The Problem with MLM for Coaches
FREE TRANSCRIPT AND FULL LENGTH MP3 INTERVIEW: (Right click the images to Save As to download)
FULL DISCLOSURE: I talk to a LOT of coaches exploring Multilevel Marketing as a supplemental income source while they’re building a practice. As you’ll see in the interview, I’m pretty skeptical about MLM for coaches because most don’t seem to have a realistic understanding of just how many contacts it takes to generate a monthly income they can live on.
That said—as David points out—a systematic, risk-managed plan in a solid company can provide a significant opportunity most people can’t find elsewhere. And MLM can help coaches develop many of the persuasive and interpersonal skills required to build a successful coaching practice.
Still, despite my trust in David, despite knowing and believing he’s made millions in MLM, and despite the fact it might make sense for me to own a distributorship in his company because of the thousands of opportunities my automated systems generate…
I ONLY think MLM makes sense for coaches who really know what’s it takes up front, and are going into it with a willingness to do it. On a practical basis, this means developing a SYSTEM for generating leads beyond friends and family, and committing to talking to at least two or three people a day for at least a year. (Read the transcript for David’s specific advice on how to do this)
IMPORTANT: It also very rarely involves PAID advertising online unless and until you’ve got enough success and surplus income to risk… usually years down the line.
Finally, it’s essential to rigorously evaluate a company before you join so you know you’re building on solid ground.
Long story short… I do NOT think MLM is for you as a coach unless (1) you understand you’ll need to talk to a few new people every day for at least a year or two in order to create an income you can live on; (2) you’re willing to approach it systematically to find people beyond your personal friends and family; (3) you carefully evaluate any company you’re considering according to David’s advice (he’s the high paid consultant large hedge fund managers go to when they’re trying to decide whether to invest in a particular MLM company); (4) you’re very careful about how you mix it into your coaching and coach marketing, etc… because it can be–and often is–a turn off to prospective clients.
I initially hesitated to do this interview because I’ve heard a lot of stories of people who just lost a bunch of money… and I feel it’s my job to protect coaches from this. But all things considered, since SO many coaches seem to be exploring MLM as a supplement, I wanted you to hear from an expert I trusted. David is a long term friend who allowed me to voice my skepticism in full and addressed every last point. I think anyone and everyone who’s considering MLM in any way, shape, or form should have the benefit of this dialog.