Why Marketing and Sales Are Important in Nework Marketing

Peanut Vendor at Chase Field in Phoenix, AZ. Cubs versus Diamond Backs game

Peanut Vendor at Chase Field in Phoenix, AZ. Cubs versus Diamond Backs game

I have said before that selling will keep you broke. What I really meant to say was that trying to sell huge amounts of product to customers will keep you broke. Instead, you need help. You need other distributors below you to help you reach more customers, rather than doing it all yourself. That way you do not spend all your time looking for the next customer and instead spend more time building your business. A distributor under you selling product means more to you because you do not have to handle product, talk to the customer, ship or deliver, etc. You just help the distributor figure out ways to reach a couple more customers and grow their group.

So why are marketing and sales important then? Building your business with independent distributors is all about marketing and sales. Start with sales. What are you selling to the prospect? You are selling a lifestyle. You are selling freedom from worry because of a residual income. Whose lifestyle are you selling? Your own. And if you look worried, if you are constantly having problems, if you are pushing for that next customer, it is a lifestyle nobody wants. Instead, you have to be the person your prospect wants to be, or at least that seems to have it all. No, it is not about lying to the prospect. It is about being professional, calm, not pushy, consultative, and perhaps most of all, happy. All of these elements can be seen personally and heard over the phone. You also have to act as if you are okay if the prospect joins or does not join.  It is not the end of the world if they do not join. If you seem needy it is not attractive.

Alright, so what about marketing? First of all, marketing and sales are not the same thing. Think about marketing as the software that runs the company based on the needs of the customer. Who is the customer? It could be a retail customer or could be one of your distributors. So sales is like hardware, a technical skill, and marketing is like software, a management-type skill. With marketing, you start by finding a target market for your product, which will likely be a demographic or a subset of the general population. Not everyone will or should be interested in your opportunity. Who is? That is the group we should be directing our advertising and networking towards… our target demographic. We can also change our business practices based on the needs of our target market. Perhaps they expect a money-back guarantee. Perhaps they expect exceptional customer service. Maybe they expect tons of support. Whatever it is, you should consider incorporating these elements into your company.

You can see that marketing directs all parts of the business to support a target market or demographic. Marketing also influences sales. For instance, we may know what a prospect needs to hear based on what demographic they belong to. So we make sure our sales presentation says this. Again, this is not about lying. If we are lying to the prospect we will ultimately lose them as a partner, so we want to build a relationship of trust. So whatever we are saying must be the truth.

I really like selling to customers. But more and more retail selling without help will keep you broke. Better to market and sell to distributor prospects.

What do you think?

It’s All About The Product

When you go into business, it’s all about the product.  Because no matter which marketing method you use, ultimately the customer will either buy the product or not.  That’s why, if you are considering multi-level marketing, you must seriously consider the desirability of the product.  Would you buy the company’s product at retail?  If not, it may be too hard to sell your customer or sell yourself, and somebody has to buy the product in order for you to make money.

When you look at opportunities, you really need to do the math.  You are looking for a 20%+ rate of return for your time, materials, and cash investment.  For instance, if you spend $100 a month and at the end of the year have a $20 per month commission check, you are right on a 20% return.  So how do you do the math?  Try the following on for size:

cr / ci = ri

cr is what you expect for commission or profit for an individual customer in a year

ci is what you spend in dollars to get a customer.  You should include time, materials, advertising, and other expenses.

ri is your return on investment.  .20 would be a 20% return.

For your customer, you may sell to end consumers or other distributors.  You might want to figure out your return in both ways to see which gives you the most immediate return.  Traditionally this is going to be your customers.  Distributors get a break on the product so you get less of a profit on the volume.

The thing we are not figuring on is when your direct distributor gets another distributor.  You do get a cut on the sales to your second-level distributor, but it’s not usually as much as your first-level distributor.  What I would do about the multi-level aspect of your business is to ignore, for financial purposes, that you will ever get beyond your first level.  You might want to allow for a smaller initial return on investment to compensate for the multi-level effect, that’s up to you.

Again, product sales is the most important thing so you should always be selling the product, even when you’re recruiting.  In fact, sponsoring sales people, people who will sell the product to consumers, is usually the best way to go.  Some of you may say that selling the dream works best.  However, the dream gets people sponsored into the business, not selling product.  It also produces unrealistic expectations and unhappy distributors.  You may also get a look from the FTC.  So we sponsor sales people to get product volume, and we can generally bank on the fact that we’re only going to get first level distributors unless we train our great sales people to be good recruiters.

The downside to multi-level marketing is what the MLM company can do to you.  You are pretty much at their whim.  You advertise their way, you sell their way, and at a moment’s notice they could decide not to use distributors any more.  So be careful out there.

We are starting to be really active with a multi-level marketing company again.  We joined the company in 1992 and they have been very consistent. I believe they produce a very good return on investment for recruiting and have an exceptional product line that customers love.  Check them out.