The discussion about warm market versus cold market recruiting continued on the forum. As I watched folks weigh in on the subject, I had to add my 37 cents. I'm sure it's not the last word on the subject:

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I've always been amused (confused?) by the dichotomy between the statements, "your list is the best place to start" and "friends and family will probably give you the hardest time". Napoleon Hill said something along the lines of, "the biggest cause of failure is people listening to the opinions of friends and family".

And yet. . .

1. I started building my business in the warm market
2. My organization starts in their warm market
3. We are extremely successful

Key point: We don't alienate our warm market because we don't "convince" we "educate". We let people know what we do and invite them to get more information. [Note, several who said they didn't use/teach warm market did so because they had lost friends, had bad experiences, etc. Others said that's because they were taught to do it wrong--and that's why their friends ran from them.]

There is a thread here about "why newbies don't work their lists". I haven't read it, but I suspect the consensus is that they are afraid of what their friends will think of them. It's fear. Their friends will laugh at them, try to talk them out of it, and so on. And we can all understand this. We can also understand why people would think that "talking to strangers" is easier than talking to your friends and families. But it is not. If you're doing it correctly, it's much easier to talk to friends and family.

If you're pestering your friends, trying to convince them, asking them to sign up because they "owe you" or telling them you'll "pay them back" or "put people under them" or other such nonsense, that's as ill-conceived as it is difficult. But if you're merely showing them your new business, with no strings attached, no commitments requested, no sales pitch and no agenda other than sharing the information, what could be easier? "Mom, I'm sending you a video about my new business. I'm excited and want to show you what I'm doing." Piece of cake.

The cold market is not a piece of cake.

In the warm market, you can ask people to look at the information and give you their opinion (not sign up) as a favor. Not so in the cold market. Why should a stranger do a favor for you?

In the warm market, you can say "I don't know, I'm new" and defer to someone else. Not so easy in the cold market.

In the warm market, people trust you. They won't hang up on. They will be curious about what you're doing. The cold market doesn't know you or trust you and they don't care about what you're doing and in addition, they will lie to you ("No I didn't fill out a form, why are you spamming me!")

In the warm market, you don't need skills to get started, you need a system. In the cold market, if you don't know what you're doing, if you don't have "posture," if you don't know how to control the conversation and deal with objections and be the rejector instead of the rejectee, you're going to get beaten up, chewed up, and spat out.

Where do you acquire those skills and that posture? Yes, you can develop them in the cold market but most people won't stick around long enough to do so. That's the primary reason why those of us who say the warm market is the best place to start (if you're doing it right) take that position.

As for the notion that "the best prospects are those who have been in network marketing"

1. None of the hundreds I have recruited were experienced in network marketing
2. As far as I know, this is predominately true for my organization

In other words, we built a large organization with people with little or no network marketing experience. And, after reading some of the posts, here, I'm thinking that's a good thing! The more experience someone has in network marketing:

1. The less coachable they are likely to be, in terms of following the systems we use, and
2. The more likely it is that they have "burned through" their warm market.

The latter is undoubtedly one of the reasons why many experienced networkers look to methods other than warm market–they don't have one. (Well, they do, but it's easier to talk to strangers than to talk to the people who watched you mess up in five other "deals".)

If you don't have a warm market, either because you've "burned through it" or you just don't know a lot of people, that's one thing. You have no choice but to talk to strangers. You'll get good quickly or you'll become a statistic. But if you do have a warm market and you choose not to approach them, that says something about (a) the way you've been trained, or (b) your belief in what you're doing. Yes, there are many ways to get information in front of people, and yes, it's your right to build your business the way you choose to, but why would anyone choose to NOT show their information to people they know?

We all know individuals we don't want in our business, or even as customers. They are disagreeable, complainers, or we just don't like them. Whatever. That's legitimate. Don't show them. But the majority of the people you know, I hope, don't fit that description. They might not have money to be a customer or they might not believe in vitamins if that's what you sell, and they might not be entrepreneurial. But show them anyway.

(a) they know people and can give referrals;
(b) those factors could change, over time; and
(c) you could be wrong in your assessment. (That's why we say, "don't pre-judge".)

When I begin working with someone and they tell me they don't want to make a list, I have a heart to heart with them and if they still feel that way, I'm done with them. I probably won't tell them that, but I'm certainly not going to invest a lot of time and energy in someone who doesn't believe in what they are doing. It's no different than someone who signs up in the business but doesn't want to buy your product/service. We all know that these people don't make it, don't we?

In the beginning, I don't expect people to have the level of belief they will have later on, but if they don't have enough belief to make a list, or enough trust in me and my ability to coach them to success, that tells me I'll probably have to push them, and I don't want to do that.

