Everyone thinks the key to being a network marketing superstar is sponsoring tons and tons of people. However, I would argue that it is the relationships that you form. Why do I say that? Well, relationships are fundamental to your group’s retention and retention keeps your business stable and poised for more growth.
Retention is crucial to your business. With a network marketing industry average retention rate of 20%*, that is like losing 8 of every 10 people you sponsor. If you do nothing to keep your downline (communicate weekly with whole group, be available for 3 ways, provide encouragement for new ranking folks and working in depth) in the business, it will destroy your profits because more than likely you will be spending more money than you are making just to recruit new people.
Think of attrition as passing a fire bucket full of holes. It doesn’t matter how much water it starts out with, by the time you get half way down the line, you are out of water unless you stop and fill it up again and again and again.
So how do you develop your relationships to increase your retention? The answers should be really obvious, but I’ve broken it down into three steps.
Step 1: Really get to know the people you sponsor into your business.
If you learn what it is they really want, help them define their “WHY”, then you are able to hold them accountable to themselves and their business. It shows that you care enough to remind them of what is most important to them (bringing their wife home from her job, buying a house, paying for their kids education) and to guide them toward those goals.
Step 2: Remember, people deserve personal attention and respect.
Keep in mind that most of the people you sponsor into your business are currently professional employees. That means that they more than likely are just a number to a company and receive little if any respect for the work that they do or personal consideration by their boss.
People need to know that they are truly appreciated for who they are and not just the paycheck they provide to you.
Let your downline know how much you respect their choice to make a better life for them and their families. Show them Basic Courtesies, Thank You’s and Congratulations. Remember their Birthdays, Anniversaries, Thank them for their service to the Country if they are a Military Veteran. It is the little things that go a long way.
Step 3: Offer yourself as great value to them.
If the people you sponsor into your business see you as a friend, confidante and a leader, then you are well on your way to having a business partner for life.
You need to be knowledgeable about your company and how to market yourself and your products, but what your DON’T want to come across as is a Marketing Guru who is unapproachable and who won’t have the time for them. People will listen to what you have to say as long as they don’t feel like you are talking down to them or at them. Always talk with them.
The value you offer is YOU and your TIME. The most valuable thing you have is your time and people appreciate you sharing your time with them. In my last company, I was sponsored by a top 10 money earner in the company. He was a great sponsor, but the downside was that he was so busy that there was a 24-48 hour response time to your phone calls and emails. That meant you had to coordinate 3 schedules for a 3-way call and training questions were delayed. Simply put, he did not have enough time to effectively work with his downline.
There is a saying that people don’t Care how much you Know until they Know how much you Care.
There has never been a truer statement that applies to all aspects of life. It really does come down to living the Golden Rule, in that you are always willing to treat people the way you want to be treated. This truly is the foundation of relationship building.
So I challenge you to get to know the people you sponsor into your organization, show them the respect that they deserve and be of great value to them. If you have these three bases covered, then you will be well on your way to beating the industry retention rate and generating financial security for both you and your downline.
*Statistic from ServiceQuest website.
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Awesome man! Keep it up.