How we approach our Network Marketing Business determines how we will buy products.
Sometimes distributors wonder why other distributors approach their Network Marketing Business differently. It’s not necessarily because someone is not working the business that they have a different approach to when they buy products. There are different approaches because there are different ways to work the business. Let’s look at two different ways to work the business and for simplicity I’ll label one the Product Buyer and the other the Business Builder.
The product buyer always works from a “very conservative” position and so they wait till midnight, at the end of the current pay period, to buy their products for the next period. What are they doing? They are looking at their volume (personal and group volume) to determine how much product to buy and if they should buy. This is a very conservative approach to avoid debt and let your downline basically pay for your products. The products not used personally are then sold to customers.
Business Builders don’t buy products at the end of the pay period. They buy products at the beginning of the pay period. You might say they are working from faith instead of volume history but it’s really not working by faith. Daily they are working their business and they need “inventory” in order to have products to sell. They understand that if they don’t have a significant inventory they may lose a sale. Often the difference depends on how we work our business. They too may be working from history and their DMO (Daily Method of Operation) but it isn’t the current pay period history. They work from an average volume basis based on their DMO.
Also, business builders get their personal volume in at the beginning of the pay period so they can judge (from company reports) where they are during the pay period. It may be too late to make necessary adjustments by just looking at a report (12) midnight at the end of the pay period (EOP). This will keep your upline sponsor from helping you with your volume because they don’t know where you are.
Another issue:
We often hear people say: “I know so and so can’t afford a particular investment in the business so I won’t offer then the choice because I don’t want them to get into debt and I know their financial circumstances.” In other words, I know more about this business and their finances than they do. Actually, they may base their business decisions based on their personal situation or their personal finances. This kind of thinking often comes from our personality type. If we are the caring motherly type this may just be our normal personality or style. “I’m your mother or big sister so I’ll look out for you!” Others feel that we don’t know their personal financial situation so we will give them a “logical choice.” They will move faster and easier in the business if they can afford the logical choice based on their personal finance decision. Everyone has different circumstances and we often don’t know their circumstances. They may have a rich uncle and father or they may have just won big at their favorite casino. We’ve all known people who are continually broke but you look in their garage and they have a big boat, motorcycle, and many other toys. People spend their money on what’s important to them!
The question you have to ask as a business person is this: “Which method will explode my business and which method will just maintain my business?” One approach is really just based on good luck (product buyer) and the other approach is based on the best efforts of a serious business builder.
