Many readers of The Home Business Reader are involved in Multi-Level Marketing or Network Marketing. Both of these home-business models are based around “lead generation”. In order to be successful in either area, you need leads for your “downline” – those people who are going to sell and /or recruit for you – as well as to sell whatever product or service your business provides.
There are some very successful MLM’ers who’s business focuses on lead generation quantity. The idea is that with enough leads, they can push through “the sale”, whether that is for signing someone up or selling them a product or service. Others believe the quality of the lead is of paramount importance, since time spent on non-converting leads is wasted and can chew up all your time.
Below is an article I came across that talks about just that. It is reprinted with permission from the author; I hope you find it interesting.
MLM Leads: Quality Vs. Quantity
by Noah Matthews
Your home based business is only as good as the amount of people you share it with. What I mean by that is that even if you have the best business with the best products if you aren’t sharing it with as many people as possible you’re not going to make as much money as you otherwise could.
MLM leads are so important because when you have a lot of people to talk to you’re going to make money… period.
Whether you’re creating your own free leads online or locally or you’re buying leads from a company you’re going to be faced with a question at some point. Which is better, to have a ton of leads or to have fewer leads that are more high quality?
If you’re spending your money to buy leads is especially important to know which type of lead is better. Nobody wants to spend a bunch of money and make a bunch of phone calls only to get nothing or very little in return.
I believe that when it comes to buying MLM leads quality is always better than quantity.
Many companies sell their leads based on a lot of different criteria.
How new the leads are, how interested the prospect is in a home based business, how many other marketers are getting the same leads, and how much information you’re getting for each lead. Those are just a few things that the prices are based on.
Leads can cost anywhere from 1 cent per lead to $10 or more per lead. While I don’t think it’s a reasonable thing to expect home based business owners to spend thousands of dollars a month on leads for MLM I do believe that you should always go for the better quality lead.
Let’s say that your budget for buying leads each month is $200. You could get a ton of penny leads but most of those are going to be disconnected or the people will claim that they’ve never been interested in working from home. Or you can get a much smaller list of leads that will take you less time to sort through and you’ll probably get much better results.
So if you’re going to buy MLM leads spend your money wisely and invest in quality leads over quantity.
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Let me know what you think about the “Quantity versus Quality” debate. Do you go through a lot of leads in your home-based business? Do you find yourself spending too much time on non-converting leads? Or perhaps you have a very efficient or automated system to process large quantities of leads, in which case quantity is definitely important.
Let me hear from you, what ever your strategy is. And if you just happen to have a comment or question unrelated to either MLM or Network Marketing, it’s just as welcome here. In fact, if you have a particular question, or would like to see a specific home business topic discussed and explored, leave a comment below.