Preventing Attrition in Network Marketing
Abstract: As leaders in network marketing, we have a responsibility do our best to prevent attrition. A list of guidelines for choosing a business is presented that, if followed, dramatically increase the chance of success for the new home based business entrepreneur.
"We shall draw from the heart of suffering itself the means of inspiration and survival."
-Sir Winston Churchill
Such is bound to be the mantra of many of those that have jumped into the realm of home-business entrepreneurs, only to find that success was much harder to realize than originally imagined. How would our society change if we could prevent attrition in network marketing?
Over seventy thousand people a day find and start a home based business. The vast majority of these businesses fall under the classification of network marketing. This daily number is increasing by several percentage points monthly, and apparently will for years to come.
Why are more and more families starting home based businesses. The benefits of working at home, spending more time with the family, less stress, time freedom and significant tax savings are driving this trend. The proliferation of personal computers and the internet are also facilitators, essentially 'leveling the playing field', enabling corporate Americans to be just as productive, or even more so, at home. Therefore the benefits of starting a business from home far out weigh the perceived risks.
Unfortunately, there is a huge attrition rate of those venturing into this arena for the first time. They soon become disillusioned and find that building a sustainable income from home, much less the fortune they had once hoped for, is simply not as easy as they were perhaps led to believe.
If the attrition rate of your recruits is greater than 50% there is a problem either with your training of those recruits, the system that is in place for them to follow, the business itself or all of the above. Perhaps that sounds like a bold statement, especially when every recruiter in network marketing has known for years that only 'one out of ten' recruits will ever actively pursue the business. These numbers are simply not acceptable anymore, in fact they have given the industry the bad name that it must overcome, and is overcoming daily.
The following guidelines should be used by any prospective entrepreneur as he investigates a prospective business to pursue. As a recruiter, you should ask yourself these same questions about the business you are offering. The key factors in considering a successful career as a home business owner:
1. Find a Mentor. Someone who is trustworthy, who has a system in place and who is having the results himself using that same system. The duplication of the system should be verifiable, such that you can speak with others who are new to the system and that are already having success. Be certain that there is financial incentive for your sponsor to see to your success; they should get paid every time you make a sale. Moreover, they should listen to your needs and be interested in helping you accomplish your specific goals.
2. Evaluate the Products. The products should be legitimate stand-alone products that you would buy if they were on the shelf of your favorite store. Does anyone buy the products without doing the business? Were the products simply designed to enable a compensation plan? The products must be of high-value and high demand such that people are seeking them out. The products must be something you indeed buy yourself and become proud and passionate about. There are lots of great products out there, so find one that feels right to you.
3. Evaluate the Marketing System. Is it a real and definable system providing verifiable results for everyone plugging into it? It must be a real substantiated system that does not involve family & friends, newspaper ads, post cards, home meetings, or cold calling (after all, we are marketers, and we must have a simple system of enabling others to become successful twenty-first century marketers). Does the system take 'selling' out of the equation? Most people are not sales people, so the system should do all of the 'selling' such that the marketer simply needs to concentrate on driving prospects through the system.
4. Evaluate the Company. Does the management team have a long term vision? Does the management team have a track record? Is there bad publicity? While bad publicity in the internet-age certainly does not mean as much as it once did, look for a pattern of complaints. Where is the company located? Is it hiding offshore, out of reach of the US legal system? The company should only make money off of you when you make a sale. Beware of any company charging monthly fees for things such as websites, marketing systems or access to training. Again, the company should only make money when you make a sale.
5. Evaluate the Business Model. Companies with a direct sales model have the only compensation models that enable the possibility of a six-figure income from home within six months or less. You should be in a money making position from day one (stay away from companies that require that you give your sponsor your first couple sales). You should not have to invest more than about $3,000 to start your own home enterprise, including your first months marketing expenses that should get you to cash flow.
The positive effect that home businesses can have on our society is enormous, enabling both parents to have an active role in raising their children. As leaders in this industry, we should lead these new entrepreneurs in the direction that will best serve them, in the direction where they stand the very best chance of success.
Steve Chenoweth is the CEO of Marketing Solutions, Inc. and the owner of http://www.sixmonthplan.info and http://www.stevechenoweth.com, recently launched sites that market the direct sales business of Wealth Masters International. Steve has been active full-time in the network marketing arena as a business owner and trainer for over three years and resides in Dallas, TX.Vitia Blog60379
Fatima Blog7954
"We shall draw from the heart of suffering itself the means of inspiration and survival."
