Are you running a network marketing business? It doesn’t matter if it is a startup or a global enterprise. Network marketing or MLM (Multi Level Marketing) is a business model that relies on agents to generate sales and bring more customers. Unlike the general business model where there is a lengthy supply chain, network marketing uses agents/ distributors to reach customers directly.
The success of the top brands had paved the way for new startups to choose the network marketing business model as a sure shot way to become famous in the market. However, not all of them have achieved the same or even half the success.
Though the concept of network marketing is simple and profit-based, there are quite a few things that could go wrong. From not hiring eligible agents to not focusing on the market trends, business owners tend to make mistakes and take certain things for granted.
In this post, let us make a list of things a business should never when following the network marketing model.
- Not Using the Latest MLM Software
Looking for best MLM software involves research and planning. Not using any software or choosing software that provides only the basic features that can hamper the growth of the business. In today’s world where technology plays a crucial role in deciding the fate of a business, business owners should make an effort to find the best MLM software that is highly customizable. The service provider should be reliable, accessible, and provide 24×7 technical service. The software should be affordable, cost-effective, scalable, extensible, and flexible.
- Not Being Consistent
One of the biggest mistakes that cost a lot of businesses their customers is inconsistency. Delivering the best one month and not meeting the mark another has caused many brands many issues. Consistency is never easy. It requires constant effort and monitoring. Sometimes, when things are not favorable, business owners and agents will have to invest extra efforts to deliver the same level of results. This is where many businesses fail to cater to the customers’ and markets’ demands.
- Investing More than Earnings
Reaching the breakeven point takes time. Until then, the investment will be more than the income. But that doesn’t mean that the business owner should continue investing all of their money without calculating their returns. If the investment is piling up while the returns are going down or not crossing a certain level, it’s time to stop investing and start identifying what’s wrong with the strategy and implementation.
- Luring Agents from Competitors
This is something very common in the industry. Brands can be found stealing agents and distributors from competitors. Whether it is to have the best in their team or to make it hard for the competitor, this move is not always appreciated. If an agent is happy with a competitor, trying to lure them to the business would be a very wrong move. Also, the agents may not deliver the same level of performance after joining the business.
- Not Paying Attention to Customers
It’s ultimately customers who decide the fate of the brand. For the business to be successful, it is important to accept customer feedback and make use of it. If customers are not satisfied with certain features of the products or customer service, the business should work on making things better and informing customers of the same. Asking agents to ignore and avoid grumpy customers will cause damage to the brand’s reputation.
- Overhyping the Brand
There is no denying that promotions are necessary to increase brand visibility. But don’t claim things that aren’t possible. Customers these days don’t like brands that promise the moon and fail to deliver it. Be clear about what the products can and cannot do. Focus on promoting the positives, but don’t make false claims.
- Focusing on the Negatives to Promote the Brand
Don’t highlight the negatives of the competitors or negative features in the market to promote the brand. Emphasize the positive aspects of the products without talking about the negatives. Rephrase and reframe situations to bring positivity to the scene. Customers prefer brands that have a positive and confident approach without pointing fingers or using the unfavorable aspects of others to promote themselves.
When looking for best MLM software, make sure to have detailed meetings with the software provider. Ask whether the software can be hosted on their cloud, whether the company provides training to employees to use the software, and to what extent the MLM software can be customized.
Shortlisting a few companies and meeting each of them would be the right way to recognize a service provider who is the best fit for the business. This takes time and effort. It is recommended not to compromise in choosing the best MLM software provider.