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[Debbi Bressler]

Many think that they will make a mint selling the products. And or course, money is made that way, but more money is made for bring on a downline.

Hi Maria,

Your point is well taken.

AVON is one of those companies that has great retailable products, available at a fair price,  that are purchased every day by customers.

One of the reasons those 90% drop out is they depend on internal consumption. "Back in the day" people would retail (I remember neighbors selling Amway laundry detergent!). So, you could make money without recruiting, which made the business "real" to people.

Even if someone wants to primarily build a downline, the retailability of your product line is crucial.

To Your Success!

Debbi Bressler

[CrossAM]

Most people fail on the net because they lack FOCUS and CONSISTENCY.   They hop around like bees from one flower to the next.   They do one marketing strategy for a day and expect IMMEDIATE results.  When they don't get them they say it doesn't work and quit.

The thing is the average "internet marketer" knows nothing about actual marketing.

“Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return. "                         -Kotler and Armstrong

There are many strategies to use on the internet.   PPC, Ezines, Blogs, Social Networking, ect…. . 
The best thing that they can do for themselves is to study marketing.   Not just read one or two books but really learn it.   Master ONE strategy and once it is working well for you move on to the next till you master that one and so on and so forth. 
I know that most companies don't teach marketing because it is “not duplicable” but if you find the right system it totally is!  They have to be willing to do what most won’t,  to be where most aren’t.    They need to study and learn how to attract others to them.

[PassiveCashGuy]

I believe that everyone is absolutely spot on in their observation in our industry. 

I'll submit three areas I believe are critical to attrition as well:

1.  Lack of specialized knowledge
2.  Lack of specific skills sets
3.  Lack a strong ENOUGH desire to succeed (this one is critical)

It all boils down to these three areas in MHO.

To the top,

Kylon

[Deb]

G'day gang

The overriding reason why people drop out is because they're not making enough money.

Whatever amount that is for them, they're not achieving it or it's not within their visible emotional limit.

The best analogy I can think of to describe that visible emotional limit is this:

When I was young the neighbourhood kids used to hang out under the street lamp outside our home on summer nights.  It was a lot of fun.

Sometimes we'd tell each other scary tales, huddled within the circle of light, not daring to go too near the edges where the darkness began.  The only firm reality for us was what was visible within that circle of light.  We could believe in what we could see. . .  or what lay close enough to be seen in the surrounding gloom.

If people in network marketing can see that what they desire lies within their visible emotional limit, they'll tend to stay and keep trying.  If the light doesn't move toward what they desire, or vice versa, they'll eventually give up.

The simple reality is that the light is directly over their heads.  If they move toward something, the light moves with them.

The problem -- as suggested by others -- lies in getting them to visualize what they want, then move toward it.  That requires action.  But inertia and fear are twin millstones holding them back.  As Shakespeare put it so eloquently. . . 

"Our doubts are traitors, and make us lose the good
we oft might win by fearing to attempt".

The second thing, which tends to only happen over time, as confidence grows, is to rise higher so that the circle of light expands, widening their visible emotional limit.

Over the years there have been some interesting research studies done on what makes people stay in MLM.  Two specific results were identified that still apply today, despite the passing of years and the effects of inflation:

• If they can earn $300 a month within three months, they'll stay longer.
• If they can earn $1200 a month within a year, they'll stay.

That's always been the key strategy to which I've targeted my own efforts and those of my downline teams.  They work as well today as they did 20 years ago.  But only as a starting point.  They're measurable, achievable short-to-medium term targets that keep them focused.

Hope this helps.


John Counsel
CEO, The Profit Clinic
How YOU can build a downline with free, fresh VIRAL leads!!

. . .

John said it in a nutshell.

Because they are not making enough money! 

And why are they not making enough money?

There are lots of reasons.

