recruitment process consists
Two Essential Ongoing Activities:
Building and Expanding the Network Team of Individual Independent
Distributors as well as
(2) Building and Expanding the Consumer Customer Base.
The understanding of the relationship between these two activities is critical to the development of a sound network business. The relationship is illustrated in the following diagram:
To develop the distributor
network at the expense of the development of the customer base will severely
limit the flow of money throughout the system and may consequently inhibit the
recruitment process, as pointed out by Edward Ludbrook in "The Fundamentals
of Network Marketing" Similarly, to restrict the recruitment process solely
to the development of a consumer customer base will result in limiting peak
performance levels resulting from the cost balance of maximum sustainable
customer maintenance levels and customer losses. Clearly, neglecting either
activity compromises the recruitment process.
For optimum recruitment performance both the building and
expansion of the customer base and the independent distributor network are
essential and should be developed in parallel. Moreover, in addition to
recruiting directly for new distributors, the consumer base further provides a
built in positive feedback mechanism for the growth of new independent network
distributors as previously discussed above.
As suggested in the current
diagram, a natural pathway exists between retail and wholesale customers. When
total retail sales to a given customer reaches a specified value, the customer
may then be offered the opportunity to purchase at the wholesale rate, market
the products at the retail rate and join the network team. Thus,
the conversion from retail customers to wholesale customers represents a strong
possibility to create additional new independent distributors - this is
the wholesale positive feedback loop. Of course there will be a fraction of
retail customers who recognize directly the advantages of becoming an
independent distributor and join the network team straight away - this is the
retail positive feedback loop.
Two primary growth lines determine the success of the recruitment process: the independent distributor growth time line TD, and the customer growth time line TC. These growth time lines are indicators of the growth rate of new distributors and customers respectively. The customer growth time line TC is further subdivided into retail TR and wholesale growth time TW lines respectively. In practice, effective recruitment process management requires the ongoing maintenance, continuous follow-up and promotion of all the growth time lines.
Independent distributor of Forever Living Products