Any multi level marketing business will rise or fall depending on how well it engages its target market. When you’re first starting out this can be fairly easy to measure when you only have a handful of customers.
But over time as your customers become more diffuse and as your network of distributors widens it’s easy to feel as though it’s all getting away from you.
Fortunately, knowing the metrics by which you can measure your success is a fairly easy process. Once you’re familiar with them, you can not only track your growing success (and feel warm and glowy inside as your MLM enterprise expands) but react quickly and decisively to any areas in which concerns arise or development is needed.
First, the basics
Your multi level marketing enterprise is a business like any other and as such your metrics need to be measured on (at least) a monthly basis to make sure that your business is agile and able to respond quickly to any metrics that may be less than desirable. Fortunately, many multi level marketing companies recognize this and have built in back offices that allow you to track many important aspects about your business.
Ideally, most of your interactions with customers and distributors will be online through social media, content marketing and webinars. If you haven’t already established your online presence yet then I’d recommend you familiarize yourself with these web hosting statistics to ensure that you’re approaching your online presence with the correct mindset.
Your KPIs (Key Performance Indicators) will vary depending on the size of your multi level marketing business and where in your journey you are. However, no matter the size of your organization, keeping an eye on these factors will help you ascertain areas of strength and address areas for development.
Profit and loss are no-brainers, but some KPIs might be less straightforward.
How many new leads are generated every month? How many total leads do you have in your pipeline either as a customer or a potential distributor?
What is your cost per lead? If you haven’t used paid email leads then just take your monthly marketing budget and divide it by the number of leads generated.
These will give you a great indication of the growth of your enterprise.
How many new distributors did you gain this month? Of those, how many were sponsored by you personally? How many of your distributors are active (ordering products) this month and what can you do to mobilize distributors who aren’t, well, distributing?
Of your distributors, who are the leaders? Leaders are vital to your growth as they will be the ones turning up for events, generating new customers, sponsoring others and purchasing products for personal use. Are you ensuring that you’re retaining them and keeping them motivated?
How many customers does your enterprise have? What is being done to retain them? How are they being kept abreast of the benefits of your products and new lines that you’re offering.
Keep an eye on your own personal customers and the volumes that they’re ordering in, as well as monitoring the volume across the organisation. Average cost per order is a useful indicator of this.
Face time clocked in with prospects is also hugely important. How many presentations have you done to new prospects this month and what leads have they generated?
As your multi level marketing business grows and evolves keep an eye on your rank and the ranking of your distributors. Does everyone know where in rank they are and what they need to do to advance? And, don’t forget that as members of your team advance in rank, they are recognized for their accomplishments.
Everyone likes to be recognized for their hard work. Being involved in a multi level marketing business can seem lonely if your team isn’t engaged and aware that they are important.
If you’ve looked at multi level marketing/network marketing as a way to build additional income, but haven’t yet decided on a company to get involved with, I invite you to check out the video below.
If, after watching the video above, you want more information about ARIIX, who I am proud to be associated with, please contact me at firstname.lastname@example.org and I’ll be happy to speak to you personally and make sure you have all the information you need to get started with this record setting company in the rapidly growing health and wellness niche.