How does the sales funnel work in MLM business

According to MarketingSherpa research, a well-thought-out sales funnel can increase your business revenue by at least 30% and reduce the average sales cycle by 20%. But how to optimize the sales and recruiting process in network marketing?

Sales Funnel in MLM

Sales Funnel (also known as "purchase funnel," "sales funnel," or "sales pipeline") - a sequence of stages that a potential customer or partner goes through from the first contact with the product or business opportunity to the final purchase or joining the structure. To understand how the sales funnel works, it is worth dividing it into the main stages:

1. Attraction

Marketing and advertising will bring a person to the site and introduce them to the MLM company, its products, or services. To engage the visitor, multiple touches through various marketing channels will help. FlawlessMLM clients use a combination of them, namely:

• Advertising Announcements

Advertising campaigns can be tailored to specific audience segments, taking into account their age, interests, and location. When using advertising, be prepared for significant financial investments in various directions.

Contextual advertising is designed to show ads to an interested audience in search. Media advertising in combination with remarketing is usually used for re-displaying. Remarketing can be set up to show ads only to those who visited your site, did not complete a purchase, visited competitors' sites, or come up with your own conditions. For example, those who have shown interest in products from Aliexpress are shown different items from the same site on social networks.

• Useful Content

A person looking for necessary information finds it through content marketing. Indexing blog and platform pages makes articles searchable online, and the written material will continue to be beneficial for a long time. Meeting the need for information influences customer loyalty and gradually strengthens their interest in purchasing a product.

Content can be distributed on thematic websites and platforms for article publication, considering that your potential audience should be "residing" there. The combination of sales channels and presence on various content publishing platforms brings more incoming traffic to the site.

The main condition for successful content marketing is high-quality material that provides people with useful and in-demand information. In this way, various types of content (articles, infographics, videos) help attract traffic and even increase sales. You can achieve the best attraction effect by segmenting the audience and creating a portrait of the target customer.

• SMM - promotion in social networks

According to Statisa, over 5 billion people worldwide use social networks, allowing for attracting the attention of a wide audience through these platforms. As practice shows, traffic obtained from social networks can lead to potential customers who are already ready to make a purchase decision. However, it is important to consider the target audience of each social network before creating a page on it. The more "business-oriented audience" spends time on Facebook and LinkedIn. Attention from young people is easier to attract on Telegram, Instagram, and Pinterest, where you can also visually present the company and its product/service.

Stage result: transition to the company's website.

2. Interest

A sales page or landing page introduces the user to the product or service. The site's content, the sales offer, and the indication of benefits should inspire the user to leave contact information. At this stage, a lead magnet can be used - a discount or free product (checklist, video tutorial, free consultation, sample) in exchange for visitor data.

A person should be able to promptly get an answer to a question or ask a manager a question. By quickly addressing objections at this stage, you increase the likelihood of further actions being taken.

Stage result: obtaining contact information.

3. Desire

A unique trading offer should arouse a burning interest in a person to contact and cooperate with you. Information about the achievements of the MLM company and its partners, as well as an earnings calculator according to the marketing plan, will help increase user loyalty. In order for a person to desire to make a deal, they must realize all the benefits and advantages of network business. Assistance in making a purchase is provided through direct contact with a potential distributor.

When presenting your business, use images and numbers. Visual presentation of information is absorbed by people faster and of higher quality than text.

Stage result: participation in the marketing of an MLM company

4. Deal

Stage of completing the target action - purchasing company products. It is important to remember that each person has their own "ripening" time. A novice can achieve productivity and develop more actively with stable mentor support and the opportunity to learn from them or receive necessary training from the network company.

Result of the stage: attracting people to the company, regular partner purchases.

5. Duplication

High level of mentoring, product quality, and service inspire recommending you to friends and acquaintances. If desired, each member of the structure can launch a similar MLM funnel independently. The simpler and more accessible you can convey the idea of the business and product, the more partners can replicate actions leading to results. The principle of duplication states - "do as I do and teach others to do the same," spreading throughout the structure and allowing it to grow to unlimited sizes.

Result: increase in the average check of a product agent and the turnover of the network business as a whole.

The concept of a sales funnel is widely used by many companies around the world, including in the MLM industry. A well-structured sales funnel will reduce the time for clients and partners to make decisions, help you automate work online, and accelerate the growth of your network business.

Tips for improving MLM sales funnel

1. Simplify the interface of your resources. All pages that users interact with should be as simple as possible to understand. The website should be equally convenient for experienced partners and newcomers. People naturally avoid complex tasks, and at each stage of the funnel, the site visitor should perform a minimal number of actions to achieve the goal. Consider what actions the user really needs to take and what can be eliminated. The more user-friendly the interaction with the user interface, the higher the conversion rate.

2. Use multiple channels to attract partners and clients. Instead of focusing on one attraction path, combine the work of different marketing tools. By influencing your target audience with touchpoints from different channels, you get the opportunity to attract more people to your network business.

3. Avoid repetitive actions. If people constantly ask the same questions related to your products, services, or terms of cooperation, add answers to all these questions to the website. Adding such material can attract leads and save time resources spent on processing repetitive requests.

4. Automate the funnel. Automatic contact collection, CRM systems, email campaigns, and chatbots for quick responses ensure maximum user engagement, from brand introduction to closing deals. This MLM auto-funnel gradually nurtures user interest without the need for constant distributor involvement, allowing them to focus on developing their partner structure and other important tasks.

5. Add content regularly. Capitalize on the demand for information in your field, share tips and recommendations, describe the advantages of your MLM company's products. Help potential clients and partners expand their knowledge to increase loyalty and trust in you and your business.

1. Pay attention to the behavior of leads. Tracking specific metrics that are interested and engaged with your PR campaigns can be highly beneficial. Analyzing such data will reveal gaps in the marketing funnel: you will learn at which stage you are losing customers and will be able to eliminate all obstacles on the way to purchase.

2. Analyze the effectiveness of marketing campaigns. To determine which channels are most effective, analyze the incoming traffic to your website. This will help you focus and allocate resources wisely for promotion.

Resume

Thus, MLM sales funnel optimizes the sales and recruitment process, and in combination with the automation of other labor-intensive processes, it also significantly facilitates the management and scaling of network business. However, it is very difficult to qualitatively build all these processes without experience and understanding of the specifics of network marketing. Once you invest your resources in this work, you will receive satisfied customers and partners, contributing to the successful growth of your MLM company in the long term.