA. Keep the success of your business at the front of your mind, no matter where you are or what you are doing and this will help you achieve success in your business!

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 22 and 23, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

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In this case, an enroller is a sponsor that places a downline distributor into the downline, but not frontline.

Most modern direct selling plans offer enroller coding bonuses. Historically, a sponsor enrolled a new distributor frontline and was deemed the sponsor. Commissions flowed from this relationship.

However, as sponsors became busier and busier, companies concluded that it was beneficial to all parties to allow a sponsor to place a newly-sponsored distributor into the downline, but not necessarily frontline to the sponsor.

This approach allowed top distributors to recruit, but assign the new distributors to downlines that would be better able to work with the new recruit. In addition, this approach allowed a top distributor to reward individuals in their sales organization with some of the benefits of top distributor’s recruitment efforts.

And thus the concept of an enroller developed. In this case, an enroller is a sponsor that places a downline distributor into the downline, but not frontline. The sponsored individual is placed underneath a “sponsor” and is tied and coded to an enroller or “code sponsor,” with the enroller or “code sponsor” receiving a specific “coding bonus” which is associated with sales volume of an enrollee or “coded sponsoree.” This “bifurcation” of commissions allows for a reward to the efforts of both the “enroller” and the support efforts of the downline distributor who becomes a sponsor.

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Compensation plans are drawn by skilled craftsmen.

As the French say, “a chaque a son gout.” Translated, this means, to each his own taste. And this is the truth. There is no right or wrong when it comes to types of compensation plans, whether they be unilevel, stairstep breakaway, binary, matrix, Australia Two Up, etc.

In fact, it is rare today to see a compensation plan that does not combine elements of various models as well as various add on features such as a shared bonus pool, enroller bonus, check match, infinity bonus, generational payout, fast start bonus, etc. Compensation plans are drawn by skilled craftsmen such as Michael Sheffield of the Sheffield Group, www.Sheffieldnet.com, to incentivize differing types of behavior. And incentives may be accomplished by rewarding those who have substantial personal volume, substantial group volume, sponsor wide, sponsor deep, train their downline, demonstrate substantial retention, demonstrate the building of other leaders, etc. Differing compensation plan models reward differing types of behavior. In general party plan companies tend toward unilevel and generational bonuses. Consumables companies tend toward matrixes and binaries because the focus is on recruiting large downlines. Australia Two Up plans tend to be oriented to high-priced, one-time purchases.

As a general matter, all compensation plans have a similar amount to distribute, ranging from 30-50%. How the pie is cut differs from business to business. A party plan skews payments to the direct sale. A consumables plan skews payments to be spread over a larger base. In the end, the compensation plans chosen are tailored to the products, economic objectives and behavior to be incentivized.

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Most companies will allow consultants to join downlines with multiple companies so long as they don’t raid the sales organization.

Some companies state that you can’t recruit people that you didn’t personally sponsor. If you personally sponsor a friend or family member then why can’t you recruit them to join you at your new company?

The short answer is that company policies have evolved over the years, resulting firstly from a combination of increased raiding by distributors who switch companies. And secondly, direct selling companies have become more rigid in trying to retain their sales force, sometimes with good reason, although they sometimes appearing to be “overreaching.”

For instance, around 20 years ago, leading direct selling companies maintained a policy that required consultants to only offer the opportunity to people who they personally sponsored. Twenty years ago, this was a common policy.

Over time that policy changed. With the increased ease of communication due to technology, many companies asked that consultants not participate in raiding anyone in their organization while they were active with a company. The policy later morphed again to require consultants not to sponsor anyone in a new opportunity except for those that they personally sponsored upon leaving for a new company. Then the policy changed once again to where companies required that consultants who left a company not sponsor anyone into the new company.

In a few instances, some companies have provided non-compete agreements, which aren’t considered fair and are not even enforceable as a matter of policy in the state of California. Some companies have gone so far as to tell their distributors that they cannot participate in any direct selling activity for a certain period of time after leaving the company. Almost all states frown on non-compete agreements because they inhibit people from conducting their livelihood. Compared with the policies of twenty years ago, the extremities in policy have morphed extensively in terms of restrictions.

Today, the most common clauses seen are ones in which companies have moved from the concept of “don’t recruit anyone unless you’ve personally sponsored them” to “during your time with our company, we ask that you not raid anyone in your sales organization, whether you’ve personally sponsored them or not.” Most companies today will also ask that former consultants not raid people in their organization and recruit them to another for a period of six months to one year.

