
Attrition from MLM's-Can it be reduced?
Ever see a Network Marketing program that reads :"Best not to join our program... Our products are mediocre and our support isn't very good either...etc."?... Of course not!! It is common for MLM's(or any Business for that matter) to present themselves in the best positive light...Else they wouldn't be around for very long. Now in the case of a non-MLM business investment, thousands of dollars can be required just to start. If it were your money, would you with your attorney, family and pet analyze every facet of the daily operational aspects of the business?..i.e. Would you look beyond the positive "spins" and focus on the post decision phase?... I'm confident you will and with all the vigor associated with large financial risk .
Now enter the world of MLM. Relatively speaking, start-up costs for an MLM are a non-issue...And herein lies the problem. IMHO,...focus and therefore decisions, are made principally on the initial "Glitter" of an MLM offering..."What the heck is a $100 start-up cost, when I can make thousands with this MLM"?... Consequently, too little attention is paid to day to day operational aspects of an MLM offering. The result being the incompatibility of expectation with reality and so disenchantment, failure and excessive MLM attrition.
Ok;...So what do we do? Well, first thing is to turn one's telescope around and focus intently on the post decision process. That is when reality will set in.
Here are some of the areas to focus on:
- Is there knowledgeable staff/voice support during regular business hours(9am-5pm)? Or do you post a question to a TAD and wait for a return call?
- Are there information systems available such as an instant FaxBack or QuickFax to keep you informed, with document retrieval? If so, what is the cost to you?
- Does the MLM provide programs which help develop one's business? Such as a Customer/Prospect Leads program. Perhaps a Direct mail program to facilitate customer base expansion, Nationwide. Again, what is the cost to you?
- Are Shipments made direct to customers and just what is your role in product flow?
- Who specifically is in your Upline? How many and are they easily reachable(Networks, Fax, Phone)?
- Any monthly minimum purchase requirements from you? If so, how do you balance them against commissions?
- Is there a history of new product announcements/enhancements to meet the demands of changing markets?
- How does the company and upline keep you informed? Newsletters, Company mailings etc.
- One factor often overlooked is mobility of one's business. If you decide to relocate to another State, what is the impact on your business? Or are you locked into an area?
- How comprehensive are your New Business materials and what training aids are available?
- Are there (800) Customer Order and Customer Service numbers? Can I quickly determine backorder items?...And just what is your role in the order cycle?
- How do I develop my business? i.e. Retail vs.Sponsoring.
- Does the company have an advertising policy to prevent/limit "loose cannons" from making unsubstantiated/unwarranted claims?
- Who pays me... Company, Upline? How often and is there a formal business statement from the company?
In evaluating MLM offerings, I believe the post decision period should be given supreme consideration. Only then can individuals determine if the MLM offering is right for them and conversely. The result would be less attrition from MLM programs with a healthier and more stable industry, overall.
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