I want to have a straight talk with you about network marketing. So I began network marketing back in about 2008, and I’ve been in the industry ever since. And over that time, had the opportunity to become a top earner with a gold and silver company. Achieve great deal of success with a digital products company, and have seen many other companies come and go.
And so this is why I want to have this discussion with you. Many people are looking towards network marketing as a possible solution, for the challenges that people are facing right now. Being furloughed, laid off, unemployed, uncertainty as to whether or not their jobs are going to come back, uncertainty about their financial future.
But there are some darker things about network marketing that often don’t get talked about. And so I want to give you some perspective. You know I’ve told you about two companies where I rose through the ranks and I did so very quickly. Problem is they don’t exist anymore. And that’s one of the common things that happens. Companies come and go, they don’t have a long lifespan.
Second thing you find is that people will come into those businesses, looking to make things happen financially, and they will buy into a product or a service, not really because they would necessarily be buying that product or service already, but because they’re hoping to make money off of it. And so that becomes the second problem.
So after two or three months, if they’re not making sufficient money to cover the cost of their monthly product, what they do is they drop off. In fact, industry wide, the tenure for a person who joins a network marketing company is 60 to 90 days. So the problem that most people have in trying to build a network marketing business, is the attrition is happening faster than they can build.
And so you have to find ways to overcome that attrition rate, if you’re going to make a sustainable business. Now, at the same time, one of the first companies that I got involved with, and I’m still involved with, back in 2008, sells an essential product. In this case it’s automotive. And because of that, there’s a couple of things that make it unique. 90% of my business is customer driven. 10% is other people who actually promote the business.
Here’s the great thing, people are using those products over, and over, and over again. And even those who don’t even understand there’s a business component to it, seek out this product because of how good it is, and because it has a reputation for being good. Now, the company itself was founded in 1972, so it’s a company that’s nearly 50 years old. It’s an essential service.
The business side of things is rarely discussed, or promoted, and so people just engage it as a customer, just like they would with any other product. And so people get loyal to that brand. They get loyal to the way it works with their vehicles, and the longevity that it creates in their vehicles, and so they are customers for life.
Second company that we have that same type of experience with, is a consumer goods product, household items. Same company has been around 35 years. Their company wide reorder rate is 96%. That means the customer that orders this month, 96% of them are going to order again next month, because these are just regular household items. Grocery store prices.
The difference is they’re delivered direct to the doorstep. And right now that’s an important piece. A lot of people don’t want to be out in the stores. They don’t want to be out in the crowds. They’re concerned about their health, but they still need to get those day to day items brought into their household. And so this is a very easy way to do that.
So in both of those scenarios, it’s not about convincing someone to buy a high priced product, that they’re going to have to spend extra money out of their budget, that they don’t have. Or start racking up credit card debt to maintain that shipment every month. All you’re doing is you’re moving people’s buying habits from one vendor to another vendor.
Difference is you’re going to benefit by migrating to that vendor. So this is a thought for you today, is you’re considering maybe even your own network marketing company. If you’re finding that, excuse me, your attrition rate is outpacing your ability to bring in new customers, then there is a better alternative. And the thing I’m going to say about these things, they’re not overly sexy. They’re not overly glamorous. They’re consistent, and that’s what people are looking for. You know the reason people join network marketing programs is they are looking for consistent, reliable, residual, ongoing income.
And the way you do that is you find day to day products and services that people buy ordinarily, and you just simply show them an alternative that meets, either the quality they’re looking for, or the convenience they’re looking for, or maybe another heartfelt issue, eco friendly, nontoxic.
People will buy those things over, and over again. And you can build a very substantial business off of that. Take this to heart. If you’d like to know more about either of the businesses I just discussed with you, get in touch with me, and I’ll be happy to walk you through what those businesses are, and how you can get involved. Talk to you soon.