Downline Retention: A Crucial Skill for MLM Success

How to build a downline that doesn’t evaporate is one of the crucial skills that any new Multi Level Marketer must learn.  As with any valuable skill, it requires a critical change in thinking as well as perseverance and hard work, but it can be done.

First, let’s look at the scope of the challenge.  Imagine that you have a downline of 1000 people and consider the following:  According to the most optimistic opinion I have been able to find, at least 90% (the “realists” say 97%) of the average downline will never make more than they spend on products and company marketing materials.

So, at best, 100 members of your downline will get any positive results from a business perspective.  By positive results, I don’t mean they retired to the Cayman Islands or even met their business income goals.  I mean they have made at least $1 more than they have spent on products and company marketing materials.

Some portion of the remaining 900, let’s say half or 450, doesn’t care about that.  They’re happy product consumers. They buy the products because they enjoy using them. They aren’t interested in the business.  They’ll continue to buy the products until they (1)find something they like better, (2)find something they like just as well that is less expensive or (3) find something they like just as well that is more conveniently available.

Industry wide, the average “stick rate” for customers like this is 3 months.  So, in order to maintain your downline, you and your team have two choices.  You can either replace 150 of your product customers every month just to stay even.  (That’s not growth, that’s just maintaining.)  Or you can increase your stick rate.  If you can add just two months to the “life” of your average consumer, then you’ll only have to replace 90 product consumers each month to stay even.

Now let’s look at the remaining 450.  These are people who are buying the product because they like it and they think they can make money in the business.  These people are opportunity seekers.  They may have a lottery mentality and think that you are going to build the business for them.  They likely have no marketing skills, no sales skills and no business skills, but they still think they’re going to vacation in Tahiti next year.

These members are very vulnerable to the next opportunity they encounter, whether it is on or offline, because they think the opportunity is the key.  They don’t yet realize that the only way for an opportunity to work is for them to work.

So you have a total of 550 people who believe they are building a business.  Only about 100 of these members actually have the desire, ambition, drive, and persistence to eventually make at least $1 in the industry, but the large majority does not.

Be aware that no matter what your approach, you will never retain your entire downline.  You will always have to be recruiting and replacing lost members.  But even a small improvement could make a significant difference in your business.

So, here is the solution.  Engage your entire downline.  Create gatherings.  These can be physical or virtual.  They can be hotel meetings or they can be conference calls.  Give consumers a reason to attend by offering them things they want, like free or discounted products.  Give business builders a reason to attend by offering them what they want, like inspiration and social proof.

By engaging your downline routinely and consistently, you build a community.  Since people do business with people they know, like and trust, the stronger their bond to you, the stronger the likelihood that they will continue to do business with you rather than wondering off after the next attractive alternative they see.

Obviously, this will take a significant amount of effort and planning on your part, but there is a solution to that as well.  Plug your team into a system that provides this infrastructure for you.  Encourage them to engage with the larger community and build the bond with other organizational leaders.  They will still give you the credit for connecting them with the community, so you get the benefit of engagement without all the logistical effort.

What does a system like this look like? Click Here to find out.

You are Amazing!

MLM Success Sponsor