Direct Seling: Why Is The Attrition Rate So High?
The rate of attrition of independent representatives of direct selling companies is high for many reasons
. Here are several of them:
It's Sales
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.
Afraid to Try
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.
Other Priorities
Life gets in the way. Kids have daily activities. Many representatives work a full time job and/or have other commitments that compete for their time.
Poor Training
Many companies don't provide enough training or support. A company may think that providing a CD or a manual is sufficient training, but it's not.
Responsiveness
When a rep calls with an issue that is important to her, the company doesn't respond rapidly or at all.
Perceptions of Difficulty
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
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.
Social Needs
Many join for social reasons. Women tend to 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.
No Community
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 Disincentives
Compensation plan changes also contribute to attrition. It is not uncommon for direct selling companies to modify their compensation plans. This happens for many good reasons, but when it does, there are always representatives who will feel it is not a benefit for them to work any more and so they will quit.
No Focus
A lack of discipline is another significant cause of attrition. Becoming a representative, 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.
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 it.
If you need help to lower your attrition rate,for helpcontact us at Sylvina Consulting at 503.244.8787 or visit our website,
www.sylvina.com.
Direct Seling: Why Is The Attrition Rate So High?
By: Jay Leisner
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