NaXum CEO, Ben Dixon Explores Pricing Trends In Referral Marketing
Each year Ben Dixon, the NaXum CEO, compiles a list of the top trends the team has seen in the referral marketing space and shares the report with the Direct Selling Executives Forum.
Pricing Trends In Referral Marketing
“In direct sales and mlm, the old paradigm of giving your members as promoters the ‘best price’ on the product instead of the retail customer is dying. Companies everywhere are setting up pricing structures that remove ANY incentive for a regular consumer to want to become a promoter only on the basis of getting a ‘better price’ for the product.” — Ben Dixon, CEO
The New Golden Rule:
The trend seen across the board in pricing today is to allow the retail customer to have access to the same ‘best price’ that a promoter would have.
Many companies now have retail prices for one-time purchases, discounted subscription prices for retail customers subscribing and even further discounted prices that loyal retail customers can achieve based on specific rules.
Companies are moving away from creating any incentive that would move a person to want to become a promoter just to get a discounted price on products.
We also see companies continuing to charge administrative fees to the promoters to recover costs of platforms that support the promoter experience and clearly differentiate who is a retail customer versus a promoter. There is a trend favoring annual admin fees for promoters over monthly fees at this time.
To download a full copy of the 2022 Direct Selling Trends Report, download the report here.
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Ben Dixon loves referral marketing. His family found direct sales back in 2006 and had success using technology to create home-based businesses. Since 2010, Ben has focused on serving referral marketing, party plan, mlm, and direct sales companies across the globe with the technology they require to empower their passionate fans to virally grow their businesses.
To see episodes from the direct selling executives forum, visit the youtube channel.
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