It’s 2024, and let me tell you, we’re swimming in an ocean of data and AI advancements. As someone who likes to keep things simple and actionable, I’m both awed and a bit overwhelmed by it all. What’s crucial, I’ve found, is to cut through the clutter and focus on the metrics that really matter. It’s easy to get lost in data, but why complicate things when you can streamline your focus?

So, let’s dive into what I believe are the key numbers to watch in 2024 for anyone in the direct selling business. My business partner, Alan Luce of Strategic Choice Partners, once shared a golden piece of advice: if you had to choose just one number to gauge the health of your direct selling venture, keep an eye on your paid-as leaders. It’s not just about how many Consultants reach a certain rank; it’s about how many are actively performing at those levels every month. This single metric, surprisingly, tends to encapsulate the broader trends in your revenue and recruitment, and even the overall vibe in the field. There’s nothing quite like promotions and rank achievements to get people buzzing.

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Here’s my take: if you’re not already tracking paid-as leaders each pay period as part of your core KPIs, it’s high time you started.

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This post summarizes a recent article Brett Duncan wrote for WorldOfDirectSelling.com. Be sure to read the full article here →

Over the past few years, as I’ve worked with various clients, I’ve developed a liking for a few under-the-radar metrics that, in my opinion, pack a bigger punch than many of the more commonly tracked ones. Sure, it’s important to keep tabs on revenue, new customer acquisition, order counts, and so on. But sometimes, these figures only show a slice of the bigger picture. When you start digging into the ‘why’ behind recruiting or the significance of new customers, you uncover more insightful, impactful numbers.

 

So here’s my list of three crucial metrics every direct selling company should be diligently tracking in 2024 and beyond:

1. Consultants Who Sold to a Customer: We all know recruiting new Consultants is vital, but let’s get to the heart of it. Why is it so important? It’s simple – consultants are meant to sell to customers. This is customer acquisition through multiplication, not just addition. However, not every Consultant makes a sale every month, or even every year. But those who do? They’re gold. Start tracking how many Consultants make at least one sale a month. Some companies call these ‘Active’ Consultants. Whatever the label, figure out your baseline and then strategize to boost this number. Trust me, focusing on multiplication over addition is a game-changer.
2. Consultants Who Sponsored Another Consultant: Just as we track sales, we need to keep an eye on how many Consultants are bringing in more Consultants. This number is generally lower than the selling figures, and rightly so. But it’s a crucial indicator of your true producers. Consider tracking this both monthly and quarterly, and look beyond mere sign-ups to actual productive activity.
3. Number of Customers Who Placed Their Second Order: In the grand scheme of things, customer acquisition often overshadows the importance of retention. But what does a single order truly achieve? We need to turn first-time buyers into repeat customers. I’ve seen firsthand how boosting second-order rates can lead to significant revenue jumps. You’ll be amazed at how this metric can reshape your sales and marketing efforts.

THE FULL ARTICLE

 

So, where do you start with these metrics?

First, figure out how to track them. Backdate them to 2023 for a baseline comparison. Then, carve out 30 minutes each month to review and strategize improvements for 2024.

Need help pulling this actionable data together? We can help! We work hand-in-hand with direct selling companies of every size to create a more advanced KPI culture. Contact us and let us help you, too.

Read the original article in its entirety at WorldOfDirectSelling.com.