June 24th, 2007
From Kim Klaver and the New School Network Marketing-How do I keep a new recruit?
"Tell them to get more recruits," said Lulu's sponsor. "The money's in the recruiting." Then he said:
Sell a rep $1500 worth of product; earn 10%: get $150.
Sell a customer $150 worth of product; earn 10%: get $15.
Recruiting wins.
Why bother to tell them about getting customers?
Because...
1. Most reps sell 1-2 recruiter packages in their entire network marketing career, IF any.
2. Recruits who buy big product packages typically put the product in the garage. They don't know how to sell it. This doesn't sit well with spouses.
3. Some recruits return the product.
4. Recruiter orders are one-time sales.
5. You may lose a friend who bought the big recruiter package, because they don't know what to do with the product.
Why customers:
1. There are way more of them than sales people.
2. With regular repeat customers you have a chance at residual monthly income like AOL or cable TV, unlike recruits who order once and that's it.
3. Getting the product out there to customers who are not selling it gives you a chance for genuine word of mouth among them and their friends...and could get you more business.
4. Everyone understands the concept of finding "customers" since all business is based on finding them and keeping them. Few understand about recruiting sales people.
5. 80% of network marketers are women, and most of them say they prefer finding customers to recruiting. Why not encourage them to do what they want? They can build up mini customer empires, like AOL.
6. Did you know that 90%+ of companies' income comes from the product orders of their reps, nearly all of whom have "reverted" to being just customers?
7. Fewer than 10% of a company's reps get checks from the company each month for sales they made to others (I don't mean rebate checks on their own orders). Nearly all just order product - either to use or stay qualified.
We need recruits. But we need real repeat customers more.
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