Today, I want to talk about the MLM Revolving Door Syndrome. Talk to any successful person in the network marketing industry and they will tell you about the revolving door in their business. If they put 10 people new in their business this month, most will drop out within the first 90 days, and typically all but one or two of them will drop out by the end of the year.
These successful reps have to keep REPLACING reps who quit, just to maintain their business.
People quit MLM for a WIDE variety of reasons such as:
- Unrealistic expectations
- Not making money
- Not willing to work
- Wrong industry for them to do
- Job or broke mindset
- Poor training
- Lack of discipline
In most cases, there isn’t much you can do to keep people from quitting your business.
However, there are a FEW things you can do to improve your retention, somewhat. You can build depth, provide weekly training calls, try to sponsor quality people, and work closely with each of your team members. You can help your team get off to a fast start and make a profit in their first month. None of these things are a guarantee that people will stick around, but it might help a bit.
All of these things will help with the MLM Revolving Door Syndrome, but they won’t eliminate it.
That being said, there is ONE thing you can do that will really make a difference with retention in your business.
I’ve talked about it time and time again on this website and I think it holds true.
Find people who are passionate about the products who will reorder every single month, whether they ever build a business or NOT!
That is one of the best things you can do as I see it.
Personally, I would rather have 100 happy customers on my team than 100 distributors who are looking to make money fast! I know that most of the reps will fizzle out, but the customers will stick around.
Finding customers just makes sense to me. All businesses need customers.
What’s great about finding customers is it is much easier and much smarter to do.
Talk to any 100 people about a MLM Business Opportunity and most of them will head for the hills with their tail tucked between their legs. Talk to those same folks about a product line that can HELP them solve a problem and you will get a much higher conversion rate.
Just something to think about.
I still think that MLM is a good business model. Yes, there is a Revolving Door in our industry, but there is a Revolving Door in MOST businesses. Nearly 9 in 10 businesses fail in every industry.
Most realtors fails. Most sales people fail. Most insurance agents fail. Most diets fail. Most marriages fail. Most people die broke.
I could go on and on, but failure is very common in life. Just because something has a high failure rate doesn’t mean it’s bad.
I spent a short time working as a life insurance agent. If you think that MLM has a Revolving Door, you should have seen this place. The General Manager would bring in 20 to 50 new agents each month. Within a month or two, only 1-3 of these folks would still be left! Everyone else had quit and went off looking for a JOB.
Yet, no one calls that a scam!
Just food for thought.
What are your thoughts about the MLM Revolving Door Syndrome? Leave a comment below to let me know what you think. I look forward to hearing from you.