How to improve distributor retention rates
In the world of business, retention is a hot topic. Employers everywhere want to know how to retain their employees. With MLM businesses, it can be an even bigger struggle. As you are probably aware, MLM’s often have a low retention rate. This could be for a number of reasons. Some people get sold by the initial starter kit, but then don’t do anything past that. Others end up giving up after a few tries or just lose interest over time. So, how do you take steps to retain these distributors?
First things first. You want your distributors to have the tools they need to start the sales process on the right foot. Some of these new distributors may be unsure as to how to sell the products. Providing helpful tips and training videos can help them succeed. Don’t forget to include information on how they can find new customers, network or build relationships with potential customers and make sales.
You’ll also want to provide incentives to your distributors that motivate them to want to sell and move up the ladder. Consider a loyalty program. It could provide compensation percentage increases as they hit different sales goals. You could provide an incentive program that allows distributors to earn rewards that they can use toward different free items, maybe a free product or even a trip (if they earn enough rewards).
Offering your distributors’ technology can also help them succeed. You could offer more tools as distributors move up the ladder, becoming business builders (those who are more committed to your MLM company and making sales). Starting out, you may want to give your distributors access to an online dashboard. An online dashboard allows them to update their profile, watch training videos, schedule product presentations and even participate in a fast start program (offering them incentives for their first 30 days).
As the distributor becomes more committed to the company and makes more sales, you can offer additional features to them. These features could allow them to see chat conversations that are occurring downline, a dashboard that tracks volume across their network and reports on personal and team performance. Some companies offer these features for free as part of the program. Others charge fees. There are also companies that offer back-office technology tools to distributors that reach a certain sales volume.
Another way to retain your distributors is to be authentic. You want your distributors to feel like they work for a company that cares. Offering incentives and a great compensation plan are awesome ways to show your distributors you appreciate them. Another way is simply showing them the good things you are doing behind the scenes, like donating to an organization you care about. People are more likely to want to work for a company that they feel good about.
Retention can be tricky in the MLM industry, but it’s not impossible. You can take steps to help retain your valued distributors and business builders. If you’re looking for reliable, high-end technology services, please contact us at Thatcher Technology. Our Prowess platform supports improved MLM retention by making life better for your sales reps.