When it comes to network marketing success, I think it’s wise to build your customer base BEFORE you start building a downline. Make it a point to find at least 10-20 person retail customers before you start sponsoring people into the business. And make sure that you teach your team members to do the same thing.
There are many benefits to building a customer base in your network marketing business. First and foremost, it gives you immediate retail profits. When you make sales, you keep the wholesale-retail difference. This puts a PROFIT in your business and gives you money to cover (or offset) your own order, advertising expenses and operating expenses.
Even with just 10-20 good retail customers, you can earn $500 to $1000 profit or more per month in profit (depending upon your company / individual results will vary).
Most distributors are simply taught to recruit, recruit, and recruit. They’re taught to just promote the business opportunity and forget about getting customers. As a result, no one gets any customers or makes any money so they end up quitting
You see, it takes a LONG time and LOTS of distributors to build up a large network marketing income. If all you do is look for distributors you leave a lot of money on the table. Most distributors on your team won’t stick around in the business 90 days (let alone two to five years) to build up a residual income, if they aren’t making any immediate income.
There is a much smarter way to build your business.
First of all, if you aren’t making any money with your business you can’t go out and teach someone else how to make money with the same business. It would be like the blind leading the blind.
Your first step is simply to get five to ten customers and make a $100 to $200 per month PROFIT. Find these customers from your warm market. Lead with the product or service.
Once you have a solid customer base, by all means go out and recruit a few distributors and TEACH them how to do the same thing you just did. Show them how to get a few customers FIRST and then go out and sponsor a few distributors.
This the way that network marketing should work. Everyone should use the products, have a few customers, have a few distributors and teach their team to do the same thing.
It’s also important to take a moment and put things in perspective. If you approach 100 people about your business opportunity, you might find one to five people to join. If you approached those same 100 people about the products or service you might find ten to twenty-five customers.
Do you see the difference? Leading with the products is a much better alternative than leading with the business.
Also, if you sponsor 100 people as DISTRIBUTORS, within 12 months 90 (or close to it) of those 100 will QUIT the business and stop ordering the products. This means you will NOT have a residual income with your team.
However, had you just focused on finding 100 customers first, most of them would keep reordering the products because they WANT to buy the products.
Does that make sense to you?
The bottom line is that you need to build your customer base before you start building a MLM Downline. It just makes good business sense.
What are your thoughts about this concept? Leave a comment below to tell me what you think.