Increase Retention In Your MLM Business

Today, I want to teach you some tips on how to increase retention 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 “plugged in” and “using the products” you will have a revolving door in your business.

Please know upfront that most MLM Companies have horrible retention rates.

Don’t let that scare you though.

All jobs in the sales profession have high turnover.

Just ask any insurance broker, sales manager, or real estate broker and they will tell you the same thing.

Even though you will lose “some” people you will still retain plenty of quality people.

As a network marketing leader, your job is to minimize attrition in your organization as much as possible.

You won’t be able to stop it completely, but you can minimize it.

By following the tips mentioned below, you should be able to do that.

retentionPlease keep in mind that these tips are my personal views based upon my twelve years of personal experience in the network marketing industry.

Tip # 1: Build  a Strong Relationship with Everyone On Your Team

My first and most important tip is to focus on building a healthy relationship with each person that you personally sponsor and with each serious person in your organization.

Take the person out to lunch if they are local and get to know them.

If they live far away spend some time on the phone or SKYPE with them.

You want to start building a strong bond with them as quickly as possible.

Remember, this industry is all about relationships.

If you can get your team to know you, like you and trust you, there’s a much better chance they will stick around, even if they aren’t getting great results in their business.

It’s hard to quit on someone you trust, like and respect.

Tip # 2: Give Them 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.

Your network marketing business is no different.

You need a system to plug your people in to.

Your system should provide the training they need to start generating leads, find customers and sponsor distributors.

You could create a simple “getting started” manual and give each new distributor a copy of it.

Or, you could create a training website for your team members.

You need to remember that most people getting involved in your business have never owned a business before.

They’ve never been paid on commission.

Most of this is new to them.

They will be excited for 30 to 90 days regardless of what you do, but after that you need some type of system to help them succeed.

Otherwise, they will struggle and then quit.

Tip # 3: Get Them Started Right

You need to help your team get started right.

That means you help them set some goals for their business.

You must find out their WHY.

You need to get them signed up on auto-ship, get them listening to the company conference calls each week and you help them with their name list.

Plug them into your training and then you help them with some of their three-ways calls.

You answer their basic questions.

If possible, you even conduct a couple in-home meetings for them (if they are local).

The sooner you can help them achieve success (sponsor a few people and get a few customers) the better off you will be.

Whatever you do, don’t sponsor them and then forget all about them.

Other Posts You Might Enjoy:

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  3. Brand New MLM Distributor: 10 Things Every New Network Marketing Rep Should Know
  4. Focus On the People Who Stay On Your MLM Team
  5. Focus On the Big Picture in Your MLM Business

Tip # 4: Match Their Efforts

People will fool you.

Some people talk a big game and then do nothing.

And other people don’t say much, but will blow up the business.

Your key to success as a sponsor is to match people’s efforts.

Look for people who are actually doing the work and then work with them personally (if they want you to).

If you see someone in your organization sponsoring lots of people and getting lots of customers, ask if they need your help or support.

Base who you work with off their actions, not what they say they are going to do.

Learn more about who to work with on your MLM Team.

Tip # 5: Get Them Using the Products Right Away

The sooner you get everyone on your team using the products, the better off you will be.

Most distributors never even place an initial order.

Can you believe that?

You want people on auto-ship and using the products from day one.

When people use the products they build their story.

They might even fall in love with the products and keep using them whether they build a business or not.

And that is what you want to happen.

You can have a team of 10k people, but if no one is ordering the products, you won’t make anything.

Never forget that.

You get paid to create volume.

Tip # 6: Get Them Making Money Quickly

The sooner you can help people make money, the better.

Like I mentioned earlier, anyone can stay excited for 30 to 90 days.

After that, if they haven’t made any money 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.

And if you can help the bottom most person in a group make a check, it will help motivate everyone above them.

Tip # 7: Work in Depth

One of the best tips I can give you is to spend most of your time 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 lowest level in your organization.

Width will bring you profitability, but depth will bring you riches AND security.

If you want to increase the retention in your MLM business, help the person at the bottom of the organization.

Tip # 8: Have Realistic Expectations

My final tip is to have realistic expectations about your MLM business.

Most Americans (and people) quit everything they do.

They quit marriages.

They quit friendships.

And, they quit diets.

What makes you think they won’t quit MLM?

It’s just the American way.

Your goal is to teach, train and support everyone and to work with the people doing the work.

Ultimately, you can’t control who does what.  

You can give everyone the resources they need to succeed and then look for the people who actually follow your lead.

In most groups, 50% or more of your team will quit every year.

Here’s a few other things to make a note of.

About one in every thirty people you sponsor will be a rock star.

About one in every one hundred will build a six figure business.

Eighty to ninety percent of your income will come from one or two people on your team.

These are just some things you should know upfront.

Final Thoughts

In my opinion, these are the eight best ways to increase retention in your MLM business.

Of course, many people will still drop out, regardless of what you do.

But if you can get people using the products, get them plugged into a system, and help them get started the right way, there’s a good chance you can keep most of them on your team for the long haul.

What are your thoughts?

What are your best tips to increase the retention in your MLM Business?

