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If you have a network marketing company and you've signed up 100,000 typical distributors, the demographics are something like this: Between sixty and seventy percent will not sponsor
anyone - not one! Of the remaining thirty percent who do sponsor someone, two-thirds sponsor five or fewer new distributors. Only the remaining third sponsor more than five new distributors.
The five types of distributors
1. Consumers
2. Product evangelists
3. Salespeople
4. Sales leaders
5. Dream-builders
I. Consumers:
This category includes most of the people who sign up, but don't recruit anyone else. Why did they sign up? For various reasons. Maybe they love the product and want a convenient way to purchase it at wholesale price. Or at the time, they really thought they might build the business in network marketing, but later suffered rejection and changed their minds. Or perhaps the only reason they signed up in the first place was to get their brother-in-law out of the house so they could go back to watching the game!
The company must consider their interests in every decision it makes, including decisions relating to the commission plan. Consumer retention may be the biggest problem that most successful companies face.
II. Product evangelists:
These distributors may or may not sponsor anyone. But in either case, recruiting other distributors is not the reason they're in the network marketing. They love the product, they love to tell people about it, they want their friends and acquaintances to benefit from it, and they would recommend it even if they were not signed up. They simply don't want to invest a lot of time building a business or don't feel comfortable closing the sale.
We all know that the best kind of marketing is word-of-mouth-product evangelists prove it. They help a company's business. They are the "network" in "network marketing."
III. Salespeople:
Salespeople usually earn between one thousand and several thousand dollars per month. These distributors are important because they sell product, they take care of consumers, they keep product evangelists happy, and they're the only ones who can do it. They do well in sales-oriented organizations in network marketing. The salespeople know how to actually sell it, close, and follow up. They may or may not be strong in recruiting, but they know how to move product.
IV. Sales leaders:
The sales leaders, along with the salespeople, provide the backbone of a company's business. These distributors hold the meetings, close the leads the product evangelists create, and keep the consumers happy and supplied with product. A good indicator of the health of a company is the stability of the income of the sales leaders. It's the sales leaders, in fact, who create stability for a network marketing company. If there's constant turnover, or if, after a reasonable amount of time working their business, they don't make enough money to justify the time and energy they put in, there is a problem.
V. Dream-builders:
These distributors typically provide the leadership, passion, enthusiasm, and excitement for a company's mission. There are very few dream-builders in network marketing company. They hold the big meetings; they "paint the dream" in the minds of everyone.
Network marketing needs these distributors. They're the ones who understand, and can explain, the value proposition of the company in a way that people can understand it. Dream-builders can convince people, and best of all, they take the risks, open new markets, and communicate the company's mission.
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