You do have the right to build your business your way, but so does your sponsor. And that's something I think we can all agree with.

I was visiting a network marketing forum last night and someone asked if anyone had a good "memory jogger". There ensued a lengthy and somewhat passionate discussion about the value of warm market recruiting. Frankly, I was surprised by what some folks said.

A good number of participants felt that warm market recruiting was not the way to go. In fact, some felt it was a bad idea. It was "old school," "too hard," and "unlikely to find leaders". They felt that online lead generation was the way to build the business today and they wouldn't approach their warm market.

Most of the participant agreed with what I believe: warm market has worked in this industry since the beginning, many fortunes have been made that way and continue to be made that way. Warm market is easier than trying to teach people how to generate leads online, let alone asking new distributors to recruit those leads. Warm market is a place everyone can start. Cold market is great but it should come later. And online lead generation can be excellent but it's not a sinecure and it's not for everyone.

I responded (below). One thing I didn't mention is that we start people in their warm market so that when they recruit someone in the cold market, they know what to do to help those people recruit in their warm market. This is important because it allows new people to recruit new people and teach them how to recruit and help new people.

By the way, if you would like one, here's a memory jogger I have used (I don't recall where I found it).

Here is my post on the subject:

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"I was an attorney for twenty years and have been full time in my network marketing company for the last eight years. I have recruited hundreds of professionals, mostly from warm market, and built a six-figure residual income from scratch in just a few years.

We start everyone on our team with warm market, and if they're lucky, they never have to go into the cold market. (Professionals tend to know a lot of people). A memory jogger is an excellent tool. The yellow pages is also excellent. The white pages can also be used.

The cold market is harder (even when they contact you). In the warm market, they may not respect you in your new business (and that's why we use third-party) but they trust you. They'll probably look at what you have. Will they be any more likely to get started? No. Will they be any more likely to be a leader? No again. But neither will they be any less likely.

Why assume that because they are your uncle they wouldn't be interested or they wouldn't be very good. Is someone a poorer prospect because they know you? Doesn't that sound silly?

I understand the value of getting someone to raise their hand and express interest before you expose them. That's good and I do it, too. But that doesn't mean approaching someone who hasn't expressed interest isn't a viable method of operation. You could argue that it takes more work or it's a longer process or that it's finite compared to the cold market, which is infinite, and these are valid arguments. But they don't negate the value of a warm market.

I can't understand why anyone would choose to not share their business information with people they know. Would you tell them about your new shoe store or donut shop? Of course you would, even if they don't wear shoes or eat donuts. You'd do it because you were proud of your new business and because even if they aren't interested in anything you have to offer (product or opportunity), (a) they might know someone who is, and (b) their interest might change over time.

A lot of people tell me that had they known me when I was practicing law, they would not have approached me. They would either have been intimidated or they would have assumed my success as an attorney meant I would have no interest. Well, that would have been a mistake because I was interested. (I made a lot of money as an attorney but had no time.) I would have been on their warm market list but if they pre-judged me or believed "warm market doesn't work" they would have lost out on a very big, and very productive organization.

You too are on someone's warm market list. If they thought warm market doesn't work and didn't approach you. . . wouldn't that have been a mistake?

Warm market works and everyone can start there. And they should. If anyone doesn't agree, please send your warm market list to me."

Most people with any degree of ambition say they want "financial freedom". They want to have enough money to pay all their bills, buy the things they want, and live the way they want. And many people achieve that–through their jobs or through a business or investments.

Many people have financial freedom, but unless they are in network marketing, there is a very good chance they aren't able to truly enjoy their income. They have to work so hard to keep their income flowing so they can maintain their lifestyle, they don't have "time freedom."

Time freedom was my objective when I got started in network marketing. I earned a lot of money in my law practice and then in my publishing business, but I didn't have any free time. I saw network marketing as the best way to replace my linear income (trading time for dollars) with passive income and create the time freedom I was after. And that's exactly what happened.

Network marketing offers us the ability to develop passive income, and when there is enough of it, if you choose to, you can take the rest of your life off. When the money comes in without you having to work for it, you have financial freedom and you also have time freedom.

I've recently been working with an attorney in my organization who started her business for the same reasons I did. She wants to build a retirement income for herself (financial freedom) and she also wants to be able to spend time with her kids and her new grandson (time freedom). But she pointed out to me another benefit of network marketing. She called it "mind freedom".

She meant freedom from worry and stress. Freedom from all the little details of life that gnaw at you and wear you down but which are hardly noticed when money is out of the way. Mind freedom means more than financial freedom and time freedom, it means a better quality of life, and it's available for most people only through network marketing.

So the next time someone tells you they want "financial freedom" you might want to respond by saying, "is that all?"

