Distributor vs MLM Company Leader: What's the Difference?
Network marketing has been a popular field in various parts of the world for many years, providing everyone with the opportunity to build their own business as a distributor, create a strong team of partners, and achieve desired success as an MLM leader. But what are the differences between the roles of a distributor and a leader in a network company?
Who is an MLM Distributor
The principles of network marketing are based on promoting products and services through a network of distributors, each of whom is involved in sales and recruiting similar trading partners into their team. All newcomers have equal rights in developing their structure and selling products.
Therefore, distributors are business partners of the MLM company who play a fundamental role in its structure by selling products or services and recruiting newcomers into the network. Sometimes they are also called direct sales managers, but in fact, they are entrepreneurs who participate in promoting the company's products and business offerings. Among the main tasks of distributors in network marketing, the following should be highlighted:
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Implementation of the MLM company's products. The main source of income for the distributor is commissions from personal sales - personal turnover.
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Expanding the customer base. Distributors actively seek new clients, advise them on products, and help solve any potential issues.
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Attracting new partners. They also attract new members to their team, allowing them to receive additional commissions from group turnover.
From the profiles of classic distributors, a separate caste of partner-clients can be distinguished. These people are usually not very interested in improving qualifications and developing the structure. They cooperate to get discounts on products and are also important for the company, as they act as loyal consumers and buy favorite products for years along with their acquaintances and friends.
The activity of the distributor network plays a critically important role in the successful operation and growth of a network company, so it is very important to maintain their motivation at a high level. We have already talked about this in our article How to Effectively Manage Distributor Motivation in MLM Business.
Who is an MLM Leader
An MLM leader is the same distributor at the beginning of their career, but now the focus of their efforts is more on building and strengthening a partner structure. Their main achievement is the scalability of the structure created and the ability to manage, educate, and support the activity of the entire team. Thus, the tasks of an MLM leader include:
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Training and developing the team. He helps his distributors to grow, conducts training sessions, shares experiences, and motivates them to achieve better results.
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Building a strategy. The leader develops network development strategies, sets clear goals and monitors their achievement, analyzes the results of his team's work, and adapts approaches to achieve maximum results in sales and recruiting.
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Team responsibility. He is responsible for the overall success of his distributor network, which includes motivating, supporting, and assisting each team member in achieving their personal goals.
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Duplication Building. Duplication is the principle of automating sequential actions leading to a result. The simpler and more accessible the idea of the business and product is presented, the more people can replicate the correct actions. In simpler terms, "do as I do and teach others to do the same".
Among distributors, there is a constant "churn" of personnel. But this does not apply to those who have achieved leadership positions in the company. Leaders sincerely believe in the future of the company with which they have achieved certain accomplishments, provided a stable personal income, mastered successful methodologies, and learned to teach their team with them. Considering the effort required for development in network marketing, leaders indeed have something to lose.
Only networkers who constantly strive for self-improvement, apply new knowledge for their benefit, and diligently develop their skills achieve such success. Scaling a network business is hard work, and in terms of income, leaders make a huge contribution to the company's operations. After all, they manage, support, train newcomers, and motivate their growth.
In simpler terms, a good MLM leader is always a good distributor, but not every distributor can become a good leader.
At the same time, leaders also have certain benefits from their high status. They receive not only more bonuses for distributing products but also additional rewards for higher ranks in the structure. Many companies create special reward programs for mentors. For example, in the company NL International, sponsors receive a one-time "bonus" for inviting a certain number of people into the structure. The more personally invited partners in the structure, the more significant the reward the mentor - team leader receives.
Resume
Thus, distributors and MLM leaders are different but complementary roles in network marketing, each of which is important to the overall success of the company. Distributors ensure continuous sales and expand the partner structure, while leaders support, motivate, and develop their teams, turning them into a powerful force for the growth of the network business.
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