You’ve got more customers this month, more team mates have joined your downline, things must be great, right?
Well, maybe they are, but if you aren’t tracking your results and measuring, then you don’t actually really know.
So where do you start?
What data should you track and why?
Let’s dive in and I’ll explain…
There are lots of metrics that can be tracked when you're in network marketing or mlm, but here are some of the most important ones.
These fall into 2 different pots…
- Your Metrics
- Team Metrics
But why should you track anything at all?
I didn’t for ages, but now that I do, I can see why it’s so important but more importantly, how it can help you actually GROW your business even bigger.
See, when you don’t measure anything, you don’t know if your business is successful.
What does it measure against?
You’ll be able to see trends, opportunities, areas for improvement, what’s working and then GROW it bigger to scale!
Sure, you could have 10,000 people in your downline, but how many stay, how many drop out after a couple of months, how many are active? (I’ve got a handy resource you can download for free to help you with this)
So let’s break down the 2 different groups..
These metrics are for YOUR personal metrics of your own efforts and work
1. Number of Leads/Prospects
How many leads have you brought in each month?
If you’re unsure of what a lead is (someone who has opted in to find out more information or raised their hand/reached out to you and specified at wanting to know more
2. Number of Appointments Booked
3. Number of Presentations Shown
4. Cost Per Lead
(Take your total advertising spend and divide by the number of leads)
This is important to know so you know how much you need to spend on average to obtain a lead – great for scaling when you’ve got a good system that’s working)
5. New Personal Customers
6. New Personally Sponsored Distributors
7. Cost per Acquisition (customer or lead)
This is a marketing tern, but how much does it cost you to get a new customer? (Again, crucial to know when advertising so you know what a new customer is worth to you and how much you need to spend
a. Lead to Sale (How many leads does it take to convert into a customer)
b. Lead to Distributor (How many leads does it take to convert to a distributor
c. You could track customer to distributor if you tend to lead with the product first and then offer your opportunity)
9. Total Sales per month
10. Average Order Value (What is the average order of each customer)
This isn’t so critical but worth knowing. It can help you predict how many customers you need to get to hit certain goals.
These are personal ones so will help you see your own areas for improvement, what needs working on to improve, are you hitting your measures, if so, great, now you can look at how to increase these to grow to new levels.
Now let’s move on to the 2nd group…
If you’re building a team and wanting a large downline in your Network Marketing business, understanding your team metrics will really help you too as well as your own.
Here are some suggestions for team tracking
1. Total Team Sales per month
2. Total Number of Distributors in your Downline
3. Total Number of Distributors on Auto-Ship (If relevant – OR # that have placed an order that month)
4. Number of Leaders
You may have a “Leader rank” or otherwise it could be people actively sponsoring others, ordering products, getting customers and attending events)
5. Active Distributors
6. Average Order Value (Team sales)
7. Drop Out Rate (Total Distributors this month minus number last month - % of the variance – don’t worry I’ve created a useful resource with formulas all done for you if you’re rubbish at maths like I am!)
Useful for retention and to know if you lose too many people each month or at certain times of the year.
So there you have it
These are the core ones to know and you can add more or take any out that may not be relevant to you and or them on at different stages of your business growth.
When you can have a measure of these metrics, whether in excel, Google docs, however you like to keep track (I love excel so it can work it out for me after I’ve entered in the data),
What tracking and measuring will allow you to do, as mentioned you can then see trends of busy months, this is great for planning ahead for the following year, what can you prepare for in advance to take advantage of these busy periods.
Slow months - again you could plan ahead some extra activity within your organisation to boost sales when it needs some additional help.
Maybe run some offers, competitions, incentives etc.
If you have a low conversion rate from lead to sale but your conversion is good for visitor to lead, you know you need to work on the presentation and conversion (closing) aspect of the process.
Once I learned the different elements of the process and funnel that people go through, how to track and then focus on just one area that needed it, it was such a relief and gave me such a clearer picture of what my business looked like.
No matter what business you’re in, understanding your metrics of your business are VITAL and without them...
You don’t really have a business!
I know I’ve thrown a lot of numbers and metrics at you,
and hopefully not confused you!
To make it easier for you get started straight away, I’ve created a template of the core metrics to track for you to download so you don’t need to stress over creating all of this yourself.
All you'll need to do is fill in each month, teach your teams to do the same and you’ll find it quite addictive seeing things appear before your eyes and be able to make a strategic plan or know you’re on the right track J
I know spreadsheets can be scary (I secretly love making them and snazzy formulas) which is why I wanted to help you out
Grab the free resource and if you have any questions about filling it in, I’m offering a special bonus to everyone who requests a copy.
I’d love to hear if you’re currently tracking or if there’s anything on this list you hadn’t thought of, or maybe you track something else that I’ve missed, let me know in the comments your thoughts.