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.