Is Auto Ship Really Necessary?
The auto ship is a mainstay of the network marketing industry. Almost any opportunity presentation talks about this component of the business. So what exactly is an auto ship and what purpose does it specifically serve in your MLM business?
Auto Ship As A Systematic Purchase Plan
At the very core of any business, including a network marketing business, is the need to have continual ongoing sales to to an ever increasing number of consumers. In an MLM business, the auto ship is one of the most effective means of accomplishing this objective. Common sense dictates that a company’s distributors will also be the largest group of end users. By developing a systematic purchase plan, the company reduces sporadic spikes and troughs in the purchase of their products. This allows the company to forecast with greater accuracy the cash flow needs and strategic initiatives for the future. For the consumer, the auto ship creates a convenient way to ensure timely delivery of products and services. This is particularly advantageous in the case of products that are consumable in nature.
Auto Ship Creates Buy In
It is no secret that word of mouth has been and will continue to be one of the most effective forms of marketing that a company can utilize. Word of mouth advertising is best fostered through positive consumer experiences and the sharing of those experiences with others. When a distributor participates in the auto ship of their company they are buying in to the overall philosophy of that company. An MLM distributor who is not an end user, typically does very poorly in representing the product, because they have no relevant experience with that product or service. The lack of experience with the company’s product or service limits their ability to give first hand accounting of the benefits of using that particular product or service. By making regular autoship purchases, the distributor increases their knowledge and understanding of multiple facets of the business. This goes far beyond mere product knowledge and into such areas as order processing, shipping times and customer service. These are all important factors that a potential customer or distributor will be considering.
The other purpose of the auto ship program is the creation of synergy and business volume for the network marketing business. When each distributor is participating in their company’s monthly purchase program, they are creating sales volume that benefits those who introduced them to the business. At the same time, they are also benefiting from the monthly purchases made by distributors whom they have recruited. This ongoing sales volume creates a lucrative business model for active participants. This where the residual income of a network marketing business is fully realized. Each person doing their part in using the company’s products and services creates a profitable enterprise for all who are willing to work at building their business.
When you step back to examine the true philosophy of a network marketing business, you will see that the auto ship simply helps streamline the business building process, while creating greater profitability for the individual distributor.
