How Many Leads Do You Really Need?

If you do a search on the internet, everyone is proclaiming you need 10 to 50 new network marketing leads a day.

When I see this on Twitter, Blogs, Web Sites, and Social sites all I can think of is naive marketers.

Now follow me here…

Are they telling you the truth?

In order to generate marginal success this is the number they need! They never tell you what it costs in both time and money to generate that number nor do they give you their closure ratio. If they do give you one, how can we verify that it is fact?

Smart marketers know that mass marketing is not the answer. Ask any leader in network marketing what are some of the greatest challenges are…

Their Downline is not duplicating… In fact they are taking no action at all.

They are distracted by the massive amount of conflicting information and hype on the internet.

Many are trying to use a cast net for fishing, and in the process catch far more garbage with very few actually being their target market.

This is a by product of mass marketing, ensnaring the wrong target market.

The video below, gives you great pointers on how to discover your target market, and stay focused on your ideal customer!

For several years I ran test and tracked the results and found a point of diminishing returns…So how many network marketing leads do we really need? Two to three per day is just about all anyone can work effectively.You need quality not quantity…

12 comments… add one
  • Andre Vatke Jun 1, 2009 @ 17:50

    A lot depends on how you define “working” leads. If it’s letting an automated follow-up system send prewritten emails and pointing them to various pages on you web site I’ve worked thousands of leads at the same time.

    However if it’s actually talking to prospects and walking them through a real qualification process, it’s only possible to connect with a few a day. The number varies depending on whether or not you are full-time and how much experience you have with the process.

    We did a study a few years ago that put people calling 2 or 3 leads a day against those calling 10 to 15. These were well qualified self-generated requests for our specific offer. What we found actually amazed us as it was a little counter intuitive – those calling fewer leads had higher closing ratios than those who had more. There were specific reason to why this occurred and we’ve repeated this test in a few other areas with similar results.

    So if you are new to MLM or direct sales don’t bite off more than you can chew. Not only will you find that you learn better, you’ll get results quicker and you won’t hammer your budget in the process. Once you start earning a commission check you can experiment for yourself to see what your ideal lead flow is and find several ways of getting it in.

    That’s where Glenn can help you!

  • Josh Cearbaugh Aug 15, 2009 @ 5:55

    I would agree with John and Amy. It’s important to narrow down the target market to a group that you can bring a value to. “Opportunity seekers” is such a broad category that it’s not much better than going door to door. It narrows it down some, but not enough to justify working that market.

  • David Wood Aug 16, 2009 @ 17:38

    Glenn,

    Fascinating post, but here’s why I find it interesting.

    You see, I’ve built several websites in the past and generated a lot of traffic through different kinds of online marketing.

    One thing I noticed is that you have an alexa score of 269,022 on your little blog here (which isn’t by any means ‘the world’ but it is fairly impressive for a blog with only 4 inbound links). Now I know Alexa isn’t really that accurate, but it is a good long term indication of a few things.

    As a contrast, my last website that I started about 6 weeks ago has an Alexa score of 1.6 million, in the last 7 days it has been 599,967 (all from free traffic sources, articles, etc)

    So with my traffic from my latest website, I get about 10-15 leads a day, some days 20. It’s not really that optimized, because it’s new, and I figure this website should get at least 15 leads a day, and if it was optimized you should be picking up 20-40 from your little blog here. Who knows, maybe you’re not.

    I personally prefer to have about 50 leads a day. Because I make the phone optional and that way I connect with about 10 people a day and sponsor 2-3.

    Anyways, my two cents.

    Dave

  • Benne May 1, 2010 @ 23:00

    Hey Glenn,

    Thank you for sharing so much intelligence on this blog. You really got me taking a closer look at my marketing process. Continue providing good information Glenn.

  • Amy Howard Jun 1, 2009 @ 13:06

    I usually agree with you but on your subject of leads, I have to disagree. If you have a system of sorting your leads, you can work a whole lot more leads than 2 or 3 a day.