Last night I visited a network marketing forum. I've never done that before but I wanted to see what other networkers talk about.  What are they concerned about? What do they want to know? But also, what can I learn? (One never stops learning. . .) And, since I spend most of my time with distributors in my company, I thought it might be fun to meet some folks in other companies.

I registered and scrolled through some of the posts. There was a question posed by a self-proclaimed newbie. He said he didn't have a lot of money to invest in his business, and wanted to know how he could earn his first $500. I posted a response which was well received by other members.

As The Twilight Zone's Rod Serling used to say, "Submitted for your approval. . .", here's what I said:

"Some people have more time than money, so use what you've got. Also, why $500? Right now, you need to get something to happen, even if it's signing up one distributor or earning $25. A small success will lead to bigger successes. Build your belief and the money will come.

Here are some more tips:

1. Start with a warm market list; contact everyone you know and get a tool (DVD, web site, etc.) into their hands. Ask for their opinion. If you were opening a shoe store or restaurant, you would invite everyone you know to come see what you offer.

2. Training: go to events, get on conference calls. MLM is different and you need to immerse yourself in learning.

3. Focus on activity, not results. Have enough activity and over time, the results will come. If you focus on results, you'll ride an emotional roller coaster. If you set activity goals and reach them, then every day is successful.

5. Get a workout partner. Someone who will hold you accountable to the activity goals you set.

6. Do three-way calls with upline. Your job is to deliver the information (always use tools) and if they are interested or have questions, get them on the phone with someone else. It's all about third party.

7. Show up. Get around others in your business on a regular basis. Associate with people who have what you want and can serve as models for you.

8. Personal development. Work on yourself more than anything. Read, listen to tapes, practice approaches and responses and everything else.

9. Commit to a year. "The first 18 months are crap," said Art Williams. Prepare to go through whatever it takes to make it.

10. Have fun. Yes, you'll get out of your comfort zone, but if you're not enjoying the business, if it's not fun and exciting, you're doing something wrong. Enjoy the journey!

When you focus on the fundamentals and have a long term perspective, instead of focusing on the short term ($500), you'll increase your chances of success for the long term."

A few weeks ago, on a Wednesday, at around 11:30am, I was scheduled to meet with a member of my team who was here in southern California for a few days. She was in San Diego, on her way to Los Angeles, and we chose to meet at a restaurant just off the freeway in Orange County where I live.

I got to the restaurant first, took a seat near the hostess station and waited. A woman sat down next to me, apparently waiting for her party to arrive. I saw some paperwork in her hands and recognized the name of the network marketing company on the brochure. I started chatting with her and she proceeded to take a sample of one of her products out of her purse. Before she could get into her pitch, the couple she was waiting for arrived. Off they went to their table to discuss business.

A few minutes later, a man came in, carrying a notebook. In the clear outer sleeve he had inserted the cover of a business opportunity magazine I recognized, featuring his network marketing company. He told the hostess he was meeting someone and asked to have a look around the restaurant to see if they had arrived. I later saw him doing a flip book presentation with his guest. He was showing him the comp plan.

My associate arrived and we got a table. After we were seated, I told her what I had seen while I was waiting and my conclusion that network marketing was "taking over". Okay, I didn't use those words, but I recall thinking that here we were in the middle of the day, in the middle of the week, in a not very crowded restaurant, and there were three of us here who were in network marketing businesses.

I think that means something.

It means the world is a different place than it was twenty years ago, or even ten, at least here in southern California. Of course everyone knows southern California is where everything happens first, so if you live somewhere else, be aware of what's coming to your community.

It's a good thing.

Why do some people succeed in network marketing and others don't? Ultimately, it's the amount of one's activity, as I wrote about previously. Differences in belief or philosophies drive different levels of activity which deliver different results. But according to a Stanford University study of human behavior, there's another factor explaining the differences in performance we see in all aspects of life.

The factor, uncovered in the study of four year old children, was simply the ability to delay gratification. The ones who could delay their gratification had better social lives, were more intellectual, better off financially, and were happier than those who couldn't.

The study is discussed in "Don't Eat The Marshmallow Yet!: The Secret to Sweet Success in Work and Life" by Joachim de Posada, Ph.D. and Ellen Singer. Here's the book description at Amazon.com:

"Arthur is a chauffeur who is intellectually gifted. Jonathan is no less bright than Arthur, equally hard-working, and a billionaire. So why is Jonathan in the back seat of the limousine and Arthur in the front? What explains the difference between success and failure? And what does it mean to you and your children?

