Marketing 101: Develop Relationships To Strengthen Your MLM Business Retention

Everyone thinks the answer to being a work at home superstar is sponsoring gobs of people.Yet, I would make a case that it is the relationships that you establish. Why do I express that? Well, relationships are fundamental to your group's retention and retention keeps your business stable and primed for further growth.

Retention is critical to your home based business. With an MLM industry average retention rate of 20%*, that is like losing 8 out of every 10 people you sign up. 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 ruin your profits because more than likely you will be spending more money than you are making just to sponsor new people.

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 develop the relationships with your organization in order to boost your retention? The answer should be really obvious, but I've broken it down into three steps.

Step 1: Really get to know the people you recruit into your network marketing business.

Discover what their "WHY" is. What is it that they really want more than anything. This will help you be an effective coach when it comes to keeping your downline accountable to themselves and to their businesses. 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 direct them toward those goals.

Step 2: Keep in mind that people are worthy of personal attention and respect.

Remember, most of the people you will recruit into your business are currently professional employees who are just starting to set out into the world of entrepreneurship. Often times these people will have little personal consideration by their boss for the good job that they do and are in all probability just one of the minions at the bottom of the corporate pyramid scheme.

It is important for the people you sign up to know that you really do appreciate them for who they are and not just the paycheck that they provide you.

Don't forget to let those you recruit know how much you respect their decision to make a better life for them and their families. Exhibit the basic courtesies of saying, please, thank you and congratulations. Do the extra little things like remembering their Birthdays and Anniversaries, thank them for their military service, etc. It is the little things that go a long way.

Step 3: Offer yourself as great value to them.

You need to be knowledgeable about your company and how to market 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. Remember, people will listen to what you have to say as long they don't feel like you are belittling them. You always want to talk with them, not at them or down to them.

When the people you recruit into your home based business see 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. This meant training questions were held up and scheduling a 3-way call took coordinating three different schedules. He simply did not have enough time to work effectively with the downline.

Remember that as you are building relationships, 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. It really is the foundation of great 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.

L.R. Hand has utilized his MLM success formula to not only build a large organization, but to help others gain the knowledge they need to succeed in their own MLM and increase the retention in their own downline. To learn more about L.R. Hand and his home business, you may visit his blog: www.TheZurvitaBailout.com

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