-they recieved poor training.

and NO going to your warm market is NOT bad training. 
Its a proven method.
If you are  bugging people you are doing it wrong.  I have never "bugged"
anyone.
I share what I have to those I love and care  about.  I merely let everyone know
what it is I am doing.
I dont bug,chase down or try to convince.   

-they do not recoup their autoship costs fast enough.

Most mlm companies have pitifully low "retail" mark ups so they can
not make any money at all that way.  They
need a dozen or so members all on autoship just to break even.
They get discouraged if they are spending more than they are making so
they quit.

-They dont treat it as a business.

You can join a mlm on a shoestring. There is no huge investment and no
bosses to make you go to work.
It takes incredible "self motivation" to be in this industy.
People have to be motivated from within.
The ones who DO work it hard consistently have "found their WHY"


I believe those are the main reasons.

One of my criteria in choosing a company is one that has a
strong "retail" program at competitive prices so new
ones and reps who have been there for   a while can
break into profit FAST and earn great money through a retail
customer base alone!

Also, having unique ,"exclusive" and consumable products
is a huge plus.

By the way. .  Im Deb. 

There is NO "Introduction" section here so I had to get in a "hello" here. 

Hi Debbi! 

John. . I Pmed you on RYZE with a question.

Nice to meet you all.

Deb
 

[Lisa Preston]

Hi Deb...
Introduction area is right smack-dab at the top of the main discussion board.

Welcome!

Cheers -
Lisa

[Deb]

Thanks Lisa.  :)

I see it now.

It is "in" the Discussion section.  I was looking for an  Introduction category on its
own.

Deb

[Jengo]

many people will be keen to try it out but soon discover its not for them, not everyone is suited to networking and sales, it just makes some people feel uncomfortable. If it were easy everyone would be doing it.

[Debbi Bressler]

Also...

Most fail at MLM because of the lack of a solid marketing plan.  They instead listen to outdated marketing like "go bug your family and friends etc..." using the "warm circle of influence" as a means of marketing their business initially.

It doesn't work.

Hi Joseph,

While I understand what you are saying, I'm not sure I agree.

If I really believe in a product and the marketing plan I had didn't work for me, I would develop another plan that would.

"Old school marketing" like talking to friends and family is not the way I choose to market. I look for products that can be promoted as part of a niche marketing plan.  However, I know a number of people who primarily conduct this type of marketing and are very, very successful.

Look at the world of marketing on the internet. There's article marketing, seo, blogs, ezines, autoresponders, building a list, pay-per-click, press releases, etc, etc.  What may work for you in this area is not necessarily something I would want to do or would be successful at performing.

Marketing in MLM is the same. If the company training doesn't resonate with you, yet you are 100% committed to the product, then go outside the company to learn how to apply other techniques.

Just my .02.

Debbi Bressler

[Debbi Bressler]

One of my criteria in choosing a company is one that has a
strong "retail" program at competitive prices so new
ones and reps who have been there for   a while can
break into profit FAST and earn great money through a retail
customer base alone!

Also, having unique ,"exclusive" and consumable products
is a huge plus.

Deb, I couldn't have said it better myself!

One of the fastest ways to get in profit is retaling products.
It's too bad that company don't spend more time teaching their people how to do this first. (aside from direct sales company...they usually do a great job)

Debbi

Debbi

[vglover1109]

Our desire to avoid pain is greater than the desire for pleasure. So whenever struggle presents itself our natural response if not monitored is to retreat. We've been conditioned to believe by alot of people in this industry that this internet marketing thing is a cake walk. 90% drop out because they fail to realize with anything their is a learning curve and it takes time to feel comfortable and confident in what your doing. The more you do something the better you get. You have to be willing to leave your emotions and your ego at the door and role with the punches. Realize whether good or bad, its just another day at the office.

[profitclinic]

G'day gang

Reading through this topic again I'd like to add some clarification to my original posts.

