I reconnected with an an awesome friend she has been in network marketing for a while as a wholesale customer but has decided to take it seriously in the last couple of months.
She is a really nice person and she told me that she sells her friends and family her network marketing products for wholesale instead of selling it for retail.
I used to be like her, I used to sell my products for wholesale pricing in the hopes that my friend and family would like them more. It really isn’t a good idea. It can devastating long term effects on your business. The worst part is, you won’t even know that it’s your “niceness” is what caused your businesses to fail.
It really stops the growth of your business and stops momentum from really occurring.
You might think to yourself . It’s only one person and it’s only an $8 commission. That’s not going to hurt my business. But it’s more than that. That $8 or $30 commission that you aren’t getting from your customer is stopping your business from really starting. .
When a train is going, it has momentum behind it. It’s difficult to stop a train while once it’s gotten started. At full speed, a train can smash through a brick wall.
The same train might be difficult to stop once it gets it’s momentum going is very easy to stop when it doesn’t have momentum. Something as small as a nail on the track can stop a train from starting and gaining the momentum that it needs.
Part of the momentum in your business is getting retail commissions (no matter how big or how small they each may be) from your friends and family.
You only need a small handful of repeat customers to really get the momentum going in your business.
That momentum is needed for 2 reasons:
1. It will give you confidence
You can look at your business and say something like this to yourself: “I have 15 customers that have made me $150 dollars. 10 of those customers are repeat customers. That will give me $100/month residual income.”
(BTW- $100 residual per month is more that what 90% of network marketers even make) The more customers you have, the more confidence that you’ll have that your product is really worth the retail price and that the business works.
Now imagine how frustrated you’d feel if you had 10, 15 or 100 customers and you had not even made a dime yet. You could get very discouraged and you could possibly quit.
2. It adds to your story.
If you start off, trying to build your business and you sell your product for wholesale instead of retail, you’ll won’t make any money. You could have 20 or even 100 customers but if you don’t make any money from them, then it’s difficult to gain momentum in your business. Someone may ask you: “How much have you made?”
If you only charged your customers the wholesale price, you’ll don’t have anything to say accept, “nothing yet”
However, if you charged retail, you’ll be able to say something like, “I’ve been in the business for about a week now. I have 15 customers and it’s made me $150 so far.”
Your customers will like your product more if you charge them more for it.
I know what SOME of you are thinking because I used to think the same way.
I’ll just charge my friends and family wholesale because retail feels too expensive and when they use the product and love it (of they’ll LOVE my product, I mean why wouldn’t they it’s so amazing) they’ll want to join the business.
However… if you don’t charge enough for your product, then your customers won’t value it as much. If they don’t value your product, then won’t want to start a business and sell it. So do them a favor and charge them the full price for your product.
Imagine that someone brings you a cupcake.
“Here’s a cup cake. The kids were selling them in the neighborhood at their lemonade stand. I paid 50 cents for it.”
Or they could say:
“Here’s cup cake. I got it from that cool new bakery in my neighborhood. It’s incredible! I paid $7 for this cupcake but it’s worth every penny.”
It could be the exact same cupcake but in the first example, you think it’s worth 50 cents and baked by some kids and in the second example you think it’s worth $7 and comes from a cool new bakery.
Which cupcake are you more programmed to enjoy?
Don’t be afraid to sell your product at retail. If your customer loves your product, they’ll love it for retail price. If you don’t think that your product is even worth retail price then perhaps you shouldn’t be part of your business.
Charging retail prices to your friends and family isn’t being mean, it just telling the Universe (and your friends) that you have self worth, that you believe you are worthy of receiving money for helping someone. If you don’t charge retail to your friends and family then one day you will be out of business and they won’t have ANY access to your products.
Getting retail customers is key
I know that you want to build a team and grow your business through distributors. In my experience, growing your business through (retail) customers will bring you more distributors. Most people are happy being customers so sell them product. Some of the really excited customers will become distributors if they love the product. So make sure they love the product enough to buy it for retail before you even bring up the idea of starting a business to them. Sometimes if you bring up the idea of starting a business to a potential customer, they’ll shut right down. They’ll go from being a curious, open-minded customer to someone who won’t even give your product the time of day.
There are some people that are looking to start a business. If you approach them with a product that they love and a product that you have history of making money with then they’ll ask you about starting a business. Let them come to you.
Start your momentum
If you don’t know how to get momentum and if you don’t work your business with the specific steps to gain momentum then you’ll get very frustrated.
That’s why most 95% of Network Marketers quit!
You might not know what to say in order to get your customers to try your product. I’ve learned a script that works really well in getting your friends and family to try your product and I have a follow up script that will show you how to turn your trial customers in to repeat customers.
If after reading this blog post, you really want to build momentum in your business, finally get the ball rolling and stop spinning your wheels then get this FREE Audio mp3 showing you how to start the momentum process in as little as 48 hours!
Create a great day!
If you don’t have a team and haven’t recruited anyone (or less than 10 people), then you need to listen to this free audio on starting the momentum in your network marketing business. You’ll finally be able to gain traction, stop spinning your wheels and feel like your work is actually paying off.