Leverage…this why you started in your Network Marketing business…for the dream of controlling your time, getting paid on other people’s efforts, and achieving financial freedom.
Unfortunately, the word “leverage” has not been explained properly by your sponsor, because most of them don’t know or realize they need to explain it.
There is, however, another word that you will not hear this word talked about any more in most Network Marketing company training, yet it is one of the most important, if not THE most important training aspect that has far reaching effects for your company’s survival, distributor retention, and ultimately your bottom line.
You are told things such 1% of 100 people’s efforts is much better than 100% of your own, and that to succeed big you must recruit a lot of distributors into your network marketing company, all of which is true, but they are missing a key ingredient that, without, you are walking on fast-sinking quicksand.
Let’s go back to square one…
Why do Network Marketing Companies exist?
Simple – to sell as much product as possible so they can make a healthy profit and stay in business.
And to stay in business legally and not be shutdown as an illegal pyramid scheme where every person is recruiting others just for the business opportunity, there must be true, real, and demonstrable customer demand for its product or service.
The dirty little word is (you guessed it) “CUSTOMER.” Yep….for you to be totally legit you must have real customers.
Currently a very popular network marketing company is in a lot of legal ‘hot water’ because unfortunately their business opportunity was hyped up without them having a proper focus on customer acquisition.
The company in question has excellent products but many distributors treated them as an afterthought – and focused solely on the money side.
And there two more companies I know of that are being scrutinized by the authorities for the same reason.
Put it another way, your product or service must be able to:
- Stand alone on its own merits
- People that ARE NOT interested in the business opportunity must want to buy the product at the full retail price & keep wanting it.
For now on, before I sign up in any home business opportunity, after checking things such as the company and owner integrity, the market they are in, and their compensation plan, and if they have the “sizzle” (something unique and powerful I can get excited about), I ask myself the ultimate question and you should be asking yourself the same:
“Can I sell the stuff?”
That doesn’t mean selling to hyped up reps, but to real retail customers that will buy the product at full retail without giving a rat’s behind about the business opportunity.
Ask yourself, how many companies have been in business for a long time, like Amway or Shaklee? Why? If you look at their product or service and ask their reps, you will see their product or service is being bought by many customers.
So why is this word CUSTOMER almost never mentioned by your Upline?
It’s the same reason they teach you to recruit your friends and family. They are untrained. It’s the blind leading the blind.
Here is a great question to ask someone who is trying to recruit you into their business opportunity:
“How many personal retail customers do you have?” If they hem and haw, ask the question again…
“How many people bought your product last month at full retail price solely for the product merits and value, and not for the business opportunity?”
Get a note and pad, you will love the answers! I asked that of a “heavy hitter” trying to recruit me into a “new and improved” business opportunity and he never answered. I asked him twice. Nothing. Needless to say, I DID NOT sign up with him.
Would you like to make 10 times the money with the same number distributors?
Easy. Teach them the bulletproof way (coming up in another article) of getting 10-15 good retail customers quickly. They will never quit because they are in profit.
And why do most distributors quit after a few months? They are not making money.
Let’s say your company’s flagship product has a $30 retail profit on it and it costs you $100/mo. With 10 good customers, you have $300 retail profit, minus your own purchase of $100, gives you $200 net profit. Would you quit? Would your people quit?
Think of having 1000 distributors in your organization, each with an average of 10 good customers buying every month. It’s the same as having to recruit 10,000 distributors. And, if you know what you are doing, getting customers is much much easier than recruiting distributors. Now this is the ultimate leverage…
A satisfied customer will do wonders for your business
Happy customers have been known to do some amazing things like refer other customers to you.
By the way this is the best source of additional customers I know that costs nothing to advertise and no more effort except the simple question “who else do you know that would also like to (and fill in your product benefits)?”
Some of your best distributors can also come from satisfied customers. “You mean I can make money with this?” is a great question that often comes up when you subtly mention that they can also join you in business for a profit.
What do you do next?
Change the way you do business. Challenge yourself. Learn how to sell your company’s product, if it will stand on its own merit. And if it will not, you may want to find a company that meets that qualification. They do exist.
If you learn to embrace the “C” word and teach your downline to do the same, you will have much higher retention, you will make a lot more money for the same number of distributors in your organization, and your company has a much higher chance of being around to keep paying you the high commissions you will earn.