Earn Money By Networking For Your MLM Business

Today we’re going to talk about how to earn money by networking in the context of a multi level marketing business.

MLM (also called network marketing) has a very poor reputation in the broad public. One of the main reasons for this is that it has been misrepresented by distributors within the profession.

The misconception about network marketing is that in order to be successful, you need to recruit tons of people and teach them to do the same. The problem is, this is only partially true.

The main objective of the network marketing business model, like any other business, is to provide value to the marketplace… and you do this by selling your products. Which in turn creates revenue for the business.

Network marketing is powerful because it takes out the middleman.

You can eliminate big box retailers and ecommerce giants like WalMart and Amazon. And it gives you as an individual the opportunity to build your own business by selling products directly to consumers and earning commissions along the way.

You can also build your own sales network who will sell products for you. Every individual in the network will earn commissions for each of their sales, but you will also earn a small commission from every sale made by a member in your network.

And every person in the network can build their own sales network.

The problem is, many network marketers become overzealous. They misrepresent the business opportunity and make the claim that in order to be successful, you need to recruit, recruit, recruit. 

And they don’t put enough focus on selling products.

Worst of all, many network marketers become pushy and annoying. They view every single person as a target that they have to recruit.

This is unprofessional and unsustainable. Because eventually, the people in your personal network (such as friends and family) will start to avoid you. Because they are sick and tired of feeling like all you want from them is their money.

Learning to build your personal network is one of the most important skills to learn in order to have long term success in MLM. And frankly, it applies to all businesses as well as success in your personal life.

For the purposes of today’s article, we’re going to talk about networking in the context of the MLM business model. And the most important thing to keep in mind about MLM is this: 

The goal of network marketing is to grow your sales network so that more products can be sold into the marketplace.

To gain a better understanding of the network marketing business and why it’s important for today’s economy, be sure to read our deep-dive MLM analysis.

The Network Effect

When we talk about networking, we need to make a distinction between “networking” and “network marketing”.

“Networking” is the process of growing your contact list, not your network marketing organization. We’re talking about growing the list of people who you have on your contact list and keep in touch with on a regular basis.

If you treat your network right, then the bigger it gets, the faster it will grow. And the more influence you will attain within that growing network.

In order to truly understand the power of this, we need to understand the network effect.

Here’s how Oxford Dictionary defines it:

A phenomenon whereby a product or service gains additional value as more people use it.“Instant messaging is a market with strong network effects”

One of the best known network effects in the technology space is the invention of the telephone. Initially, the phone had little value. Because if only 2 or 3 people on the planet have a phone, then most people are not incentivized to buy one.

Because nobody they personally know has one. So there isn’t really a point in getting one yourself, right?

But as more people bought phones, it reinforced the network. Because people you personally knew were using the phone and it became more valuable for you to have one as well.

The bigger the network of phone users grew, the more people wanted to join the network of phone users. Eventually, the network grew so big that virtually everyone on the planet had one. And the reason everyone had a phone is because everyone had a phone.

Social media, like Facebook and Twitter, experienced a similar self-reinforcing network effect.

The same concept applies to your network as you’re growing your contact list.

The bigger your network gets, the more it will grow. Especially if you treat every individual in that network right. You stay in regular contact and provide value to everyone as often as you can.

You will start to become front of mind for many people. You’ll start to become known as somebody who has many contacts. 

Which will result in people introducing you to more people because you’re someone who can put them into contact with somebody else who may be able to offer something of value.

For example:

You add someone to your contact list who you simply can’t imagine will serve a need that you or anyone else in your network has. He’s a manager at a small grocery store and a hobbyist woodworker.

A year or 2 later, you have a conversation with another one of your contacts. She’s an accountant and is looking for someone to build custom office furniture that will fit her brand and personal style.

You can’t personally help her with that, but you remember your other contact who does woodworking projects as a hobby. You introduce these 2 folks… the woodworker now has a new customer and the accountant gets the exact type of furniture she was looking for.

You didn’t really do any work yourself… but you’ve built tremendous social capital with both of these people.

Eventually, you will become known as someone who can put people in touch and create win-win situations.

As this happens, people in your network will start to talk about you as someone who may be able to help with various problems because you know so many people.

I learned this concept from Jordan Harbinger. 

Jordan is a well known podcaster and a master networker. In fact, he’s grown his network to well over 11,000 people. And he is now known as somebody who can make valuable introductions. 

He’s built widespread social capital and when he needs something from anybody within his network, people are very receptive because of the value he’s provided over time by simply making valuable introductions.

