MLM Blog – Warm Verses Cold Market Prospecting – Which One Gets Results?

Prospecting is the single most important task that a network marketer engages in; success in MLM absolutely depends on it. Prospecting, or sponsoring reps into your primary home business opportunity, is the way the industry’s top earners build their businesses into residual income empires that offers financial security and stability for their families.

 

 

MLM Success 101 - Warm Verses Cold Market Prospecting - Which One Gets ResultsThe Good and Bad

 

There are some MLM professionals who have already been involved in the industry for years, even decades. These individuals run their organizations the old-fashioned way – they tap into their “warm market.” They prospect largely using their own personal contact lists, sharing their business opportunity with loved ones, close friends, colleagues at work, fellow church parishioners, social groups they belong to, and fraternities and sororities, among others. These MLMers hold home meetings or parties several times a week, and regularly attend company conventions along with other large events.

 

There is a group that many describe as internet network marketers. The main factor that separates this group from the first is that these people do the vast majority (or, in some cases, all) of their prospecting using the internet – in other words, they tap their “cold market.” They prospect their business opportunity by advertising on internet forums, social network sites, and on the major search engines like Yahoo and Google. They may also engage in other cold market prospecting, like purchasing lists of potentials and then contacting them by phone or e-mail.

 

Is Approaching your Warm Market a bad thing?

 

Internet-Network-MarketingA few of these folks are completely closed to the idea of prospecting their family and friends, while some simply don’t give it much thought or focus. Here’s the argument: The old-school MLMers insist that they prospecting friends and family is definitely the method in which network marketing has always been done, and many large fortunes were created by sharing household cleaners, cosmetics, and such, on a person-to-person basis.

 

Also, the old-school folks insist that this technique is highly duplicatable, and duplication has traditionally been a huge selling point to illustrate that “anyone can do this business and be successful!” (I’m sure you’ve heard this nearly as much as I have!) Conversely, the internet money people assert that prospecting friends and family is the formula for network marketing disaster. They cite that leads generated from friends and family members are untargeted (meaning they may or may not be looking for what you have to offer), and they do not convert into successful business owners or loyal customers. Additionally, the internet MLMers note that prospecting becomes a serious problem once a business builder has gone through their entire list of potentials and there are no more people to sponsor. According to the internet marketers, internet prospecting solves these problems by targeting people that are actively looking for a business opportunity and providing a virtually endless list of leads using the world wide web.

 

So which prospecting strategy is the best?

 

BOTH!  Prospecting both Offline and Online is the way to go!  You will set yourself apart from your competition by mastering both of these skillets.  You are leaving money on the table if you are not prospecting both offline and online.

 

Let’s apply some common sense here! It’s pretty hard to argue with a person who made his fortune in network marketing by signing up friends, family, and acquaintances. And let me tell you, there are lots of these individuals out there! However, this is the 21st Century, and we are in the Internet Age. And there are many folks out there that are running incredibly successful empires by marketing themselves to people searching for a MLM opportunity.

 

The secret is to successfully marrying the two philosophies so that you’re “showing the plan” to as many people as possible.The bottom line: Combining both warm and cold market prospecting techniques is a great approach to expanding your MLM organization. This way, your business doesn’t have to die when you run out of friends and family to prospect (and you don’t have to continuously bug the heck out of them either!). You also don’t have to remove the “network” from network marketing by automating the entire process. After all, the “networking” and “prospecting” are the part of the business that offers one of the best personal growth opportunities.

 

It’s your turn!

 

What’s your opinion of building your business around warm market and cold market?  I would love to hear your feedback on the topic.  Please leave your feedback in the comments section and I look forward to reading them!

 

To your Success,

Nate Leung

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    Nate Leung

    CEO & Founder @ NateLeung.com at NateLeung.com
    Nate Leung is the CEO and Founder of NateLeung.com, and author of "Virtual Entrepreneur: Live Free With the Business of Your Dreams". He has been an Internet Network Marketing professional since 2001. Nate specializes in blogging, generating highly targeted leads, prospecting, social media and driving traffic. You can find out more from Nate by connecting with him over at Google +. There is no greater passion he has than helping people to succeed in their business. He teaches people how to use the Internet to build a successful Network Marketing business. If you're struggling and or looking for help, contact Nate here.
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    17 Responses to “MLM Blog – Warm Verses Cold Market Prospecting – Which One Gets Results?”

    1. Esha

      I reckon we should go for both, never know what could work! Nice post as usual!

      [Reply]

    2. David Haines

      Great post Nate. We need to tap into both our warm and cold markets in order to be successful. You make great points for both. Good job.

      [Reply]

    3. Maggie Owens

      I do some marketing offline but probably not as much as I could. May be something I should start looking into. As usual, Nate, great info. Thank you.

      [Reply]

      Nate Leung Reply:

      You’re welcome Maggie!

      [Reply]

    4. Ryan Biddulph

      Hi Nate,

      Approaching both warm and cold markets seems to vibe with me. Vary your prospecting approaches to see the greatest returns.

      As you noted present to as many people as possible.

      Thanks for sharing!

      [Reply]

      Nate Leung Reply:

      You’re welcome Ryan! Thank you for the comments!

      [Reply]

    5. Jeanne Melanson

      Definitely sprinkle both warm and cold markets together. You really never know who will be interested. Sometimes it’s the ‘least likely’ family member who is gung-ho. Don’t limit yourself. Show everybody! Thanks, Nate!

      [Reply]

      Nate Leung Reply:

      Thanks Jeanne!

      [Reply]

    6. Cindy Eidahl

      Wow! lots of great advice on prospecting.
      This is my weak area but I keep at it everyday and these
      tips will hep=lp. Thank you for sharing.

      [Reply]

      Nate Leung Reply:

      Awesome. Good luck! :-)

      [Reply]

    7. Lawrence Bergfeld

      The only way I think I would approach my warm market about anything like my product or my business is to break the ice which Tom Big Al Schrieter taught me:

      If you have been in the business for a while and haven’t notified them it doesn’t matter.

      You can say this: “I just found out how we can earn an extra paycheck each week, if you’d ever like to know how I will be glad to tell you, meanwhile pass the peas.”

      Or if you are marketing a weight loss product you can say “I just found out how we can lose weight by eating cookies, if you’d ever like to know how I will be glad to tell you mean while pass the remote control.”

      By saying that phrase to your warm market and the friends that you have recently made, mainly eliminates rejection. They will still be friends with you even if they are not interested in the business. But the main thing is that they will not ask you to do not contact them anymore.

      Lawrence Bergfeld

      [Reply]

    8. Amar Naik

      i feel ultimately what is needed most is the combination of both strategies as you suggested.

      [Reply]

      Nate Leung Reply:

      Use it to it’s advantage Amar! :-)

      [Reply]

    9. Nicole

      Marketing is what we do. So…a wise idea as well would be brushing up on your skills and knowledge as it pertains to everything involved in the act of moving a good or service to an end user. Anything that helps you capture the attention of individuals, generate more interest, increase their desire and move them into action is critical.

      [Reply]

      Nate Leung Reply:

      Well said Nicole! Thanks!

      [Reply]

    10. Sojourner

      It makes sense to search both online and offline.

      [Reply]

      Nate Leung Reply:

      It sure does. Thanks Sojourner!

      [Reply]

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