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feature · May 2010

Why Increasing the Product Retailing Side of Your Network Marketing Business Could Mean a Huge Boost to Your Downline

Because your residual income actually comes from the auto-shipment orders of your MLM products.

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You know as a network marketing trainer I often preach over and over again to the importance of building a huge downline. Just like most MLM trainers out there I talk about leverage, and how you can make an amazing residual income if you'll just focus on building those legs. But one thing I admittedly probably don't talk about enough, nor do most trainers in this industry, is the importance of building up a base of product customers. The fact is that the end result could be

a bigger downline if you do things right.

Let's talk for a second about why product customers are important and why you would want to focus your attention on winning them.

Where Does Passive Residual Income Really Come From?

First of all when you talk about earning residual income, where does that residual income come from? Does it come from people in your downline building a business? Yes sort of. But, when you think about where the residual part of the income truly comes from, it becomes glaringly obvious why product customers are so important.

Because your residual income actually comes from the auto- www.TheNetworkMarketingMagazine.com 1 shipment orders of your MLM products.

Let's face it, if there are no products being moved in your business, your income stops nearly dead in it's tracks... even if you've got a downline bringing people into the business opportunity side of things. If those people that are being brought in aren't buying products each and every month then the chain is abruptly broken, and the income seizes to exist.

YOU REALLY GET PAID ON HOW MUCH PRODUCT YOU MOVE...

Now I know that you know this at some level, but the point is that we all too often forget this because we're so busy trying to sponsor new team members into our businesses. And of course this is vital to building an MLM empire, but again...the brass tax is in the product sales. I think you get the point.

But If New People I Sponsor Are Getting On Autoship Anyways, Why Even Focus On Product Sales...

Well you're not alone in thinking this way, not by a long shot. In fact this is what most people teach. So let's go over a few great reasons to start focusing a portion of your business on product sales customers.

First off there's the element of attrition rate. We all know that attrition rate in network marketing can be extremely disappointing at times. There could be months in everyone's business where it feels like team members are dropping like flies in a tented house. However with product customers it's usually a very different story.

You don't have to go much further than your own kitchen cabinet for proof of that. If you search through your cabinets how many items in there are brand names that you've been buying for years? Sometimes even since we were kids! There's a reason for that... We simply like and trust these products and we buy them nearly subconsciously out of habit.

Well your product customers will act the same way. In fact even more so because network marketing products are for the most part exclusively sold through that one company.

www.TheNetworkMarketingMagazine.com 2 Therefore when someone falls in love with your products or services, they have to come back to you to get the same products again and again.

And of course, most of the time they realize that it's just easier to get onto auto-ship and have these products that they love... that they're nearly addicted to... delivered each and every month like clockwork.

And once they're hooked on your brand then the chances of them canceling that auto-ship is very small.

But let's compare that to a distributor in your downline. This person usually came in for the business opportunity, and if truth be told the product is basically a secondary thing. They've come because they feel that YOU can help them make some money and/or become financially free.

But if things go even just a bit awry... if they're not seeing the results that they wanted to see within a week (we've all had those people in our downline... more often than not actually) then it's nothing for them to cancel their auto-ship and move on to the next “hot” opportunity. After all, there's no brand loyalty there, and in fact the products may still be in the box unopened.

So you can see how more loyal a product customer is.

But that's not all...

How about the fact that one thing about us humans is that when we find something that we really like we feel compelled to tell others about that thing? In fact we almost take a strange pride in the fact that we've discovered that thing. I mean ladies, admit it...how many times have you seen your friend with a handbag, or shoes, or even a perfume that you know that you had first, and you say to yourself “she only bought that because I have it”. It happens to men too with golf clubs, watches, and even cars.

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So when we discover a product that we like, and get us fantastic results, we feel almost uncontrollably compelled to tell our friends and family about that product... sometimes even strangers. I mean I know I've personally recommended a number of things to cashiers and clerks that I don't even know, just because they would listen.

Malcolm Gladwell, in his book “The Tipping Point” calls these people Mavericks. Little sales forces out there working basically for bragging rights of discovering it first.

But What Happens When... One of these mavericks discovers that he or she can earn a pretty penny for telling people about these products that they love and have gotten amazing results from?

They suddenly become very strong prospects for the business opportunity side of things. And because they've already got a great testimonial, they become even that much stronger... with a whole lot more credibility than the person coming in because they want to make some extra dough.

Network marketing product sales, often called “retail sales” IS NOT a hugely popular thing, but it can be an amazing hidden boost to your downline and the output of your team if you handle things the right way.

www.TheNetworkMarketingMagazine.com 4 David L. Feinstein has been published by Pro- Publishing Company of California, for a series on Leadership books. Exposure to business at an early age along with cultivation of artistic talent in writing is the background that David Feinstein brings to his business associates, prospective candidates and audiences alike. His experience throughout his career in sales and marketing and having owned and operated his own international accounting &

financial management services company, is a key success factor in helping develop his international notoriety in the network marketing industry.

David and his wife, Ann have been significantly involved in direct marketing and direct sales for 21 years, serving as a distributor (team member), speaker, trainer, Top Leader, and author in the industry on a worldwide basis. Working together, they coach, mentor and train those seeking empowerment, greater self esteem and branding image, and training people seeking financial success and personal life freedom. David and Ann have grown their business that today spans over 40 countries with over 65,000 team members.

For more information go to: www.AnnandDavidFeinstein.com David & Ann's personal passion of "showing people there's a better way" to market their business lays the foundation for the inspiring and motivating topics they speak and teach on.

Innovative, creative, interactive and dynamic, David & Ann speak on topics in marketing and sales that most professionals find difficult or challenging to understand. Applying their unique and visionary approach easily, safely and comfortably draws audiences in from the beginning and keeps them engaged until the end. Their extensive knowledge in marketing and sales makes these topics easy for audiences to understand, as they address and speak from their personal experience and with authority and passion.

Mr. John Fogg of MLM/Network Marketing, author of “The Greatest Networker in the World” has said the following about myself and wife/partner Ann:

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“It's been a looonnngg journey from their "weird" first exposure to network marketing where Ann— a Park Avenue Research Consultant, and David— the owner of an entertainment management firm handling the careers of rock stars such as (the early) Rolling Stones, Led Zeppelin, Michael Bolton, Cyndi Lauper, Phil Collins, and other famous others, found themselves at a meeting full of strange "new agers" from Sunrider— that was 21 years ago— to where they are today: Significant six-figure income earners with Agel Enterprises leading an organization of more than 65,000 people in 40+ countries around the world.

Above all else, Ann & David are focused on mentoring and leadership. Their combined expertise in recruiting, coaching, training and international development has made Ann & David much sought after direct sales business experts.

The Feinstein’s approach marries both classic MLM and the technology advances of the Internet and social media. The first people they have their new people speak with are family and friends, they do meetings, build for and around events and David even unabashedly asks people, "Do you keep your business options open." They meet new people through weblogs, electronic newsletters, Twitter and Facebook leveraging their time and global reach. The business is all about relationships and giving value for Ann & David Feinstein… and consistently building their brand.”

Recorded interviews and Videos:

John Fogg interview--

http://themastermindsessions.com//AudioFulls/051709_AnnDavidFei nstein.mp3 David Feinstein—Are You An Online Marketer Video… http:// www.sowhatsallthebuzz.com/all_the_buzz/david-feinstein-on-stage- are-you-an-online-marketer

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