Revealed - The Real Secret To Curing Retention Problems
8573
Business > Customer Service
Mar 1, 2007
Martin Lightbowne
Revealed - The Real Secret To Curing Retention Problems
"What Is The Single Biggest Problem In Network Marketing In General, And How Exactly Can You Create A Recruitment Tidal Wave That Will Have Your Upline Gasping For Breath ?...."
Any ideas ? Well surprisingly it isn't that people won't join, your efforts aren't yielding results, your friends and family don't want to know. Its nothing like that. In fact its so obvious that most people can't see it until its pointed out to them.
The single biggest problem in Network Marketing is retention. Have you ever noticed what happens when your upline goes on holiday ? Things start falling apart. They can't go away for longer than a few weeks as their group quickly starts disintegrating. Why is that exactly ? If you look at Network Marketing in general there is a 90% drop out rate in the first 6 to 12 months. In other words, if you sponser 10 people today, then in 1 years time only one of them will still be in the business, and probably won't even
be working that hard.
Now at the beginning it isn't that much of a problem. If you have 10 people in your business, then as long as you recruit 9 or more people over the next year then your group grows and you're on your way. But look at what happens once you get to say 100 people. All of a sudden you need to add another 90 people just to stay where you are ! At 500 people it rises to 450 ! And thats just to stay where you are, never mind growing you business further. So you see what happens if your upline goes on holiday for just 3 months to "live the dream" of network marketers ? They come back and find their group nearly 25% smaller than when they left, which in most leadership compensation plans can easily mean their monthly income cheque is halved. Was that 3 months holiday really worth it ?
Now don't get me wrong, I love Network Marketing, which is why over the next few articles we'll be looking at how exactly to do this right. How to cure your retention problems step by step - forever.
You see, if you do everything the correct way, using proper marketing techniques and leaving your warm market alone, then a retention ratio of 65% or more is completely achievable. In fact, I know many leaders in Network Marketing who simply apply these techniques and have retention ratios of 85% and above. Once we've worked together to solve your retention problems, we'll then work on how to grow your business at incredible ratios, and I'm talking well in excess of 20 - 30 people a week, if you're willing to put in the time and effort to do that. But first things first, lets look at how to keep them once their in the business first.
"How Many Others Want To Know How To Achieve 65% + Retention Rates
Year In And Year Out Without Fail....."
So where should we start ? Well believe it or not but the cause of retention problems has just two root causes. The first is the approach - leading with the opportunity not the products. The second is the prospects - the warm market. Today we'll focus on the first and why exactly leading with the opportunity causes you to lose nearly 90% of your downline every single year.
Have you ever heard the definition of madness ? Its doing the same thing again and again, and expecting different results. Crazy, or what ? Yet this is exactly what happens in over 97% of all network marketing down lines. If I were to get every network marketer in the world in a room together and just ask them the simple question "How many of you were told how much you would make in Network Marketing at your first opportunity presentation", I know that every single one of you would raise your hand. This has been the approach for over 30 years. No matter how the person is prospected - warm marketing, cold marketing, internet marketing, ads, flyers, business cards, skywriting you name it. Every single one is told how they are going to make millions in Network Marketing and all they need to do is get 2 who get 2 who get 2 and bingo within a few months you're a millionaire. Now if you don't apply a 90% DROP OUT RATE !!! Then sure that works. How many of you were then asked "Surely you know just two people who'd like extra money don't you ?". It's a simple question that has only one answer. Who doesn't know 20 people who'd like extra money ??
All in all it sounds like a logical approach doesn't it. Everyone needs extra money so tell them what they want to hear. However it has ONE major flaw.
Any ideas ?? It sounds too simple, and after that "you know 2 people don't you" your prospect believes he can't fail and everyone will join ! No matter how many times you tell your prospect that it needs hard work he only hears how rich he's going to be. Why, he only needs 2 and then he's set. But what happens when his first 5 prospects say no ?? This wasn't expected was it - this was going to be easy. Maybe the problem is the product or the business, or
aliens or something. It can't be me or my approach - these people really need money. See what the logical conclusion is ? They try a few more people who also say no, because they've just heard too many get rich schemes before, and they know our associate is a sucker for get rich - so they just say no. So our hot new associate is dissatisfied - and now quits. It wasn't something for him. But that's ok - we're after product sales not numbers of reps...... oppps - he was only using the products to make money. No more product orders from him.
