Most NM companies offer a new distributor several different priced product packages. Each package is normally associated with a higher level of commission. Here’s how it goes:
If you get the $100 package, you’ll earn 5% commission on any (new) orders you bring in.
If you get the $300 package you’ll earn 10%….
If you get the $500 package you’ll earn 15%…
Nothing wrong with that. Real estate sales works like that too. The more you sell, the higher your commission percent usually is.
Did you know, however, that a large number of new sign-ups do not buy the bigger packages because of future commissions?
They buy the bigger packages because they want 1) the better product pricing that normally gets them and/or 2) they want “to try a variety of the products.”
Bulk buying means better prices and more of it. That’s why big box stores like Costco or Sam’s Club are so popular. Most people who shop there do not buy to resell. Do you?
Bottom line: Many ‘just customers’ might well buy the bigger packages…AS CUSTOMERS. I’m helping the reps in a neat little company do just that – customers are buying the packages normally reserved for “sellers” but they get them as customers. And they have no intentions, right now, of selling the product.
I’d just surveyed a group of women about why they bought the bigger packages when they first signed up, and most of them told me they got the bigger “recruiter” packages not to sell or recruit, but because they wanted the better price of a bulk package. Or to get more variety if they liked it. So that they could get really familiar with the product first.
Of course we don’t pressure these folks to start selling, because that’s not why they got the big package. They’ll do that when they feel ready and have the confidence that using the products will give them.
The good news: This bulk buying trend shows that some NM companies have products people like so much they want to buy them in bulk, whether they sell them or not.
This is big for the NM industry. The perception of our industry and its products has been, for decades, that the only people who buy NM products are the ones selling them. Not a good thing.
For some companies at least, this negative perception is changing. Finally.