The key to leadership development is team retention. The key to team retention is a solid, steady stream of cash flow into the business!
As a leader your number one focus in team training should be lead generation!
The sales funnel is an old-fashioned concept for making sure your direct selling business always has enough leads.
With a good understanding on how the funnel concept works everyone will have a full calendar. Making the best use of the funnel requires an understanding of the two principles of why it works.
How the Sales Funnel Works
The obvious concept is the fact that the funnel is wider at the top allowing for more leads in.
All direct selling businesses must have a wide variety of lead generation systems in place.
Read the article on 108 direct sales booking ideas here!
It is important to use every resource available to you to find business.
You cannot depend ONLY on acquaintances.
- Friends, family, neighbors, school, work, church, etc. are all part of one lead generation system…. acquaintances!
- Finding business at your home party is another lead generation system and they become acquaintances as well.
You cannot depend ONLY on two lead generation systems all of whom are already connected to you in some way!! All successful businesses depend on multiple sources of lead generation.
2nd Sales Funnel Concept
Just because someone steps into your funnel, does not mean that they will generate cash flow!
The other principle is that customers voluntarily come into your funnel with minimal commitment, then customer service and relationship-building are used to build customer loyalty, which will in turn generate cash flow.
The deeper they are in the funnel the more customer loyalty they have to YOU!
At the top or widest part they have minimal obligation or loyalty to you and can choose to leave without spending a dime if they wish.
Showing up at your direct selling party is an example of a customer who does not have much commitment to your business and voluntarily steps into your funnel. As the customer falls deeper into the funnel, their commitment level increases and they begin to have a level of loyalty to you.
A home party lead follows this progression of customer loyalty as they drop down into your business funnel.
- Come to a home party show
- Have fun, laugh!
- Buy a product
- Fill out a prize drawing
- Schedule their own home show (or not)
- Return to a show
- Schedule a home party
The loyalty progression will be different for each lead source.
Filling your marketing funnel with a massive amount of sales leads from a wide variety of sources and having a graduated system of developing faithful customers is how you create a consistent cash flow in your home business.
Eventually, the lead turns into a customer, who then buys a product, schedules a show, and possibly becomes a direct selling distributor.
As you fill your sales funnel and develop more loyal customers a steady stream of cash will flow out the bottom of the funnel.