WHAT IF THERE WAS A DIFFERENT WAY ?
How about actually NOT MENTIONING the opportunity ? I know you think I've gone mad, but seriously. Go out there and find people who have a need, a want or a desire for your product. Its amazing how many network marketers are lead to believe that their compensation plan is the product. You all have legitimate products that work and help people! Find product users who love your products.
So lets take this one step further. Imagine you have a product user who actually likes your products and is using them because they are impressed with the product. What would you say if you were in Wal-Mart and the store manager came up and said "Hi, I can see you buy our bread a lot. How are you finding it ?....... great. Let me ask you a question, if I can show you how to get that great bread for FREE would that be something that would interest you ?"
Now how many people would say no ? Raise your hands.... Come on..... what nobody ?
OK so you see how it works. I'm sure many of us can show this keen product user how to show others the product so lets fast forward a few weeks. They found a few other bread lovers and they're now earning enough residual that they get their product for free. Is that the end of the game ? Nope..... you now have several more product users to help. However the person now getting their product for free, is kind of getting the hang of this now. Now they have this fantastic bread and for free. How about making some serious money now ? They already know what to do.
For the sceptics out there, lets look at what happens if things don't go well. Lets say our bread buyer tries to share the product with friends and family and completely crashes and burns. I'm talking burning so badly they might just need a doctor. Well, they don't get their product for free, but do you think they're going to stop ordering their favourite bread ? No way !
Make sense ? For those thinking this doesn't work - it does. Gerhard Werkin, one of my students with a telecom company tried the approach above. He had a down line of 90 representatives and nearly 900 customers. But he was only adding 1 or 2 reps a month. After just 5 weeks of basic training, he went out and put 24, yes 24 new reps into his business the very next week. How many of you would like that ?
Go out there and share your products, and your business builders will come.
Any ideas ? Well surprisingly it isn't that people won't join, your efforts aren't yielding results, your friends and family don't want to know. Its nothing like that. In fact its so obvious that most people can't see it until its pointed out to them.
The single biggest problem in Network Marketing is retention. Have you ever noticed what happens when your upline goes on holiday ? Things start falling apart. They can't go away for longer than a few weeks as their group quickly starts disintegrating. Why is that exactly ? If you look at Network Marketing in general there is a 90% drop out rate in the first 6 to 12 months. In other words, if you sponser 10 people today, then in 1 years time only one of them will still be in the business, and probably won't even
be working that hard.
Now at the beginning it isn't that much of a problem. If you have 10 people in your business, then as long as you recruit 9 or more people over the next year then your group grows and you're on your way. But look at what happens once you get to say 100 people. All of a sudden you need to add another 90 people just to stay where you are ! At 500 people it rises to 450 ! And thats just to stay where you are, never mind growing you business further. So you see what happens if your upline goes on holiday for just 3 months to "live the dream" of network marketers ? They come back and find their group nearly 25% smaller than when they left, which in most leadership compensation plans can easily mean their monthly income cheque is halved. Was that 3 months holiday really worth it ?
Now don't get me wrong, I love Network Marketing, which is why over the next few articles we'll be looking at how exactly to do this right. How to cure your retention problems step by step - forever.
You see, if you do everything the correct way, using proper marketing techniques and leaving your warm market alone, then a retention ratio of 65% or more is completely achievable. In fact, I know many leaders in Network Marketing who simply apply these techniques and have retention ratios of 85% and above. Once we've worked together to solve your retention problems, we'll then work on how to grow your business at incredible ratios, and I'm talking well in excess of 20 - 30 people a week, if you're willing to put in the time and effort to do that. But first things first, lets look at how to keep them once their in the business first.
"How Many Others Want To Know How To Achieve 65% + Retention Rates
Year In And Year Out Without Fail....."
