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 isn’t always easy.
What is easy, however, is the effort required to join a direct selling company. Unfortunately, it is also easy to quit.
Want To Know More?
Watch our video to learn more about why the attrition rate is so high and what your company can do about it.
Why Do They Leave?
Did you know that the average direct selling company experiences an annual retention rate of only 20% for new representatives?
Before telling you what you can do to raise your rate of retention, let’s first discuss why people leave in the first place.
25 Reasons for Leaving
Here are some of the reasons given by departing representatives:
- I thought it was going to be easier to make money and it wasn’t.
- I wasn’t making enough money from my parties. It turned out not to be worth the effort.
- The products were costing me more than I was making each month.
- Lack of communication from the company.
- People didn’t order due to the high shipping charges.
- I changed my mind when my friends talked me out of it.
- I found the products to be too expensive or my customers found the products to be too expensive.
- The products were of low quality.
- I couldn’t recruit anyone. I was afraid to ask others to join me.
- My sponsor would not return my calls or could not answer my questions.
- There were no training materials or the training materials were confusing or the training was incomplete.
- I was waiting for someone to help me and there wasn’t anybody.
- It was too hard to get bookings. My last two bookings canceled because of the economy.
- My sponsor promised me success and I didn’t experience it. My sponsor didn’t put anyone under me.
- The company didn’t direct recruits to you until you had two of your own, which was difficult. I didn’t have two.
- My products didn’t arrive when expected.
- I didn’t have time I didn’t have the energy.
- I can’t get anyone to go to meetings with me.
- I didn’t like the products.
- I’m just not lucky.
- I didn’t realize it was going to take so long to start making money.
- My spouse doesn’t support me. S/he thinks this business isn’t worth my time.
- My friends say it’s a pyramid scheme.
- Network marketing doesn’t work.
- I was putting in more than I was getting out of it.
That’s quite a list. Are you feeling overwhelmed? If I may, let me help by categorizing the reasons. Each of the 25 reasons listed above falls into one of the following 5 categories:
- Product quality/pricing challenges
- Insufficient support, communication, and education from the company, sponsor, and uplines
- Insufficient training and tools
- Compensation deficiencies
- Unmet expectations
Are you feeling better now? If you are thinking you can work with the list of 5 categories, you’re right. You can. You can address each of the “big” issues in your business. There is work to be done, but it will be worth it.
The best direct selling companies have a retention rate of 60%, which is 3 times the average rate.
What You Can Do
In spite of all of the things that contribute to attrition, direct selling companies thrive because of the determination and success of those who stick with it.
If you do the opposite of what was talked about in this video, and continue to train, support, and encourage your independent representatives, you will have a successful direct selling company and happy, successful representatives.
We are happy to help you on your journey. If you need help to lower your attrition rate, please contact us.