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A Comprehensive Guide to MLM Distributor Retention Techniques

For a direct sales business to be successful, it is important for them to incorporate distributor retention strategies. There are multiple challenges faced by the direct sales company in distributor retention such as Unrealistic expectations and no initial success, Lack of proper training and support, Lack of motivation and passion etc. To resolve all these direct sales companies should incorporate strategies such as persistent training, better compensation plans, community & recognition, use of technology and following ethical leadership and transparency.

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A Comprehensive Guide to MLM Distributor Retention Techniques

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  1. Retaining Your MLM Distributors: Essential Strategies And Tips

  2. INTRODUCTION • Distributors are the important part of a direct selling business. • It is important for direct selling companies to incorporate distributor retention strategies for successful business growth.

  3. Challenges Of Distributor Retention 1. Unrealistic expectations and no initial success: Having unrealistic income expectations always hurt the distributor's emotions. If the expectations are unmet, there is a probability to abandon the business. 2. Lack of proper training and support: Training plays a vital role in distributors productivity. Research conducted with 500 previous MLM distributors revealed that 60% of them got insufficient training and operational support from their respective companies. 3. Lack of motivation and passion: Distributors abandon their direct sales activities once the first phase of fascination ends because they lack significant outcomes from their participation.

  4. Challenges Of Distributor Retention 4. Compensation plan frustrations: If the compensation plan of the direct selling company is complex, then distributor attrition increases. If they are confused about the rewards and incentives they receive, there is a probability they leave the company. 5. Lack of recognition or sense of belonging: The absence of acknowledgment toward distributorship efforts leads to decreased emotional involvement between distributors and the organization. 6. Life changes and outside influences: The direct sales company face potential loss of customers, which is beyond their management capabilities.

  5. Data-driven Retention Techniques

  6. #1 Retention begins on day one: Direct sales companies should follow effective onboarding techniques for the distributors. Success during the first 14 days of distributorship creates an opportunity for continued employment with the company for six years. #2 Continuous training and growth: Direct selling companies should make sure that they provide continuous training and growth to their distributors. #3 Improved compensation plans: Compensation plan are the stepping-stone of a direct selling business. Compensation pay systems should be designed by the direct sales company where payment is given to distributors for team building and closing sales.

  7. #4 Community and recognition: Distributors feel motivated when they feel that they are appreciated. Direct sales company should make sure they appreciate their distributors even for a small achievement. #5 Use of technology: Technology plays a vital role in business success. With advanced technology distributors can get constant support, enhance their engagement with gamification techniques etc. #6 Ethical leadership and transparency: Direct sales business success depends on trust. Clear earnings reporting and fair policies together with business practices of integrity result in longer distributor retention for organizations.

  8. READ MORE: www.epixelmlmsoftware.com/blog/distributor-retention- strategies-network-marketing

  9. THANK YOU Epixel MLM Software www.epixelmlmsoftware.com

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