Jan 07

Outsourcing and Network Marketing

Nexus Teleservices was recently involved with a client related to network marketing. The client had an interest in using our outsourcing services of telemarketing to promote their business opportunity to “network prospects”. That is, promoting the business opportunity to potential distributors, not to consumers. The results of this effort were somewhat “mixed” from our perspective. From the client´s viewpoint the results were generally positive. Why the discrepancy between the two? Let me explain.

Network marketers generally promote the business opportunity, not the product or services. The network marketer´s income is primarily derived from the size and depth of his/her reseller network, not the amount of product sales of the network. Where does the income come from if it is not primarily related to the purchase of a product or service? It comes from the initial recruitment fees of and monthly follow up purchases of the reseller network. So in order to make money, a network marketer needs to grow the network (recruitment) and help the network grow (downline recruitment).

Our company´s outsourcing services were exclusively focused on network reseller recruitment (sales prospects). The client would do the follow up and closure. This was a very limiting and shortsighted view by the client of the potential in the oursourcing relationship. Maybe this was a client budget issue, maybe not. This was probably not the first outsourcing relationship by the client. For example the client´s lead tracking system (CRM) that we used had been outsourced via a third party vendor. Since Nexus was not privy to the client follow up process, the level of resources dedicated to convert the sales prospects into resellers in the network downline, or other activities after conversion to a reseller, we do not know the return on investment.

We do know that as a trial test we listed ourselves as a “reseller prospect” and received lots of follow up emails from the client´s CRM system using an auto-responder. The emails were nice and informative, but lacked any personal telephone follow up to “motivate” us to make a decision to join the business opportunity. Additionally no thought had been made after sale conversion as to how to make the new network reseller “productive” by aiding his efforts in recruitment and sales.

Maybe because this was a new business relationship the client simply wanted to “maintain control” of the follow up sales lead process.

What should the client have done? The client should have outsourced to Nexus the basic follow up after identifying the sales prospect. After the reseller prospect had received 3-4 emails from the CRM autoresponder system, the Nexus representative would have done a follow up call to confirm receipt of the email, determine what questions or concerns were lingering and if ready for a “close”, Nexus would have scheduled a conference call with the client as the “expert” to answer anything else to bring the sales prospect into the network family. Afterwards our client could also have considered “remarketing” our outsourcing services to the new network reseller to help in sales lead prospecting and conversion, helping the network downline.

If we continue with this client in the future we will provide an update as to the outsourcing results.

For additional information contact us.