Types of distributors for MLM businesses

The distributor job description is more flexible as compared to other profiles. People from varied fields can become MLM distributors. This also works in favor for MLM entrepreneurs since they are always on the hunt for diversity in their distributor teams.

We cannot really categorize distributors based on personality and qualifications (of course!). But in this blog, we have created 8 types of distributors in the MLM industry based on the distributors' work style and how they can affect your direct selling business. Read further to find out which types are a part of your MLM team.

The digital entrepreneur

MLM businesses use social media platforms such as Instagram, Facebook, and LinkedIn for the sales of products, educating the market, building customer relations, brand authenticity, or doing recruitment. Distributors regularly post relatable and helpful content which helps them generate leads faster. With platforms like Instagram, distributors also interact with their customers through comments, direct messaging, live stories and more such options. Other than that, they also promote their other revenue channels such as affiliate purchasing, course creation, consulting services, etc.

Numbers-oriented distributors

MLM businesses function majorly with numbers and statistics. Without deep analysis of what sells, and what sales approach is bombing on the shop floor, it is impossible to survive in the market. Distributors often rely on weekly, monthly, quarterly and yearly reports that help them understand their downlines’ selling patterns and make decisions accordingly. Secondly, they stay on the lookout for new technology, to add to their sales, management and lead generation efforts. Automation, CRM (Customer Relationship Management) systems and Artificial Intelligence are some of the popular choices made by the geeky-nerdy distributors.

The community creator

Community-driven distributors like building groups that are centred around common values, interests, and life aspirations. We know that community building is an important aspect of direct selling as a business model. Without thorough networking, and establishing a long chain of connections, it will be unviable and very unprofitable in the long run. These distributors follow this idea to the T. Well, rightly so because customers prefer interacting with distributors who can establish an authentic relation with them and are able to find a balance between professional and informal communication. You will notice that these community centric groups are the ones that succeed at teamwork, perform better than other downlines, and are more efficient in their processes.

The partnership nurturer

History is proof that alliances are extremely important where there is trade. On similar lines, distributors often take alliance building very seriously. They hugely prioritize forming alliances more than traditional recruitment and other tasks. Their favorite thing to do is identify complimentary service providers, wellness practitioners, business/life coaches, and other businesspeople to build mutually beneficial referral channels. Distributors also work on positioning themselves as valuable mediators for relationship building among their local networks. They are the ones who will always know the right person for any job.

Their eccentricities extend to a level that even their idea of outreach is very different from your usual distributors. These community weavers always try to make a very personal connection with their customers. Instead of cold prospecting, they believe in giving proper introductions, and hosting, participating in regular networking events. Hire distributors with a talent for alliance building and see your conversion rates improve from the first day.

The semi-professional distributors

Direct selling is a lucrative part-time hustle to earn some extra money. But the “semi-professional” distributors are real pros at mixing their direct selling career with their full-time jobs. For example, distributors working in the healthcare industry. Many healthcare professionals integrate wellness products into their practice recommendations or service offerings. This integration builds product and brand authenticity and increases the customers’ trust in the brand since the recommendations come from reliable and qualified sources. Hybrid distributors follow the principle of credibility transfer. Basically, they are believers of the strategy that when direct selling aligns with expertise, it creates authentic sales opportunities.

The social activist

Like community-centric distributors we talked about before, these purpose-driven marketers also find common interests in creating their communities. Unlike the latter, these distributors build communities around social causes, passion projects, personal development, and environmental issues to position their products. They engage with their customers through associating their products with a social impact, change or an emotional bond.

The some-timers

Like we said, direct selling is a side hustle for more than half of the workforce. However, there is a difference between doing it part-time, and working part-time, sometimes. While onboarding distributors you will often come across candidates who will be enthusiastic about the work on the first day (maybe also the second day), but then their erratic work pattern will emerge. You will only catch sight of them maybe once a week or even less. Beware of such distributors; they ruin the sales processes and revenue flow of the entire downline!

The dependent types

No business likes to hire candidates who cannot take the initiative and are a burden to their teams. So why start now? Distributors often expect their downline to work on the sales and rely solely on their earnings. They hardly put in any effort towards their own sales targets but push their teams to overcompensate for the gap created by themselves.

Do you feel that you might have hired some dependent distributors, but don’t know how to identify them? Your operations need the support of an MLM software, to keep track of all your distributors’ performance metrics and more.

What is the need for diversity in distributor hiring?

Customers want personalized solutioning. And you can only satisfy this by building a team with different skills and strengths.

Each distributor brings a unique way of selling, connecting, and closing deals on the table. If you are an MLM business owner, you would know this helps you cover more of your target market. Customers have different buying triggers, so if your team looks, thinks, and sells the same way, you’ll eventually hit a dead end. Having a mix of distributor types makes sure you don’t.

Diversity adds strength to your MLM structure. A team member can underperform due to market shifts or platform changes. Other distributors can cover for them in stressful situations without affecting the company's sales and profits.

Tech for MLM teams

Here are a few new technologies distributors should use. This will make their MLM life more efficient.

1. Artificial intelligence:

AI tools are used for caption generation, auto-reply to messages, analyze sales patterns, and personalize customer interaction. You can take this a step further. Use MLM software platforms that come with integrated AI tools.

2. Ecommerce:

Direct sales also an online sport now. You can build a full-stack online storefront on Instagram with in-app checkouts, shoppable stories, and creator collaborations.

3. Compliance:

Country laws are stern on compliance for direct selling. To be a meticulous MLM company you can invest in the below mentioned:

Better onboarding

Smart contracts

Transparent commission tracking

KYC integrations

Conclusion

Direct selling companies need a team that can add value, versatility, and voice to the brand. Obviously, this is what customers mostly react to. If you are looking for this, you need a team that is more interactive and inventive. In other words, if you aspire for a team that works out of the box, you need to redo your hiring strategy and probably your processes.

Our suggestion? Revamp your operations and team structure with a MLM platform first.