MLM and Direct Sales – The Challenge of Leading A Volunteer Team Home Biz Families.com

Let me start this post by offering a brief explanation of the commission plans of many multi-level marketing and direct sales companies for those that are unfamiliar. People who join the business as consultants or representatives are encouraged to share the business opportunity with others. If they do decide to join, they are then considered a member of the original person’s “team” or “unit”. Depending upon the companies’ structure, consultants have the opportunity to earn an “override” or percentage of commission from the team members they recruit.

I was an active recruiter with both of the companies I represented. Eventually nearly ninety percent of my income was the direct result of overrides from my team members’ personal sales. This meant that I had to spend a considerable amount of time motivating them, training them, encouraging them and assisting them. Quite honestly, the “management” aspect of my business was the part I enjoyed the most.

It was also the most challenging part. One of the problems with joining a MLM business is that the higher you move up the ladder, the less your paycheck is dependent upon your own efforts. Okay, let me take that back. If you are a phenomenal trainer, recruiter and team-motivator, you will obviously have more control over your income. The more you do these things the more likely your team will succeed.

That being said, in the MLM, Direct Sales industry you are leading a “volunteer” team. No one is obligated to work. Some will, some won’t. There may be some luck involved too. If you are lucky enough to meet people who want to work “full-time”, your paychecks reflect their full-time efforts. However, if your luck involved meeting more “hobbyists”, there is little you can do to increase your payday other than seeking out more “full-timers”.

One of my close friends is one of the hardest working people I know. She is also a leader in the direct sales industry with a large team. She works well over forty hours per week. Unfortunately, despite intensive training, motivational phone calls to her team and doing everything else, “by the book”…she seems to have a team full of hobbyists. By the look of her paycheck, you would assume she was a hobbyist too.

That has been my biggest challenge with this industry. I know how hard I work. I know how much effort I am willing to put into a new business. I know that I have an intense drive and a strong work effort.

In the “real-world” we are often paid by our efforts alone (especially if you are a salesperson). However, if you are considering joining a direct sales / MLM business, you need to be able to face the fact that your personal efforts may not always equal bigger paychecks.

I would love your feedback. Have you been involved in Direct Sales / MLM business before? Is this a concern of yours as well? What are your thoughts?