Are Customers Essential For Your Network Marketing Business?

In light of more companies coming under scrutiny by the FTC and Attorney Generals, I felt it was good time to revisit this subject.

What is true is that we spend way to much time on bringing new members on board, that we lose focus on customer generation for our products and services?

Without customers do you really have a legitimate business? In my opinion you do not! If you cannot generate customers for your products and or services, then maybe you did not do enough home work before you decided to join the company you chose.

The question has often been asked would you use the service or product if there was not any opportunity to make money from it. We all know the answer to that don’t we, you’d drop it in a heart beat.

Back in March of 2008 I wrote a post “What Is Your Network Marketing Customer Ratio?” in this post I wanted you to be honest with yourself as to where you stood.

We will always have those that want to demonize network marketing MLM, because we make it easy for them to do so. This disturbing trend of going after companies that are publicly traded is fueled by distributors lack of network marketing success, yet it doesn’t have to be this way.

At the end of last month I wrote about the legal case involving Usana, and what is clearly apparent to me a case of someone trying to manipulate the stock of the company.

Earlier this week I wrote about YTB being accused of a Pyramid Scheme by the California Attorney General. What is simalar in both cases is the lack of distributors generating income! Well income is generated by customers just like in any business.

Just a recommendation for what it’s worth, go out in the next week or two and start generating some customers for you products. The same processes used in recruiting, if your using a consultative marketing approch will generate customers.

If your an upline leader, just imagine what would happen within a month or two if each of your downline members generated 5 new customers. Then what would happen if they started duplicating that each month.

Also In march I wrote about “The Alliance For Ethical Network Marketing” when you look at what the Attorney General from California cited, people driving expensive cars, displaying checks and outlandish profit claims. Really doesn’t matter if you can back it up, if you have no customers or customer sales.

Customers are essential to any business, not just a network marketing business. Do yourself and this industry a favor go out and find a few!

2 comments… add one
  • Ted McMahan Aug 13, 2008 @ 6:37

    Hi Glenn,

    I agree customers are an essential part of the equation in the success of any business. Network Marketing being no exception!

    This however, brings up another question; Are the other people who you involve in your business as distributors, affiliates, etc., really your customers? Some would say that they are. I’m not sure that I can agree.

    A customer in my opinion is someone who would purchase the product being offered, solely based on the valve they place on it and the benefit they expect to receive in return.

    This is where the rub is with so many MLM companies today. No real tangible product being marketed, and I believe that the Travel MLM’s (YTB) are a perfect example of this.

    They promise if you become a travel agent with their company, you came make commissions from the purchase of airline ticket, hotels, rental cars, cruises, etc., when in reality there is very little commission paid by the airlines, hotels, etc today. Why do you think we no longer see brick and mortar travel agencies on every corner. Therefore very few, if any are earning money from the sell of tickets, and I believe this is the basis for the CA AG’s suit against YTB. I also feel that there are more suits to come and other travel mlm’s will be targeted by the AG’s for these very same reasons.

    Bottom line…your are correct! Customer are important to the success of any business. One company, within the Network Marketing arena, who is doing an extremely good job of gathering customers is Max International. An unheard of 30%+ of the new people who go into the company’s computer on a daily basis are Preferred Customer’s.

    These Preferred Customer’s are people who go on a monthly auto ship with no other commitment and have the ability to cancel at any time. The Affiliate who brought them to the company receives a 25% commission on each purchase by their Preferred Customers.

    This aspect of the Max International Business gives every new Affiliate, regardless of experience the real possibility to go earn an extra $200 -$300 per month, without ever sponsoring a single person into their business. Powerful!

    Ted McMahan

  • Jason Ortiz May 22, 2009 @ 8:56

    At first, I didn’t understand the difference between a customer and those who are in your business as I read the this post. But after reading the content several times, I began to understand. I would agree with Ted about a customer being someone who purchases a product or service. That, to me, cleared things up. I now realize that you have to not only generate a list of people for your business but you have to find within that list customers that are willing to buy a product or service!

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