Marketing 101: Form Relationships To Increase Your MLM Business Retention

So you want to be a home based business hotshot? Most people think that requires sponsoring a lot of people.Yet, I feel that it is when you cultivate relationships that success will come. Why do I say that? Well, relationships are important to your group's retention and retention keeps your business stable and ready for more growth. Retention is essential to your MLM business. With a network marketing industry average retention rate of 20%*, that is like losing 8 out of every 10 people you sign up. This is why it is very important to do things such as working in depth with your group and encouraging those working to move up the ranks, being available for 3-way calls and having weekly communication with the whole group. If you do nothing but just sponsor someone, it will ruin your profits. That is because more than likely you will be spending more money than you are making just to sign up new people to replace the ones that are leaving. A good mental image for attrition is a fire bucket full of holes. No matter how much water you put into the bucket, it will always leak out the holes. So you have to continuously stop and add more water and never accomplish your goal of putting the fire out. How do you start to strengthen the relationships with your organization in order to boost your retention? Even though relationship building is a elementary part of recruiting and building a network marketing business, it is always good to get back to the basics. So I've broken relationship building down into three actions. Step 1: Really get to know the people you bring into your home based business. If you find out what it is they really want, help them define their "WHY", then you can hold them accountable to themselves and their business. Care enough about the people in your downline to bring them back to what is most important (quitting their job, having a stay at home wife, buying a new house) and help guide them toward achieving those goals. Step 2: Keep in mind that people are worthy of personal attention and respect. Keep in mind that most of the people you recruit into your home based business are currently professional employees. At work, they are most likely just a number that has little or no real value to the company and they probably get little to no respect for the work they do. People have to know that they are really appreciated for who they are and not just the paycheck they provide to you. Let your downline know how much you admire their choice to make a better life for them and their families. Show them basic courtesies, thank you's and congratulations. Do the extra little things like remembering their Birthdays and Anniversaries, thank them for their military service, etc. These are simple little touches that show you care and strengthen a relationship. Step 3: Be of great value to them by sharing your time and knowledge. You need to be knowledgeable about your company and how to promote yourself and your products, but what you 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. You always want to talk with them, not at them or down to them. When the people you sponsor into your home based business picture you as not only a leader but as a friend and confidante, you will be well on your way to having a business partner for life. 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 three schedules for a 3-way call and training questions were delayed. He simply did not have enough time to work effectively with the downline. When it comes to building relationships to improve your MLM downline retention, 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. Building a relationship comes down to living the Golden Rule. Always 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 recruit into your organization, show them the respect that they deserve and be of great value to them. As you implement these tactics, you will be on your way to beating the industry retention rate and on your way to creating financial freedom for you and your organization. *Statistic from ServiceQuest website.