    Of course you have to take into account the type of lead you are working with. If you haven’t identified who your “ideal” market is, then using cold targeted leads is the cheapest lead to use until you have that nailed down.

  • Glenn Jun 1, 2009 @ 14:27

    Hi Amy,

    When one is just starting out two to three leads a day is not enough. Yet if you do know what your doing within a month you’ll find yourself running out of time if you are part time as most people are.

    People confuse working with leads “PEOPLE” and just letting an automated system or phone dialer do it.

    What I am basing that from is people that have medium to good prospecting skills… and working self-generated leads, prospects that have actually requested something from you.

    I did extensive tracking several years ago, and proved conclusively that once they surpassed 60 leads the conversion rates decreased. This tracking was done with people that had different levels of skills, yet the conversion rates remained about the same.

    I have to disagree systems don’t sponsor people, people do. People still want to talk with and work with people. The majority of people that come in through a system, generally leave just as quickly, which is no way to build a sustainable business.

    Now your statement “If you haven’t identified who your “ideal” market is, then using cold targeted leads is the cheapest lead to use until you have that nailed down.” is confusing.

    A cold targeted lead is the same as your ideal market isn’t it? The only difference is they don’t know you from Adam, until you build a relationship! Which is something most network marketers refuse to do. Working leads is the most cost effective method possible to develop prospecting skills.

    One of the guru’s in network marketing was essentially patting his boy on the back for generating 500 leads and closing two of them. I guess you could call a 0.4 percent closing rate successful.

    So much for mass marketing 🙂

  • John Michael Cannon Jun 2, 2009 @ 11:50

    Amy said “If you haven’t identified who your ‘ideal’ market is, then using cold targeted leads is the cheapest lead to use until you have that nailed down.”

    I believe I can understand where she’s coming from. This is just a guess but here’s how I interpret what she said.

    While a lead can be an opportunity seeker, that is a very general target market. The ideal target market is a more narrowed down profile of a specific type of opportunity seeker. For example, Amy could be specifically looking for female baby boomers wanting to create a retirement income. A leads company might not have that specific market available for her to purchase. Because of this, leads are seen as training wheels until a person learns to attract their own predetermined profile.

  • Glenn Aug 17, 2009 @ 8:09

    David,

    Thanks for giving me a good laugh this Monday Morning. Unfortunately I had to remove your link, I don’t link to landing pages!

    Alexa is pretty much worthless since it requires the alexa tool bar for tracking purposes. Yet, amateurs really like to cite the results from it.

    I love when some one provides claims that of course cannot be verified. Sounds good on paper, yet when the real light is shown upon the results it always turns out to be nothing more then hype.

    But nice try Dave, just my two cents.

  • Ontarian Hawkins Oct 7, 2009 @ 14:11

    Hey Glenn, I love this article because it validates what every network marketer are pulling their hair out on, and that’s generation thousands of leads. Quality will always out weight quanity in MLM. If network workers would just focus on building a list of people who come to trust and like them, everything else will fall into place.

  • Bernadette Jan 15, 2010 @ 11:05

    What exactly is a “cold targeted lead”?

  • Glenn Jan 15, 2010 @ 11:24

    Hi Bernadette,

    Basically I had already addressed that in a previous comment here:

    A cold targeted lead is the same as your ideal market isn’t it? The only difference is they don’t know you from Adam, until you build a relationship! Which is something most network marketers refuse to do. Working leads is the most cost effective method possible to develop prospecting skills.

    If you buy a lead from a company or even if your upline supplies you with a lead, they really do not know you at all. They maybe targeted but until they get to know you and you them.

    By building a relationship based on mutual trust and respect you can transform them from a cold lead to a warm lead to a hot prospect.

  • Glenn May 3, 2010 @ 16:48

    Hello Benne,

    Glad you found value in the site. Marketing is a continues learning process, and nothing is ever finished.

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