If there’s one valuable lesson I learned in my current MLM Company it is to retail to recruit.
This simply means to focus on getting customers first and then let sponsoring be a byproduct of getting customers, rather than getting customers as a byproduct of trying to sponsor people as distributors.
To the best of my knowledge, my company is one of maybe one of only a handful of companies that actually teach this concept. My company is product driven and customer driven. I think it’s a shame that other companies don’t do the same thing.
Most distributors in most companies are ONLY taught to recruit, recruit, recruit. When it comes to getting customers, they are taught to use the products themselves and then just to look for other business builders.
However, there are some major problems with following that advice. Here are the problems as I see it:
- Most people don’t want to join your business opportunity
- You don’t make any money just by sponsoring people
- If you aren’t creating VOLUME in your group, you won’t make any money
- It’s easier to find a customer than a distributor
- Most people hate to sell, but everyone likes to buy
- Most of the people you sponsor as distributors will quit within 30 to 90 days and as a result, they will stop ordering the product
Following the “only recruiting distributors” concept, it results in frustration, high attrition and small bonus checks.
There is definitely a BETTER way. I call it retail to recruit.
Assuming you are with a good company that has products that people actually want, and at a good price point, I think it’s best to be product driven and focus on getting customers first (rather than sponsoring people).
You see, if your products are in demand, good quality and priced right, people will want to buy them from you. On the other hand, if you are selling $100 weight loss shakes or overpriced magical juice from a remote Amazon village, good luck selling anything to anyone.
Furthermore, the same people who were not interested in a “business opportunity” could be receptive toward learning more about how your products can benefit them.
Focusing on retailing the products has some major benefits:
1. You earn more commission per sale from a customer than you do from a distributor (in most companies)
2. More people are receptive to products or services than a business opportunity
3. You can earn immediate retail profits in your business, where as the residual income from building a team is much slower
4. Many of your customers will keep reordering, even if they decide to never get involved as a distributor and build a business
5. Some of your customers who ENJOY the products will want to UPGRADE to a wholesale buyer distributor to get a discount, or even as a business builder
Can you see the difference between retailing and recruiting?
Can you see why retailing to recruit in MLM is the best way to go?
I hope so.
I violated this rule for TEN years in this industry (because I didn’t know of this strategy) and didn’t get anywhere near the results I could of, had I followed this advice.
In addition, I’ve heard several top earners discuss how they left lots of money on the table by simply being “recruiting and distributor driven and neglecting the retail aspect of the business.” Don’t make the same mistake.
Never forget that you only get paid to produce volume!
Never forget that ALL businesses need customers.
I believe that EVERY distributor should be required by their company to find minimum 10 retail customers BEFORE they are allowed to recruit their first distributor. This would fix a lot of problems in our industry AND it would help people become profitable quicker.
Keep in mind I’m not telling you to NEVER lead with the business. Each prospect and each situation will be different.
That being said, you need customers, lots of them.
If the company’s products or services don’t make sense, neither will the business. If someone doesn’t love the products, they won’t stick around long anyway.
I encourage you to shift your focus from recruiting to retailing, and watch your network marketing business grow by leaps and bounds.
What do you think about the retail to recruit concept? Do you do it in your network marketing business? Leave a comment below and let me know what you think. I look forward to hearing from you.