Organizing for Network Marketing Success

Network, or multilevel, marketing has a mixed reputation these days.

In the 20th century, joining a network marketing company like Avon or Tupperware gave women a chance to earn their own money, make their own purchasing decisions, and gain a little more independence than they otherwise might have had. Sounds great, right?

Fast forward to today, and there are more multilevel marketing companies than I could possibly name. You’ve probably seen a few of them on your Facebook feed: Beachbody, Beautycounter, Scentsy. Some of the products are great… and some aren’t. And unfortunately, the networks are structured so that most reps don’t actually make much, if any, money.

I’ve worked with a few representatives from some of the most popular multilevel marketing companies around to help their organize how they incorporate their business into their home. This is a huge challenge, and solving it can be the difference between a rep who makes a tidy sum, and one who breaks even or loses money. As I see it, there are three main organizational struggles, all of which an be solved by sticking to basic organizing principles.

1) All. That. Inventory.

This is my client’s current inventory after culling products that were not the current version (therefore not sellable).

Multilevel marketing reps aren’t just sellers - they’re required to purchase the physical product themselves before they sell to the end user. This is a serious space challenge… if you live in a relatively small apartment or house in San Francisco, what exactly are you going to do with all that inventory?

We have to get real. The company will be pushing you to buy, buy, buy! They make their money when YOU buy, not when your CUSTOMERS buy - that’s when you make your money. So, as with any kind of purchasing, you need to buy according to your own individual needs and priorities. If the lip balm is flying off the shelves but nobody wants the body butter… don’t buy the body butter, even if the company gives you a huge incentive to do so.

And in terms of storage, just like any other collection, designate a specific storage area and pledge not to outgrow said area. This means you’ll have to make tough purchasing decisions, but it will also mean that your partner or roommate won’t want to stab you with that cool new earring they just stepped on!

2) Fun marketing ideas, oh my oh my!

The companies know that they can’t just shove out product and hope it sells - they have to help their sellers market the stuff! Although social media is definitely a major part of any multilevel marketing strategy, most of the companies still push the traditional party setup where women get together to socialize and see the products firsthand. So, a lot of the marketing materials come in the form of stuff: paper, banners, trinkets, etc. that all need to be stored.

Again, you need to consider your own needs and priorities. You literally couldn’t implement every marketing idea the company sends you - you’d never sleep, or eat, or spend time with your family. So instead of keeping all the marketing materials that come your way, instead only store the ones you like to use and see great results from.

3) Tracking your (ideally) bumper crop of customers, orders, and shipments.

So you’ve purchased your inventory, received your marketing materials, and started making sales. Now, how do you keep track of all these folks? Many of the companies still use paper order forms for in person parties, and the online ordering systems can cumbersome.

My advice, as with most things, is to go as paperless as possible. Paper not only takes up storage space, but also is harder to search through, compile, and use for marketing purposes. I highly recommend using some kind of customer relationship management (CRM) tool. 

Here’s the key: a CRM has one major thing in common with any paper filing system you can think of: you have to actively use it. Whether digital or physical, an information management system is a dynamic product and not a set it and forget it type of thing. So, there will be a learning curve - but I promise, if you start when you have so few customers it seems a little ridiculous, and stick with it, you will see major impact on your marketing efforts and sales.

Need help setting up organizing systems for your network marketing venture? Get in touch, and we can schedule a consultation for you!

LMW