Most people involved with Home Based Businesses (make up companies, products companies, juice companies, party plans, etc.) are pressured each month to locate new customers. The reason for this is the very low reorder rate month to month from previous customers.
This is especially true of people who are involved with Multi Level Marketing companies, where the monthly reorder rate can run as low as 10%. Imagine the pain when a person you recruit shells out $500 to $1,000 or more to join your business and then, failing to recruit anyone leaves your organization merely weeks or months later. You feel guilty. Your friendship may even be broken. You ask yourself if you can honestly approach and do that to another person.
People get into MLMs usually for the purpose of making money. Unfortunately, most MLMs are not designed to help common people make money. They are designed to make the owners money. If only there were a way that you could approach customers with confidence that six months later, the customer would still be ordering EVERY month, even if they weren’t building a business. What would that do for your residual income? How can you achieve that?
The answer lies in a different business model. That model is called Consumer Direct Marketing. The differences between CDM and MLM are many. At first glance, there are some similarities. Both use word of mouth marketing. Commissions on both are paid on multiple referral generations. We both do presentations for people, and we are both in the Home Based Business market. But that is where the similarities end.
In MLMs the monthly reorder rates normally achieve 10 – 25%. CDM we can document a 95% reorder rate. In MLMs, 95% of those in are business builders, 5% are customers. In CDM, 88% are customers, and only 12% are actively pursuing business. In MLM, there is usually one or a few products are over hyped and usually could not compete in the market based on performance, price and value.
People therefore are recruited on the money opportunity. People are “in it to win it.” There is generally not enough value to hold a customer long term. With the high cost to “get in” and up front loading of product, this usually amounts to legalized laundering at the cost of the person signing up. In CDM there are MANY products competing directly in the marketplace on price, performance and value.
This results in a customer driven model instead of the recruiting driven model of MLM. What this means is when you are doing business under CDM, everyone truly is your potential customer. You are competing with a company and business model that is product and customer driven. THOUSANDS of former MLMers now build successful businesses with CDM. When you study the differences, you can understand why.
Discover the truth for yourself and learn more. There is only one way to achieve 95% reorder rates in your business. That way is to change the business model you are working with.
Watch This Video I Recorded with Kristian Hoenecke – We’re Not So Naive Now
Get back to me to find out what Kristian and I are doing now.
I live 45 minutes from Brisbane, Australia on the beautiful Gold Coast with my husband Frank and near our three sons and their families. We also have a daughter who lives in Fiji with her husband and 4 children. So we love Facebook for keeping in touch. My husband is Fijian so that's why I use his middle name as my surname online. If you google my name, you'll find I'm the only one. Much better than Sue Johnson!I've been online now since 2009 and still loving it. It's such a constant learning experience and so rewarding financially when you work things out and align yourself with successful people.