4 Reasons Network Marketers Fail

Don’t let your sales force become a statistic!

You’ve no doubt heard the staggering stat that 95% of the network marketing sales force ends up quitting their business. Not only is this an unfortunate reality for our crucial home-based business population, but it’s also (obviously) bad news for YOU! Take some time to understand the factors your sales reps are up against so you can maintain a much higher retention rate.

Problem: Lack of Time

The time it takes for most distributors, consultants, or agents to get their business going is frequently underestimated.

Most opportunities require distributors to invest a great deal of time before they can increase in rank and start earning serious income. Many distributors mistakenly believe that this new business opportunity can fit around their busy schedule and lifestyle with minimal time investment. If your sales reps don’t receive a motivating profit within the first few weeks – or at the very least a return on investment – they won’t stick around.

Solution: Clarify the Opportunity

If part-timers aren’t going to receive a quick income with your compensation plan, you need to either:

  • Change it.

Re-work your compensation structure with an exciting bonus or incentive program to retain new distributors. Motivate them with the opportunity to quickly make income and increase in rank.

  • Own it.

Maybe you’re not interested in part-timers. Fair enough! In that case, don’t sugar coat the opportunity for new recruits. Focus on recruiting serious full-time business builders with a history in network marketing. There are plenty of heavy hitters who are looking for the next million-dollar idea. If you don’t already have network contacts, invest in a solid SEO company to help you find them.

Problem: Lack of Customers

The direct sellers who don’t make it have a limited reach. They start with friends and family, maybe branch out to schoolteachers and coffee shop community boards, but never get past their local market. Unless they can break out of this circle, their market will probably dry up within the first 6 months.

Solution: Expand the Reach!

Encourage your sales force to think GLOBALLY! Every distributor should have his own website to capture online sales, with the training and marketing tools he needs to drive traffic to his website. Remember, most of your networkers probably do not have a business degree or come from a sales background. Look into MLM Software packages that do the heavy lifting for them and bring in the hot leads. Saving your distributors from the Local Market trap means equipping them with 21s century digital marketing techniques that will bring them customers from all over the world! Look for a comprehensive package that includes:

  • Customizable replicated websites
  • Domain configuration
  • Website opt-ins
  • Web-based emailing system
  • Printable marketing materials
  • Social Media Marketing tools

Problem: Lack of Money

The start-up cost of most at-home businesses is substantial and puts distributors in the red before they can make their first sale. Often the upfront inventory purchase requirements only leads to credit card debt, expired inventory, and deflated self-confidence.

Solution: Limit the Investment

Take a hard look at your compensation structure and evaluate how it could be more friendly to brand new part-time sales reps. The goal is to captivate new distributors with a sexy, easy-to-understand commission structure that allows them to make money FAST – not sink in debt.

If upfront inventory is necessary, why not allow your sales reps to pay over time? Consider a financing option that puts your products in their hands right away and makes the purchase more feasible for people living paycheck to paycheck. A “Good Samaritan” program is also a great option if your sales reps don’t need to own the product before making their first sale. Once they start making sales, their commission is put into an account as a deposit toward purchasing your product. When they have earned enough to cover the full cost of the product, it’s theirs to keep! The Good Samaritan program motivates new distributors to get on the ball and make those first sales.

Problem: Lack of Support

Your dream team sales force would probably consist of strong networkers with years of experience and endless contacts. But if you’re like most MLM companies, the majority of your distributors have a full time job, no previous sales experience, or are currently a stay-at-home parent. They are failing in droves because they’ve never looked at friends as “prospects” before, and they don’t know where to start. Without ample support from their sponsors and proactive training from corporate, success is nearly impossible.

Solution: Equip and Train

It’s simple: You succeed when your networkers succeed. Support your sales force by:

  • Equipping: Fill their toolboxes with MLM Software and user-friendly marketing tools.

You may be tempted to stop there, but it’s just the beginning! After all, what good is a power drill if you’ve never operated one before? Your goal is to create a “Sales Smart” and “System Literate” sales force – no matter how diverse their individual backgrounds!

  • Sales Training: Bring in seasoned networkers to share their expertise at sales training events, and hold weekly calls with featured guests. Encourage sponsors to host regular sales training meetings with their team.
  • System Training: Teach your consultants how to use the software and web marketing tools with training videos, online webinars, live training events, and one-on-one phone support. Empower your distributors with knowledge!

If your MLM company doesn’t have the man-power or industry knowledge to equip and train, bring a web marketing company onboard.