Why is Sponsoring So Important in the Network Marketing Business Anyway?

July 3, 2009

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Network Marketing, David Feinstein

A lot of people don’t understand why sponsoring and “recruiting” has to be a part of the network marketing business and what’s so important about doing it.

It’s pretty much all about just what it’s called, building a network. But it’s not just any network… a network of people marketing a business where you get a percentage from their efforts.

Now you’re probably wondering – if my 2 decades experience steers me correctly – “Now why would they want to give you a percentage of the sales when they could just keep all of the money themselves” right?

Well, that’s a valid question, and we don’t like to run away from the tougher questions like most network marketers do. WE like to tackle them head on and clear up any misconceptions.

The main ingredient to success in Network Marketing is simple…it’s LEVERAGE!

In a nutshell, no matter how darn smart you are, now matter how great you are at sales, or how much energy you have, you’re still constrained by the same amount of hours per day. I like to hear when people call it the “great equalizer” because it truly is.

But when you sponsor people into your downline, then you’re actually utilizing not only your 24 hours, but you’re also utilizing theirs. That’s the main reason for “sponsoring” in network marketing. It’s massive leverage.

Now you may be asking yourself then if these products are so great, then why doesn’t the company just put them out in the market, and sell them that way. Of course I’ve heard this a lot as a network marketing professional for the past 20 years as well, and it always makes me sort of smile.

First of all, let’s look at advertising and how it works.

When a company advertises their products via commercials, radio ads, newspaper ads, etc. it costs them from hundreds of thousands of dollars to very easily millions of dollars…UPFRONT!

But, when you have a sales force of distributors marketing your products all over the world, through the greatest advertising in the world…word of mouth…and you add in a way for people to actually get a commission for selling those services…then you’re paying your advertising AFTER the FACT! It’s a genius model for any company.

If you’ve ever tried muscling your way into a crowded marketplace, even when you DO have the best product in the world, with general untrackable advertising alone, then you know how difficult that can truly be.

Another Important Reason that Sponsoring in MLM is Crucial to Your Financial Health…

Whether you have a traditional 9 to 5 job, or you own your own brick and mortar business, then you know that YOU have to be there every day no matter what, or else you’re going to lose money.

There’s no vacations, there’s no being able to actually get sick and recover, you have to be there.

But when you have a downline of thousands of people, when you have a network of people with the goal of selling products for you and your team, then suddenly getting sick, or taking a vacation isn’t such a big deal. In fact, it’s recommended once you’ve built your business. (Well not the getting sick part of course).

The key is teaching your downline to be successful in all the correct way, which means being a good sponsor, and creating duplication in your business. Having a successful downline helps both you and them live happier and healthier lives.

Sponsoring in network marketing is truly a great and powerful concept… too bad it’s so little understood even after all of these years.

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