In today’s post, I would like to teach you about the 60 to 90 day rule in network marketing. It’s actually more like the 30 day rule, but I’ll be generous and call it the 60 to 90 day rule. This rule states that most of the people you bring into the business will quit within 60 to 90 days.
After spending more than 13 years in this industry, I’ve learned that most people are quitters. People quit diets, investment plans, goals, New Year’s Resolutions, marriages, and everything else in life. In fact, I know of very FEW people who actually follow through and finish what they start. How about you?
When it comes to network marketing, you have at most, 60 to 90 days before your new distributor will quit. I’m not saying everyone will quit, but I am telling you that a large majority of your team (50 to 80 percent or more) will quit in their first year, and most of those folks will quit within their first 90 days. It’s frustrating when you invest lots of your personal time and money into a new distributor to help them succeed, only to have them quit shortly thereafter.
This means you will probably have a revolving door in your network marketing business. Sure, some people will stick with you for the long haul, but these folks are a rare breed. Obviously, you can help people “stick around” longer by helping them achieve success right away, but even then there’s still a good chance they will quit.
In fact, I believe you should try to get your people started quickly and achieve success right away, so you have a small group of customers and distributors underneath them. If they have a team, they probably won’t quit (fear of losing out on that money). And if they do quit with a group under them, at least you have a team to salvage.
This “attrition” problem in network marketing is one of the reasons that lots of successful distributors have left the industry to find other ways to make money. One of the most popular new business models is the top tier MLM programs, where you can earn $1k to $5k (or more) for each person that you recruit.
I’ve considered doing this business model myself, even though I still love MLM. In fact, I do both business models. With the constant attrition, it can be very difficult to earn a large income in MLM, let alone a residual income. Some people will tell you that it’s better to get paid today and collect as much money as you can, as quickly as you can. That’s the major benefit of Top Tier Programs.
My Best Advice for You
When you sponsor someone new into the business, this is what I recommend you do:
1. Give them realistic expectations – As a sponsor, you need to be honest with your new people and give them realistic expectations about how much work is required to succeed and how long it takes to succeed. Don’t tell them this is fast or easy money. Don’t tell them they don’t have to do anything. Don’t tell them you will build their business for them. Make sure they know this is a two to five year plan, minimum.
2. Get a commitment – One of the best things you can do is get a minimum TWO YEAR commitment from each person you sponsor BEFORE you sponsor them. Not everyone will keep their word, but many people will. Have them put it in writing and sign a contract. This will help you minimize attrition.
3. Help them find a few customers & distributors in their first month so they get a check right away – Your goal is to help each new team member earn a check their first month in the business. Regardless of how big the check is, this will excite most people and keep them around longer. At a minimum, help people earn enough to get their products for free each month.
4. Train each person properly – Most people sign someone up and then throw them to the wolves. Don’t make the same mistake. Make sure all of your new people go through their initial training with you, give them a copy of your team training manual and get them plugged in to your meetings, events and system. You don’t have to train each person one-on-one, but you should have a training system in place they can follow.
5. Help them make a big name list – Don’t tell your people to make a name list. Help them make a name list. The more names they have on their list the greater their chances of success in the business.
6. Get in their sphere of influence as quickly as possible – Ideally, you want to start working with your new distributor’s warm market as quickly as possible. Get a copy of their name list and start making some calls yourself.
7. Get them using the products and signed up for auto-ship – One of the best things you can do is get your new person using the products and signed up for auto-ship. Assuming your company has great products (or a service) they will see a value in it and want to keep using it, even if they decide to stop doing the business a few months from now.
Doing these things won’t guarantee the person will stick around more than 60 to 90 days, but it will help your cause and improve your odds of retaining them.
Additional Insights
Before I close out this article, I want to keep things in perspective. Some of you might be thinking our industry is bad, because of the high attrition rates. I admit, it does sound bad. But when you compare it to other things in life, it’s gives you a better understanding of human nature.
1. Most people who buy a gym membership never use it even once. Of the few that do use it, most stop going within 90 days.
2. How many people give up on their marriage as soon as they face problems? Approximately half of all marriages fail.
3. Most people who start blogging do it consistently for about 90 days and then stop.
4. More than half of all people who go to college never graduate.
5. Most people quit their New Year’s Resolutions in less than a week.
6. Most people who start a new diet quit within a few days or weeks and gain back all the weight that they lost (and then some).
I could go on and on here, but the moral of the story is that most people do not have the discipline to finish what they start. That might sound harsh, but it is the truth (as I see it). Most people are naturally quitters.
Therefore, the best thing you can do is get your team started quickly and start working in depth as quickly as possible. Drive each leg of your organization as deep as possible and always work at the bottom most point of your organization.
Hopefully, this will keep everyone above them excited, so they stick around and keep building their business. And if people do quit, at least your business has the security (depth). Your other option is to promote a Top Tier MLM Program where you can earn large commissions up front, so even if people do quit you still earn a substantial immediate income.
What are your thoughts about the 60 to 90 Day Rule in network marketing? Leave a comment and let us know. I look forward to hearing from you.
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Chuck Holmes
Network Marketing Professional (21+ years)
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mrchuckholmes@gmail.com
Diamond pointed out that this is why even major companies have a 90 day probation period. It isn’t just in network marketing, people often quit what they start. I have done it and many others have. It can be for a variety of reasons, but it happens, so we should be prepared for it to happen.
I really like what you said about working in the depth. When you light a fire in the basement, it just may give those in higher places a reason not to walk away. Many still will, but you are doing what you can to keep them.
This was a great post. I would like to hear from experienced network marketers their thoughts on beating the attrition rate.
Fear of loss will always be the best motivator. Work in depth and anchor people in by helping them build a team!
This is the exact reason that many employers make new employees wait between 60 to 90 days before offering them any benefits because the attrition rate does tend to be so high. This 60 to 90 days in MLM is when I am generally able to get a good idea of who my strong team members are. Even if a person does not drop out after that time period, you can usually see who will be really invested and who is kind of just looking for the next big thing. I try to give people the benefit of the doubt, but I know realistically that many people will leave and knowing that I do what I have to in order to protect myself and my business.
It’s just part of being in the sales profession. Most people don’t make the cut.