Today, I want to talk 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. I hope to fix that.
Talk to any successful person in the network marketing industry and they have a revolving door in their business. If they put 10 people new in 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
- Job or broke mindset
- Poor training
- Lack of discipline
- No financial “skin” in the game
While this 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.
That being said, there are a FEW things you can do to improve your team’s retention rates, 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 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 might help a little bit.
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 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 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. 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.
Is MLM Still a Good Business Model?
Despite the high attrition, I still believe that network marketing is a good business model. Yes, there is a Revolving Door in our industry, but there is a Revolving Door in MOST businesses. According to many online statistics, nearly 9 in 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 a 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 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”. That is the key to success in our great industry.
- How I Raised Myself from Failure to Success in Selling
- Your Best Year in Network Marketing
- The Secret by Rhonda Byrne
What are your thoughts about the MLM Revolving Door Syndrome? What has your experience been like in your own business? Leave a comment below to let me know what you think. I look forward to hearing from you.