Freedom through passive income. That’s why we all got into this business right? We saw the absolute beauty of checks coming in the mail every month f0r work we did once and could almost taste the lifestyle.
Unfortunately, there was one aspect that was absolutely crucial to the realization of that dream many of us overlooked.
The Problem – MLM Retention.
We got in, we dreamed, we worked, we shared.
Then… the holes in the bucket started springing.
First, 1 then another.. We plugged our fingers in as fast as we could but soon there were more holes than fingers.
Finally, awful reality set in that the vast majority of MLM companies only retain about 30% of their business over a year’s time.
Some quit… some moved to top tier.. others stubbornly pursued on despite the incredible challenge ahead.
It’s really not your fault. These statistics are rarely talked about with prospects who are researching an MLM Company to join. (for good reason)
But if you’re going to really be successful in building a passive income, MLM Retention is one number you cannot ignore.
So here are the stats..
Most MLM companies experience 20-30% average annual retention. (this number is based on personal experience and data gathered from other leaders in the industry)
There is one company I’m familiar with that touts a 95% retention rate. The thing they don’t usually tell you is that this is a monthly tally. Stretch that out over a year and you’re at 40-50% retention. (Still a benchmark for the industry)
I’ve experienced the dark side of attrition personally and believe me, it’s no fun. You put your heart and soul into working a business.. You sacrifice family time… you get into the thing a year and look behind you only to see 30% of your blood, sweat and tears remaining.
I’m currently experiencing 97% retention and for the first time in my network marketing career it feels like I’m finally building a DYNASTY of passive income.
Think about it…
If you can double your retention rate, that means you can double your income consistently with no additional effort.
You see how this is so powerful?
3 That Will Increase Your MLM Retention
1) Do your homework
The first and easiest thing to do is to find out what your companies retention rate is (preferably before you join). Click here to see my #1 recommendation.
All companies and leaders track these numbers and should be able to tell you what they are.
Do your due diligence and found out. A good MLM retention rate will not only be vital to your ability to compound your income, it’s also a fantastic selling point when you’re talking to other home business owners.
2) Help Your People Make Money
I remember seeing a blog post by Eric Worre (MLM Superstar) where he outlined the 3 reasons people stay on autoship.
1) They’re making money
2) They hope they’ll make money
3) They can’t live without the product
Reason number 1 is the most important, considering it’s the #1 reason people join our industry. If you can help your team members get checks to at least supplement their auto ship expense the chances of them quitting go way down. Not all comp plans are created in this regard. Some comp plans penalize you for giving enrollments away to your team members.. others reward you. Pay attention to this.
3) Keep The Hope Alive Through Communication
Reason #2 that people stay on auto-ship is that they HOPE they’ll make money.
Again, not all comp plans are equal in this regard. Consider the binary… With the binary, if you’re in a strong leg, you’ll get lots of spill and that leg can grow out. This is pretty good psychology for keeping the hope alive.
Aside from comp plan structure, the #1 thing you can do to “keep the hope alive” is communicate. There needs to be a balance of mass communication and personal communication.
Mass communication (email, voicebroadcasts, webinars) certainly have their place and should be used to keep the team going throughout the month but nothing will ever replace 1 on 1 communication.
Make it a habit to call ALL of your personal enrollments at least once a month to check in.
This will show them they have a friend/coach in you and you’re not into “SLAM AND JAM” like so many direct marketers. You’re in this to build a team because you see the leverage in growing a network of business partners whom you can help grow and produce. This is vital in network marketing because in traditional network marketing (not top tier) the money is in the team NOT personal production. That’s a KEY distinction.
The Bottom Line On MLM Retention
The bottom line is this. MLM Retention is HUGELY important if you’re building a down-line. Pay attention to it and be aware of things you can do to make it better within your team.
Without this “glue”, you’re wasting your time in network marketing.
Yours in success,