A different way to break into network marketing.
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.
P.S. If you’re interested in classes that teaches you language for such stuff, email me here. Or, check out the Customer Enchilada or the Art of Recruiting courses here.
You know what Kim, I agree with you 100%.
When my wife and I were building a business with Melaleuca there were so many people who started with our largest pack who had zero interest in the business but wanted a wide range of products at discounted prices.
And we have the same experience with our present business where a large chunk of people are going for our top of the range package.
Thanks for sharing this,
You've been missed.
The company I am with has 2 different packages to chose from in order to a) get the products at the cheapest rate, and b) to do the business.
The larger opens up more income streams than the smaller one. But, one of the things that I really like about this company is that everyone pays the same for the product. And everyone who buys the products, if they attain the minimum required purchase – will receive a cheque.
There is an equality about our company that I like. We don't have to buy large volumes of product to get a cheaper price. To me that is fairer.
Same with the teaching aids – all pay the same price be it 1 CD or 50 CD's – the person who is not receiving any income pays the same as the person who is receiving cheques that are in the 5 digits.
And I agree with DJ – you HAVE been missed!
Kim, that's what I did. When I found out that I could get wholesale by buying a bunch, I just picked the $300 package because I wanted to try the product for four months with no intention to sell at all!
It wasn't until over a year later when I happened upon an email from the company about a new study they did on the product (that synchronistically had to do with something I had just learned about – that heart rate variability was the best predictor of heart health…and the study showed that the product improved it) that I finally began to think about selling it to patients.
As a doctor I needed "hard" evidence beyond my personal experience to confidently recommend something to my patients.
Thanks for writing this Kim. You're the greatest!!!
Kim, I know what you're talking about. One of the companies I'm with did that several months ago by taking one of the starter pak options, adding a logo shaker cup, and made it available at the discounted price as a "customer combo pak" as it contained a 3 months supply of the product. Been working well.
Kim, wanted to let you know that I referenced this post and your insights on my blog yesterday.