Ep 6: Your MLM Plan | Network Marketing Business Plan – Podcast Transcript
Hey, Paul here coming at you with new breed MLM radio episode number seven. Today I want to talk about your MLM plan. After talking with the number of reps, I realised that many of them don’t have this. You can call it a MLM business plan or a Network Marketing business plan, they’re very different than traditional business plans, but they’re very, very essential. So let’s have a look at what they are, and why you need one.
So before we get into this I want to be clear that when I say MLM plan or network marketing plan, I’m not talking about comp plans. We will definitely touch on those, that is a huge part of looking at network marketing, but for today when I say network marketing plan, or MLM plan, whatever way you want to look at it, it’s basically looking at your business and putting the thing down on paper. Yes, it’s very similar to goal setting but there’s so much more to it. So let’s break it down and look at this thing.
In order to create your own MLM business plan you need to know what it should contain, so that means you need to know everything that’s going to go in it. Things like your business goals, what needs to be done in order to achieve those goals, what you’re going to need in order to run your business, as well as a whole bunch of other stuff. If you go around and ask various network marketers what their business plan looks like they’re probably going to stare at you and have no idea what you’re talking about. Most network marketers don’t have a written business plan and I think that’s a humongous mistake. They hold value for beginners as well as those experienced in the industry.
I’m not really sure why so many people don’t have a business plan. It could be that they were never shown how to create one, or they don’t see the importance on why they need it, but the reality is, all businesses need a business plan. Traditional businesses all have them and successful business owners in any industry, they all have these business plans. Basically, your business plan is a road map, it’s a game plan. It’s gonna help keep you on track, it’s gonna keep you on point, and it’s gonna show you how to get where you need to go. It doesn’t have to be a huge complicated thing, and for network marketing it really shouldn’t be. It’s something short and sweet, gets right to the point, and you can go back and you can look at it when you need to refocus.
When you create your plan, it has to have specific things in it because you need to be able to action them. This is how you create momentum as you first start going, and the importance of this is you can go back to it whenever you want. You can go back and you can launch and relaunch your business as you hit difficulties. Sometimes, you might get off track and you might need to relaunch. You can go back to this, they have everything right there for you and don’t have to start from scratch.
In a regular business plan for traditional business, you’re gonna start out with how much money you need. In network marketing it’s not so important to list these things. The reason being that most MLMs provide you with a business in a box. Essentially you just pay for your startup kit, your initial products and you get started.
There’s no property rentals, there’s no extra inventory, basically there’s no overhead. Since it’s a home-based business all of your costs are already covered. Things like office space, power, heat, your computer, internet, your phone, all that kind of stuff. So if you want to create a cost section you definitely can, but it will likely be very short because of this.
In network marketing this section is more of a return on investment analysis. Your upline can show you what steps are needed, how many sales, and how many recruits you need in order to recoup your initial investment. They are your coach so let them show you what it can and should look like.
So with that in mind here are the things that I would put in a network marketing business plan to get you started:
1. Write Down Your Why
You’ve probably heard this before. We’ve spoken about it. You probably see it all over the place.
What’s your why?
The reason you keep seen is because it’s so important.
You need to have this, and it needs to be very specific. It needs to be something that’s very, very personal to you. Something that moves you. Something that will help you to take massive action and to do things, even when you don’t feel like it. Clearly define why you started your business.
If you say it’s just to make some extra income, that’s not specific enough. What are you gonna do with that extra income? That’s why you started your business.
2. Know Your Numbers
So before you go into number three, which is writing out your goals, make sure you know your numbers. Your numbers are going to be things like company averages, so talk to your upline to get a basic idea of things that they’ve experienced which will likely include important things like recruiting and closing ratios.
It’s going to help determine all these future numbers that you’re going to need.
An example would be if your company’s closing average is 10% then that means you’ll likely need to offer your product or opportunity to ten people in order to find one interested person. Make sense? If you have a goal of 20 front line team members, that means you’re going to likely have to present your offer to 200 people.
You’re going to need to know these kind of things going forward. These also help with income planning and you can integrate these numbers into your company’s pay plan. You can get an idea of what actions are needed to get to your pay goals and the structure that you want by having these basic numbers. Your upline will be able to help create the game plan for you, for your daily, weekly, and monthly actions.
