Network Marketing is often referred to as word of mouth marketing. The industry is exploding based on word of mouth recommendation of quality products.
In 2018 more people are turning to social media and buying products and services based on the recommendation of their social media networks.
I remember reading the book “The Next Millionaires” by Professor Paul Zane Pilzer, and he was talking about the high growth industries from 2006 to 2016, and the direct selling/network marketing industry was going to be one of those industries because of the social media movement.
Well we are now in 2018, and the network marketing industry is now worth over 180 billion dollars, social media platforms are growing exponentially, and as a result word of mouth, marketing is thriving.
Before network marketing, I was in the fitness industry where referrals were paramount to business growth so in my 20 years in business I have developed robust referral marketing models which have allowed me to grow a multimillion network marketing business that has expanded into 100 countries.
KEY PRINCIPLES OF REFERRAL MARKETING
Belief In Product & Service
If you want people to buy your network marketing company's product or service, they need to see you truly believe in what you are promoting.
Besides results, when looking for an opportunity, if I do not see people with solid belief in the product they are promoting, I cannot put my heart and risk my reputation with that product.
If you love something, tell the world and show your total belief in the company, and the products you are promoting. People are more likely to spread the word based on your commitment to that belief.
People are more likely to recommend and refer when they see extreme value. It's very much like the concept of under promising and over delivering.
It is also about understanding the "before" and "after" state of prospects. What is the daily life of your prospect like before they use the product or service you are promoting? How does their life change after they use that product or service?
The more significant the gap between the "before" and "after" state - the more value your product or service has to offer.
There are many businesses around the world that I would have generated many sales for on my recommendation because I have felt that difference in my before and after state to experience great value.
People buy from people they trust and respect.
The best way to do this is to demonstrate your true nature and continue always to nurture and develop your relationship.
A typical statement in the network marketing industry is "people join people".
REFERRAL MARKETING STRATEGIES
With the key principles in mind - here are 4 referral strategies you can use in your network marketing business:
1. Nurture Purchasers To Become Raving Fans
If you can build relationships, you can develop raving fans! People will start with an initial purchase, and your role is then turning purchasers into repeat purchaser's, and then into brand advocates.
This is how your business can go viral.
To do this, you need to nurture purchasers from first purchase all the way through to raving fans who want to tell everyone about the products or services they have purchased through you.
Nurturing is achieved through consistent communication, helping them to feel the benefits of the "before" and "after" value that your product or service promises. For example, this can be achieved by offering free training on how to get the best out of the product or service.
Nurturing purchaser's and working towards creating a culture of raving fans will explode your business exponentially.
2. Ask For Referrals
It is amazing how many people do not even ask the question. If you do not ask - you do not get.
Ask prospects if they would refer your product or service to others. They might not yet be interested in buying your products, but may know someone who is.
Every conversation you have with a prospect you should be thinking "POTENTIAL REFERRAL".
3. Identify Potential Referrers Early
I remember a big light bulb moment happened in my fitness club after reading the book “The Tipping Point”. The book illustrated how to identify potential referrers for your business, and I added this primary question process into my fitness club induction process, and my sales increased dramatically.
During the induction process, I would ask what their favourite café, restaurant, massage therapist, hairdresser and any other local service in the area is. I would wait for their response. A referrer will jump all over those questions. If it was a café, they will get excited about the coffee, know the barista’s name they will explain their favourite dish. The more detail, the better the referrer.
Identify and acknowledge those who would be great referrers. Then you can open the door for a conversation around network marketing and let them know how good they would be at it if they found a product that they love.
4. Incentivise People To Refer
Give incentive for people to refer. I remember in the fitness business days I would often use rewards like a Gold Class Movie experiences.
Sometimes I would reward referrals with a free personal training session. Multi referrers would usually be rewarded with a weekend holiday. It was the gesture of gratitude where they knew that they were appreciated.
You can get creative here, so it does not cost. You may approach other businesses for samples or gifts that you can use in your rewards.