Most companies will allow consultants to join downlines with multiple companies so long as they don’t raid the sales organization. In the party plan arena, companies will often implement restrictions based on product. If you are selling jewelry, for instance, then the company will ask that you not join another company which is selling jewelry.

What happens if consultants raid anyway?

As a practical matter, not a legal matter, if a distributor is affecting the entire franchise of the company – having a major impact – a company will not hesitate to file suit and to seek an injunction against the distributor. It is very rare to see a company pursue a consultant who is very low on the sales genealogy or who has a very limited sales organization. Legal action is usually reserved for consultants whose major raiding activities would take a good portion of the business away from the company. Often in situations, such as these, there has been a bad-faith decision by the distributor themselves, which isn’t fair to the company.

Is there a right or wrong? Probably not. However, it is important to the future of direct selling that companies and distributors reach some common ground on acceptable practices by distributors who leave companies and recruit their former colleagues to new companies versus reasonable expectations of companies in restricting distributor movement in a way that is not overreaching in the marketplace.

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Multi-level marketing, otherwise known as network marketing, MLM, party plan, and/or direct selling, is a business in which a sales force sells products and services through word-of-mouth marketing. The sales force (also known as consultants, representatives, distributors, etc.) is compensated not only by the sale of products and services to customers, but also for the sales made other sales people whom they recruit. As a consultant recruits other consultants, they generally earn a percentage of their recruits’ sales. These recruits are called the “downline” distributors.

Conversely, if you are recruited into a MLM company then you will have a sponsor. Your sponsor – along with other consultants in levels above you – is considered your “upline.” Your upline will receive a percentage of your sales. This will entice them to recruit more consultants.

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The question of “rights in the downline” is one which is clearly headed for the courts within the next few years. Many MLM companies take the position that they are the sole owners of “downlines.” Many key distributors market their “downline structures” from one MLM company to another as if downline structure was a piece of property which could be marketed at will. When the “process” of multilevel, as a form of marketing is closely examined, the better argument is probably that neither of these positions is correct.

Multilevel marketing is a form of one-on-one direct selling by which companies contract with independent distributors to market products and compensate those distributors through sales commissions on sale of product produced by their sales organization, as well as offering distributors the opportunity to profit through the differential between wholesale and retail price. A downline is, in reality, a sales organization made up of independent distributors. It is not owned by key distributors, nor is it owned by an MLM company. Independent distributors are free to cancel participation at any time. In fact, those states that have adopted multilevel distribution statutes require that distributors be permitted to cancel participation at any time, for any reason upon notice to the company.

Most companies have adopted sophisticated data processing which provides detailed information on downline sales organizations. In the event a distributor leaves an organization, a company is obviously free to continue marketing through its system of independent distributors. Modern thinking MLM companies also provide availability of data processing information on the sales organization in the distributor’s downline. In fact, providing such information is tangible evidence a company may offer to regulatory authorities that its distributors are well informed as to their downline sales organizations. This indicates that the distributor plays a bona fide supervisory selling soliciting function in moving product to consumers. Many statutes now require this bona fide supervisory function as a precondition to receipt of commissions or overrides by distributors. Distributors are free to use information as to their own sales organization as they deem appropriate subject to restrictions regarding confidential information. Companies which attempt to restrict distributors after termination from working with other MLM organizations should seriously consider the federal and state antitrust implications of such restrictions. In California, for instance, noncompete agreements are unenforceable unless based on confidential information.

Companies may not arbitrarily terminate distributors without facing liability. Distributors enter into contracts with companies in reliance on the fact that they will be compensated for building sales organizations. Although many MLM companies adopt one year contracts with distributors, arbitrary or capricious termination of the distributor may clearly subject companies to contract claims as well as possible claims under various state dealer termination statutes. It should also be noted that, in recent years, many state courts have gone so far as to even award damages to “at will” employees, i.e., employees who are not under contract with the company. This line of cases, which has developed claims for “wrongful termination,” has produced sizeable awards of both compensatory and punitive damages. Such cases involving MLM companies are still in developmental stages.

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Parts of this article are borrowed from http://www.mlmconsultantadvice.com/babener_12.html, written by Jeff Babener in 2011.

