The Dreaded Demotion
Demotion is a marketing plan feature (that is usually not transparently stated in most marketing plans) that is very important to consider in evaluating a plan and pacing
yourself month after month. Demotion means dropping from one position to a lower position or rank in a network marketing company.
For example, let’s say a Silver Rank Producer works hard to become a Gold Rank Producer. The next month he fails to reach his target and he drops back to a Silver Rank Producer. This normally results in a loss of potential income or even resetting his quota back to square one.
Demotion can also occur in certain plans where people are qualifying or challenging a
certain position in a plan where they require distributors to produce large sales volumes
in a short period of time. If they fail to reach their target, they do not necessarily drop in
rank but they have to build their volume all over again. They may not lose all of their
volume but retail some of it as they roll into another month to start qualifying again.
Downline Building Strategies
How can we use demotion to your advantage? It is often said in life that we are not pulled up to success but rather, we are lifted up to success by the people around us. This is even more so in network marketing because there’s no way you can succeed alone. You need the support of your downlines if you wish to beat your quotas and get to the next rank!
You must develop 2 very important factors within your network. TEAM RAPPORT and MARKETING PLAN EDUCATION. If you or your downline is in a qualifying phase, you must strategize with your entire team because volume needs to be created to achieve the target. Teach your downlines that if they support their upline now, they will become a good upline and in future, their downlines will support them as well. With everyone doing a little each day, achieving the target is not difficult.
If you educate your downline enough and they support you enough, they will realize that
you as a qualifying upline is in a challenging phase and they will feel that your success
is in their hands! They don’t want you to fail and will work hard to help you reach your
target (while they earn most of the money because it is THEIR sales. They are merely
helping you fulfill your ‘conditions’). Use demotion to build the urgency in your team!
Demotion is not a worry for the distributor is he has a large customer base. On a personal level, the only real fear demotion poses is when they stop doing maintenance or cancel their auto-ship. This only occurs when the distributor is having financial struggles or is not making money from their business and they decide to stop buying products from the company.
Starting your Own Company
I will not touch so much on whether to design a marketing plan with or without demotions due to the subjective nature of network marketing product. But here is one basic rule to follow: Will demotion affect the distributor too much in a positive way or negative way? Only you know your own product and your distributors.
Next post: Push-up: Taking the Short Cut
Until then see ya later…