Running a successful MLM Network Marketing business can be challenging. In business, it is almost never a good idea to lend another person money and this is especially true in MLM, where this loan could actually stunt the growth of your downline and your business. Sometimes you just have to say no if you want to avoid potential problems down the road. The reality is that most people do not appreciate things when things are given to them. If you are on the fence about paying someone’s way to come into your business is NOT worth the investment. So, in most cases I would suggest pushing the rep to figure out a way to fund their investment is a better idea. In the end, your rep is ultimately responsible for his or her own distributorship. Here are some of the reasons why you should never pay for another person’s distributorship in an MLM business:
1. You can’t do it for everyone
If you have ever run an MLM Network Marketing business then you have probably had a prospect say something like “I just don’t have the money to get started…” This might be true, but this is not really your problem. If you loan someone the money for his or her distributorship then you will be setting a dangerous precedent. After all, if you do it for one person, you have to do it for everyone, right? Loaning money to your downline is not a recipe for success in the MLM world. In addition, if you loan money to one potential distributor then it will appear that you are playing favorites, which is not a good way to motivate your team. It is best to avoid these complications and the appearance of playing favorites by simply saying no to everyone. If you make it part of your policy then no one can blame you for saying no.
2. It doesn’t help them succeed
The biggest part of running a successful MLM Network Marketing business is being independent and self-motivated. If a rep in your downline knows that you are going to cover for them then more than likely they will not value the distributorship. It is similar to a kid that keeps borrowing money from his or her parents. Eventually, the parent has to say no if they ever want their child to be responsible and independent. The same is true of your downline, as you want them to have the self-sufficiency and responsibility to handle their own financial problems.
3. It blocks creative resources
You want a downline that is creative and resourceful since these traits are necessary for success in the MLM Network Marketing world. By giving them money for their distributorship you are actually hindering the development of these traits. You want to know that your team has the resourcefulness and creativity to solve their own problems. By doing this, you are unveiling leaders in your organization. If they do not, they will not likely be of much value to your downline, especially if you have to constantly bail them out of trouble. If you want your team to develop creative resources then you have to take a step back.
Loaning money to friends or business associates is almost always a recipe for disaster. Not only that, but you could actually be doing more harm than good, which will stunt the growth of your network. It’s your turn! Have you ever seen a rep pay for another rep’s distributorship? If so, what was the outcome? I look forward to reading your comments!