Should you lead with your products or business opportunity? This might just be a million dollar question.
Depending upon who you ask, you will probably get a wide variety of answers. All I can do is offer my personal insights on the subject, based upon my personal experience in the network marketing industry.
I should tell you that for the first 12 years in this industry, all I was ever taught to do was recruit other distributors. No one ever talked about getting customers, or even stressed that it was important. The traditional recipe for success was “be your own best customer” and recruit other distributors to do the same.
Since I didn’t know any better, that is what I did: I led with the business opportunity. I quickly discovered that most people hated MLM and most people who did join my team did not stick around very long.
After more than a decade of experience, I truly believe that it is much wiser to lead with your products, rather than lead with your business opportunity. I believe that it is much easier to find a new customer than find a new distributor.
Most people HATE TO SELL, but EVERYONE LOVES TO BUY. Never forget that.
I’ve found that nearly 95-98 out of every 100 people you talk to about your business opportunity will not join your team, regardless of what you say or do.
They’re either against the concept of network marketing, they don’t have the desire to start a business of their own, they don’t have the money to do so, or the timing isn’t right in their life. That means for every 100 leads you generate yourself, or buy, you will waste your time and money on at least 95-98 of those leads.
Think about that for a moment. I understand you have to sift and sort through the dirt to get to the gold, but that seems a bit extreme to me.
What if there was a better, more EFFICIENT way? What if there was a more effective way to generate profits in your network marketing business? I believe there is a better method. I believe you should lead with your products first, rather than your business opportunity.
I frequently refer to this at RETAIL TO RECRUIT.
When you lead with the products first, you will typically get a much higher response rate. Once again, people love to buy, but most people hate to sell.
For instance, if you sell weight loss products, and you show 100 people how your product can be a solution to their problem(s), you will quickly discover that at least 20 to 40 out of every 100 people will be interested in learning more information about your products.
Now, I’m not saying you will convert all of these folks into paying customers. You won’t. But you can convert many of them into paying customers, once you have some basic product knowledge and learn how to talk to people effectively.
As you can see, this is a much higher percentage than if you led with your business opportunity.
Best of all, you earn immediate retail profits on your sales, which makes you profitable. Remember this, it’s a lot easier to make $500 per month with customers than it is with distributors in a downline.
And many of your happy customers will want to upgrade to a wholesale buyer, or even a business builder, if they get good results with the products and you treat them well.
So, here’s the formula for success.
- Lead with the products
- Find new customers
- Build a relationship with your customers and treat them well
- Teach your customers how to get their products for free by referring a few others
- Upgrade some of your happy customers into wholesale buyers and/or business builders
- Teach your new team members the exact same process
Here’s one other important lesson to consider. Most people who join your business opportunity as a business will quit within 60 to 90 days, if they even last that long. And when they quit most of them will stop ordering the products.
On the other hand, people who signed up because they loved the products will have a much higher retention rate, and they will keep ordering products whether they ever do a business or not.
From my own experience, I’ve also found that most happy customers order at least twice as much per month than your distributors do. Distributors buy the MINIMUM to qualify for commissions, whereas customers buy the products because they want to. You might want to read that again until it sinks in.
So, if you want a LARGE residual income from your network marketing business, you need hundreds (even thousands) of people who are using the products each month because they love the products, not because they have to buy products to qualify for commissions.
This is the strategy I use to build my network marketing business. Many people will tell you that retail customers should be a byproduct of showing the plan: by signing up people not interested in becoming a distributor.
I believe that you should share the products first, and let your sponsoring of distributors be a byproduct of upgrading your happy customers.
Ultimately, what you decide to do in your network marketing business is up to you! However, if you aren’t getting the results you desire with your current recruiting recruiting method, I recommend you try my approach.
What are your thoughts? Do you think you should lead with your business opportunity or with your products? Leave a comment and let us know. I look forward to hearing from you.