John Smith is introduced to the business, he gets excited by the promises of of large residual incomes and time freedom. He starts to promote his new business opportunity by purchasing 500 leads a month and cold calling them pushing his company, comp plan and products. He gets 1000 business cards and 5000 flyers printed and starts putting them out randomly.

After his first month in the business, he has not signed one single person. He approaches his upline who tells him “John, It’s numbers game, just get out there and talk to more people. Oh and John, try to find your ‘Why’

John’s motivation is renewed and in his second month he purchases even more leads, even more flyers and hey, why not get a whole heap of those company DVDs?? He tries again, cold calling his leads, emailing them to offer a free DVD, puts out flyers, more business cards etc etc and again – Nothing! John has been in the business now for 2 months, not introduced a single person and every month it is costing him money instead of earning some.

Why is he failing?

The reason is the Network Marketing industry is about marketing and promotion pursued by people who have no idea how to market or promote! How long do you think John can stay in business by not generating any income and every month spending what little money he does have on worthless leads and flyers? The answer, about 3 to 6 month on average and that is if his motivation to actually do it is still there after month No.2

What is he doing wrong?

John is pushing a business opportunity to people who probably are already involved in one or have no interest whatsoever. With his leads (probably opportunity seekers) they are already involved and struggling just the same as John or they are just ‘Tyre Kickers’ With his flyers etc, he has not identified his target market and is randomly advertising to people who have no interest in his ‘superb opportunity’

What’s the solution?

John needs to identify his target market and advertise to them. But advertise what? The comp plan? The company? The product? No, none of those things! He need to promote himself and a ‘How To’ system. People are lazy and would rather learn ‘How’ to do something than actually Do it.

So John takes some time out from his opportunity and learns a few simple skills and produces a ‘How To’ guide to network marketing. Now before we continue, I can literally hear you saying “I can’t do that” or “I don’t know the first thing about producing ‘How To’ products” Put this to the back of your mind for now because all will be explained later.

So fast forward and John has his ‘How To’ guide. He puts out ads on Google Adwords and sends visitors to a lead capture page where his simple but effective ad copy sells his guide and collects a prospects details.

For a complete system to provide tools such as auto-responders and lead capture pages at very little or no cost click here

Let’s look at what has happened here…

1. John has positioned himself as a leader, he is someone who is knowledgeable about his industry.

2. He has generated a lead that has not only cost him nothing, he has made a profit from that lead by selling him his ‘How To’ guide.

3. This profit from the sale has given him an income which he can use to buy more advertising next month (which keeps him in business) and therefore generate more leads and even more sales. This is known as a funded proposal.

Now I bet you’re thinking “great but what has this to do with network marketing if I’m just selling books or reports etc. It’s simple, because John has positioned himself as a leader, he has educated his prospect rather than ‘Sold’ his prospect and gained that prospect’s trust. If John continues to provide other free information, his value to the prospect will increase no end.

Imagine what will happen if John then recommends a business opportunity to this prospect at a later date? Hope I don’t have to tell you! – He or she will almost certainly join. In fact he will, if he’s looking for an opportunity, probably ask John what business he is in before John actually recommends it! So here we have a situation where the lead is calling you to find out about you and your business rather than you chasing him or her.

These are the basic principles of a funded proposal and attraction marketing. If you would like to know more about how you can generate your own leads and effectively get paid to do it, then I highly recommend you read “Magnetic Sponsoring by Mike Dillard”

In Mike, I found what I consider to be the “life saver” for my business.  This life saver I speak of was Mike Dillard’s 7 Day Free Video Boot Camp.In these 7 free videos Mike explained how I could attract an endless stream of prospects to me ready to join and actually get paid to prospect.

These videos have really changed the way I do my business, and I think they can help you too.

You can get free instant access to these free videos here…

Click here to try Magnetic Sponsoring risk free now, and learn how to attract endless new leads and customers to you…

Listen in on an interview with Mike Dillard as he reveals the inside secrets to Magnetic Sponsoring what it is, how it works and how your business can benefit from the strategies it teaches.