The rate of attrition of independent representatives of direct selling companies is high for many reasons. Here are several of them:
Direct selling is a “sales” job, but the average person joining a direct selling company may not view herself as a “salesperson.” While people are often led to believe that it is easy and that great products are all that is needed for customers to flock to them, success isn’t guaranteed for everyone. Sales aren’t always easy.
Fear of failure is another reason. Some people join direct selling companies with high hopes, but never achieve success because they’re afraid to try.
Life gets in the way. Kids have daily activities. Many representatives work a full-time jobs and/or have other commitments that compete for their time.
Many companies don’t provide enough training or support.
When a rep calls with an issue that is important to her, the company doesn’t respond rapidly or at all.
Money may not be a big issue. Money is not always a big motivator. The rep may only need a little extra spending money each month. If your income opportunity is perceived as difficult, the pursuit of it may not be worth the effort.
Unmet expectations are another cause of attrition. Some companies promise incredible but unrealistic earnings that can be made immediately but fail to help the representative to get there or to get there soon enough if the income potential is real.
Many join for social reasons. Some people have high social needs and if they are able to meet regularly with others, direct selling can fulfill those needs. However, if after they join they are not able to obtain the social input they desire, they will spend their time elsewhere. Here again, money may not be the primary motivator.
When people feel disconnected during an activity, they tend to drop it. Independent representatives who don’t feel they are part of a community will check out from it.
Compensation plan problems also contribute to attrition. It is not uncommon for direct selling companies to have deficiencies in their compensation plans. When this happens, there are many representatives who will feel it is not a benefit for them to work anymore and so they will quit.
A lack of discipline is another significant cause of attrition. Becoming a representative, and starting your own company, should mean that you still act as if you are working for someone else by setting hours that you must work, making cold calls, following up on other calls, tracking inventory, etc. Without a boss, many people lose their willpower to stay focused on the tasks at hand. They have not been taught that the calendar is their new boss.
In spite of all the things that contribute to attrition, direct selling companies thrive because of the determination and success of those who stick with them.
If you need help lowering your attrition rate, please contact us.
Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving network marketing, party plan and referral marketing companies across the globe.
Wayne Kiltz says
Thanks for the great article. I’ve seen all of these things with our customers. This listing gives me an organized way to come up with ways to deal with these different issues that people have.
Dupsies Onabanjo says
Very Well Written Victoria. In cases where your products are specialty products. Your customers that resell your products already have an edge over companies that sell common products so with aggressive marketing, they are able to make decent profits selling the specialty products.