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Why People Drop Out Of Network Marketing / MLM

Guest post by: Bruce Wood

Article Overview: MLM Dropouts are the ruin of many independent representatives' incomes. Most network marketing companies rely on massive signups to create the volume needed for profitability. Dropouts happen for one reason which companies usually gloss over.

Why People Drop Out Of Network Marketing / MLM

Have you ever wondered why so many people drop out of network marketing? I think I know the answer, and it may not be what you expect.

If you have engaged in prospecting and recruiting for an MLM/network marketing business, why did you do it? Was it for immediate profit from signing up new bodies, or to build a team so you could get residual income? What happened to your downline? How many people dropped out once they got a whiff of work?

Did you ever get the residual income and stability you expected? Do you wonder why? When prospecting, did you present materials (websites, DVDs, CDs, brochures, etc.) provided by your company? Did you give an exciting version of what it is like to be associated with the company, highlighting all the glowing benefits of distributorship? Was your pitch worthy of an infomercial?

Most companies give their representatives slick, commercial materials, and advise that the reps maintain an upbeat energy level when introducing the company. Newbies usually go too far in that aspect, and it's easy for them to mask their inexperience by slipping into excited obnoxiousness. Very few companies give realistic, behind-the-scene views of what it actually means to market their businesses effectively and succeed. And who can blame them?

For MLMs to survive as businesses, there must be volume in both the numbers of representatives, and in product sales. It is little wonder that network marketing companies mask the facts, and rely on constant recruitment rather than seeking out quality recruits. Since "populating the grid" is usually the goal, they appeal to everyone in an idealistic way, expecting that dropouts and attrition will be overcome by massive signups.

So why do new representatives drop out? I believe it is because of the unrealistic expectations set up by the companies and their sponsors. Consider this: When was the last time you recruited a business professional or small business owner? Here I am talking about someone who has achieved success in a profession or small business, and is looking for another venture. Did any of them comment on the "hype" presented in your corporate materials? Did you adjust your presentation to talk about what it takes to actually operate in your business? Did you find that these prospects were less interested fancy lifestyle claims, and more interested in the security of operating a viable business?

Compare that presentation to the average one which tries to recruit people who have never before experienced either success or their own business. These prospects are presented with glitz and glam, and glowing reports of success. They are encouraged to see themselves reaping the benefits of operating a successful business, and that vision is never balanced with the less glamorous picture of the work it takes to get there. They are not sold a business. They are sold endorphins, emotions and dreams.

Given the two types of prospect, which one would you expect to drop out? You most likely understand this point intuitively. MLM/network marketing reps drop out because they started in a business with unrealistic expectations. It is a sinking feeling to watch your hard-built downline disintegrate. But what are you to do, if you absolutely need hundreds of signups to make a check?

Your choices are simple: Either become a master recruiter and perfect your ability to appeal to peoples hopes and dreams, develop a way of signing up fewer but targeted leads, or find a new company which you can promote in a realistic fashion and does not require heavy recruiting. "Under-promise and over-deliver" is a great motto to keep in mind when recruiting.

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Article Tags: dropouts, mlm recruiting, network marketing companies, network marketing mlm, network marketing recruiting



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