I read a post recently that talked about why MLM genealogy leads were a good source for finding new distributors for your MLM business. I disagree.

I strongly disagree!!!

In fact, I see genealogy leads as one of the biggest lead scams out in the industry today. And here’s 2 reasons why:

1) The leads broker does not own the data being sold.

I’ve sold a number of businesses over the years. Every time I sold a business, the customer list was part of the sale. It was a company asset. Even though the company is out of business, it still belongs to the company.

As a matter of fact my good friend and business partner Troy Dooly was just contacted by a former MLM CEO who asked him to broker a deal to sell his company genealogy.  It was the asset of the company, and the CEO wanted to sell it. Troy was very clear with potential buyers that He (Troy) did not own the list, but was marketing it for the owner, and if deal was cut, it would be between the CEO and the buyer, and would be final. The data would not be marketed to more than one buyer.

So why is the broker selling it when it doesn’t belong to them?

Quick cash I can only assume.

If you don’t believe me that the list belongs to the company, contact MLM Attorney Gerry Nehra. He’ll tell you straight up.

When a person joins a company, that business relationship is belongs to that company; not the leads broker. The leads broker is selling information that does not belong to them.

This is much like buying a used stereo from a pawn shop, only to find out that it was stolen from your neighbor.

How would that make you feel?

Buying a list of names that doesn’t belong to the seller… how would that make you feel?

And what does that say about the person selling the data?

Folks, I have to live with myself and be able to sleep at night. I can’t rightfully sell something that does not belong to me.

2) Fortunes are made in the warm market.

Why would I tell you that when I sell cold market leads?

Well, because it is the truth.

MLM PROs will tell you that the fortune is in the warm market. But what the cold market provides you is new warm markets.

Your new distributor will provide you access to 100 to 300 people in their warm market IF you do your job properly. Those leads don’t cost a dime. Consider them free MLM leads.

95% of the time, a person on a genealogy list has failed in business once before. They’ve already burned through their warm market. So who are they going to talk to in their warm market? They’re on their way out of business just as soon as they start.

So again, I recommend you stay away from Genealogy Leads and the people that sell them. They’ll take your hard earned cash right out of your wallet if you let them.

Enrique Garibay