Copyright 2008, by Karen Hurd Enterprises, Inc.
Retention. It's the magic word in network marketing, maybe a more important issue than prospecting. It's the Holy Grail of network marketing. For the majority of MLM distributors, retention is elusive. High drop rates are discouraging. It's the easiest business in the world to start, and the easiest to quit.
Retaining your downline in network marketing has a significant impact on your income and your time. It costs more to sponsor a new distributor or customer than to maintain one. No one wants a revolving door business. Many, however, are resigned to the revolving door aspect of MLM. You've heard "throw mud on the wall and see what sticks". That approach is a response to the revolving door - recruit them faster than they leave in order to build big.
Retention in your downline is 5 things:
1)Who the people ARE
2)The quality of the company/service/products/comp plan
3)Your sponsoring process - based on hype and speedy sign ups, or are you looking for real business partners?
4)Your training system - does it teach your team how to avoid pitfalls? Does it teach them how to sort through candidates while maintaining their self-esteem?
Does it teach them how to work with people? How to target their marketing?
5)Your leadership style
You can change #2 by changing companies. You can change #3 and #4 by evaluating your results and making necessary changes. You have the most control over #5 by working on yourself. You can do NOTHING about #1 except to identify who you're working with -not by their words, but by their actions. MLM attracts a lot of people who really want at-home JOBS not businesses. So you can't retain the "I -really-wanted-a-job types. There are people who do not have any perserverence for this, no matter how simple/easy you make it, and you can't retain them either. There are those who do it when they feel like it, and not when they don't. You have precious little control over that. You can only work with with those who are willing to be coached and who are willing to do the stuff. You can only identify them by their actions.
I have tried to work with the uncoachable, done therapy with the unmotivated. I let them go now. NO they are not "losers" as some would call them. They have a different path, that's all. And the path of my business is not for them. The sooner I can identify them, the more fun my biz is, because I'm not trying to turn frogs into Princes. I let the frogs be frogs if they want.
I DO have some things in place to quickly identify the most likely candidates, and a process for closure for those who wish to back out. I am more rigorous in sorting my potential partners before they join.
Remember only 10% of the population will do a business. 3% of the population are self-starters. So you might want to look at who you are approaching. Not everyone who needs money or lifestyle will do multi-level marketing. Retention begins with your prospecting and sponsoring style.
About the Author:
-----------------------------------------------------------------
Karen Miner Hurd has owned a home business since 1988 when she
retired from her Public Relations career to stay home with her
children. Her secret passion is Foxtrot books. To learn more about
her current business venture, so you can work at home visit:
The Freedom Project
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The Indispensable Guide to Network Marketing -
Showing posts with label retention. Show all posts
Showing posts with label retention. Show all posts
Tuesday, April 29, 2008
Thursday, November 22, 2007
Avoidant Marketing: Network Marketing's Answer?
Copyright 2007 Karen Hurd Enterprises, Inc.
No Closing
No Selling
No Chasing people
No Recruiting
No rejection, ever!
Everywhere you look in the network marketing/home business arena, systems are advertising themselves as "Don't do anything, and you'll get rich". It's a very compelling message. These systems seem to address the very core issue of why many people don't succeed in network marketing. New marketing systems that "build your downline for you" come online everyday. Put "network marketing" in a Google search and you get 366,000,000 sites. Online network marketing systems: 99,000,000 hits. A little bit of competition, eh?
I call these no-recruiting systems "avoidant marketing". Rather than empower people to learn how to work well with today's consumer or business opportunity seeker, people are taught that marketing systems, websites, etc., are so very effective that people will literally fall into their laps. And again, as I said in "Are You Marketing Your MLM to the Right People?", network marketers usually approach the wrong market to begin with. That's why the failure rate in MLM is NO DIFFERENT than any other business model. (It's a shame, too).
In theory, it makes our business incredible simple: drive as many people through the system and only interact with them after they join your company. It makes a great deal of sense on the surface. Easy - just do 1 activity. Rejection proof- don't call them until they pony up some cash.
Many of us have a ready ear for that kind of pitch. We've either been with a pushy sales type, and hated it, or we have seen our distributors struggle and lose prospects because they didn't know how to handle the curve ball the prospect through at them. So the solution of having a system do it all without any interaction on the network marketers part is very appealing. It seems to be the ultimate in MLM duplication. In fact, I got caught in it too. I too thought it was the answer to MLM's failure rate.
The flaw in this line of thinking is that very few people (the same 10% who succeeed at anything) can drive the necessary amount of traffic to the marketing system to create decent sign up rates. Newbies become extremely confused because many of these systems advertise multiple affiliates. I've seen downlines stall out, even with experienced marketers. It's just too much for the average person to track. Downlines can become contaminated with lots of cross selling and cross recruiting.
