The Myth Of Retailing

Discussion in 'Network/Multi-level Marketing' started by draag, Jul 8, 2007.

  1. draag

    draag New Member

    If you've been a network marketer for any significant amount
    of time you'll likely hear the statement "Retailing is the
    lifeblood of your business."

    Why?

    The justification is . . .

    Retailing is supposedly easier than recruiting as it's only
    a one time sale requiring little commitment on the side of
    the potential customer and thus easily generates the day to
    day income network marketers use as they grow an
    organization.

    If you've ever been taught cold calling tactics you've
    learned that if nothing else get the retail sale from the
    prospect that couldn't be recruited. (As if it was that easy.)

    The truth is, retailing is vitally important to your
    business. You need day to day income to grow your
    organization over the long haul, but there's a problem.

    Look around the internet; do you see anyone retailing their
    company's products online?

    It's highly unlikely you'll find traditional retailing done
    online in a big way ever and I'll tell you why?

    First some important facts . . .

    *Less than 20% of all products sold by traditional network
    marketing companies occur outside of the distributor force

    *Retail profit margins in most cases amount to less than 20%

    *Consumers can likely find cheaper alternatives to your
    companies products

    *No long term incentives are placed on retailing

    What this creates is a situation where retailing is not only
    unappealing to most, but unprofitable due the fact that such
    slim profit margins don't allow for distributors to actually
    realize any real profits when all costs are tallied.

    Think about it, when was the last time that your company
    tied a huge incentive for you to retail their products?

    The reason is your company knows that its real money
    is in its distributor force, that's where it has a huge
    competitive advantage and so that is where the incentives
    are.

    As a network marketer you get paid for recruiting. That's
    how you make long term income and that's how your company
    makes it's money.

    Now, there's nothing inherently wrong with this, but it does
    create a dynamic in network marketing where your one and
    only focus is recruiting which is a big blunder and a cause
    for failure to many.

    As I said, you need day to day income to finance your
    business, but the truth is recruiting doesn't get you there.
    It's a leveraged situation. It takes time to build a
    sizeable income, but once it's there it ain't going no
    where as long as you protect it.

    That's what's great about network marketing!

    What most do though, is they think that if they just spend,
    spend, spend and call, call, call they'll hit a point in the
    first 90 or so days where there business is paying them for
    their recruiting efforts. It happens, but not often.

    What happens more often is people spend, spend,
    spend, then call, call, call and never make any money
    and then quit.

    It doesn't have to happen that way if you just spend, spend,
    spend, earn, earn, earn, earn, call, call, call.

    You see how that works?

    If you make your money back and more as you spend it you can
    take your time to find the right people to join your
    business, but to do this you have to know how to earn, earn,
    earn, earn.

    And online earning isn't retailing your company's
    product.

    There are several ways to make sure you earn money on the
    front end in your recruiting efforts online, but they're NOT
    what you'd traditionally think.

    What's better? Spending $500 a month and recruiting one
    person, or spending $500 a month, earning $1000 a month and
    recruiting one person?

    Do the math . . .
     
  2. talfighel

    talfighel Silver Member

    REtailing is a good way of making that extra csh flow but anyone should be really focusing on sponsoring new people all the time and building their teams.

    That is the most important thing to do.

    Tal
     

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