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    WiredBIZ Articles: Marketing

    5 Ways to Work Your Warm Market

    By Rod Nichols
    Aug 21, 2006, 13:59
    E-Mail Article
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    As every network marketer knows, the best place to build a business is in the warm market. You know them, have rapport with them, and possibly a high level of mutual respect. The close ratio is at least triple that of the cold market.

    Here are 5 ways that you can use to contact your warm market without jeopardizing your relationships:

    1. In-Home Business Briefing

    This is the quickest and most effective way to build a network marketing business. People have been building large networks using in-home briefings for over fifty years. To conduct an in-home, you will need a place in your home where you can comfortably seat the number of people you would like to attend.

    You will also want to have a TV and VCR, plus a place where you can display products (if your business is product-based).

    The key to an in-home is to make it appear duplicable. You want the people attending to see a way that they too can do the business. So, the best way to do an in-home is to tell your story (how you discovered your company and got involved).

    Next, play a video that tells about the company, products, and the compensation plan. If you have a product-based business you might add a demonstration or give your prospects samples.

    Take time to answer questions and then ask for those who want to order the products or become distributors to stay around to complete the paperwork. (See the complete in-home script later in this section)

    The first step is to establish a day and time for your in-home.

    Second, make up a list of people you want to invite. Third, practice the inviting script that follows until you feel comfortable making the calls. Fourth, call your prospects and invite them. Invite twice as many as you would like to actually show-up, as 50% will say no when you call and 50% of those who swear they are coming will not. It's a very good idea to work with your sponsor or an upline leader on an inviting script.

    Also, practice dealing with possible comments like "What's this all about?" or "Is this network marketing or multi-level marketing?"

    or "Is this Amway?" or "I'm too busy to add anything else." or "I'm busy that night."

    If you are not comfortable doing the business briefing, invite your sponsor or an upline leader to help out. If they are not available, just tell your story (how you got involved, why you are excited about the company, and what you are expecting as benefits), play a company video, and answer questions. If you have upline leaders who are long-distance to you, arrange to have one of them available toward the end of your briefing. Call the leader and put him/her on a speakerphone for all your guests to hear. Your leader will do the final close.

    2. Information Approach

    Many a new distributor has been concerned about contacting their warm market, because they didn't want their friends and family feeling like they were selling them something. The information approach is a great answer.

    Let's say you had opened a restaurant. Would you keep it a secret from your friends and family? Most likely you would call, tell them all about the restaurant, and invite them to come down and eat. Use this same approach with your network marketing business. Instead of calling them with the idea of sponsoring or selling them products, instead approach purely with the idea of informing them about your business.

    Call up your warm market, tell them about your business, and invite them to take a look if they want. If they are not interested, donšt pressure. Always let them know that it isn't important to you that they join or buy products, but rather that they take the time to look at the information and understand your business. If they are interested in getting more involved that's great too, you would love to work with them.

    3. Opinion Approach

    If you have people in your warm market who are somewhat intimidating due to their level of success, then this is the approach to use. Everyone loves to give their opinion, so you will rarely find people in your warm market that will reject this approach.

    Contact your warm market candidate and say something like this, "Hi John, this is Bill, how are things? (continue after a little natural chit-chat) The reason for my call is to ask your help.

    "I have just started a new business that has me more excited than anything I have ever done. The potential is incredible, if I do this right. That's where I need your help. I've always valued your business experience and knowledge. Would you be willing to take about an hour of your valuable time and review this business for me? I'd like to know how you would build the business, if it were yours. I'm also going to be looking for some strong partners, so as you are reviewing the business; I'd like you to think of anyone who might fit. Will you do that for me?"

    If they say yes, get them an information packet including printed materials, a video tape, a cassette tape, web site address, hotline numbers, etc. In the packet, remind them that you would like them to give their opinion on how to do the business and who might make good partners. That way you won't get a bunch of their negative misconceptions.

    This is also a great approach for young network marketers to use with parents and older business contacts.

    4. Introductory Letters

    Many network marketers have large warm markets, numbering into the thousands. It would take far too long to call and arrange to meet each one. Particularly since many of them may be out of state. So, a good, quick answer is an introductory letter. The key here is that if you don't let your warm market know that you are involved in network marketing with your company, someone else will and the next thing you know, you'll be getting an introductory letter or phone call from your best friend, mother, father, sister, or brother.

    An introductory letter should be limited to one page. People are busy and they already get too much mail. Make it easy on them.

    In the letter you want to let them know that you have started a new business with a network marketing company and give the name. Explain that you had some reservations about being involved in network marketing until you discovered the tremendous potential to develop long-term, walk-away, residual income. Let them know that you are working your business part-time (10 to 15 hours a week) and that your support team has supplied excellent training and marketing programs.

    Inform them of the tremendous benefits tax deductions, time freedom, control over your financial destiny, helping others improve their lives, self-improvement, etc. Let them know that the up-front investment is low, as is the risk. There is no need for an office (outside the home), inventory, employees, or sophisticated bookkeeping systems.

    Tell them that you would enjoy working with them toward the ultimate goal of financial and time freedom. Explain that you do not want them to feel pressured, so you will not follow-up on this letter. If they would like to know more, they can call (a hotline, conference call, or your voice mailbox with a two-minute informational message).

    5. Product Demonstration

    If your company is product-based, another great way to build a business in your warm market is to do product demonstrations. This falls back to the old and very successful party-plan concept. Companies like Tupperware and Discovery Toys have built mammoth businesses using this approach.

    First, arrange a day and time for the demonstration. Determine whom you are going to invite and send out invitations. Indicate that you will be serving light refreshments at the demonstration. I would suggest coffee, water, punch, and cookies or light finger pastries.

    Remember to invite twice as many people as you want to come. If you want to improve your attendance, do a follow-up call a few days before the event.

    Start your demonstration on time. Tell your story about how you found the company, why you are excited about the products, and a brief overview of the company. Next, give them some logical justification for why they would want to purchase the products from the company and you superior products, convenience, monetary savings, etc.

    Now, begin through the key products describe them and their benefits to the attendees. If you can sample the products, do so during the demonstration. After covering each product ask if there are any questions. Answer those before moving on to the next product. Limit the number of products so you can keep the whole demonstration to an hour to an hour and a half. When you have completed all the products, again ask if there are any questions.

    After answering questions, offer a special product package or special pricing on the products demonstrated, if they purchase or order at the demonstration. Take orders with payment.

    Then indicate that there is also a way that they could make money, if interested, they should ask you after the demonstration (show them the business opportunity). Also, that they could earn free products by allowing you to come in and do a demonstration in their home (offer them 10% of the profits from the demonstration, in the form of products). Try to book at least one demonstration from each one that you do. Make sure that everyone walks away with literature.

    Demonstrations are a soft way of building a business. It's slower, so keep that in mind if you are anxious to replace your current income and gain more time freedom.

    If you cultivate your warm market properly, you may never have to enter the cold market and will build a large and lucrative business with all of your friends and family members.

    Rod Nichols has been involved in the network marketing industry since 1979, as a company founder/owner, distributor, consultant, trainer, and author. His books "Successful Network Marketing for the 21st Century" and "Would You Like to Dig In My Goldmine?" were industry best sellers for several years.  Rod retired from network marketing for 3 years and yet continued to earn a full-time residual income.  Recently he decided to come out of retirement and is now actively building his business once again.  Rod and his wife, Karen live in beautiful Washington State.  They have five children and three grandchildren.  To contact Rod, send an e-mail to To read more of Rod's articles or purchase any of his books, visit

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