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Why Do Distributors Join, Stay or Leave a MLM Company?

Charity — Thu, 06 Jun 2013 16:12:37 +0000

If you are a network marketing company or a distributor, you know that recruiting and retention are the lifeblood of the business. What factors make companies successful and the distributors successful? Of course, a competitive compensation plan is a given. But, some very helpful industry studies, many by the Direct Selling Association, have been done and there are some real pearls of wisdom in the results that should be taken to heart and clearly demonstrate that consultants stay with the company because “it is not just the money” after all.

Why Do People Join?

You might think that the main reason to join is for the money, but believe it or not, that is number four, five and number six on the list.

Number one on the list in the studies is that people join because they like and believe in the product;

Second on the list is, “I like being my own boss”;

Third, “I like working from home”;

Fourth, “The harder I work, the more I make.”

Again, earning extra income is obviously important, but it would be a mistake to ignore the “intangible” factors that pull people into the business.

Why Do People Stay?

Company owners and distributor leaders are always asking, “Why do our representatives stay with us and what can we do to support their retention?” On a list of the top five factors, take a look at where earnings comes in… number five, and then think about what you are doing.

The top five reasons that distributors stay:

A favorable response to the products;

They relate to the leadership, management and owners of the company;

They relate to the leadership of the sales force, i.e., the top distributors and their sponsors;

They relate to the vision of the company. If it’s about women’s empowerment or about health, they relate to it; if it is about helping households save money to create a better life, they relate to this vision;

And maybe you will be surprised… or not… but the fifth ranked reason that distributors stay with companies is “earnings.” Go figure.

Why do Distributors Leave?

Finally, one of the industry’s leading direct selling companies pondered the issue of the departure of its distributors. So much so, that the company conducted a series of “exit” interviews with distributors.

Again, although money is important, the answers demonstrated the glue of the company-distributor connection as relationship-driven. Almost across the board, the answer was “communication,” or lack thereof. Consultants need to feel that somebody is responding to them, that they are communicating with them. If consultants feel ignored and this is true in every realm of business, they vote with their feet and they leave.

The following factors were disclosed as leading to departure:

Poor Communication;

Inferior Support;

Inadequate Leadership;

Lack of Training.

What Can We Learn as Companies and Distributors?

Of course, the necessity of a competitive compensation opportunity goes without saying. After all, network marketing is a business opportunity. With that in mind, however, the driving force that bonds us all is quality product and attention to relationships. Actually, this should come as no surprise.

Watch the videos in which MLM Attorney Jeff Babener discusses why distributors join and stay with direct selling companies:

Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?

For more information and updates on the direct selling industry visit www.mlmlegal.com and www.mlmattorney.com.

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Our next Starting and Running the Successful MLM Company Conference takes place October 24th & 25th, 2013 in Las Vegas. Call Charity before September 1st to receive a discount! 503-226-6600 or 800-231-2162.

Visit us at www.mlmlegal.com to learn more.

Why do people join direct selling and network marketing companies?

Charity — Fri, 18 Jan 2013 22:17:42 +0000

You might be surprised. There have been some great studies by the Direct Selling Association and other survey organizations. You might think that the main reason distributors join is for the money… of course it is very important. But believe it or not, earnings are number four, five, and six on the list of primary reasons distributors join MLM companies. Number one on the list in the studies is that people join because they relate to the product. Second on the list is that they join because they relate to the management, the founder of the company. Thirdly, they relate to the vision of the company, such as women’s empowerment, health, and savings that make a meaningful difference to households. Also, they relate to the field leadership, such as their sponsor and their upline. And finally, other top reasons consultants join direct selling companies are either “I like to work from home,” or “the more that I work and the harder that I work, the more I am rewarded.”

For more information on why distributors, consultants, members, representatives join MLM, direct selling, network marketing companies, please visit the following links:

About the MLM, Direct Selling, Network Marketing, Party Plan Industry – Q&A – Videos

Why Do Distributors join MLM Companies?
Why Do Distributors stay with MLM Companies?

“How to Analyze Compensation Plans” Article

“9 Basics to Success in Network Marketing” Blog Post

“Networkers: Motivated Entrepreneurs” Blog Post

“Bare Basics for Success in Network Marketing” Blog Post

“Value is the ‘Watchword’” Blog Post

“Am I Taking a Risk by Joining an MLM Company?” Blog Post

Or, join us in the conversation!

Why Do You Stay With Your MLM Company?

What are Your Reasons for Joining a Direct Selling Opportunity?

Make sure to visit our blogs for the latest information on the direct selling industry: MLMLegal Blog Home and MLM Attorney Blog Home

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And, as always, visit MLMLegal.com, the best MLM resource on the web.

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Visit us at www.mlmlegal.com to learn more.

Why Do You Stay With Your MLM Company?

Charity — Tue, 20 Nov 2012 22:36:16 +0000

There are many reasons why distributors stay with a company once they’ve joined. The top five reasons that people stay with their MLM company are:

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.)

Visit us at www.mlmlegal.com to learn more.