And as you take action, make sure you keep track of your specific numbers because they might be better or worse than the average. And then as you go along through your business, as you grow you’ll need to make adjustments. Basically, as you get better, you’re going to improve, so you need to factor that in as well.
In a way, your business plan is a living document. It’s going to change constantly.
3. Write Down Your Goals
First you need to figure out what you want out of your network marketing business and then to write these things down.
This is going to help you understand the ins and outs of what kind of things need to happen for you to be successful and to hit these things that you want. It’s also going to help you figure out how you’re going to achieve them in detail. As you start writing your goals down think of them as short-term goals and long-term goals.
The short-term goals are stepping stones. They’re going to move you forward to the mid range and long-range goals. The long-range goals that’s the destination, that’s what you truly, ultimately want. So that being said, the short-term goals should be interconnected and lead you to the longer-term goals.
Here are some examples:
30 day goals could be something like:
- I want to have X amount of people personally sponsored on my team.
- I want to have X amount of reps that have an auto shipping gauge.
- I want to be this rank within my company
- or I want to make X amount of money residually at this point.
You should also be setting goals for 60 days, 90 days, six months, one year, three years, and even five years out. You can use whatever criteria works best for the structure of your company, and what you find are the best indicators.
Now, those are just example criteria. It could really be anything, and there could be extra things that come along as time goes on. But the thing that stays the same is that it’s so important to make sure that you can easily understand the goals and that they’re specific.
You can do this one of two ways, but one thing that remains common between the two of them is that you pick your long-term goal. For example: Pick your five-year goal or three-year goal and then what you can do is you can either:
1. Work backwards, or
2. Work towards that goal as your laying everything out.
The main thing to keep in mind when you’re doing this, is to make sure that the goals are actually attainable. You want to make sure that you can actually meet these goals and even meet them before the deadline. That’s way more motivating than constantly have to reset goals just because they’re way out of reach.
Next thing you’ll need to do is to keep track of these goals.
You’ll need to make sure that you’re monitoring your progress so you can see how you’re doing and you can course correct as things go along. Especially if there’s a big spacing between the goals.
Lastly, make sure you tell your sponsor, your team, whoever your accountable to. Tell them that you’re running your business and you’re going flat out. That you’re committed for a goal within the next 30 to 60 days. Tell them what it is, tell them why you’re doing it, and also let them know what the reward is at the end if you hit that goal.
Here’s a bonus tip:
Incorporate known obstacles
We all know that everything isn’t going to be perfect a hundred percent of the time. We know we’re gonna get sick, or just not gonna be motivated. You’re gonna have off days, and you’re gonna lose days and sometimes that can extend into multiple days. You can lose a week, sometimes a month, and then you have to reset your business. This happens to the best of us, so when you look at what’s going on in people’s businesses, there is a common theme that everybody loses time.
You have to anticipate that, but even more so, what you want to do is find where that is, what causes you to lose time, and what you can do better to save and make up for that time. That way you can anticipate it and help offset it.
There are also times of the year that are really challenging for MLMs. That could be around Christmas time, other certain holidays, during the year summer months are really, really challenging because everybody’s out and about doing other things and enjoying the weather. The first two weeks of January as people are recovering from Christmas is another time, so you need to really see where these are and plan accordingly.
4. Define What Makes You Unique
This is just one or two sentences that defines why you’re different from all of the competition or other reps in your business. Why should people do business with you?
5. Your Business Building Strategy. How Are You Gonna Market It?
There’s all sorts of different ways you can market your business. You need to choose one, talk to your upline, layout a game plan, and then proceed with that. This is where you’re gonna put down all the different strategies that are available to you and you’re gonna figure out which ones you can use to draw people towards you. How will you get people interested in joining you and your tribe? What kind of content and promotion materials do you need?
How are you gonna do this? How are you gonna attract the people that you want?
After you figure those things out, then you need to find out which ways you’re gonna promote it. Are you gonna go a traditional route and promote face to face? Will you use the phone, maybe do trade shows, home parties, or are you gonna go the online route? Are gonna use social media, and if so what platforms are going to use? Which ones are you really good at?
