Today, I want to share my secret strategy known as retail to recruit in MLM. This is a strategy that isn’t taught in most network marketing companies, but should be. It’s a very effective way to make more money in your network marketing business.
I initially learned about this strategy from Dale Calvert. Thanks, Dale! All I’ve done is put my own twist to it.
What is the Retail to Recruit in MLM Strategy?
The Retail to Recruit in MLM Strategy is the process of leading with the products, rather than focusing on just recruiting new distributors. It’s the process of making sales, finding new customers and being product focused. You lead with the products, find a customer and then upgrade a percentage of your happy customers into part-time distributors and business builders.
The Difference Between Direct Sales and MLM
Before I get too deep in my Retail to Recruit in MLM Strategy, it’s vitally important that I explain the difference between MLM and direct sales. Even though these two terms are interchanged a lot, they are totally different.
Direct sales is just about selling a product. Think of the Avon lady for a minute. All she does is focus on selling products to her current customer base and finding new customers.
Network marketing, on the other hand, is about a lot of people doing a little bit to build the business. Hundreds, even thousands, of team members all use the products, service a a few customers, and refer others to the business opportunity.
If you’re trying to succeed in network marketing, you do need to recruit distributors; however, you should ALSO be retailing the products. It’s a healthy balance of the two activities.
Reasons to Retail & Be Product Focused
Here are a few reasons you should consider leading with your products and being product focused, rather than just trying to recruit new distributors.
# 1: Everyone likes to buy stuff, but most people are not entrepreneurial and do not like selling. If you talk to 100 people, all 100 people buy stuff. Everyone is a consumer. However, maybe only five or ten out of those same 100 people are entrepreneurial or like sales. This means that if you only focus on the business opportunity side of things, 90 percent or more of the people you talk to will not be interested.
# 2: If no one buys anything, you don’t make money. You can recruit as many people as you’d like, but if no one is buying or selling the products, you won’t make a penny. We get paid to create volume. Retailing is the fastest way to create volume.
# 3: Happy customers make happy distributors. People who love your company’s products or services will be your best business builders. Why? Because they love the products or services and they can’t help but sharing them with others. It’s easy to sell or share something you are passionate about.
# 4: Customer stick around longer. People who join the business just to make money normally drop out in 30 to 90 days, whereas people who buy the products because they want to, typically have a higher retention rate.
# 5: It’s profitable. Customers are typically worth more to you financially than a distributor. Retail sales put immediate profit in your pocket. You normally earn more per sale from a customer than a distributor. Plus customers normally place larger orders and they order more often.
What I Teach My Team
I don’t place a HUGE emphasis on retailing, but I do teach my team members to maintain two to five personal retail customers at all times. This helps cover the cost of their own order and might even provide some additional profit.
Plus, if you don’t service any customers yourself, it’s hard to teach other people how to do it. I’ve found that two to five customers is enough. Just think how much bigger your commission check would be if everyone on your team serviced two to five customers each month!
On the other hand, I do have some team members who are 100% retailing focused. There’s teams don’t grow as fast as people who are more recruiting focused, but they do make a nice check. Food for thought.
Tips for Success
If you really want to master the Retail to Recruit in MLM Strategy, here are a few of my best tips for success.
# 1: Use the Products Yourself
You wouldn’t want to own a Ford dealership and drive a Chevy. You should be your own best customer and use all of your company’s products. This will help build up your belief and knowledge about each product. If you don’t believe in your company’s products or services enough to use them yourself, how can you expect someone else to?
# 2: Share Your Story
Stories sell. You can talk about the ingredients and manufacturing process all you want, but your potential customer wants to know what the product will do for them! Develop a good product story for each product your company offers. If you don’t have a good product story of your own, get one from a happy customer that you can use.
# 3: Use Testimonials
Your prospects will only believe you so much, but they will believe what others have to say about your and your company’s products. Create a portfolio of testimonials from happy customers. Make sure they are compliant and approved by corporate. Share testimonials with your clients whenever possible.
