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Let’s say a Silver Rank Producer works hard to become a Gold Rank Producer. The following month he fails to accomplish his target and he drops back to a Silver Rank Producer. This commonly results in a loss of potential income or even readjusting his quota back to square one.
Demotion may likewise happen in certain plans where individuals are qualifying or challenging a particular position in a plan where they require distributors to produce large sales volumes in a short time period.
If they fail to reach their target, they don't necessarily drop in rank but they have to establish their volume all over again. They might not lose all of their volume but retail some of it as they roll into a different month to begin qualifying again.
Downline Building Strategies
How may we use demotion to your benefit? It's often said in life that we're not pulled up to success but rather, we're lifted up to success by the individuals around us. This is even more so in network marketing as there’s no way you are able to succeed alone. You require the support of your downlines if you want to beat your quotas and get to the future rank!
You have to develop 2 really important factors within your network. Team compatibility and compensation plan education. If you or your downline is in a qualifying phase, you have to strategize with your whole team because volume needs to be produced to accomplish the target. Teach your downlines that if they support their upline now, they'll become a great upline and in future, their downlines will support them too. With everybody doing a little every day, achieving the target isn't difficult.
If you school your downline enough and they support you enough, they'll realize that you as a qualifying upline is in a challenging phase and they'll feel that your success is in their hands! They don’t wish you to fail and will work hard to help you accomplish your target (while they pull in most of the revenue because it's their sales. They're merely helping you satisfy your ‘conditions’). Utilize demotion to build the urgency in your team!
Demotion isn't a worry for the distributor is he has a big customer base. On a personal level, the only true fear demotion poses is when they quit doing maintenance or cancel their auto-ship. This only happens when the distributor is having financial struggles or isn't making cash from their business and they decide to stop purchasing products from the company.
Beginning 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 general rule to abide by: Will demotion affect the distributor in a positive way or negative way? Only you recognize your own product and your distributors.