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MLM Lead Generation Company Scams – 3 Major Pitfalls
Most MLM lead generation companies are legitimate businesses. You pay a fee and they supply you with the leads you request. But a lot of people fail in MLM because they spend all their money on buying leads and don’t get the results. Sure, you can blame it on their people skills, their phone skills, maybe not knowing their options. But let’s tackle this problem at the source.
Here are the top 3 pitfalls of buying leads from MLM companies.
1.) Upfront costs. When you buy MLM deals, you can spend anywhere from $2 to over $10 per lead on premium leads and you’re looking for a higher investment opportunity. This is expensive. So you are talking about spending at least $200 per 100 leads. Then think about how many of those prospects will join the opportunity. Then think about how much money you make every time someone joins your business. The end of this formula usually results in a negative number…a loss of money.
Your upline can even indicate that you’ll make up from residual commissions or your monthly bonus check if your team grows. The problem is most people don’t get there because every month they get more and more in debt to buy leads.
2.) Leads are NOT exclusive. The MLM lead company charges money for the leads and they even throw in extra leads if some of them are out of date or inaccurate or whatever… just to make you feel a little better. Buying. Then you read the fine print and realize that not only did someone get the same leads 2 weeks ago, but 3 other people did. And now, 2 weeks later, you and 3 OTHER people will get a stab at this prospect.
Now imagine you are the prospect and you get calls from 5-10 people trying to “lock” you into their business. At this point you are upset that you gave out your information because you keep getting all these phone calls and these people just want your money. So… you end up doing nothing and nobody wins. You, the opportunity seeker, lose out because they’re out of business… and the top buyers who are each getting $2+ for your name and number. If YOU are buying leads, make sure it is EXCLUSIVE or at least only for 2 or 3 people!
3.) It can NOT be duplicated. If you have a prospect who only has $300 to start the business themselves, and your business opportunity costs $250, you have a problem. EVERYONE in your organization, regardless of social or income level, should be able to generate leads at the lowest possible cost. If you tell everyone in your group to buy leads and most of them can’t afford it, your business will sink faster than the Titanic.
If you are looking to buy leads, be careful and do your research on the company of potential customers beforehand. Otherwise, learn how to generate your own leads (for FREE) and teach your team how to do it too. This way, the success of your team is not dependent on MLM lead generation companies.
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