Simon Chan

You know the importance of customers, because that is how passive income is created.

Don’t believe the hype when people say, “The products sell themselves.”
If that were true, everyone in the world would be a customer right?

The key to building a solid base of customers who order over and over is with good follow-up or what I call “backend marketing.” In other words, you have to take good care of your customers.

Are you taking good care of your customers?
Before I share a few tips to help you with customer retention (to keep them ordering month after month) let’s take a look at the 4 types of customers we have in network marketing:

  1. Preferred Customers

    These are the people who agree to purchase our products and enroll in the company’s auto-ship program. They are the easiest customers to service, because you don’t have to deliver the products nor accept payment. The company handles everything.

  2. Retail Customers

    They purchase directly from you and just pay you cash. This group of customers are often overlooked, because they are not enrolled in your company’s customer program and require more work on your part: you deliver the products and collect payments. However, they can contribute to significant volume and in many countries they are the lifeblood of our business, since a customer program may not exist.

    Experienced leaders help their new reps get retail customers immediately. They teach them to take their initial startup package and start selling off those products. People who buy those products are their “retail customers.”

    This increases the belief in the business for the new distributor, because they get immediate cash. It always feels good to receive cash and it makes the business feel real. If you ask the average distributor whether they prefer to have cash they can spend today or have commission points, guess what they will say?

  3. Active Distributors

    This group is often overlooked, because you don’t see them as customers. It’s important to realize that distributors are customers too, since they have to maintain and purchase products each month.

    Never take for granted that just because they purchase products, they will consume them. I’ve encountered many distributors who let their products pile up at home, because they forget to take them, or they believe “there are too many products” to take. There are never too many products to take. If they say there are too many, that means they simply have not tried the other products the company offers and are neglecting getting a few retail customers.

    So you want to make sure you take good care of these “customers” as well.

  4. Inactive Distributors

    Ah! This is the goldmine many people forget.

    If your company has good products, you will soon discover that even though distributors may quit your business, they may still continue taking your products. They may not purchase the required amount to stay active for commissions, but they will purchase some.

    They also may not purchase every month, but they may purchase every two or three months. So what? They still purchase and you get the commission volume in your organization, so you still earn from them. 

    When was the last time you ran a report to see how many of your inactive distributors still purchase some product?

Marketing to Your Customers
To fully maximize the potential and increase your income with customers, you must have a system to follow up with them. I’m not talking about just calling them. Of course, you can call them, but you won’t have time to call them if you have thousands of customers.

So how do you follow up and keep them buying each month?

Simple. There are four ways you can do this:

  1. Personally Contact Them

    You can call, text, or email them personally. This is the most personable way, but it is time consuming. It is also not scalable (you can do it for 10 customers but not for thousands of customers). So this is good to do when your business is small, but doesn’t work as your business gets bigger.

  2. Automated Email marketing

    This allows you to send periodic messages or newsletters to your customers. You don’t need to do this often. It can be just once a month and you can offer health updates and info on current and new products.

  3. Direct Mail

    This is my favorite and a gold mine! Why is it my favorite? Cause no one does it! It doesn’t need to be fancy. It can be a simple card or postcard that shows your appreciation.

    The secret to my success is always “be the Purple Cow,” meaning you must stand out. Just do the opposite of what everyone else is doing. If everyone is sending out email newsletters, =send out a direct mail newsletter.

  4. Facebook Groups

    These groups are effective platforms for you to communicate with your customers. You can post updates or create short videos to help answer their questions. These groups also provide a community of support.

Marketing and following up with customers is a must-do, especially if you want to create long-term residual income. In many ways, I love customers more than distributors, because you never have to worry about them quitting and they just order month after month after month. Ca-Ching!

Start focusing on your four types of customers and the best way you can service them. Do this consistently and you’ll be excited as you see your passive income increase from the repeat orders.

SIMON CHAN is founder of MLM NATION, including the #1 MLM training on iTunes. He has 14 years of experience and is a business coach, speaker, and online marketer who helps network marketing distributors find more prospects, sponsor more people, and create duplication. Prior to becoming a full-time coach, Simon built a global MLM business with over 80,000 distributors and is a Million-Dollar club member.