The MLM Sales Funnel

Does MLM have a sales funnel? “A what?” you might ask. And that is a very good question to ask!

Most MLM companies do NOT have a “sales funnel” and their reps are suffering from the lack of having one, whether they realize it or not. The whole idea of a sales funnel is to maximize the value of each new customer. By making a purchase, the customer enters a pre-determined program of offers and enticements which eventually lead to multiple sales.

It is a well known fact in retail that about 80% of a store’s sales come from about 20% of its customers. Repeat customers are like gold! But if there is not a sales funnel in place, the merchant stands to lose those repeat sales.

For example, if company has only one product, and a customer buys it, there is a limited profit. Even if the customer repeatedly buys the same product (like a consumable, or a subscription) over and over for a period of years, there is still only a finite amount of profit which can be attached to that customer’s account.

However, if there is a sales funnel in place, the customer’s potential profitability can be multiplied by the number of offerings which are contained in the funnel. For example: a sales funnel for buying a car can include several items, such as the ability to customize the order in multiple ways at the time of purchase. But that is only the start of the funnel. Over the next months and years, the customer is exposed to offers for insurance, hotel and airfare discounts, a travel club, a buyers club, extended warranty offers, special service offers, and eventually an offer for another brand new car!

As consumers, we have all been involved in sales funnels. Often our participation is completely voluntary, and we see the offers as valuable choices which we want and are glad to have available to us.

Knowing how funnels work, it is easy to see that MLM reps can increase their sales potential by simply keeping in mind what other products and services their customers might value, and constructing a program to contact the customers with those offers in a periodic and friendly fashion.

But funnels can also work for MLM reps in their prospecting efforts, too. PrimaryBusinesses.net has constructed a sales funnel for MLM prospecting. It is a simple variety of offers related to teaching business owners how to be better marketers. The offers are presented in a helpful way, so that prospects can see the value of using tools and information products to help increase their own businesses.