In fact, since many of these systems use the same marketing tools: traffic exchanges, forums, safelists, etc. Newbies are thrown into an extremely competitive environment with little or no preparation on how to navigate that environment.
And guess what? People jump ship just as fast as they join. They leave your system for the next system that promises success. These systems still don't eliminate the the 50 +% drop rate or the problem of retention. They mask it. Downline builders are not a panacea for network marketing success.
The reason for this is very simple: human nature. People are gonna do what they do. You will have tire kickers no matter what. You will have people who sign up with big packages and then disappear. You will still have distributors that fail, because of the same reasons they failed before: developing the proper skill set and the proper mind set, and quitting too soon.
Certainly there need to be systems in network marketing that do level the playing field more. "Auto-pilot" systems can certainly play a role in the 21st Century home business. They can free up a distributor from some of the mundane aspects of their business, to focus on developing relationships with key people. They are extremely important in developing international downlines. These systems can be quite helpful in sorting true prospects from the casual biz-opp seeker.
Network Marketing will always be a people business because people are the power of network marketing. Good relationships equal fabulous residual income. Teach people how to build relationships in the 21st Century. Use the internet as a tool to build relationships, not to avoid them.
About the Author:
----------------------------------------------------------------------------------
Karen Miner Hurd is a former marketing professional. She lives in Virginia Beach, VA with her husband and 5 children. She is a writer, health coach, and armchair movie critic. Karen has been in Network Marketing since before cell phones. Her passion can be found at: The Freedom Project
--------------------------------------------------------------------------------
No Closing
No Selling
No Chasing people
No Recruiting
No rejection, ever!
Everywhere you look in the network marketing/home business arena, systems are advertising themselves as "Don't do anything, and you'll get rich". It's a very compelling message. These systems seem to address the very core issue of why many people don't succeed in network marketing. New marketing systems that "build your downline for you" come online everyday. Put "network marketing" in a Google search and you get 366,000,000 sites. Online network marketing systems: 99,000,000 hits. A little bit of competition, eh?
I call these no-recruiting systems "avoidant marketing". Rather than empower people to learn how to work well with today's consumer or business opportunity seeker, people are taught that marketing systems, websites, etc., are so very effective that people will literally fall into their laps. And again, as I said in "Are You Marketing Your MLM to the Right People?", network marketers usually approach the wrong market to begin with. That's why the failure rate in MLM is NO DIFFERENT than any other business model. (It's a shame, too).
In theory, it makes our business incredible simple: drive as many people through the system and only interact with them after they join your company. It makes a great deal of sense on the surface. Easy - just do 1 activity. Rejection proof- don't call them until they pony up some cash.
Many of us have a ready ear for that kind of pitch. We've either been with a pushy sales type, and hated it, or we have seen our distributors struggle and lose prospects because they didn't know how to handle the curve ball the prospect through at them. So the solution of having a system do it all without any interaction on the network marketers part is very appealing. It seems to be the ultimate in MLM duplication. In fact, I got caught in it too. I too thought it was the answer to MLM's failure rate.
The flaw in this line of thinking is that very few people (the same 10% who succeeed at anything) can drive the necessary amount of traffic to the marketing system to create decent sign up rates. Newbies become extremely confused because many of these systems advertise multiple affiliates. I've seen downlines stall out, even with experienced marketers. It's just too much for the average person to track. Downlines can become contaminated with lots of cross selling and cross recruiting.
In fact, since many of these systems use the same marketing tools: traffic exchanges, forums, safelists, etc. Newbies are thrown into an extremely competitive environment with little or no preparation on how to navigate that environment.
And guess what? People jump ship just as fast as they join. They leave your system for the next system that promises success. These systems still don't eliminate the the 50 +% drop rate or the problem of retention. They mask it. Downline builders are not a panacea for network marketing success.
The reason for this is very simple: human nature. People are gonna do what they do. You will have tire kickers no matter what. You will have people who sign up with big packages and then disappear. You will still have distributors that fail, because of the same reasons they failed before: developing the proper skill set and the proper mind set, and quitting too soon.
Certainly there need to be systems in network marketing that do level the playing field more. "Auto-pilot" systems can certainly play a role in the 21st Century home business. They can free up a distributor from some of the mundane aspects of their business, to focus on developing relationships with key people. They are extremely important in developing international downlines. These systems can be quite helpful in sorting true prospects from the casual biz-opp seeker.
Network Marketing will always be a people business because people are the power of network marketing. Good relationships equal fabulous residual income. Teach people how to build relationships in the 21st Century. Use the internet as a tool to build relationships, not to avoid them.
About the Author:
----------------------------------------------------------------------------------
Karen Miner Hurd is a former marketing professional. She lives in Virginia Beach, VA with her husband and 5 children. She is a writer, health coach, and armchair movie critic. Karen has been in Network Marketing since before cell phones. Her passion can be found at: The Freedom Project
--------------------------------------------------------------------------------
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