It has long been recognized that there is high attrition among network marketing consultants, perhaps as high as 80-90%! The vast majority of MLM distributors are part time and they join and leave for many reasons. The fault is not necessarily with the company. In fact, a direct selling company is competing for their time. MLM companies are competing for time with consultants who may be involved in the PTA, little league, another part time job, family demands, shifting duties as work, etc.

What is most important is that a MLM company use its time with its consultants to demonstrate great products and great service. Surely, it is important to try to keep distributors active; but if they do go passive, hopefully they will continue to buy products and services in the same fashion as preferred customers. Whether or not that happens is dependent on whether the distributor has truly bonded with the quality of product and service. At that point, MLM companies should take a lead from online sellers such as Amazon to determine what drives customers to continue coming back again and again. And at some point in the future, when the time is right, the passive individual who has a continuing positive experience, may well be back again as an active distributor.

For more tips on being a successful network marketing company owner, visit expert MLM Attorney Jeff Babener’s websites: www.mlmlegal.com and www.mlmattorney.com.

In addition, our next Starting and Running the Successful MLM Company Conference takes place October 22 and 23, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

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All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product.

First, we must note that this is a bit out of our area of legal expertise. However, we have attended many recognition events and been involved in meeting planning, from hotel logistics, to program, to meeting planners. And, we have been involved with these kinds of events scores of times with many of the leading direct selling companies.

With that said, the point is that you are in a relationship business. All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product. Obviously, a company will lead with the goal of rewarding distributors with recognition, providing good education on the product, opportunity and recruitment, inspiring them as to the past and future, demonstrating sincere appreciation and making sure they have a good time. This is “experiential bonding” and it is a company’s opportunity to showcase both objectively and emotionally why distributors should bond with management, other leaders, other fellow distributors, company product, and mission of the company and hopefully, if there is a philanthropic program, with the community “giveback” of the company.

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Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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You need to be honest with yourself. Do you, or those who are key owners in the business, have a MLM recruitment background? Without this talent the best products will continue to languish on the shelf. Companies like Amway, Tupperware, Mary Kay, and Home Interiors were not only founded on a very limited budget, but by individuals with strong backgrounds in direct selling.

Company leaders should develop a recruitment strategy. It may seem odd, but your top distributors may not arrive for many years. Those would-be leaders who come to you seeking special benefits or corporate positions do not pay high salaries to those who claim to be able to recruit but cannot demonstrate a strong track record of success. As a general matter, if individuals are strong recruiters then they would be distributors because the remuneration is much higher.

Track your warmest market then move on to lead generation systems and advertising. You shouldn’t expect initial advertising to bring you all of your distributors. Instead, consider initial advertising a foundational industry announcement that you (and your company) have arrived on the scene.

History demonstrates that direct selling will always be a person to person relationship business. The internet, direct mail, or mechanized recruiting campaigns do carry a lot of hype. However, there is no substitute for “pressing the flesh.”

– Jeff Babener

Watch the companion video to this blog post.

For more information on recruiting, visit the following links:

MLM Recruiting and Leads Resources

MLM Recruiting and Communication

Recruiting Advice from an Industry Expert Video

Are you Starting a MLM Company?

An Interview with Industry Expert and Advocate, Jeffrey Babener

The Top Two Reasons Why MLM Companies Fail

What Differentiates a Legitimate Direct Selling/Network Marketing Company from an Illegal Pyramid Scheme?

February 2013 MLM Startup Conference in Las Vegas

Is MLM For Real?

What Factors Make MLM Executives and MLM Companies Successful – Video

Passion, Patience, Persistence – Attitude in Direct Selling

Should I Launch my MLM Business Locally or Nationally?

Paying Commissions on Sales Tools, Sales Kits, and Training Materials……No!

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And, as always, visit MLMLegal.com, the best MLM resource on the web.The next Starting and Running the Successful MLM Company Conference is quickly approaching! On February 21^st and 22^nd, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 63nd annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. Ask Charity how to get a discount! (Can’t make this event? Keep an eye out for our May and October conferences as well.)

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1. Products – The distributors enjoy the products that the company offers

2.  Leadership of the company – Distributors are motivated and encouraged by the leaders of the company

3.  Leadership of the field sales force – Distributors are motivated and encouraged by the leaders of their upline and by others salespeople

4.  Company vision or purpose – Distributors believe in the vision of the company and its mission

5.   Earnings – And, of course, distributors always appreciate a good income opportunity

Why do you stay with your direct selling, network marketing, MLM, party plan company? Can you relate to one of the top 5 reasons distributors stay with a company? Or, do you have a different reason?

(A plethora of information on the direct selling industry can be found online at MLMLegal.com and MLMAttorney.com.)

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