What Ever Happened to RETAIL in Network Marketing

CLASSIC ARTICLE

What Ever Happened to RETAIL in Network Marketing

by Dr. Kevin Campbell

Back in 1975 when I first began my love affair with network marketing, I was taught to develop retail customers first before looking to sponsor distributors.

Now, 23 years later, I see a trend away from retail and more towards a wholesale user philosophy. I think this may be the number one reason why the majority of people who join a MLM company drop out within their first 90 days. They have been set up to fail before they ever get started. Developing ten or more retail customers is the first real WIN a new distributor will experience. Retailing will also provide that first initial cash flow so vital in the motivation of the new distributor.

Most of the new companies in this industry are so focused on teaching their distributors how to recruit new distributors, they are actually putting the cart before the horse and sentencing their new distributors to almost certain failure. Industry leaders Don Failla, Dale Calvert, and Joe Schroeder all preach the importance of developing “friend customers.” The new distributor must understand that your friends are much more responsive to products than the opportunity.

If you want to watch a new distributor get destroyed, have him talk business to his family. Teach your new distributors to develop friend customers first. From these friend customers ask the famous third party question made famous by Don Failla, “Who do you know that might be interested in making extra money?” Use your friends to refer potential new distributors who are strangers to you.

Many times in this interaction, the friend customer shows interest in the business as well. Teach every new distributor how to develop friend customers first and you will build an organization that will last. Learn as much as you can about this industry and share what you learn with your new people. Become a mentor to your organization and you will have unlimited success in network marketing.

Dr. Kevin Campbell is a 23-year Network Marketing consultant, author and lecturer. He is a member of the MLMIA and former consultant to the Direct Marketing Association. He may be contacted at PO Box 26552, Prescott Valley, AZ 86312. Phone (619) 824-3506.

With the recent crackdown on MLM companies who focus on signing distributors to be wholesale product buyers, instead of retail product movers, it is more important than ever to learn how to develop friend customers as the foundation of your business. This one concept alone will double or even triple your sales volume almost overnight. The questions to ask yourself are:

1) Would you rather have 1,000 distributors buying $100 at wholesale for themselves, or 100 distributors each moving $1,000 in product monthly?

2) Which is easier to attain?

3) Which one offers retail profits to each distributor thus locking them into your compensation plan long term?

Money ‘N Profits Magazine, May 1998

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