Today, I’d like to share some of my favorite tips about how to make more money in your network marketing business.
Before I dive too deep into the training, please know that there are really only three ways to make more money in ANY type of business. Those three things are:
- Find more customers.
- Get your current customers to spend more on each transaction.
- Get your current customers to buy more often.
Smart business owners do a combination of these three things. While it’s important to find new customers, it’s more important to take care of your current customers, so they keep doing business with you. Remember this:
The real profits in any business come from repeat sales, not one time transactions.
How to Make More Money in Your Network Marketing Business
Listed below are 8 of my best tips about how to make more money in your network marketing business. They are listed in no particular order.
Tip # 1: Get More Retail Customers
You should make it a goal to maintain five to ten ACTIVE personal retail customers at all times. In addition, you should make it a point to add 1-2 new retail customers each month to your business. This will help replace the customers who drop off, and also lead to more referrals in your business.
In most network marketing companies, having 10 loyal customers would generate you at least $300 in retail profit, which would cover most of your business expenses.
Also, imagine what your VOLUME would look like if every distributor on your team had five to ten customers!
Your business is driven by the volume produced by sales to the end consumer. A great deal of those sales will be to distributors who “buy from their own store” and use the products themselves. But there are many other people who will benefit from your products or services — but are not interested in building a business at this time. These people will become your consumer group.
Tip # 2: Increase Your Activity
There is a saying that says if you want to triple your income you need to triple your efforts. I believe that. Take a look at your own calendar for a minute. How much time have you actually spent on the income producing activities in your business over the past three or four weeks?
Are you talking to five to ten or more new prospects each day, or are you sitting around at home doing busy work? Be honest with yourself. Most people in our industry don’t make enough exposures on a consistent basis to be successful.
To increase your income, increase your activity.
Tip # 3: Monitor Your Business Expenses
One way to make more money in your network marketing business is to reduce your expenses. Don’t be a tight wad, but look at each of your business expenses every month and see if there are any areas you can cut back on.
Evaluate the Return on Investment for each expense and make sure it is money well spent. Keep an updated profit and loss statement each month and look for trends. Know your business financial situation at all times.
Tracking your expenses ensures that you can reach your financial goals. By understanding your spending habits, you can make the appropriate changes so that you can ultimately achieve these aims.
Tip # 4: Improve Your Skills
One of my best tips about how to make more money in your network marketing business is to improve your skills. Like any other profession, you must develop a certain set of skills if you want to be successful.
Be a student of your business and study sales, marketing, leadership, communication, team building, network marketing, etc. Attend events, read books, listen to a mentor, and listen to tapes and CDs in your car while you commute to work each day. Make it a goal to get a little bit better every single day.
Remember, skills pay the bills!
Tip # 5: Increase Retention
One of your goals each month should be to focus on retention. It’s cheaper and easier to keep a customer (or distributor) than it is to go out and find a new one. Send thank you notes, build friendships, keep in touch, send newsletters and do whatever you can to make people feel appreciated. Even if you can reduce your attrition by just five to ten percent, it can have a big impact on your bottom line.
This is really about long-term relationship building. It’s not about just bringing people into the business and just moving forward. It’s about working with these people and helping them to develop relationships.
Tip # 6: Encourage Customers and Distributors to Order More Products
Educate your customers and distributors about the different products and services your company offers. Provide product training on every call. Recommend different products as well. Encourage everyone to sign up for auto-ship.
Teach everyone on your team the importance of auto-ship, and talk about the benefits. Even if you can influence a small percentage of your team to order just one extra product per month, it can make a big difference in your bonus check.
Income can appear low at first because the strength of this model is in the residual income. Residual income results from repeat purchases from the same customers, often on auto-ship. These customers are sometimes retail customers of yours, as well as independent representatives who make up your team of both consumers and marketers. Due to the ongoing consumption in your network or team, your income can continue to grow even as your personal selling and recruiting plateaus or drops.
Tip # 7: Encourage Customers and Distributors to Order More Often
Not everyone on your team will order every single month. I wish they would, but it just won’t happen. In most cases, no more than 20 to 30 percent of the distributors order in any given month.
Your goal is to find creative ways to get people to place an order each month. You can do this by staying in touch, by building depth so there is fear of loss, and whatever other creative methods you can think of.
Repeat orders for the same product or service is what makes income residual.
Tip # 8: Have Contests
Run contests in your team every single month. Not everyone is competitive, but people who are competitive will appreciate it. Even if just 10% of your team “competes” in the contest, it can create a surge of additional volume.
The prizes don’t have to cost you a lot of money either. I give away free products, free leads, gift cards, certificates, or sometimes put a distributor I signed up on the contest winner’s team.
In their article The Psychology Behind Competition: Why Incentives Work, Gavel Intel finds that “healthy competition is effective because it encourages people to work hard and do their best […] It also provides validation and recognition for top performers and motivation and accountability for slackers.”
My bonus tip is to find and build leaders. This could easily be the most important tip on this page! Customers and reps come and go like the common cold, but LEADERS create volume. Recruit up. Look for leaders in your downline and work with them personally. Even finding just 1-3 good leaders can totally transform your team into something HUGE.
In summary, these are eight simple ways to make more money in your network marketing business. These tips are simple and fairly easy to do. I encourage you to evaluate yourself in each area and look for things you can improve upon.
What are your thoughts? What do you think are the best ways to make more money in your network marketing business? Leave a comment below to share your thoughts. I look forward to hearing from you.