Should you Focus on Customers or Distributors in Network Marketing?
When most people join a network marketing company, their focus is almost instantly on ‘who they can sign up’, right? We develop this vision of growing this enormous team of distributors and somehow, the customers are left out of the equation. Unfortunately, this is the way most people are taught to build their business.
And, in my humble opinion you should be taking a closer look at customers.
Customers Create Long-Term Businesses
If you had to guess, how many network marketing companies exist in the United States alone? Would you guess it would be to the tune of more than 700? Crazy right?! So needless to say, we like the business model. And, it is a safe assumption that the ability to work from home or earn extra income is appealing to thousands of people.
So, we have spoken at length on how to stand out on social media by creating curiosity posts and why branding yourself over a company is key — and in this post we want to tailor that to customers and customer retention.
Because they are the ‘blood of your business’.
However yes, we understand the larger the sales team the larger the business — however, the turnover of distributors is much higher than that of customers. Why do you think that would be? Well, a few things come into play here but the one we want to focus on is;
Want or Need of the Product/Service vs. the Financial Opportunity
First things first, customers are not financially rewarded for using the product or service right? Sure, they may earn some free product from time to time — but overall, they use them because I love them. They purchase from you primarily because of that reason.
Here and there of course you have family and friends that simply want to support you — but more than anything it is a product they want in their life.
Whereas, when distributors ‘join’ your business the products are appealing (or we hope so!) but the motive is generally financially driven. This is not a bad thing. In fact, it is a great thing — for hundreds and thousands of people. However, recognize that the motivation is different.
Many of you, ‘sell’ products that anyone can use. Be it toothpaste or coffee, weight loss supplements or candles, energy drinks or hair care. Bottom line, they are for just about anybody.
If you are anything like us, when you find a product you love, you continue to buy it.
Over and over again.
Especially, when the price point is right and you continue to have a need (or want) for the product.
In other words, the product is valuable to you as customers.
Alternatively, when someone joins you in a network marketing business based on the financial opportunity — what happens when they don’t earn the income they thought they would? What if after a few months of ‘working’ their business they decide it’s ‘too much work’ or, they ‘don’t have time’, or any reason really, they quit.
Maybe they will continue to buy the products from you, but it is more than likely that will just be it. And, a shocking statistic is most distributors business life cycle is 89 days before they throw in the towel. Where although we don’t have exact stats on the customer life cycle, we could estimate it would be at least 3X that (more than likely much more).
And yet, there is an abundant amount of attention placed on retaining distributors.
Do you even know what the compensation plan looks like in your company for customers? If you don’t, you should — they are where true residual income exists for you if you are in this for long haul.
Stop Trying to Turn Customers into Distributors Right Away!
Let us qualify this for a moment — we believe, customers make the best distributors. However, have you ever had a situation where someone inquired about your products and you suddenly went into a presentation about the financial opportunity?
Chances are, they didn’t buy from you or join you at all.
And yet, think of how powerful this could have been for you and your business.
Meet Miranda — Your Newest Prospect.
Miranda has reached out to you about the hair care line you are promoting. She has watched some of your posts and more recently has been tuning into your Facebook Live Videos. She has made the decision to buy your entire hair care kit. It includes shampoo, conditioner, deep treatment oil and hair serum.
Naturally, you thank her. And, you know from your own experience the deep treatment oil works best with a shower cap — so, you mail one out to her about 20 days later with a thank you card. Turns out, she loves the products as much as she hoped she would and continues to use them daily.
Next thing she knows your small token of appreciation arrives in the mail and she starts to tell everyone about the products and how amazing your customer service is! In today’s world it is also probable she makes a social media post about it too.
Miranda has now edified the products and you as the distributor simply because you made her feel appreciated. Now, she realizes that this post she did for you has turned into a long list of people inquiring about how they too, can receive these products.
Miranda can do one of two things;
- Send them all your link and BOOM customers are rolling in for you — or,
- Miranda inquires how she too, can be a distributor of the products.
Sounding like a win/win to us. How about you?
Now, what do you think would have happened if you had responded with the whole earn a side income dance instead of giving Miranda what she wanted? How many doors would you have closed?
Happy customers go so much further than people realize. Let’s be honest, some people just don’t want to build a business but they want the products. Respect that. If you are in this for the long haul, there is no rush and there are plenty of Miranda’s around, we promise.
Creating a Customer Culture Organically
Now that we realize how powerful Miranda’s story is, think about this. Miranda joins your business as a distributor. Because of her experience with you, what do you think she will do starting out in the business? Given that this is all new to her sure, she will will require support and guidance starting out — but because you have lead by example, you can remind her how the two if you, first met.
Being able to create a culture of customers in your business will not only help your business grow, but grow into a sustainable business.
Let your story and experience with the products do the ‘selling’ for you. Try your best, not to lose sight of that. If you are not a sales person by trade — stop trying to be one! Be you – Authentically you.
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