Enlightened Cold Market Lead Conversion in the Direct Sales Industry

Direct Sales offers what is possibly the most powerful compensation structure in the home business arena today. There may be some confusion regarding what direct sales actually is. I will focus here on the direct sales model that have generated a lot of attention in recent years. Perhaps the most intriguing direct sales opportunities available today use what is called an "Australian 2-Up" business model (used by Liberty League International, Emerald Passport, and Coastal Vacations) This is somewhat different from most compensation plans used by MLM or network marketing companies. How it differs is in how and when payment is received. The money is payed up front to the distributor and no commissions are paid.

However, when the product is sold to a customer and that customer decides to be a distributor, a great deal of leverage kicks in with the 2-up model. The large incomes generated by some distributors is do to this leverage and the generally over $1000 price tag of the basic, entry level product. I will focus here on the critical practice of managing potential customers and income opportunity seekers for the direct sales industry. In general, most "cold market" prospects you will speak with will not be able to come up with the money to buy the product. When leading with the product, one needs to let the prospect perceive real value to create a compelling reason to buy.

Psychologically speaking, when you call a "cold" market lead on the phone and send them to a call describing a $1500 product, they feel very threatened and unsafe and their fear of losing their money overcomes the perceived value of the product or the income opportunity. The challenge then becomes to build trust and a sense of safety first. Not everyone is qualified to invest in a $1500 package, even if it has the potential to rescue their financial life. In this situation one has two choices: say,"I don't think you are qualified for this, have a great day." Or say,"Its clear to me that this product (or opportunity) isn't right for you right now, but." The first option shuts the door on the person, and makes them feel small.

The second leaves open an option of a safe, unthreatening ongoing relationship. This person can be marketed to effectively for years based on a positive conversation, and may be upgraded later into a significant customer or business partner. I am not suggesting at all that sale-closing skills should not be cultivated, but rather that "cold" market prospects are better served by a range of product offerings in many cases.

Many of these prospects will be severely challenged to come up with $500 to start a business, much less, $2-3000. While these struggling people are obviously not qualified to jump into a serious income opportunity straight away, they are qualified to have you teach them how to earn a little bit of money. If you can show how to earn as little as $50 month, their gratitude will compel them follow you when they are more able.

I have found it a wise strategy to plug these "unqualified" prospects into free online business and marketing training. While many will take no action, some will apply themselves and learn skills that will qualify them to run their own businesses. I don't recommend investing much personal energy in mentoring people signed up at this level. Let them call you with their questions. These individuals effectively become "sweat-equity" apprentices, some of whom may become skilled marketers.

By pre-training mentally capable people with automated online resources, you will be building value, safety and trust. When that person is ready to get serious, they will call you first.

Loren Woirhaye runs an informational website dedicated to assisting networkers in devleloping long-term, low-cost automated marketing strategies which educate and upgrade potential business associates.