Every network marketer is in a Customer-Driven Business. We certainly talk about the opportunity we offer. We do change lives. But without customers who use our products month-in and month-out, where would we be? Would there be a business opportunity?Without customers who use our products month-in and month-out, where would we be? Click To Tweet
Network marketing is nothing more than another distribution channel. It is simply a better, faster, friendlier, more personal and more effective channel to get products to end users.
What could be better than one friend telling another friend, “You’ll never guess what I found”? What could be better than a personal, firsthand testimonial from someone who is actually using the product?
In my book, Right or Almost Right there is a section called the “The Truth about Network Marketing”. I ask, “Who Do You Believe?” The following is an excerpt from Right or Almost Right.
When shopping for products, do you believe the big-budget advertising or a high-paid celebrity who may have never used the product? Or do you believe your friend who shares their own first-hand experience with you? You believe your friend of course.
In traditional retail distribution, about 50 percent of the product’s cost is marketing and advertising—money spent to get you to buy the product. But what value does it add to the product?
In network marketing, no money is spent on advertising. Those marketing and celebrity dollars are paid to real people who use the products with real results.
I’m convinced that you get a higher quality product from network marketing than you get from a retail store. Why? Every product in a retail store competes on price. The lowest price wins. What gets sacrificed? Quality!
Network marketing products are driven by results. You buy them because an acquaintance told you about their results with the product. Without results from quality products, network marketing does not thrive.
From my very first introduction to network marketing over 28 years ago, to every party and event I attend today, I am constantly amazed at the product results people see.
The best example is a typical retail store such as Target or Walmart. You get very little customer service in most retail stores. There is usually no one to talk to or answer your questions about a product.
Poor customer service is one of the most frustrating aspects of today’s retail market. We have all made that call to ask a simple question. If we’re lucky, we get an answer, but don’t bet on it.
Network marketing is all about customer service. Your sponsor, the leaders in your organization, and your company’s customer service department are only an e-mail or a phone call away with the answer to your question.Network marketing is all about customer service. Click To Tweet
So why are customers important? First and foremost our residual income is based on customers buying our products every month. And isn’t that what we love in our profession—seeing that weekly residual deposit?
Here are some other reasons:
– Having a solid customer base keeps regulators happy.
– When a team adds customers, everyone’s income goes up.
– Customers tend to stay longer with a company than distributors.
– Customer retention tends to be more cost effective than customer acquisition.
– Providing good customer service is an important corporate and field responsibility.When a team adds customers, everyone's income goes up. Click To Tweet
To have a strong company or organization, you have to focus on customer acquisition. Regulators would like to see 50 percent of your business coming from customers.
The question I always ask is, “What is a customer?” In my opinion, it is anyone using the products. The regulators, however, are looking for someone who is not in any way involved in the company but just using the products. No question that this is important, and it is where a lot of people start. They were introduced to a product by a friend and they want nothing to do with the opportunity.
Then they love the product so much they tell a friend, a family member, or a co-worker about it. Now they say, “I might as well become a member and these will be my customers.” Before they realize it, they are doing the business.
Are they still a customer? In my opinion the logical answer is “yes.” Unfortunately, the regulators have not yet recognized this. The challenge in maintaining a customer is that so many become a member to get a discount or they told someone else about the products and they become a member. From my perspective, we are all customers because we all use the products.
John Haremza is a network marketing veteran with over two decades in the business and earnings in excess of $12 million. He is the author of several books and a training program and is featured in John Milton Fogg’s The Greatest Networker.