As Jordan outlines in this article, you do not need to be “important” to be useful to important people. Here’s a powerful quote from the article:

As you fulfill needs for the people around you, you automatically deepen your relationships, continue meeting more and more important people, and elevate your overall network. That puts you in a position to identify even higher-impact needs with even more important people, perpetuating a really exciting snowball effect.

Earn Money By Networking ETHICALLY

Just like the MLM business model, there is a widespread negative connotation about networking in general. Many people view it as though networking is the process of meeting new people so that you can “convert” them into a new contact.

And the truth is, if your motive with every person is to help yourself, it does become somewhat conniving. 

It’s the wrong way to think about networking. With this attitude, your network will never scale and folks will see right through you.

If you want to build a network that will stand the test of time, you need to nurture your network. More importantly, you need to nurture every individual in that network.

Don’t Take People For Granted

One of the things you will learn over time is that it’s not usually the people closest to you who are the most “valuable” contacts. At least not from a business standpoint.

It tends to be the more “dormant” contacts who will result in some type of monetary gain over time. This concept is outlined in David Burkus’s book Friend Of A Friend.

So if you meet someone new who you think might not be that valuable to your network, you should get their contact information anyway.

Don’t take anyone for granted because they may end up joining your business or buying a product from you down the road. You can never predict what stage of life anybody is in or will be in the future.

Not only that, but they might know somebody who could be a valuable addition to your network.

The point is, you should never discount anyone.

Dig your well before you’re thirsty.

You don’t want to be “that person”… the person who only reaches out to people when you want something. If this is how you treat people within your network, you will be burning bridges constantly.

Instead, treat every single person in your network with love and respect. If they need something, do what you can to help them or even better, put them in contact with someone else who can help.

Play The Long Game

One of the biggest mistakes that most network marketers make is this:

You may try to immediately recruit or sell to every single contact you talk to. When the contact expresses zero interest in your business, you write them off forever. You think that because they said “no” today, they cease to be a valuable contact for the rest of eternity.

This could not be further from the truth.

To be a successful networker, you have to limit your short term thinking. Think about the exponential value that an engaged, expanding contact list can provide over time.

Never write somebody off or remove them from your list just because they weren’t interested in your business on any given day.

Because their perspectives or values may change over time. And even if they never become interested in what you’re offering, they may still be of immense value to your network as a whole.

Be Willing To Give Without Getting

In order to build a receptive, engaged network or contact list, you have to play the long game. Be willing to give time or even resources without expecting anything in return. Your results and social capital will compound over time. 

And your network will expand exponentially.

As humans, we tend to think that we’ll be able to leverage a relationship when we need it. But it really doesn’t work that way. 

We are reciprocal beings, so you have to put in the work over time without expecting anything in return.

This will make people feel valued and they’ll be able to see that you’re not just in it for your own personal gain (though of course, that’s a part of it)… but you mainly want to provide value to other people.

Do What You Say

When you say that you’re going to do something, such as make an introduction or connect 2 people, you have to do it right away.

Whatever you do, do not allow yourself to forget. If you’re unable to fulfill your promise immediately, at least make a note so that you will definitely remember to do it as soon as you have some time.

It’s important to understand that if you make a promise that you fail to keep, you are going to be perceived by the other person as being “full of shit”…

And they will NEVER forget it.

If there’s only one thing that you take from this article, it’s this:

Trust takes a long time to develop, but it can be destroyed by a single action.

Do what you say you will do. If you do, the odds are that you will keep your reputation strong and build more credibility over time.

Stay In Regular Contact With Everyone

If you have a list of thousands of contacts but never reach out to any of them without a hidden agenda, then your list is basically useless.

I know what you’re thinking…

If you have a list of thousands of people, it’s completely impossible to stay in regular contact with all of them…

Wrong.

But it does of course become more challenging as your list grows larger. So you should consider using a CRM tool like LionDesk.

This is a tool that keeps your contacts organized for you, and keeps track of your interactions with them. It’ll send you a reminder periodically to reach out to a contact that you haven’t talked to over a specified period of time.

For example, you could set it to 90 days…

And LionDesk will ensure that you get a reminder every 90 days to reach out to a contact.

So if you have thousands of people, you’ll get reminders every single day, spread out in such a way that you’ll be staying in constant contact with every member in your (eventually) massive list.

Set aside a small chunk of time each day to reach out to your contacts… without an ulterior motive. Just to stay in touch and keep the relationship fresh.

If you get a nagging feeling that using a tool to keep track of your relationships is in some way cheating, just cut it out.

Get over it.

