In today’s post, I’d like to discuss how to be customer focused in your MLM Business. This is something that took me a long time to grasp and understand.
In network marketing, we get paid to create sales for the company. We are only paid when products move from the company to end users (the customer). This includes our personal consumption, personal sales, and team’s sales. We do not get paid to recruit. We can recruit 100 people but if no one buys or sells the products we don’t earn any money (and rightfully so).
Most distributors are only taught to focus on finding distributors. Recruit, recruit, recruit. And then go recruit some more!
There are several problems with this strategy, as I see it.
First and foremost, it’s almost impossible to ethically promote a “money making” opportunity if you aren’t making any money yourself. If you would instead focus on building up a solid customer base of at least 10 to 20 customers BEFORE you started recruiting distributors, you would have a sound business concept and profitable business. You could then share what you’ve done and teach people how to do what you do. Make sense?
The next challenge with just looking for business builders is THEY ARE RARE. Most people are not entrepreneurial. Most people are not go-getters. Most people do not want a side hustle or network marketing business. Maybe 1 or 2 out of every 100 people do. If you’re only looking for these people, you are leaving 98 to 99 percent of your potential earnings on the table. However, everyone is a consumer. By leading with your company’s products first, you will appeal to more people you talk with.
The third challenge with recruiting, as I see it, is the high turnover (attrition). Sponsoring and recruiting people is tough enough, but keeping the people you do recruit in the business, and getting them to do something with the business, is even tougher. Plus, they require a lot of coaching, mentoring, hand holding, and sometimes babysitting. Attrition is high. People will often join and quit, in the same month! Customers on the other hand, normally stick around much longer, and order more, because they love the products. They order because they WANT TO, not because they need to be qualified for commissions.
The Truth About Customers
Customers are the lifeblood of EVERY business. Without customers, there is no business.
You need customers. You don’t need hundreds of personal customers, but every distributor should acquire and maintain five to twenty customers.
Most network marketing companies have more distributors than customers. That is a problem. If the company is doing their job right, there should be five to twenty customers for every distributor in the company, not the other way around. For this to happen, the products must be priced right, high quality, and be a good value to retail customers. In addition, the company should place an emphasis on products and customers.
Happy customers will keep ordering the product month after month, whether they ever build a business or not. This keeps your volume constant and helps you build a solid residual income.
In addition, many of your happy customers will eventually upgrade to distributors and business builders. They will fall in love with the products and want to get a discount on their purchase, and maybe even refer a few others so they can get their products for free each month.
Some of these happy customers turned distributor will become serious business builders in your team. They will see the value in the products and business opportunity and want to build a business of their own.
And other retail customers will refer you to other people because they enjoy the products and appreciate the way that you treat them.
How to Be Customer Focused in Your MLM Business
Find a network marketing company with products you love. It helps if you love the products. The company should be product and customer focused. The products must be quality and priced competitively if you want people to shop with you.
Next, educate yourself about the products (without becoming an expert) so you can talk with people and make recommendations. Learn the features and benefits of each product your company offers, or at least your favorite products. Use the products yourself and develop a great story or testimonial. Your “story” will be one of your most valuable business tools.
Lead with the products, not the business. Offer solutions to people’s problems. Before you mention a product to your prospect, identify a “hot button, pain point, or problem” you can solve by using your product as a solution to their troubles. This is the secret sauce.
Finally, learn how to sell. Spend the time and money to develop some basic selling skills. Not only will this help you grow your business, but it will also help you in your day job or career. Selling is quite perhaps the highest paying skill in the marketplace (other than leadership).
Other posts you may enjoy:
- Top 27 Customer Service Tips for Small Business Owners
- The Difference Between Leaders, Distributors and Customers in Your MLM Business
- How to Make Money When People Don’t Join Your MLM Business or Become a Retail Customer
- Top 10 Tips for Building Relationships with Your MLM Customers and Downline
In conclusion, make it a point to be customer focused in your MLM Business. Lead with the products. Develop a solid customer base before you start recruiting. More importantly, teach people how to sell the products and find customers. This is the smart, ethical, and proven way to build a long-term residual income.
What are your thoughts? Are you customer focused in your MLM Business? Why or why not? Leave a comment below to let me know what you think. I look forward to hearing from you.