Today, I want to share some valuable information about how to increase retention in your MLM Business.
I personally believe that RETAINING your team is much more important than being a good recruiter. If you don’t know how to keep people “in the business” you will have a revolving door in your team. Your real goal is to get them in, keep them in and move them along.
Please know upfront that most MLM Companies have horrible retention rates. In most cases, 50 to 80 percent of your team will quit each year, regardless of what you do to help them.
Don’t let that scare you though. All jobs in the “selling” profession have high turnover. Just ask any insurance broker, sales manager, or real estate broker and they will tell you the exact same thing.
The same holds true with small businesses. Just drive through your local community and look at all the closed down businesses. Most businesses don’t survive the first year, even if they have a ton of money invested in the business.
In addition, many traditional businesses have high attrition with customers and employees. There are tons of factors that can affect these things.
When it comes to network marketing, most people will quit, but some will stay. You can still build a huge business, even with a low retention rate. As a network marketing leader, your job is to minimize attrition in your organization as much as possible, and to keep recruiting new people. You won’t be able to stop attrition completely, but you can minimize it.
8 Tips to Increase Retention in Your MLM Business
By following the tips mentioned below, you should be able to increase retention in your MLM business. Please keep in mind that these tips are my personal views based upon my fifteen years of experience in the network marketing industry. Individual results will vary.
Tip # 1: Help Your Team Members Launch Their Business Properly
My most important tip about how to increase retention in your MLM Business is to help your new business partners launch their business properly. Sadly, most people who join our industry never get started right.
It’s important that you help your people make their name list, schedule their first two Private Business Receptions, and contact their 20 best prospects right away. You have about 72 hours to do this before most people lose their excitement and drop out.
Most distributors never do any of these things. Basically, they sign their name to the distributor agreement and just kind of dabble. You need to make “launching new distributors” a top priority in your business, or all your time spent recruiting them will be time wasted.
When you launch someone the right way, they sign up a couple new distributors, get a quick check, and see “proof” that the business works. This helps keep them in the business.
Tip # 2: Provide a System
Systems are the key to success in any business. Businesses like McDonald’s and Subway work because they have a good system in place. They are system dependent, not people dependent.
Your network marketing business is no different. You need a system your people can follow, especially new people. Your system should provide the training and motivation they need to start generating leads, find customers and sponsor new distributors.
You need to realize that most people joining your team have never owned a business before, they don’t have any sales or marketing experience, and they’re scared to fail. You have a lot to overcome.
You must tell your people what to do. They need to know exactly what to do or they will do nothing.
Tip # 3: Get People to Events
One of the best ways to increase retention in your MLM Business is to promote events. Attend every event yourself and promote every event like your business success depends upon it. It does.
The more people you get to attend your company’s events, the more your business will grow. Events provide social proof. Events are where people build up their belief in the business and make the decision to build it big.
Have local events. Do a weekly call. Get together with your team a few times each year and have fun. Encourage everyone to attend the regional and national events your company offers.
Other Posts You Might Enjoy:
- Results of Sponsoring 100 MLM Distributors
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- Focus On the People Who Stay On Your MLM Team
- Focus On the Big Picture in Your MLM Business
Tip # 4: Personal Development
It’s vital that you get your team members working on their personal development. You want them reading books, listening to tapes, attending events, counseling with a mentor, and doing whatever they can to improve themselves.
The more people grow, the better they will do in the business. This is really a personal development business with a product.
Most people have so many challenges to overcome before they can succeed in the business. We have to help people overcome their doubts, fears and self-limiting beliefs. The only way to do that is through personal development.
This one thing is what has helped me the most in this industry. I suggest you work on your own personal development and encourage everyone on your team to do the same thing.
Tip # 5: Get Them Using the Products Right Away
You want people to have a positive product experience as quickly as possible, preferably their first week in the business.
Get people signed up on auto-ship and using all of the company’s products. This will help give them a product experience and build up their belief in the products.
Assuming the company’s products are good, many people will stay on as wholesale customers, even if they have a change of heart about building a business.
When you look in most organizations, you will see a large majority of the distributors simply order the products each month, but don’t build a business.
This is why it’s so important to find a company with great products.
Tip # 6: Help People Get a Check Quickly
The sooner you can help people make money, the better.
Like I mentioned earlier, anyone can stay excited about the business for 30 to 90 days. After that, if they haven’t made any money in the business yet there’s a good chance they will fizzle out and quit.
If you can help someone build a small team and earn any type of check (any amount) they will be more motivated to stay, because of the fear of loss.
When you first sign someone up, help them sponsor their first distributor and find their first customer within their first 24 to 72 hours in the business. This will get people excited and give them “proof” that the business works.
Tip # 7: Work in Depth
One of the best tips I can give you is to spend most of your time working in depth. After you have some people sponsored, start helping them build a team. Always work at the bottom most point of your organization.
Light a fire in the basement and watch everyone above them get motivated. Always work with the newest distributors at the deepest level in your organization.
Width will bring you profitability, but depth will bring you long-term security. If you want to increase the retention in your MLM business, help the person at the bottom of the organization.
This is known as tap-rooting or driving lines.
Tip # 8: Have Realistic Expectations
My final tip is to have realistic expectations about your MLM business.
Most businesses in the real world take a couple years just to make a penny of profit and five or more years to be established and have a steady, predictable cash flow. MLM is no different.
Next, you need to realize that you will have to invest time and money building up your skills and attitude. Switching from employee to entrepreneur is a big transition. Being a network marketing professional requires a certain skill-set. It will take most people at least three to five years to do that.
Finally, you get out what you put in. This is not the lottery. This is not about luck. Success comes down to doing a few key activities over and over for a prolonged period of time.
I think it’s vital you spend time getting your own thinking right and teaching ALL of your team members to have realistic expectations.
In conclusion, these are eight simple ways to increase retention in your MLM business. Of course, most people will still drop out of the business, regardless of what you do to support them. However, if you do the things mentioned above, you will retain more people than you would if you didn’t do these things.
Remember this, even retaining 5 to 10 percent more of your team than you normally would can have a HUGE positive impact on your bonus check.
What are your thoughts? What are your best tips to increase retention in your MLM Business? What do you do to keep people on your team? Just leave a comment below to share your thoughts. I look forward to hearing from you.
Disclaimer: MLM Attrition will always be high. Even if you follow the eight tips I mentioned above, I can’t guarantee you will retain most of your distributors. Individual results will vary.