# 4: Use Samples
Do not be stingy with samples. Use samples with your prospects. If your product is good, the sample will do most of the selling for you. However, before you give someone a sample, pre-qualify them first AND get their contact information so you can follow up with them at your convenience.
# 5: Stay in Touch
Stay in touch with everyone you talk to. Build up your list or address book of names. Communicate with every customer and prospect minimum once per month. The fortune is in the follow-up. Most people will need seven to twenty follow ups before they make a buying decision. Be patient!
# 6: Ask for Referrals
Ask for referrals whenever you can. Be specific when you ask for referrals. Tell them the type of person you are looking for.
Furthermore, explain to your customers how they could earn money by referring others to you. Consider creating a referral program. Also, let them know there is a business they can participate in if they want to make additional income.
# 7: Teach Your Customers How to Get a Discount
After your customer has ordered several months in a row, show them how they can sign up as a distributor and buy their products at wholesale. Most people like to save money, so if they really like the products, they will strongly consider doing this.
# 8: Learn How to Sell
Study selling. It is an art form. Read books, talk with your mentor, attend events, and watch helpful training videos about selling. Improving your sales skills will pay you big dividends in your business. I’d start by reading the book How I Raised Myself from Failure to Success in Selling by Frank Bettger. It’s my all-time favorite sales training book.
The Fastest Way to Make Money in Your MLM
The fastest way to make money in your MLM Business is by retailing. You will make more money by having 20 loyal customers than you would by having a team of 100 people. When you factor in the retail profits and commissions, it’s much easier to make larger commission checks right out the gate, just by retailing.
Of course, the BIG money in MLM comes from building a team, but it can take several YEARS to build a big team. Not everyone can do that. On the other hand, establishing a large customer base first is much faster and much easier.
Final Thoughts
There you have it folks. This is my Retail to Recruit in MLM Strategy. I hope you found the information helpful. What are your thoughts on this subject? Leave a comment below to let me know what you think. I look forward to hearing from you.
Chuck Holmes
20+ Year Network Marketing Professional
Top Earner & Top Recruiter
Email: mrchuckholmes@gmail.com
P.S. Learn how to grow a successful network marketing business. Secret tips, training, and practical ideas. Free training delivered by email.
It is very true that people are much more receptive to learning about products than they are to learning about a business opportunity. If people can see the value in what you are selling and they become a believer in the product you have to offer that can easily transform into a person wanting to become a part of the team. It is easier to get someone to make that transition than to get someone to join a business they know nothing about selling products they know nothing about.
I agree. If people are passionate about the product line, there is a good chance they will become a loyal distributor as well.
I agree with this approach. It is far easier to sell products than the opportunity to sell them. It is a smaller commitment for your customers, and less intimidating a proposition. If they love the products, it will be easy to continue to sell them the products, and sooner or later, they will ask you about the opportunity.
I liked that you pointed out the income stream is larger when you are selling the products yourself. I believe that some MLM business owners tend to forget that, and pour all of their efforts into recruiting people to work under them, and forgetting to follow up with and nurture those relationships with their existing customers.
Yes, it is much easier to sell a product or service than it is to go out and find someone else who wants to sell it.
I would also say that at this point in time, I would be somewhat skeptical if a MLM uses the other approach. A network marketing company will not survive if they are not selling the products. In my opinion, selling products or services should be the #1 priority before getting new distributors. As pointed out, when many customers see the savings they can gain by being a distributor, you will build a down line with them. Hopefully many MLMs will read this and learn this valuable lesson.
I agree that getting customers first is the best way to go.
It makes me so very happy to hear some MLMs are going to this principal of doing business. In all actuality, in is plain common sense. By selling the product, it keeps the business flowing. When people use the products and like them, you can then show them how they can save on the products by becoming a distributor. It just all works like a clock if done the way you stated…retail to recruit.
I hope other MLMs consider this approach. I believe it will help the reputation of MLMs completely by doing so.
Retailing to recruit is the only way to go as I see it.