Underestimated value of sales data and analytics in Network Marketing

Did you know that just 5% of Network Marketing companies (top 35) hold 41% of the market share. We talked to 80% of the top players and learned that no one of them is making their business decision based on data.

5% of Network Marketing companies (top 35) hold 41% of the market share.

At the same time the World is booming about data and data driven decision making.

Why did this happen? And how to deal with that?

As any complex problem, this one has not the only reason behind. Let’s focus on sales data because Direct Sales is all about sales of course. There are at least 3 reasons:

Hard to get the sales data

Honestly speaking, it’s not easy in Network Marketing to get sales data. This is because all the sales are doing by independent business owners (field). The key is that the field feels themself as an independent people, but top managers in Network Marketing want them as a hired sales force (employee). It means there is always a gap between the field and management. By nature.

The field feels themself as an independent people, but top managers in Network Marketing want them as a hired sales force (employee). It means there is always a gap between the field and management. By nature.

Everybody knows it, but not everyone wants to admit it.

Funnel? Not really!

Since, the field is independent, how to manage them? How does an enterprise organisation do it with employees? They put all the sales in the funnel in CRM. That’s right! But all of the Direct Sales companies we know who tried -- they failed because of the CRM nature
Hence, this is the first problem. And let’s say there is a solution like Cotano which provides not a CRM experience for the field, but much better sales results growing revenue in 4 months.
But what about funnel and the field understanding of it? Right, this is a second problem.

Field sales are not professional salespeople

To overcome this myth we would recommend trying a small project (use lean approach) with a small amount of budget ($2-3K) and A/B test it with your existing or potential solution. Important! use business metrics like revenue, conversion rate, data precision to measure success.

Funnel doesn’t help to get money quickly as filed sales expects from any tools

It means that nowadays we need to provide them not a “funnel” as an approach (or brochure) to recruit or retain their people. We must provide them a quick win. Let’s see below how this is possible.

There was no need for data before...

Maple Growth Partners made a research showing how top Network Marketing companies like Herbalife “Pop (in 90s) and Drop (in 2000)”. Obviously when the company and industry itself is growing like crazy 2.5x each year on a scale of billions you should care nothing about except the growth maintenance and sustainability...


But now… this is not just a need. Data is a way of survival

History shows us that it was not done enough by Direct Sales companies to sustain their growth. So, what did they miss?
Let’s see what happened in 2000. At the same time technology & digital companies started to grow. And this time the growth is sustainable:


You might be surprised, but one of the secrets behind is a data driven and analytics-focused approach. shared the story about Jeff Bezos addiction to the data.

That’s why Avon grew their stock price 3x time (before being sold to Natura). How did they do it? Not the only reason, but the top -- they focused on digitalisation. Digitalisation is the first step to let you analyse the data.

What to do with that?

It was a kind of trend that appeared to “focus on digitalisation” and more over “AI”, but what does this mean for sales and revenue growth?

If you don’t use AI, are you still alive?

Honestly, it means nothing without a clear action plan with simple steps that are clear for everybody from the very top management and the field sales.

We offer a clear and concise step. Here they are.

Learn from a trusted source

There are few options to learn based on personal/organization preference:● Read books like Lean Analytics.● Sign up for a webinar.● Book a 30 mins free consulting call with 15 years experts in digital & data. There are two founders to talk about it.


Tech and strong analytical skills made from top physics and mathematical contests and competitions in the World. Yet 10 years ago he developed a financially successful CRM from scratch.
Book a call.


Business & technology unite knowledge based 10 years in Enterprises dealing with CRM and digitalisation experience. 15 years in IT. Helped enterprises like eBay, Nestle, Oriflame, and other top Direct Sales companies.
Book a call.

Define 3-4 Key Results / KPIs you need

First, you need to craft the Dashboard. Pick 4 metric pairs ideally, but no more than 10. Remember, improves only what tracks. 

Improves only what tracks.

YC School

Why pairs? It’s important to keep track of qualitative and quantitative metrics which are complementary. For example, if you focus your sales attention on Conversion Rate then eventually you’ll see a decline in communications (message sent). Hence, if you set as a pair Messages Sent (e.g. WhatsApp, SMS) - you’ll find a balance.

Find a platform to gather & analyse this data

This is the most challenging one. 12% of revenue companies lost due to bad data. You see how important it is.
The best way to tackle this is to hire a sales solution for a 3-6 month pilot with a very limited budget which lets the company minimise the risk today, but invest in the future when the pilot will become successful.
Cotano’s solution is a good example which is able to show results in 4 months because we commit to bring results in the pilot. So, the KPIs & Key Results you defined in the previous section will become ours! We’ll do our job to complete these metrics and bring the most processed data -- this will prove ROI in 2-4 months.