So you have a crystal clear vision of what you want to accomplish by starting your own business, specifically with a network marketing company. You know what kind of financial freedom and time freedom people achieve through this industry. You know that you will have to make a lot of sales and build a team of successful people who make sales to earn the income that you desire. But, you are not sure on which way is the best way to build your business: cold market lead generation or warm market lead generation.
First, here is a brief description of the difference between the two then I will discuss some pros and cons. Cold market lead generation is finding people whom you do not know and who do not know you to advertise your business opportunity to. Some common cold market lead generation strategies are passing out flyers, placing newspaper advertisements or Internet ads. Anyone and everyone exposed to your ads could become a new lead. Warm market lead generation is the exact opposite. It is talking to anyone you know and anyone who knows you about the business opportunity with your network marketing company.
Now, here are some pros and cons of using cold market and warm market lead generation to build a business with a network marketing company.
Cold Market Lead Generation- PROS
You can develop a customer base and network marketing team in a new city, town or environment where you do not know anyone.
You can streamline or automate some of your advertising efforts to better leverage your time.
You can outsource your marketing responsibilities.
You know the people have some interest because they called your ad.
Cold Market Lead Generation-CONS
You are more likely to get responses from people who are broke and in need. They may not have the funds to join your enterprise.
It requires more sifting and sorting and using the law of averages to get the quality people you want to join your team.
They are strangers so you will have to build a relationship of trust with them first.
It generally costs money.
Warm Market Lead Generation-PROS
The relationship bridge is already built.
You have greater control over the quality of your prospects.
Gets you engaged in building the business right away through contacting and inviting your friends.
It typically allows you to talk to fewer people and make more money.
You can always expand your warm market by going out and meeting new people.
It is less expensive than cold market advertising and often free.
Warm Market Lead Generation-CONS
You have to talk to your friends and family about your business opportunity.
You reach out to them without knowing if they have an interest, whereas cold market leads call you.
You cannot outsource this process because warm market sales are build on the strength of your relationship.
You must decide which is the better strategy for you to build your enterprise. Most leaders in a network marketing company will encourage you to start with your warm market, as it is the fastest and least expensive way to make money. However, most will ultimately participate in both so that they do not leave any money on the table. It is important to know what pros, cons, and effort both entail so you can set proper expectations for yourself and your business growth.