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We’ve been the advisor to hundreds of network marketing companies. They’ve been billion dollar companies that are household names and they’ve been mom and pop businesses that you’ve never heard of before. What sustains all of them is obviously sales, but what fuels their success is the ability of their distributors to recruit. And, at the foundation of all recruiting is good communication and person-to-person bonding. Technology is changing the game. But don’t sell short the old-fashioned hug or handshake as the best bonding and recruiting machine yet to be invented.

So what’s the impact of the high-tech tools like the Internet on your success in recruiting? Well, our experience suggests that we definitely have a step forward in communication, but not necessarily in closing the sale or recruit. There’s no substitute for what is often referred to as “pressing the flesh.” This is a “people business” and human contact is the necessity that cements the bond.

With the advent of television, a famous media observer, Marshall McLuhan, coined an interesting observation. He said, “The medium is the message.” Unless you are a university professor, that one may leave you puzzled.

What he was probably saying was that the way in which you say something may be as important as what you say. So when you send your message by spam, or by automated telephone device, or when your recruits respond to your ad and are greeted by a voicemail, or when you answer their email with an autoresponder, is it any surprise that you lose the recruit and/or the sale? You could have just lost someone who might have been pivotal in helping build your sales organization.

This is not to say that numbers are not important. The rule in the sales world has always been that you have to expect a lot of NO’S if you’re expecting to get a YES. In other words, you have to kiss a lot of frogs if you’re going to marry a prince. One ingenious networker applied the frog-kissing principle to network marketing.

The message is that network marketing is hands-on, and this old MLM fairy tale is entitled Network Marketing and Frogs. The tale goes something like this:

You’ve gotta kiss a lot of frogs to meet a prince. That’s the job and you’ve gotta kiss ’em. You can’t mail them a kiss. You can’t stay in the office and wait for them to hop in and kiss you. You can’t let advertising change them into princes. You can’t ask your secretary to kiss them. You can’t kiss the same one 40 times. You can’t spend all your time in kissin’ school.

You’ve gotta spend time with the frogs, and you’ll find them out there on the marshes, then when you find one you’ve gotta make contact. Remember kissing is a contact sport, that is, if you really want to meet a prince.

In other words, in a high-tech, high-touch world, in-person contact wins out over technology every time. Another industry expert likes to say that “although the follow-up on decisions are often driven by logic, people make decisions based on emotions.” Think about it for a second. He’s right.

Eminem doesn’t say play the music, he says lose yourself in the music. In other words, connect your soul. Computers, internets, answering machines, emails can’t do this. People don’t lose themselves in emails or auto-responders. People make the decision to commit based on visceral instincts. When they say reach out and touch someone, it resonates. Reach out and send an electronic message does not resonate.

All the studies done on why distributors join and stay with network marketing companies point to the top factors as being personal and emotional; bonding with company leadership, bonding with field leadership, bonding with company vision, and bonding with the product itself. All of these connections are visceral and personal. So use all those new high-tech tools for great communication.

But, don’t kid yourself. There’s no substitute for the personal connection if you intend to be successful in recruiting and network marketing.

For additional information on recruiting in the competitive world of network marketing, visit the following links:

Recruiting Advice from an Industry Expert – Companion video to this blog post

Learn What is Needed to Recruit Top-Selling Distributors – Video

How Important Is Recruiting to MLM Company Success? – Video

MLM Recruiting and Leads Resources

MLM Consulting: How to Build a Successful Direct Selling Company

Or, read some of our other blog posts on success in network marketing, MLM, direct selling, and party plan:

The Nine Basics You Need to Understand in Order to Succeed in MLM – Interview with Jeff Babener

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

The Top Two Reasons Why MLM Companies Fail

What Differentiates a Legitimate Direct Selling/Network Marketing Company from an Illegal Pyramid Scheme?

What Factors Make MLM Executives and MLM Companies Successful – Video

Learn What is Needed to Recruit Top-Selling Distributors for Your MLM Company

Passion, Patience, Persistence – Attitude in Direct Selling

NEW PRESS RELEASE – 63rd Annual MLM Startup Conference!

Paying Commissions on Sales Tools, Sales Kits, and Training Materials……No!

Explaining Your MLM Company to the Public: Answering the Hard Questions

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And, as always, visit MLMLegal.com, the best MLM resource on the web.The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our May and October conferences as well.)

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