MLM Sponsor Monsters: Churn and Burn
Category : MLM
Let me start by saying that not all talented MLM sponsors fit the description I am about to give. But even some people who do not intend to hurt anyone, can do so by being in too much of a hurry to sponsor without responsibility.
I am sure you know what “churn and burn” means in the financial industry. This is where a financial advisor buys and sells constantly to earn commissions, without really being concerned about the long-term welfare of the client. Many people have lost their entire life savings in this manner.
In the MLM world there are certain people who are very talented at getting people to join their team. These are the blue and red personality types (more on that in the “Success In 10 Steps” ebook.) These people generally earn a bonus for each person they sponsor, so they can earn lots of money fast. These bonuses are one-time only, and do not represent a residual income. But they do get people excited! So it’s easy to get distracted and forget that you have a responsibility to train the people you already have. Did you promise them a great opportunity? Then you are responsible to show them how to get it!
Residual income is created if people stay on the products, as there is a commission on each order. If you have lots of people in a downline ordering every month, even if they never sponsor anyone, the person who sponsored them earns money.
What the “sponsor monster” hopes is that they can find just enough people like themselves who are great at sponsoring, to allow them to advance through the company ranks and qualify for matching check or leadership bonuses, cruises, or whatever other perks the company offers. They also hope that the people who can’t do that will keep ordering products every month to keep up the volume, or at least sponsor one person to replace themselves. But do they ever stop to think about how all of those people, who make up the majority of their downline, actually feel about not making any money?
From my own experience, I would say “NO!” The sponsor monster doesn’t recognize and understand personality types. They don’t have time for that! So they assume that the people who are not making money are simply unmotivated and cannot be coached. They keep on sponsoring (and collecting sponsorship bonuses) until they find more sponsor monsters just like them! They don’t realize that by training everyone the same way, and telling everyone to do as they do, they are stealing people’s dreams and making them feel like failures.
That is exactly what happened to me, until I found Mentoring For Free. Michael Dlouhy has shown me why it is not my fault that I failed before. He has taught me how treating people like numbers, as sponsor monsters do, is unethical and will eventually cause your team to collapse. He has given me hope! He has shown me that if you build your team the right way, based on relationships, even people who are NOT sponsor monsters can build a large team and succeed! You just need to take the time to build the relationship with each person you sponsor, recognize their strengths, and build on those. Also you help them grow past (or at least deal with) their weaknesses.
If you recognize that you’re not a sponsor monster, and until now you have failed and had your dreams stolen but you would love to get the same hope I did, please download “Success In 10 Steps” on the left and get started today! Don’t let anyone steal your dreams!