Multi level marketing or network marketing is the best thing since sliced bread right?
I mean who wouldn’t want to draw residual income 24/7 while sipping fruit juice from a coconut on a beach in Hawaii?
Who wouldn’t want an army of sales reps bringing in an endless supply of cash producing customers each and every day without ever having to lift a finger?
All sounds great right. Well, unfortunately I’m about to reveal to you THE SHOCKING TRUTH.
There is, in fact, a dark side to MLM.
What I’m about to tell you was never talked about in the sales presentation you saw.
What I’m about to reveal has actually been kept secret so that you would continue to work your life away, building that future coconut/beach check that may never actually make it’s way to your bank account.
The truth is this.
Most MLM companies have very high cancellation rates.
We’re talking 50% per year or more.
What does this mean for you?
This means that in order for you to ever get ahead in your MLM business, you have to constantly replace the ones that leave and then add more so you can grow.
Building a residual income with some multi level marketing companies is like dumping water into a bucket that has a whole in the bottom.
If your company has a high cancellation rate, your bucket may not even have a bottom!
If you are going to invest years of your life building a future income, you MUST know what your companies retention rate is.
The truth is, if your company has been in business for any length of time, they can tell you with precision what the cancellation rate is.
Sure, it may vary a tiny bit from business to business but for the most part it will be within a few percentage points all throughout the company.
With a great retention rate you can grow your business and hit your income goals 10 times faster than you could with a poor retention rate.
If you can’t get a solid answer, they are either lying to you or simply don’t want you to know the truth.
Here’s another trick to watch out for.
Some companies tout a 90% + retention rate.
Many of these outfits are calculating their retention on a monthly basis rather than a yearly basis.
A 95% monthly retention rate still means you’ll lose about half of your business year over year.
Not quite as shiny as they make it sound eh?
The good news is this.
Life changing, long lasting, residual income in MLM is possible and can be a reality for you if you know what to look for.
Retention is key!