It’s not cheating. It’s simply using available tools to maximize your time and resources efficiently.

Would your spouse feel insulted if you used a digital calendar with alerts to remember their birthday or your anniversary?

The answer is no.

You have tools available for use, and there’s nothing wrong with taking advantage of them.

Build Your Status By Networking

The larger your network grows, the more credibility you will have.

On a psychological level, we all hold people with large networks in high esteem. 

And it makes sense…

Because if you see somebody that is surrounded by a large number of people, your brain views that as a symbol that the person is somebody to be trusted.

That the person has something of value to offer. 

And it’s because they do. 

When people start to hear about you from so many different sources as a result of your expanding network, you will start to be seen as a credible person.

Because people with large networks have a large pool of resources to tap into. And those resources can be used for personal gain or to help others in the network.

4 Steps To Get Started

Like many people just getting started in MLM, you might think that you simply don’t know enough people to succeed in the business.

That’s just an excuse.

First of all, you know more people than you think.

And second of all, it’s never too late to start building or expanding your network.

And for long term success in network marketing, you need unlimited prospects. A constantly growing list of contacts. And expanding your network is how you will do it.

You will earn money by networking properly, not just in the context of an MLM business, but really in any career.

So let’s talk about 4 steps to get started so that you can earn money by networking, build widespread trust and credibility, and start selling products and recruiting new distributors into your team.

1. Make Your List Comprehensive

You will naturally be tempted to leave certain people off of your contact list. Whether you want to admit it to yourself or not, you have certain prejudices.

You may think that someone is too old. Or too young. Maybe their interests or values don’t align with your own.

Try to leave any prejudice behind.

Everyone goes on your list.

Whether you like a particular person or not, add them to your list. Even if you think that someone will never become a prospect, add them to your list anyway.

Your database of contacts will become priceless over time.

There’s a concept that says we’re all only 6 people away from knowing every single person on the planet…

For example, I talked to a network marketer named Ray Higdon at an event in Texas a few years ago. I know for a fact that Ray knows a guy named Mike Dillard… and I’ve listened to a podcast where Mike speaks to Tony Robbins, who has personally worked with United States presidents, famous investors like Warren Buffet and Ray Dalio, and other top world leaders.

It’s an interesting thought experiment.

The point is, never discount anybody. Look at your list and think about every person that they may know… then add them to your list.

2. Constantly Expand Your List

Even if you don’t plan to prospect any one individual, they should still go on your list. For every single person you meet, make a conscious effort to get their contact information.

Make it a personal goal to consistently add a certain number of people to your list every single week. Whatever number you choose, stick with it and stay consistent over time.

3. Stay In Constant Contact

Find creative ways to consistently stay in touch with everyone on your list.

As we talked about already, use tools like LionDesk to help you.

And think outside the box.

For example, if a “dormant” contact on your Facebook friends list posts something new and exciting that happened in their life, consider taking an approach that differs from the masses.

Don’t like or comment… you’ll just be drowned out because that’s what everyone else does. 

Instead, consider sending them an email, text, or phone call and engage them that way. 

You’ll stand out from the crowd and the person will certainly remember your interaction for a much longer time than any of the others.

4. Have Fun

Get out there, live life, have fun, and meet new people. 

Join organizations, hobby groups or clubs, networking groups, or gyms. Whatever you enjoy doing, think of ways that you can do those activities in a way that you’ll meet like-minded people.

This will be great for your personal networking long term. It’ll be great for your business long term. It’ll do wonders for your mental health and people skills.

And best of all, you’ll make a ton of great new friends.

Let’s End This Thing…

The real key to succeeding in an MLM business is creating duplication. This means that whatever you’re doing to create success in your business, you need your team to take the same actions that you are…

Allowing them to create the same results.

This will create exponential growth in your business. Be sure to read this article to learn about the power of duplication.

You also need to add people to your team so that you can get the ball rolling and consistently have prospects entering your funnel for years to come.

And networking is how you’ll do it.

You will earn money by networking in any career, but it’s especially true in an MLM business. 

It might make you nervous at first.

But remember, anything worth doing will push you out of your comfort zone. True success exists outside of your comfort zone. And the most successful people in the world have been willing to get uncomfortable more times than unsuccessful ones.

And over time, as you meet more people and build strong, meaningful relationships, you’ll grow to love the practice of networking.

Not only does it lead to financial success, but it also becomes very personally fulfilling.

So get out there, have fun, and meet as many people as you can.

If you have any questions about the network marketing business model, you may be interested in having a look at our MLM FAQ page.