How to Build a Productive Downline: Perfect Leadership Model for Brokerages and MLMs

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By: Melanie Shires, PCC

In my line of work helping entrepreneurs with business development and growth marketing strategies, there is a segment of entrepreneurs I come across that need specific leadership and influencer skills in order to successfully build a sustainable business. These entrepreneurs are building a brokerage or business as part of a multi-level marketing (MLM) company. 

I educate entrepreneurs who are running business models (like brokerages or MLMs) that recruit, train and develop independent contractors to become part of a productive, successful and lucrative downline the importance of adopting and exemplifying a modern approach to leadership. I have this type of entrepreneur client look at their business archetype very similar to traditional corporations with a hierarchy methodology of top-down leadership, but one that fosters mentorship and collaboration to cultivate a downline of great leaders and not just part-time or inactive producers.

In this article you will discover the leadership model I teach aspiring entrepreneurs in network marketing companies that is necessary to adopt and promote within the team you are building if your desire is to have a massive and productive downline.

It’s the emotional intelligence (EQ) leadership model. This is a model of leadership in which leaders must develop, motivate and influence a group of individuals in which they have no direct authority – this group typically commands a lot of power of their own through their independent contractor status, access to information, and ability to communicate with practically anyone. 

This kind of business team dynamic demands leadership based in EQ mastery. It’s focused on channeling what I call warm power or skills of personal interactions as opposed to what I refer as cool power, which are technical skills and authority. Harnessing warm power enables these entrepreneurial leaders to better influence, motivate and direct their team of independent contractors, and as a result their teams are often more focused, productive, lucrative and happier.

The entrepreneurs I’ve encountered who run extremely successful and lucrative brokerages and MLMs embody the EQ leadership model and as a result, cultivate downlines of productive and prosperous independent contractors.

Studies over the years have found that women tend to be better suited to this kind of leadership. They’re better than men at empathy – sensing the thoughts and feelings of others and responding in some appropriate way. Women value reciprocal relationships more highly than men do. Collaboration, empathy and inspiration are all part of female communication and socialization, whether innate, learned or both. And in business models that favors leadership based on skills of personal interaction rather than on authority, women have a head start. This is not to say that men cannot and do not acclimate EQ into their leadership practices, it is just taking a little longer for men in high numbers to make the shift. However, men who are leading massive, productive network marketing business have been on trend for a while.

Through specialized business coaching, I teach entrepreneurial leaders to value and develop EQ leadership skills that will empower and increase retention within their downline. Training, the latest technology and innovative marketing tools are also essential components for developing success within these teams. However, appreciating and applying the model of EQ focused leadership; demonstrating self-awareness, resilience and sparking a real and authentic connection with the people around you will ensure to keep your downline engaged and your business on top. 

Want to learn about proven strategies and simple tools to help you incorporate EQ leadership into your business to foster a productive downline? Schedule a virtual coffee with me to discover how I can help you achieve your business goals.