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An excellent network marketer put six months into marketing a health product, spent many hours contacting and training enthusiastic distributors, did everything she knew would work, built a group of a thousand distributors and then watched it shrink right back up the line faster than she could build it. She thought this home business attrition was caused because her distributors were attempting to get in on a ground floor opportunity.
Attrition is a fatal disease for most home businesses and MLMs. Can a marketer cure it? Or is this something best handled by the marketing company's management? Could it be an intrinsic pattern to the nature of the business?
There will always be the "jumpers" who are seeking a better opportunity. They leap from one business to the next, never settling down. Sometimes the jumper is a leader and takes his group with him. But that is not the type of shrinkage this article is about.
Some say that the health market is saturated. One of the top marketers stated recently that he was through with marketing health products. I've heard several others mention that the health market had too much competition. I've seen repeated derogatory comments about "the next juice" or "miracle health" item. Yet those marketing the products profess that health and diet are a billion dollar industry, the largest of most network marketing companies. And, obviously there are some distributors doing very well with these products.
Researching this for yourself would be a wise thing to do. For instance, let's use some simple division. How many nutrition companies are there? It's a multi-billion dollar industry but what happens when you divide those billions by how many companies there are. Then you will have to divide it again by the number of distributors in each company to see how much of this billions is available to an individual.
Three factors play a major part in any business success: Supply, Demand and Delivery. Usually, supply and demand are manipulated by price. If a product or service drops in demand, you can lower the price, have a sale, offer a special package. This is rarely how things are done in network marketing. The company expects distributors, not marketers and they lower the price to get you to be one. As a distributor, you need to find the demand and how to supply and deliver exactly what that consumer wants.
A serious distributor who truly wants to build their home business will get trained on these points. There are millions of people looking for a home business on the internet. Are they looking for a vitamin? Or, are they looking for a way to make money. If you don't find the demand, you won't know what to supply.
It is good advice to keep an eye on what the top earners are doing, to befriend them, subscribe to their websites and learn from them. Obviously, those who have succeeded are the experts. For example, if you were planning on making some investments, you would study Warren Buffet, right? You would read books, learn as much as you could before turning over your hard-earned money to a broker. True?
Ideally, you would start with a business that offered not only information about what the top earners do but also provided the whole system in a neat package and all the potential home business person needed to do is plug in the information and follow the video tutorials. Similar to the train-on-the-job programs, the potential home business owner could earn while he learned.
In fact, there are several excellent examples of this on the internet already. Knowledge is power and having working systems and training will save you a great deal of time and disappointment and put you in control. But what about attrition? According to statistics, those who complement their business with a training and marketing system business build their business faster and expand it longer.
Attrition is also less of a problem in non-consumable network marketing businesses where the product is desirable, costs no more than buying it elsewhere (or saves the consumer money) or where the newly signed up consumer/distributor makes money within the first 30 days.
VALUE plays a large part in expansion. A consumable, once consumed is gone. Correct or not, a person may look at his empty bottle and wonder if it was worth the price. If he's making money at least to the point where it did not really cost him anything, he is less likely to wonder. This will be your home business and you should make your decisions in a business like manner if you want to be a success.
In looking over network marketing systems, training and businesses, ask yourself if the product is worth the price and if it is in demand. Check out the support offered by the company. Ensure you have a training system that will help those you bring into business. Will they be able to be in profit within the first few months? Would they be happy enough with the product to remain a consumer? What you find out from this will answer how much attrition you may encounter.
By :
Cheryl Currie  | |
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Related Articles :
network marketing,
attrition,
business expansion,
top internet earners,
marketing systems,
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