subject: The Top Reason Why People Quit MLM- The Truth Will Shock You [print this page] The Top Reason Why People Quit MLM- The Truth Will Shock You
This piece is intended for those of you that are already working in network marketing, or perhaps you have been in the past. You've invested countless hours doing all of the stuff your upline has instructed you to do, establishing goals, attending meetings, making a list of people you know, 3-way phone calls, books, DVD's, webinars, you name it. But still you are having trouble building your organization. You have debated on quitting but you honestly do believe in the concept of MLM. Well, I'm about to tell you the number one reason why people quit MLM. It will in all probability surprise you because the reason network marketing people quit is the same reason that some will say is critical for long term success. Are you eager to hear it? Well, before I tell you, first let me say that there may be a few of you that will argue with my assessment. That's ok, just promise to read this complete article so that you will hear my entire argument.
Ok, so now are you ready to hear the #1 reason why people quit MLM?
Here it is... Autoship! Yep, you heard me right, it's Autoship. I can already hear so many of you practiced network marketers telling me that I'm crazy and that without Autoship, no one would ever earn consistent income and without Autoship, company volume would go down and companies would go bankrupt, and all the other arguments against my claim. But wait, allow me to explain.
All companies compel consultants to purchase or sell a minimum of $100 or so worth of product or service every month in order to be considered "active". This is the company's mode of making sure they have surefire sales each and every month. Seasoned MLM'ers will say that a company must have consumable products so that people will use them and then reorder every month automatically (the fundamental basis of autoship). So I won't fight the traditional wisdom here... At least not too much... But here's the enormous problem.
Very few people will actually sell the $100 worth of products they have to procure every month. Not only will they fail to sell them, they will not even consume them anywhere near fast enough before guess what? The subsequent shipment arrives. Now whether we are talking about vitamins, juice, cosmetics, skin care, or cleaning supplies, the bottom line here is that 90% of the distributor base will not get through them as fast as they receive them. So guess what occurs next? One day, Mr. or Mrs. Distributor goes to the closet, opens it up, and sees 3-4 month's worth of product. Merchandise that they will most likely never use, product that will possibly expire and be worthless within a few months to a year, and merchandise that cost them hundreds of dollars. Now, if they are one of the lucky ones that is earning $1000 or more each month, this may not concern them. But if they are barely making enough to cover the charge of the autoship order (or perhaps not even that much), then conventional logic kicks in and they decide that they really don't want to receive any more shipments and they cancel the autoship order. This, my friends, is the beginning of the end. Now, it is just a short matter of time before the rep quits completely and the whole system breaks down. This, in my 14-year opinion in MLM, is the biggest reason why network marketing people fail- forced autoship leading to resignations and attrition.
But maybe your company has a service as its product. It might be internet service, wireless service, phone service, satellite service, a web based shopping service, or any of the other forms of services out there. The problem here is that typically no one uses the service other than those who are trying to develop a business. So if the consultant has a tough time recruiting others (as is frequently the case), they soon decide that they are paying for a service which is really supposed to earn them money, but instead it is costing them money. A few months of this and they cancel the service.
The inherent issue here is that people are forced to buy a product or a service that frequently costs more than a similar item out there in the marketplace. They do it, however, because there is a income opportunity attached and they have hopes of being able to make money. When the money doesn't come, they begin looking at the monthly fee on the credit card invoice and often determine that they are paying for something that gives them little, if any, benefit so they give up.
How do you escape this?
You really need to step back and take a good look at your business and the direction you are heading. Ask yourself one basic question... Does anyone ever get on autoship with my company if they are NOT building a business? If that answer is "no", then sooner or later you will fail if you ever stop recruiting. More importantly, you'll have trouble in your downline. If you want low drop out rates and greater stability, then you must find a business with a product that people other than distributors will buy every month, a product that people desire, and a product that people will keep buying every month even if it piles up on their shelves or if they can not sell it. Sound impracticable? Well, it's tough, but it's not unattainable. You just need to do your research and due diligence if you want to avoid that #1 reason why people quit MLM.
