Today, I want to talk to you about the MLM Revolving Door Syndrome. This is an issue that plagues our industry. Very few leaders ever talk about it with their team members because it makes people uncomfortable. I hope to fix that.
Talk to any successful person in the network marketing industry and they have a revolving door in their business. It doesn’t matter what company they work with. If 10 people join their business this month, 6 to 8 of those people 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. It’s true, this is a business of attrition.
Why People Quit MLM
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
- Employee mindset
- Inability to focus
- Poor training
- Lack of discipline
- No financial “skin” in the game
While the high attrition rate might scare some folks off, it’s important to realize that MOST people quit everything they do. Most people give up on their marriages, their diets, their dreams, etc. Most people who buy a gym membership never even GO to the gym once. We are a society of quitters.
How to Minimize the MLM Revolving Door Syndrome
In most cases, there isn’t much you can do to keep people from quitting your business. If someone is determined to quit, they will.
My former mentor once told me this:
If you’re looking for a reason to quit, you will find one. If you’re looking for a reason to stay, you will find one. You find what you are looking for. Choose wisely.
That being said, there are a FEW things you can do to minimize the MLM Revolving Door Syndrome in your team.
You can build depth, provide weekly training calls, sponsor quality people, and work closely with each of your team members. You can help your team members 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 will help reduce some attrition.
By taprooting your new rep, and starting to build a team under them, you now give them something to lose. Since fear of loss is the greatest motivator, this is quite perhaps the smartest thing you can do to minimize or stop the MLM Revolving Door Syndrome.
Your # 1 goal when sponsoring a new rep is to help them get someone signed up. Once that person joins, you go and work with them directly and help them do the same thing. You repeat this process over and over in depth UNTIL you find a quality person who is hungry, coachable and willing to work. The deeper you drive each leg, the better retention you will have in your business.
Get Started Right
It’s vital that you help your new rep get started right. It’s 100x better to start right than start over. This means you put them through some type of standardized “getting started training.” You want them to launch their business rather than start their business.
Help them make their name’s list. Schedule a launch meeting or private business reception with them and teach them how to invite their prospects.
Ideally, you want to help your new rep, or any other team member, make a sale or sponsor someone right out the gate. Not only does this build up their belief, but it also helps them earn a quick check. It’s true, you only have about 7-10 days for your new rep to lose their excitement and mentally check out. The quicker they experience some type of “win” in the business, the better.
Get Folks on Auto-Ship
By getting your folks signed up on auto-ship, they will start using your company’s products. Assuming your company’s products are good, and priced fairly, many people will keep ordering the products, even if they stop doing the business.
Chances are there that an intelligent and diligent network marketer can triumph even with the worst program and with bad compensation plans. But an unskilled and scatterbrain marketer can’t gain success in his endeavor even if he has the best program in his sack! ~ StreetDirectory.com
The Most Important Thing
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 network marketing business. I’ve talked about it time and time again on this website and I think it holds true.
I think the BEST thing you can do in your business is focus on finding customers and product users. Rather than selling the dream of building a large residual income, lead with the PRODUCTS. Find people who are passionate about the company’s 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. In fact, this is the future of network marketing!
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 quickly, but the customers will stick around much longer (typically). 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, because they are (1) not entrepreneurial or (2) they have preconceived notions about our industry. However, if you talk to those same folks about a product line or service that can HELP them solve a problem they are having, you will get a much higher conversion rate. Just something to think about.
Is MLM Still a Good Business Model?
Despite the high attrition, I still believe that network marketing is a great business model. Yes, there is the MLM Revolving Door Syndrome, but there is a revolving door in MOST businesses. According to many online statistics, nearly 9 out of 10 businesses fail in every industry.
Most realtors fails. Most salespeople fail. Most insurance agents fail. Most diets fail. Most marriages fail. Most mom and pop businesses fail. Most businesses have high employee turnover. Most people die broke.
Drive through your own home town and look at all the vacant buildings and closed down businesses. How many businesses that are there today were there five years ago? Chances are, most of the businesses you see today will also be gone in the next five years.
I could go on and on here, but failure is very common in life. Just because something has a high failure rate doesn’t mean it’s bad.
My Experience Selling Life Insurance
I spent a short time working as a life insurance agent. If you think that network marketing 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 one or two of these folks would still be left! Everyone else had quit and went off looking for a JOB. Yet, no one calls the life insurance industry a scam!
One Last Thing
Here’s something that can save you a lot of time and frustration. Expect people to quit. Hope that everyone will stay, and build it big, but expect that everyone you sponsor will do nothing and quit. That way you don’t get disappointed.
Also, don’t believe ANYTHING anyone on your team tells you they are going to do with their business. Instead, watch the feet, not the lips. Watch what people do. After all, talk is cheap and actions speak much louder than words.
The beauty of our industry is you can still build a big income, EVEN IF most people quit. Your job is to work the numbers, work with the willing, and find a few key people who “get it”. You only need a few who “get it” to build a large six figure income.
That is the key to success in our great industry. Now you know!
What are your thoughts about the MLM Revolving Door Syndrome? Do you agree or disagree with what I wrote? What has your experience been like in your own network marketing business? Leave a comment below to let me know what you think. I look forward to hearing from you.