One of the biggest challenges in sustaining a successful network marketing business is the ‘leaky bucket’ syndrome.
MLM Attrition is the Biggest Problem Facing Your Business
When it comes to paychecks, attrition can sometimes cause them to shrink faster than you can sponsor new people into your business.
People click off of autoship when they decide they have been working for too long without a payoff. Sometimes this happens in only months, sometimes a few years.
Was the hype to big? Were their expectations too lofty? Were they promised an easy time of things, just make a list of family and friends? Did they not attend enough meetings; was it a lack of effort?
Maybe the next better product came along, or the hype wore off. Maybe the huge tidal wave of a pre-launch couldn’t be sustained, and the tide is simply returning.
And it may be true that some people join simply to buy product at cheaper prices.
It could be any of those things, but sometimes people simply underestimate the skill set needed to be successful in this industry.
But there are things that would reduce attrition and attract retention.
First, the company itself can mean the difference between a 98% attrition rate and a 98% retention rate.
A company that has
- a steady growth rate for more than a year,
- reasonably priced (and excellent) products to encourage volume for customer sales,
- encourages online sales and marketing (without charging for their website),
- pays extremely well, with a larger percentages of profits paid to the largest percentage of distributors,
is key to avoiding attrition.
—- But what if a company paid a 67% residual income, based entirely on sales volume in addition to a 30% first order commission?
—- What if there was low $50 autoship, along with a $20 enrollment (making it easier for startup)
—- What if it had product that everyone could benefit from?
—- What if this company had absolutely no debt, and owned its own 400,000 sq ft manufacturing plant that produced for over 40 existing MLM companies in addition to Walmart, GNC, Vitamin Shoppe and Costco?
—- And a unilevel plan with placement options that paid 9 levels deep along with matching bonuses?
When I took a look at this I was completely skeptical, but I think you’ll be curious to say the least enough to check out this video overview of SISEL International.
This is not a plan limited to the 2% of heavy hitters out there, but ELIMINATES the HUGE retention problems facing this industry today.
But when you have a team that is able to make money in their first couple of months in a company, and you give them a free, simple, duplicatable marketing and training system with which they can be part of a supportive and knowledgeable team full of industry leaders and full time network marketing professionals,
…..your attrition is replaced by retention.
When you have a team of leaders available for support and guidance, actively engaged in weekly trainings, calls and webinars, your team is much less likely to leave your team and just click off autoship.
Then you can finally begin to see how you can take those months off while your business continues to grow, and you are not having to meet leadership requirements to maintain your paycheck, but can leverage the work you have done.
That is how network marketing should work.
And, unless you like building it over and over again, building lasting relationships and having a solid company with excellent consumable products are the only things worth working for that can get you that coveted royalty income.
On that you can hang your retirement dreams!
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HI Vicki, I saw your link on twitter and popped on over. Thanks for a great post. What company are you in now? I am in Shaklee and it meets all the requirements you list. I have been in several others too, but only one to build a business – the others I joined as a wholesale customer. Thanks for your insights. I love learning. blessings, amy
Amy Hagerup´s last [type] ..9 Signs of Inadequate Nutrition – Part 1
Hi Amy!
Thanks for stopping by, great to see you again! I’m with LifeVantage now as my primary company, and Numis Network secondly having had a very close look at each in two non-competing industries. Some people just aren’t interested in nutritional companies but for me it is a no-brainer, especially with a product like Protandim! Building a business in this case is a breeze, and I’m loving it!
I thank you again for your time here, hope to see you again soon!
Wishing You Fabulous Success,
A question for you: how do you get the categories on the left side to list all of your articles? I would like to do that too. My email is amy@hagerup.org. Thanks.
Amy Hagerup´s last [type] ..9 Signs of Inadequate Nutrition – Part 1
“it could be any of those things, but sometimes people simply underestimate the skill set needed to be successful in this industry.”
Never a truer word spoken.. I think that the 1 key thing that makes a difference when it comes to success is support.. Specifically its the frequency of support- no good to be waiting on emails for days – you need live chat and a response rate of a few hours on emails to really drive success.. My view..
Thanks John, glad you like the post. Definitely support is a crucial element for success!
Hi Vicky – I followed to your website from Twitter (I follow you there also!). So just came to have a look around and check it all out. I like all of your work on MLM businesses, so keep it up – thanks!
“encourages online sales and marketing (without charging for their website)”. I think online sales and marketing is effective nowadays since most people are using the Internet. People want to shop and buy items through the Internet because it is more convenient and easier.
Hi Viki,
Interesting post!
You says,
“And, unless you like building it over and over again, building lasting relationships and having a solid company with excellent consumable products are the only things worth working for that can get you that coveted royalty income.”
I totally agree with you. Keep it up Viki.
Thank You Maddie!
I wish you the most wonderful success!
Hello Vicki,
You have a great article and I look forward to visiting again soon. I love your opening statement: “One of the biggest challenges in sustaining a successful network marketing business is the ‘leaky bucket’ syndrome.”
Most people get involved companies with a vision of making all this money and have no idea how to market. People join people and not companies. So with that said, my opinion is that the person that recruited them was partly to blame. Unless there new affiliate has some type of system that they can use and also provide their team, failure is Inevitable. Any business MUST understand marketing. PERIOD.
When we visit someone’s blog or article we always learn something. Commenting is a viable way of showing a person you care and enjoyed your visit. The internet is like anything else in life, the more time you put into it the more you will get out of it. And most importantly always give value. What we give comes back twenty fold.
Being a successful entrepreneur on the Internet is all about giving value if you wish for that higher lofty place called the good life. The amount of money you make will come down to the value that you offer the world, and how much you help others. The advise I would give anyone getting started in this industry or if you are seasoned, is the following:
(1) Find a good mentor.
(2) Become a student of personal development and life.
(3) Always be a student no matter how successful you become.
(4) Offer as much value to the world as possible and be sure to share your strategies with others.
(5) Remember it’s a marathon and not a race.
(6) Always have FUN! Stick to the above list and you will have success.
Make today the best day of your life!
Lloyd Dobson
Lloyd Dobson´s last [type] ..How To Market Real Estate Online And Get Google Page #1
Thanks very much Lloyd! I appreciate your kind words and added value here.
Make it an awesome weekend!
Wishing you Tremendous Success,
Hi Vicki,
Let me quote this one,
“And it may be true that some people join simply to buy product at cheaper prices.”
I’m guilty of this one.
Anyway, I follow you from twitter and I found your blog very interesting. Thank you for sharing this post!
Thank you Albertina! I appreciate your support!
Thanks for the article Vicki, Many good people could have been successful in network marketing, but the leaky bucket was too much for them to overcome. Early in my career the leaky bucket nearly killed my dreams. I started and stopped a few times hopping from company to company. Finally I realized that, in addition to needing to find a solid company, I needed to become a better leader. Thanks again Vicki and I look forward to stopping by again!
Mark Alexander Walden
Mark Alexander Walden´s last [type] ..How To Beat Business Fatigue
Thank you for sharing your experience Mark! It’s something that I think all network marketers struggle with, but if we continue leading by example and never giving up then success is definitely ours in the end; the more people we help, the more we get in return.
Wishing You Tremendous Success!