The reason so many people quit any worthwhile pursuit in life, including the potential benefits of MLM, is much more fundamental: if the desired benefits require a change of behaviour to obtain them, and that change requires vision, time, effort and discipline, then the chances of achieving the desired benefit are very, very low.

Inertia, habit, ruts (okay... habits), fear of loss, fear of ridicule, fear of failure and any number of other deterrents get in the way. It becomes safer and easier in our perceptions to give up.

In MLM there's another deterrent. It's the income gap that occurs between reciprocal income (trading one thing of fixed value for another thing of equal agreed value, such as products for money) and residual income (doing something once and being paid repeatedly for it).

This chart illustrates the challenge:



In the early stages, your limited reciprocal income (A) can help to overcome the lack of residual income while you recruit and train your downline team. Later, as your residual income growth goes exponential (B), it's important to keep your reciprocal income from retailing at a healthy level to set an example for your downline team members to emulate... because YOUR residual income will be impacted by their monthly sales volumes.

This comparison shows why we need both types of income:



In the short term, reciprocal income from retailing products is more likely to sustain someone's determination to succeed because they can earn income that's predictable and immediate while they recruit and train new downline people to do the same, and build their monthly residual income through bonuses from the company's share of the wholesale prices.

But there's a fixed number of hours in a day and a week, so there's a limited cap on how much they can earn in reciprocal commissions.

At the same time, it takes vision, time, effort and discipline for them to build a solid framework for earning secure, stable, growing residual income every month.

The more people we encourage to earn reciprocal income from retailing every month, the fewer people we'll need in our downline organization to earn higher bonuses. If we recruit people who simply consume and don't sell, the more of them we'll need.

We'll also work a lot harder because, when those wholesale consumers fail to earn the incomes they've been led to expect through extravagant promises, they'll quit — so we'll end up working frantically to keep them coming in the top of our funnel faster than they fall out bottom, because we've turned our recruiting funnel into a CYLINDER, where the bottom is as wide as the top!

It's all about BALANCE.

Without proper BALANCE, that much touted and desired LEVERAGE we all want is impossible.

Hope this helps.

John

[StoneCS]

Hey John,

That's a real good post there, and so true.  I've sold a bunch of ebooks and other info-crap, but lately I've put more time into membership referrals.  Instant and predictable money is great, but residual income is the only way to really build wealth.  I love getting commissions, period, but when you get the same amount or more next month, without any extra work, that's even better. 

I was going to boost your karma #s but can't figure out how, oh well. . . 

Back to the subject. . . 

The main reason to drop an MLM is money, of course.  Either not making enough compared to the time invested, or not making or barely making enough to cover the monthly fees.  Nobody wants to trade in a 9-5 job for a 5-9 job, more work, less money. 

No proper training or sponsoring.  This is what's hurt me the most.  I've been working online for a few years now.  I started off researching and learning everything on my own, like HTML, website design, installing blogs, database, scripts, etc.  Then gradually picked up different marketing skills, and ad tricks.  But prospecting, relationship marketing and social networking stuff is a whole other set of skills.

Lead generation is key too.  Without fresh new people coming into your program on a regular basis, you might as well hang up your mouse.   :P :'(

B)>

[Davet]

Hey StoneCS

Quote:

I've sold a bunch of ebooks and other info-crap

End of quote.

Excuse  me...but why are you selling crap to your customers ?

Aren't you trying to help them ?

DaveT.

[Duncan]

I think it always helps to have a good mentor in the beginning.

[Michelle Cobbs]

Great topic I'm sure this discussion could go on and on for a long time.  I agree with much has been said already to add to that I also believe that many are confused about if they should lead with the product or opportunity.  I am guilty of that myself I have recently been exposed to thinking differently about this I must admit that I can now see why this could be a major issue for many. 

Be sides that not being able to keep up with monthly autoships is key as well especially if there is no monthly coming in that can be re-invested back into the business.  Along with that not having money for marketing, advertising etc the way it should be done is very important as well.

Michelle