-Sir Winston Churchill
Such is bound to be the mantra of many of those that have jumped into the realm of home-business entrepreneurs, only to find that success was much harder to realize than originally imagined. How would our society change if we could prevent attrition in network marketing?
Over seventy thousand people a day find and start a home based business. The vast majority of these businesses fall under the classification of network marketing. This daily number is increasing by several percentage points monthly, and apparently will for years to come.
Why are more and more families starting home based businesses. The benefits of working at home, spending more time with the family, less stress, time freedom and significant tax savings are driving this trend. The proliferation of personal computers and the internet are also facilitators, essentially 'leveling the playing field', enabling corporate Americans to be just as productive, or even more so, at home. Therefore the benefits of starting a business from home far out weigh the perceived risks.
Unfortunately, there is a huge attrition rate of those venturing into this arena for the first time. They soon become disillusioned and find that building a sustainable income from home, much less the fortune they had once hoped for, is simply not as easy as they were perhaps led to believe.
If the attrition rate of your recruits is greater than 50% there is a problem either with your training of those recruits, the system that is in place for them to follow, the business itself or all of the above. Perhaps that sounds like a bold statement, especially when every recruiter in network marketing has known for years that only 'one out of ten' recruits will ever actively pursue the business. These numbers are simply not acceptable anymore, in fact they have given the industry the bad name that it must overcome, and is overcoming daily.
The following guidelines should be used by any prospective entrepreneur as he investigates a prospective business to pursue. As a recruiter, you should ask yourself these same questions about the business you are offering. The key factors in considering a successful career as a home business owner:
1. Find a Mentor. Someone who is trustworthy, who has a system in place and who is having the results himself using that same system. The duplication of the system should be verifiable, such that you can speak with others who are new to the system and that are already having success. Be certain that there is financial incentive for your sponsor to see to your success; they should get paid every time you make a sale. Moreover, they should listen to your needs and be interested in helping you accomplish your specific goals.
2. Evaluate the Products. The products should be legitimate stand-alone products that you would buy if they were on the shelf of your favorite store. Does anyone buy the products without doing the business? Were the products simply designed to enable a compensation plan? The products must be of high-value and high demand such that people are seeking them out. The products must be something you indeed buy yourself and become proud and passionate about. There are lots of great products out there, so find one that feels right to you.
3. Evaluate the Marketing System. Is it a real and definable system providing verifiable results for everyone plugging into it? It must be a real substantiated system that does not involve family & friends, newspaper ads, post cards, home meetings, or cold calling (after all, we are marketers, and we must have a simple system of enabling others to become successful twenty-first century marketers). Does the system take 'selling' out of the equation? Most people are not sales people, so the system should do all of the 'selling' such that the marketer simply needs to concentrate on driving prospects through the system.
4. Evaluate the Company. Does the management team have a long term vision? Does the management team have a track record? Is there bad publicity? While bad publicity in the internet-age certainly does not mean as much as it once did, look for a pattern of complaints. Where is the company located? Is it hiding offshore, out of reach of the US legal system? The company should only make money off of you when you make a sale. Beware of any company charging monthly fees for things such as websites, marketing systems or access to training. Again, the company should only make money when you make a sale.
5. Evaluate the Business Model. Companies with a direct sales model have the only compensation models that enable the possibility of a six-figure income from home within six months or less. You should be in a money making position from day one (stay away from companies that require that you give your sponsor your first couple sales). You should not have to invest more than about $3,000 to start your own home enterprise, including your first months marketing expenses that should get you to cash flow.
The positive effect that home businesses can have on our society is enormous, enabling both parents to have an active role in raising their children. As leaders in this industry, we should lead these new entrepreneurs in the direction that will best serve them, in the direction where they stand the very best chance of success.
Steve Chenoweth is the CEO of Marketing Solutions, Inc. and the owner of http://www.sixmonthplan.info and http://www.stevechenoweth.com, recently launched sites that market the direct sales business of Wealth Masters International. Steve has been active full-time in the network marketing arena as a business owner and trainer for over three years and resides in Dallas, TX.Vitia Blog60379
Fatima Blog7954
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