"Joachim de Posada, a world-renowned motivational speaker, found the answer in a landmark Stanford University study of children who were able to delay gratification-in the form of a marshmallow they'd been given to eat-with the promise that they'd be rewarded with an additional marshmallow if they resisted eating the first for fifteen minutes. Ten years later, the children who held out had grown up to be significantly more successful than those who had eaten their marshmallow immediately.

"Posada saw that the key difference between success and failure is not merely hard work or superior intelligence, but the ability to delay gratification. "Marshmallow resisters" achieve high levels of success while others eat all their marshmallows at once, so to speak-accumulating debt and dissatisfaction despite their occupations or incomes. But it doesn't have to be that way. Using a simple parable and real-life examples (including basketball great Larry Bird and major league baseball catcher Jorge Posada, Joachim's cousin), this life-changing book shows readers how the moves made today can pay off big tomorrow-if they just don't eat the marshmallow…yet!"

To some extent, our world has lost trust. At a time when people have serious reservations about business, when they are shaken by the misuse of people’s trust and poor ethics in business and government, we tend to go back to the basics. That’s what network marketing is all about. The microcosmic essence of network marketing is trust, built one person at a time; once you have established trust, then the geometric progression takes over.

—Nido Qubein, president High Point University, North Carolina

My friend Jeff Olson was the the key note speaker at this year's DSA convention, something he has had the honor of doing several times before. He certainly has the credentials. He built some of the largest organizations in network marketing history, rising to the top of several companies on multiple continents. He is also credited with creating more millionaires than anyone in the industry.

Jeff was the CEO of two network marketing companies, one of which he started from scratch. And his book, "The Slight Edge," was an instant classic when it was published a couple of years ago.

The book's premise is that it doesn't take huge effort to create success, it is the little things, done consistently over time. The book isn't specifically about network marketing, but it's principles are a blueprint for our systems-driven business models.

Here is Jeff, in 1995, with a powerful story illustrating how the choices we make moment to moment, day to day, affect us over our lifetime. It is a great representation of "The Slight Edge".

If I could recommend only one book on the keys to success, it would be "How to Win Friends & Influence People" by Dale Carnegie. It is a classic, a masterpiece of simple, effective advice for getting people to like you.

Mr. Carnegie's second of six keys is this:

"SMILE"

When we smile, there is a chemical reaction in our brains that makes us good. Try it! Even if you don't feel like smiling right now, do it anyway and take note of how it makes you feel.

When we smile at people, they tend to smile back at us. It is a natural human reaction. Our smile says "I like you" and people like people who like them, so they smile back. And they feel good when they do, and associate that feeling with their perception of you.

The more you smile, the better you feel and the more people will like you. This is clear. So why is it that people don't smile more often? One reason is they don't like their teeth. They may be discolored or crooked or there may be gaps or missing teeth. If your teeth need work or aren't as white as they used to be, it's hurting your business and probably your social life, too. Get them fixed, make them whiter, and SMILE!

In network marketing, surveys show that the number one reason a distributor signs up with their particular sponsor was because they "liked them." People do business with people they know, like and trust.

In the cold market (people who don't know you), your objective shouldn't be merely to get information into the hands of your prospects, it should be to build a relationship with them. Get to know your prospects and help them get to know you. A great way to do that is by putting up a personal web site.

Don't panic. A new web site builder, weebly.com, makes it incredibly easy. In fact, with no experience whatsoever, you could have your own web site up and running in a matter of minutes. And it's free (although they recently introduced an upgraded service.)

Weebly gives you

• A free web site (no advertising)
• Free hosting
• Easy as pie web site builder and designer
• A free Blog
• Templates you can use to be online today!

There are other choices. Google has sites.google.com which allows you to do the same thing. You could also set up a free blog at blogger.com or wordpress.com.

These services require no technical knowledge whatsoever. You can quickly and easily create a site that introduces YOU. Of course you can add information about your company and business opportunity and links to your company web site, but the focus of your personal web site should be on you and your story.

You should do this even if you're brand new in your business. Your rank doesn't matter. The purpose of the site is not to impress people with how successful you are, it is to allow them to get to know you.

• Tell your story: why you started with your business, what you want to accomplish, your "why"
• Talk about your family and your life, your hobbies and interests.
• Post photos of your children, vacations (or vacations you would like to take)
• Talk about charities you work with, or want to; what matters to you
• Make your personal web site just that, personal

Your personal web site will allow your prospects to know the person they are dealing with. It's the first step towards building a relationship with your (future) customers and business partners.

Go to weebly.com or sites.google.com or blogger.com or wordpress.com and set up a free account. Start with a one page web site. Your name and contact information, your photo, a link to your company web site, and one or two paragraphs about you. You can add more later, if you want. But put something up today so that the next time you speak with a prospect, you can send them to your personal web site to find out who you are.