Most direct selling, network marketing, MLM companies will be lucky if they can retain 15 to 20 percent of their recruited consultants on a long-term basis. Therefore, MLM company owners and their consultants should consider this information of great importance.

How do you retain your distributors? Special treatment can make all the difference in whether a consultant or customer stays or leaves the company. It’s important to encourage upline distributors to give their downline consultants and customers attentive treatment and service in order to ensure that they will stick around. The handling of people through quality service is priceless where advertising and marketing costs may not produce the same effect.

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This blog post is the companion post to the video: Success Stories in the MLM, Direct Selling, Network Marketing Industry, in which MLM Attorney, Jeffrey Babener, discusses the successes of leaders in the direct selling industry.

There have been many studies done in regards to what makes successful direct selling companies. Many case studies have been done about Mary Kay and her leadership, which have been cited at schools like the Harvard Business School and the Wharton Business School. Many schools have lectured on the institution of direct selling. Many people have added business modules on entrepreneurship in an effort to understand what it is about these renegade, visionary and charismatic individuals that cause people to flock to them, follow them and build this type of business for themselves.

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This blog post is the companion post to the video: Why Do Distributors join MLM Companies? The following is the transcript of MLM Attorney Jeff Babener’s own words:

A common question we get is “why do people join direct selling and network marketing companies?”  Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association. Many would be surprised at the results. One may think that most people join MLM companies for the money. However, believe it or not, money as motivation ranks as four, five and six on polls.

The polls have showed that the number one reason why people join MLM companies is because they relate to the product. The second reason they join is because they relate to company management; the person who founded the company. The third reason distributors join is because they relate to the company vision. If the company proclaims women’s empowerment or wellness, then distributors will relate to that as well. It is also important that distributors relate to the field leadership and the people that brought them into the company.

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This blog post is the companion post to the video: Why Do Distributors Stay with MLM Companies? Find out how to retain the most important asset to your MLM company, distributors.

We are often asked the questions “why do people stay with MLM companies” and “why do they leave?” Retention is essential for a successful MLM company. We are in an industry that has a lot of attrition due to the nature of the work environment. Many distributors work part time and are competing for peoples’ time. Distributors (or representatives, consultants, etc.) come and go all the time. Losing a distributor is worse than being unable able to recruit new consultants, making retention essential.

There are interesting answers given by distributors as to why they stay with the company. You may think they stay for the earnings, but income often comes in fifth or sixth place in industry polls. As a general matter, consultants usually stay with a MLM company because they are connected and bonded with the products the company sells, as well as with the company’s mission and with top management/leadership. Distributors also like to be recognized for the work that they do. Recognition is very important in the direct selling industry. These are factors that really propel distributors to stay with a MLM company.

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Why Millions of People Are Getting Involved

Although network marketing isn’t for everybody, millions of people from all walks of life consider it to be the right opportunity at the right time. The fact is, becoming an independent distributor can fill important needs and fit within the time and money limitations many people face.

Practically No Investment Necessary

Most companies require only the purchase of a modestly-priced startup kit ($25 to $100) to join.

The Chance to Own a Business

Because network marketing can easily be done part-time, and worked around a full-time job, it gives people who work for someone else the chance to own their own businesses and jump into the world of entrepreneurship without the major economic and time investments that traditional business models require. In this world, they are rewarded for risk-taking, and have control over their working environments.

Earn Additional Income and Potential Tax Benefits

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