Tuesday, February 26, 2008

There's life beyond Recruiting

"Network Marketing is perhaps the only business where one has to justify going
after customers
" - Kim Klaver


Traditionally, most NetWMork Marketers neglect the retail end of their business because we
have been taught that the big money is in building teams, not selling products.
My goal today is to show you that you can put money in your pocket
right away without recruiting a single soul.

First, we must agree on one thing: retail is the lifeblood of any company.
It's really just common sense. At the end of the day, whether it's selling vitamins
or telephone services, your company is in business to sell their products/services
and make a profit.
The only difference between traditional companies like Estee Lauder and a net.work
marketing company like Mary Kay is the way they distribute their products.
Estee Lauder employs the services of a the traditional distribution channels
(distribution warehouses, malls, store fronts) while Mary Kay gets its products
directly to the consumer via people like me and you.
They really are not much different.
They both have corporate offices, corporate staff and employees.
While Estee Lauder relies on a paid sales force and expensive advertising mediums,
Mary Kay has an army of independent reps doing the same thing only for free.

Free?!? Yes, for f.ree because you see we don't get paid until we sell something,
until products move from the company's warehouse to the customers’ hands.
We are not paid on efforts but on results.

That's why some companies choose the network marketing model, it just makes sense!
They pay their distributors for actual results (orders) as opposed to potential
orders (which is what advertising gives them).

If you ask me, that's just smart business.
Please understand, that we don't get paid a commission because someone signed
a distributor application, if you get paid when you signed someone up, it better be
because the start up kit contained actual products with resale value.
Otherwise, you'll get the FTC knocking on your company's door really soon.
Where do you think the money comes from to pay the big commission checks?
You guessed it: retail profit!

You see because Network Marketing companies are only paying their distributors
for results, the money that traditionally goes to the billion dollar marketing budget,
is used to compensate us, the reps.

Why should you focus on retail?
It's quick money in your pocket. Let me prove it to you:
1) You have access to a relatively easy and free pool of prospects:
your warm market.
Your warm market will probably be reticent about joining you in your new business
venture. Can you blame them? They don't know you as a business person.
Put yourself in their shoes for a second:
Let's imagine that you've never sang a note in your life (at least not professionally)
and you call your aunt Marie and asked her if she wants to help you produce your
first album. What is her reaction likely to be?
'Hmm, I don't know….. let me check with uncle Joe. I'll get back to you'.
Why, because, she has absolutely no confidence in your ability as a singer,
she may know you as Sam the (whatever your job is) guy, but not Sam, the singer.
So don't take it personally.
Now, let's assume that somehow you got your first album produced,
how likely is aunt Marie to buy your CD?
If for no other reason, she’ll buy it to have a good laugh at your expense.
The point is, she is likely to want to support you and buy your CD regardless
of whether she thinks you can sing or not. She doesn’t have a lot to lose.
Are you catching my drift?
So reason 1 to start retailing: it puts money in your pocket fast
(Tip :Sell products from your start up kit)

Reason #2: retail puts you in control of your income.
Whether or not your team is doing something with their business,
you're still earning retail profit money.
Whether or not you have an organization of 'duds', you won't be dependent on them
which means more control and less stress.
Furthermore, your team duplicates what you do. So if you sell products, your team
will do the same, which translate in higher team sales volume, which we all know is
what your commission is based on.
If all the above reasons were not enough, consider this:
There is nothing like cash in your pocket to put a smile on your face and a smile says,
I know where I'm going even if you don't. That my friend, is called confidence.
That “I don’t care if you join my business or not” attitude intrigues prospects and
makes them want to have whatever it is you're having...
If you are making $500/mth in retail and you haven't sponsored anybody yet and
Mr. prospect asks you with a smirk, "So how much are you making?",
you can wipe that smirk right off his face with a confident
"Enough to keep me interested".

Can you talk with any degree of confidence if Mr. Prospect is the first person
you sponsor? Absolutely! Because if nothing else, you can teach him how to do
one thing: make $500/mth in retail.
Where as, if all you're focusing on is recruiting and you have no one in your organization
and you're making no money from retailing, how can you in good conscience approach
anyone ?

Can I really make $500/mth from retail?
Let's do an exercise from Kim Klaver's book:
"If My Product's So Great How Come I Can't Sell It".
How much are you spending every month on products?
For simplicity sake, I'll assume $30/month, let's say you got 100 customers
doing the same, that's $3000 in volume. Now let's imagine that your company pays
you a commission of 15% on everything you sell, that's $450/month,
at 20 % that's $600/mth.

Happy Selling!
Carmina

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