Yesterday I gave you a little insight into one of the reasons I use Mentoring For Free. If you haven’t read yesterday’s article, I suggest you read it first so you’ll have a better grasp of today’s article. You can read yesterday’s here: Why Mentoring For Free? (Part 1).
The other day I was asked by a friend why I do Mentoring For Free. His biggest question was why help people who might never join my Network Marketing Team. Isn’t sponsoring people in your business the point of being in Network Marketing? Why not do one of those other systems where even if they don’t join your team, they join the “system” as an affiliate and you still make money.
Today, I would like to talk about Retention and how Mentoring For Free can help keep your team together. It’s another key reason I use Mentoring For Free.
What’s the point of bringing on a partner in your business if they aren’t going to stay? The industry standard for retention is only about 6%. Can you believe it? 6%!!! That’s scary!! That’s not even 1 out of 10 people!! Really? Yep!
So I started researching this. Why don’t people stay? What makes them quit? Now there are lots of theories out there, but here’s mine. People quit for three simple reasons:
- They aren’t making any money, or what money they are making is not worth their time.
- There is no Community. People have an inherent need to belong to something. We gravitate to groups. We create “Cliques.” A lot of people go to Church not to learn about God, but to congregate. So if there is no “Community” that people can be part of, they’ll slowly wander off looking for something else.
- People just plain quit things. They get excited about something and that excitement soon fades away and they quit, or they realize that this industry is not as easy as they thought, and it actually requires work. Money isn’t just going to arrive in the mailbox like they said at the opportunity meeting, so they quit.
The third reason is one that I recommend you don’t try to figure out. It’s just the way it is, but the first two reason are something you can control. And I’ve found that you can control them with the Mentoring For Free System.
Let’s tackle the first one. Making money. In Network Marketing, there are 2 basic ways you make money. Retailing product yourself, or having a team of people buying and retailing product also. Let’s focus on the later, because that’s where your residual income is going to come from, and that’s what we’re all striving for.
So in order to have a team of people working with you, you need to find those people who will join you. There are many ways to make this happen:
- You can make a list of your friends and family and call them all and pitch them your opportunity and if they don’t think you’ve joined a cult, they’ll join you.
- You can invite anyone you bump your shopping cart into at the store to an opportunity meeting and hope they show up. If they do show up, you then doubly hope they join you.
- You can take an ad out in newspaper or magazine and pray it’s better than all the other ads out there. Then, hopefully your pitch over the phone is better than the 100 pitches they’ve heard before yours. BTW, this is costly.
- You can make a Facebook page and throw up your opportunity all over your wall and your friend’s wall hoping someone will think your opportunity is better than all the other people who throw up on their wall too.
Tip: None of the above are very duplicatable! Even if you’re having success doing them, 99% of your team won’t.
Instead of all that, you can do what I do and offer value to people who are looking for answers as to why they’re failing in this industry. You can show them why the cards are stacked against them and why their lack of success in not their fault. Use the Mentoring For Free System to give them accurate, truthful information. You can show them a proven duplicatable system that anyone can use to build their business. And here’s a secret most people don’t know; The people that download the Success in 10 Steps eBook are Leaders. They’re hungry and out there looking for answers to make it work in this industry. Isn’t that what we’re looking for, Leaders? We’re looking for people who are not quitters, and who are not willing to give up when the going gets tough. If you can show them how to build it right, how to attract others, how to build those golden relationships, then they will stay. And your retention goes up. So instead of a measly 6% retention, how about 60%, 70% or even 80% retention rate? That’s what I am currently seeing in my team.
Now let’s think about this. Let’s say you want to make $1000 extra a month, so you join a company where you make $10 for every person on your team that orders product every month. Those are pretty good numbers industry wise, because that means you would need 100 people on your team to make that $1000. (100 x $10 = $1000). But here’s where it gets tricky. Let’s throw in the industry standard retention rate of 6%. In other words, if only 6 of those 100 people stay, you have to replace 94 out of every 100 you bring in. So technically speaking, in order to find 100 people who stay consistently, at 6% you would need to find 1667 people (1667 x .06 = 100). Not an easy thing to do! Especially if you want to make a lot of money! Take your goal income to $5000 a month and you’re talking having to find over 8300 people just to keep 500 of them!!
And we wonder why people quit!! Considering that 90% of your organization are part timers, building a team of over 8300 people is not part time work. Not to mention the wind taken out of their sails when 7800 of their team quits on them. Hell, I would quit too!
But there’s hope…. Let’s up the retention rate to say 70% by giving them a system that everyone on their team can use. The numbers are vastly different. We’re talking the same amount you want to earn, $1000 a month. 100 people who stay are needed. At a 70% retention rate, you would only have to replace 30 people per 100. So you’re talking about finding 144 people total. (144 x .7 = 100) And if you wanted to make $5000 a month, you’d only need to find 720 total people. Much easier to do for both a full time and part time business.
Give people an easier way to do something, and they’re more than likely to do it. Seems like a no-brainer to me!
In tomorrow’s post, I’ll continue answering the question of why I do Mentoring For Free. Another big part of that is Community, why it’s important, and how Mentoring For Free helps bring people together.
In the meantime, let me show you even more about what this system has to offer. Personally I’m using it to build one of the fastest growing teams in my Network Marketing Company. Wouldn’t it be nice if you were doing the same? The first step is to download our Free eBook Success in 10 Steps. From that point I’ll take you by the hand and show you how your lack of success so far in this industry is not your fault and how you can turn that all around.
To Your Success, Because Your Success Matters!
David Haines
(215) 268-6696 Anytime!
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One day a farmer’s donkey fell down into a well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally, he decided the animal was old, and the well needed to be covered up anyway; it just wasn’t worth it to retrieve the donkey.