Put some real thought into it, and figure out which one’s gonna work best for you.
6. Your Action Plan
This is a really important part of your MLM business plan. This is where the activity comes in, so this is your action plan to identify what you need to do, the activities you need to do every day, every week, every month, to grow your MLM business.
What I like to do is to start with the bigger picture which is the monthly goal and then I’ll break that down into the weekly and also the daily so I can follow along and make sure that I’m on track. For example, some things that you could put into your monthly would be:
I want to enroll X amount of new associates. That would mean that I need to expose X amount of people to my opportunity in order for that to happen. I would like to put out X amount of YouTube videos or Facebook lives. I’d like to follow up with X amount of people, and in the process I’d like to achieve the next rank.
7. Set A Business Launch Date
When you do that considered your launch period between 30 to 60 days. This is just short enough that people can totally commit. They can get really excited, and stay excited during this time frame.
I think we can all agree that building fast is the best way because it creates so much excitement so when having a short time frame like this, people can just go all in, they can see crazy results and that will fuel them for the next goal.
8. Reward Yourself
Make sure that you’re reward yourself after your initial 60 days for your launch since you’re going flat out and doing all that work. Make sure that you put pick a reward and make sure it’s appropriate and it reflects the goal that you hit.
During the run of the year if it’s a big goal that you hit, make sure it’s a big reward that you give yourself. If it’s significant it could be something like a family vacation, make sure it matches up to the work and the reward that you got from your business.
9. Make A List
Keep in mind, if you have big goals, you’re gonna need a big list. Your list is going to be people that you’re going to market to, who are gonna be your customers, who are going to be your prospects. Put them down, you’re gonna need them for when you launch.
10. Plan For & Recognise All Your Small Wins
Guys, you’re gonna have a ton of small wins along the way. They’re gonna seem almost insignificant but make sure that you take note of them. These things are gonna prevent you from getting completely burnt out. As you hit these small little things, take note, give yourself permission to be excited and proud of yourself and tell yourself that you did a good job.
To put this all together, here’s an example business plan. Now keep in mind, this is just a bare-bones version of it. A lot of the stuff that we spoke about earlier during this podcast, you’re gonna insert that stuff into this populate it but here is the main component, the main parts of it that you need to make it work.
- What makes you unique why would people want to work with you.
- List a vision. This is really your big goal, your end game. What do you have as a vision for yourself and for your team? Make it big.
- Mission statement. What is it you’re looking to achieve.
- Your strategy. How are you gonna do this? How are you gonna build your business?
- Your goals. Like we spoke about before, make sure you put them all in there, for the year, for six months, for the quarter, for the month, for the week, and for the day. Put everything in there.
Then I’d recommend getting into the real detail stuff. I’d put down your daily method of operation. Find out how much time you’re gonna put into your business, when those times are gonna, be and then break it down.
If you’re gonna split it up to do a little bit in the morning and a little bit in the afternoon, then write it down that way. Then put down what you’re gonna do specifically in the morning.
Make sure these are income producing activities, and get detailed about what you’re gonna do every day. Make it almost like a checklist of stuff you do day in, day out.
…and there you go. There’s your MLM business plan. Pretty exciting stuff, and very important stuff. I recommend for everyone to have one, that way you can stay on track and see where you’re supposed to be going, where you are actually are and make sure the two align.
Keep in mind this only needs to be about a page or 2 so no need to get too crazy That way it’s easy to go back and to refer to it when you need to. Also it’s not going to take you a long time to reabsorb all the information.
So I really hope this helped out if you don’t have one of these.
Food for thought, you might want to sit down, take the time with your upline, go through and structure one of these because it can be a massive, valuable resource as you go through your MLM journey.
Hopefully you guys got some awesome value out of this.
If you did, definitely feel free to share this with anyone you think might get value from it as well and hopefully we’ll see you back for the next episode.
P.S. If you want to know how I’m building my team without chasing people, then check out my free e-book here.
About The Author
Paul’s an active Network Marketer that loves being a student of the game. Whether it’s consuming new material and techniques or teaching and sharing what he’s learned, his love of the industry is apparent.