So where should we start ? Well believe it or not but the cause of retention problems has just two root causes. The first is the approach - leading with the opportunity not the products. The second is the prospects - the warm market. Today we'll focus on the first and why exactly leading with the opportunity causes you to lose nearly 90% of your downline every single year.
Have you ever heard the definition of madness ? Its doing the same thing again and again, and expecting different results. Crazy, or what ? Yet this is exactly what happens in over 97% of all network marketing down lines. If I were to get every network marketer in the world in a room together and just ask them the simple question "How many of you were told how much you would make in Network Marketing at your first opportunity presentation", I know that every single one of you would raise your hand. This has been the approach for over 30 years. No matter how the person is prospected - warm marketing, cold marketing, internet marketing, ads, flyers, business cards, skywriting you name it. Every single one is told how they are going to make millions in Network Marketing and all they need to do is get 2 who get 2 who get 2 and bingo within a few months you're a millionaire. Now if you don't apply a 90% DROP OUT RATE !!! Then sure that works. How many of you were then asked "Surely you know just two people who'd like extra money don't you ?". It's a simple question that has only one answer. Who doesn't know 20 people who'd like extra money ??
All in all it sounds like a logical approach doesn't it. Everyone needs extra money so tell them what they want to hear. However it has ONE major flaw.
Any ideas ?? It sounds too simple, and after that "you know 2 people don't you" your prospect believes he can't fail and everyone will join ! No matter how many times you tell your prospect that it needs hard work he only hears how rich he's going to be. Why, he only needs 2 and then he's set. But what happens when his first 5 prospects say no ?? This wasn't expected was it - this was going to be easy. Maybe the problem is the product or the business, or
aliens or something. It can't be me or my approach - these people really need money. See what the logical conclusion is ? They try a few more people who also say no, because they've just heard too many get rich schemes before, and they know our associate is a sucker for get rich - so they just say no. So our hot new associate is dissatisfied - and now quits. It wasn't something for him. But that's ok - we're after product sales not numbers of reps...... oppps - he was only using the products to make money. No more product orders from him.
WHAT IF THERE WAS A DIFFERENT WAY ?
How about actually NOT MENTIONING the opportunity ? I know you think I've gone mad, but seriously. Go out there and find people who have a need, a want or a desire for your product. Its amazing how many network marketers are lead to believe that their compensation plan is the product. You all have legitimate products that work and help people! Find product users who love your products.
So lets take this one step further. Imagine you have a product user who actually likes your products and is using them because they are impressed with the product. What would you say if you were in Wal-Mart and the store manager came up and said "Hi, I can see you buy our bread a lot. How are you finding it ?....... great. Let me ask you a question, if I can show you how to get that great bread for FREE would that be something that would interest you ?"
Now how many people would say no ? Raise your hands.... Come on..... what nobody ?
OK so you see how it works. I'm sure many of us can show this keen product user how to show others the product so lets fast forward a few weeks. They found a few other bread lovers and they're now earning enough residual that they get their product for free. Is that the end of the game ? Nope..... you now have several more product users to help. However the person now getting their product for free, is kind of getting the hang of this now. Now they have this fantastic bread and for free. How about making some serious money now ? They already know what to do.
For the sceptics out there, lets look at what happens if things don't go well. Lets say our bread buyer tries to share the product with friends and family and completely crashes and burns. I'm talking burning so badly they might just need a doctor. Well, they don't get their product for free, but do you think they're going to stop ordering their favourite bread ? No way !
Make sense ? For those thinking this doesn't work - it does. Gerhard Werkin, one of my students with a telecom company tried the approach above. He had a down line of 90 representatives and nearly 900 customers. But he was only adding 1 or 2 reps a month. After just 5 weeks of basic training, he went out and put 24, yes 24 new reps into his business the very next week. How many of you would like that ?
Go out there and share your products, and your business builders will come.
Content Provider: http://www.traffichelp4u.com
Martin Lightbowne is a respected graduate in the Art and Science of Marketing, working with Network Marketers from all over the globe to explode their businesses. He can be contacted by either email on martin@explosivemlm.com or call the MLM Helpline on 623-748-1394. Website www.ExplosiveMLM.com
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