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9 Biggest Mistakes made by Companies in the New Commercial Network Policies

Errores de las empresas, mistakes
Company Mistakes in the New Network Policies. It seems to be 100% clear, in the last year we have seen how the discount policies of companies have soared to points that we never imagined, discounts on travel, clothing, lots of consumer products, etc.. We have also seen how the first .coms that were born with this idea have become the real precursors of this trend. And we have also seen how many companies have started to seriously consider network marketing as a business alternative

However, this last point carries a series of connotations that many of the companies that have ventured into the idea have not taken into account, in most cases because the vision they have followed has been exclusively the vision of the successful network marketing distributor profile, but they have not seen it from the corporate point of view. That is why many will undoubtedly fail


and what are the reasons why they will fail, what are the Mistakes of the Companies?

Errores de las empresas
Andrea Piacquadio at Pexels

1.- The vision of the successful distributor is a tremendously biased vision. It is true that commercially it is a hyperactive vision, focused and in many occasions it could be defined as commercially aggressive, but without knowledge of the financial needs, of structure, of dimensioning, of technology or of legal scope, to mention only some of them

Network Builders ARE NOT company builders, they are Network Builders and some of them with impeccable success

2.- The vision of the market in most of the occasions is very biased. The reason is that the marketing philosophy in network marketing makes that there is a target market volume in Spain, today, of no more than 100,000 active distributors, this implies that if a company wants to get its model to grow in a country like Spain has to consider many more variables, such as simplicity of the compensation plan, so that it is not complicated to explain between distributors

Companies have the habit of making highly complex compensation plans, which are very misleading for those who are starting out in network marketing

3.- Mistakes of the Companies 3. Mini-dimensioning the investment needs. To set up a network marketing company today and depending on the product requires a minimum capital requirement of 150,000 euros, and I say minimum, very minimum, since in that amount I do not consider human team costs. And the normal requirement is around 250,000/300,000 euros

And this amount of investment is necessary to be ready at the moment Zero of beginning of the commercial activity, that is to say, it has no place to begin little by little to be incorporating the distributors, the distributors have a force of impression and when I begin a well mounted network the great problem that usually happens is as it is given to suffice with the sales, in fact, the majority of the network marketing that fail do it of success

4.- Another mistake is that the company thinks that if they fail in the first attempt they will succeed in the subsequent attempt, it is very difficult to raise a company that has failed in the initial moment of departure, among other things because the most important distributors will have cooled down, and if in the future they receive a recommendation from another distributor what will happen is that the recommending distributor will begin to doubt about the company

This is provided that they have spoken well or normally about the company, because if they speak badly about it, this will be completely triggered and it is very possible that the distributor who has entered the second stage will end up becoming demotivated, the NOs of possible prospects are hard enough, so that on top of this there are big players who speak badly about the company they defend

5.- 5. All companies think they have the best product. And it is not that it is wrong to think so, but to get a company to take off, at least 7 more points are needed that must be fulfilled to the letter, if not, the company will fail completely

A network does not grow because of a good product alone, it grows because of many more factors, some visible, such as the results of growth of the network itself, and others invisible, which are based on the creation of added value and the components that make up that added value

6.- Mistakes of Companies 6. Starting a network marketing only out of commercial desperation. At BB Global Solutions, a leading company in the creation of network marketing companies, we see that only in the Californian market a network marketing company is launched every day, which implies that the leaders of many networks are constantly being approached by these companies to start their expansion

This is completely unthinkable in Spain, and many of the companies that launch into network marketing do it out of absolute necessity, not by strategy, nor with a well-defined strategy

7.- Thinking of distributors as things that move in the market . There is a certain tendency in the business world, especially in Spain, to think of distributors as those who have to do and shut up, and on many occasions focusing only on the product means that the needs of the market are overlooked

Distributors are the ones who feel the market on a daily basis and are the ones who can provide the market details that make network marketing much more attractive to new distributors

8.- 8. Thinking that training is only done among leaders. While it is true that the leaders actively train their distributors and that training is usually very oriented towards motivation and other areas, the company has to make a radical commitment to training for all its distributors

And one of the reasons is simple to understand, network marketing is based on the duplication of the model, and what is proposed to distributors is that they learn from their sponsors and at the same time train their distributors

If there are leaders who are very active and who have superior capabilities to the rest and who make sure they are seen, the others will tend to imitate them, although in most cases without much success, since we are not all the same, and achieving a series of leadership skills is not easy for everyone, but it is much easier if there is a training base on which the distributors grow according to their interest or motivations

That is to say, in addition to the personal training of the leaders, it is necessary that the company actively supports the training of the distributors so that if a leader decides to leave the network for whatever reason, the other distributors will be supported by the company to continue, otherwise, the most likely thing that will happen is that they will either go to another network or end up becoming completely demotivated

and what does active training imply? To put it bluntly, the company should invest in training programs On The Edge, that is to say, the best, that are oriented to achieve objectives and that even the practical cases of success are taught directly, instead of telling in a manual how things should be done (that is supposed to come from the base)

9.- 9. Creating companies thinking only in the face-to-face part with the traditional commercial vision. Network marketing, for any company in any sector today is 90% internet, 10% face-to-face

It does not make sense for companies to think that everything is going to be done in person, not only because of the cost reduction that this implies, but also because they have to think 100% about the distributors

And for this we have to put ourselves in the shoes of a distributor with few resources, that the fact of traveling to a nearby city or not usually costs him money, and if it costs him money it will also cost money to the distributors he invites, so that network is directly doomed to failure

And this is so because when the penetration of a commercial network reaches that point is the point that could be considered optimal, that is, with a penetration in small local areas that get commissions based on their sales / distributor networks.

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