Outsourcing MLM Lead Generation

In MLMs the business model depends on a constant flow of new leads. Many new inexperienced MLM salespeople are easy to spot because they approach their family and friends. Some are shy about it, but others are bold and follow the “Three Foot Rule”, and talk about their MLM to anyone that gets within three feet of them. MLM salespeople who have been it the industry for a while are always looking for new places to find leads and on option is to outsource their lead generation.

Leads Finders

There are companies who specializing in generating leads and they can do it several ways. Some operate like direct mail list builders. They enter certain criteria into a database and a list is produced. A MLM sponsor or salesperson would want to use criteria such as age, income, and region and this will produce a list of prospects names and addresses, and if available phone numbers. Other lead generating companies might compile lists through market surveys or other sources. The MLM sponsor buys the list and then may use it for a certain amount of time.

Cold Leads

The big drawback of these lists is that all the prospects are cold leads, meaning they are not referrals from anyone. They just happen to meet criteria and ended up on the list. For a very assertive MLM salesperson this may not be a problem and he will have no reservation about contacting these people. Others MLM salespeople will not want to cold call themselves, and in that case they may find another company to do the cold contacting.

Lead Contactors

A newer type of lead generation companies will create the lead list for you and make the initial phone contact. They create customized scripts for your MLM product and system and deliver to those leads that are available in your criteria zone. If a prospect is reached and expresses interest they can transfer the call over to you and you can complete the presentation. It is similar to a business call that is transferred from one person to another, except in this case the transfer is from the lead generating company to your MLM.

Making the Decision

Using outside lead generating companies while seeming to provide a large list of prospects, does have its drawbacks. Because these are cold leads there is a lower percentage of successfully contacting them and getting them to agree to listen to your proposal. If you go this route you will need to monitor your costs verses results to determine if it is worth it. Also due to telemarketing restrictions and Do Not Call lists there are fewer available phone numbers every day. You could use the list for a direct mail campaign which may be an option if you’ve had successful mailings in the past. Finding leads gets tougher every day, but it is still important to research the business before outsourcing the lead generation function for your MLM business.