And, what do you do to keep people on your team?

Just leave a comment 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.

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25 thoughts on “Increase Retention In Your MLM Business

  1. Britanica

    Amazing tips and some I really didn’t consider. A team is as strong as their weakest player so there is a lot of truth in everything mentioned above. When you aren’t working on the same level as your team they will fall behind which will only hold you back.

    Reply
  2. Greg Boudonck

    If a person follows all the tips you provided here Chuck, retention rates will most likely be lower. The most important thing is to not allow quitters to control your attitude. As has been stated here multiple times, network marketing is notorious for having doors that are always swinging. If we let the swinging doors to control our attitude, there is a good chance we will become the quitters.

    Thanks for the great tips Chuck.

    Reply
  3. Jay

    Retention is a big problem for everyone in this industry. Sometimes it feels like all the forces are working against you!

    Reply
  4. Gary

    If you want better retention, get people making money right away. That is really the ONLY thing that will keep people around. At most you have 60 to 90 days to keep someone’s interest and help them get started. Otherwise they will quit.

    Reply
      1. Herman

        No matter what you do people are going to quit. Most people don’t have the vision, discipline, persistence or work ethic to succeed in a business. It has nothing to do with MLM, either. People quit everything in life, so don’t expect them to stick around in your business very long. You’re really just looking for a few key people.

        Reply
  5. Matt

    If you want to increase retention in your team, help your people make money right away. That is the only way you can get people to stick around. Help your newest distributors find 3-5 retail customers and then help them sponsor 1-2 distributors. After you do that, start working in depth as quickly as possible and light a fire in the basement of their organization. That is what I try to do with all my new distributors.

    Reply
  6. Alexis

    Great article, Chuck. One of the best things I do to keep the retention up in my business is to get people ordering the products. If I can do that, I know that many of them will fall in love with the products and keep ordering them, whether they build a business or not.

    Alexis

    Reply
    1. Amy Skalicky

      Alexis, this is one principle Quixtar (Amway) used when I was involved with them as well. If the distributors are not using the products, they are missing out on firsthand product knowledge, which is irreplaceable. Plus, honest enthusiasm and personal stories of use and results are great sales tools and are valuable in providing honest information to the customer. I can also see where this would keep the distributor more engaged in his business.

      Reply
    2. chuckholmes Post author

      That’s a great tip strategy, Alexis. There are few things I am more passionate about than getting my team members using the products. Not only does it create volume, but if the products are good there is a good chance the distributor will become a loyal product user, even if they never decide to build a business. Retention is always higher when people use and love the company’s products.

      Reply
  7. Abe

    I think the best way to improve retention in your MLM group is to have standardized training. You need a training plan in place that people can plug in to right from day one. You need a training manual, action guide or a training website that distributors can reference and know what steps they need to follow to achieve success. Of course, not everyone will follow this guide or do what you recommend, but you still need it!

    Reply
    1. chuckholmes Post author

      I couldn’t agree more, Abe. Having a standardized training guide or system in place can really help out your team out. Some people will still quit, but you can reduce those numbers by training people, right from the beginning.

      Chuck

      Reply
  8. Amy Skalicky

    I totally agree with building relationships being most important, with solid training and consistent support a close second. Help them problem-solve to get over humps, and encourage them. Also help them keep it real. I think that unrealistic expectations is a significant factor in many failures. I really liked your point, Chuck, about matching their efforts. You cannot work harder than they do at their success, and enabling poor work habits or lack of commitment only makes it worse. If there is no ownership and accountability, there is no success.

    Reply
  9. Lucy

    Here are some things we do to increase retention on our MLM team.

    1. Host a weekly training call
    2. Host a weekly motivational call
    3. Get people to events
    4. Get people on auto-ship
    5. Help new distributors sponsor someone their first week in the business
    6. Work in depth as quickly as possible
    7. Help people earn a bonus check as quickly as possible
    8. Get people to set goals on paper
    9. Get people plugged in to their upline
    10. Make things fun

    Of course, you’ll never retain everyone, but all of these things do help out.

    Reply
  10. James B

    I had no idea the numbers for MLM retention were so bad. If half your workforce is disappearing every year, how do you manage to keep your MLM business up and operating in the first place? This seems like just another entry in the long list of reasons why constantly generating leads is a necessity to success.

    Reply
    1. chuckholmes Post author

      Retention is bad in the MLM industry, but it’s also bad with many employers. The lifeblood of your MLM Business is the new person. You have to always work with the newest people in the bottom part of your organization. That keeps everyone up the chain motivated and helps improve retention.

      Chuck

      Reply
  11. Diamond Grant

    I can see why you said your first tip is the most important tip. Building relationships with those on your team is essential for the overall success of the business. People involved in the business need to feel significant and valued. Taking the time to get to know those within the organization and those you sponsor will demonstrate that you indeed value them as individuals and that you desire to get to know them so that you can have a close professional relationship. This will build trust and respect between you all that is always a benefit in the business world.

    Reply
    1. chuckholmes Post author

      Building relationships is important in every business, especially network marketing. People like to do business with people they know, like and trust.

      Chuck

      Reply

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