Do recruiters make more money?

Last night on our Nylon Society call, Bev told how her sponsor continues to insist that the money was in the recruiting, not in getting customers. If she ever wanted to make big money, he told her, she better learn to recruit.

Bev, however, loves the product and wants to get customers. Here’s how they compare.

Bev’s company’s recruiting packages includes an initial purchase of product. They have one for $300 and another for $500.

If she signs up a recruit with the $500 package, she gets $100 one-time bonus.

If she gets a customer who buys the monthly product package for $89, she earns $20.

Hands down, the recruiter wins. $100 versus $20. This one time.

If the customer becomes a regular and stays with the product for 12 months, Bev would earn $240 that year. $20×12=$240.

The next year, another $240.

Over the long term, the customers earns her more. And there’s a good chance one of those customers might want to sell, too.

Recruiter John got his $100. But will the recruit do anything? We know most drop out. Assuming that 9 of 10 drop out, he’ll have to get 10 recruits to get one to stick and do something.

If Bev gets 10 customers who become regulars because they can feel the difference it’s making in their lives too, then, after a year, Bev will have $2400 (10 Customers x $20/mo = $200/mo x 12 months). Recruiter John will have $1000 from his one time signups. And if history is any guide, he’ll have mostly people who made that initial purchase and then did nothing else. The dead downline syndrome.

There are no guarantees in a business of your own. So ask yourself, what is more satisfying to you? Amassing long term repeat customers over the next 3-5 years, or recruiting and getting those one time bonuses?

In the end, do what you love more. Because that’s the only way you will survive the journey of building up your own business.

About the author

Kim Klaver

1 Comment

  • The beauty of approaching people with the product (as customers) is that some of those customers will build the business side of it.

    This revolves around the product.

    If the customers really like the product, it is natural for them to share their experience with others.

    Ty Tribble

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