“How To Beat Downline Attrition”

“I have been with my MLM company for 22 months. I have moved up to the 4th level of leadership and have successfully built a team of over 200 people - 40 of which are "active" instructors and 80% subscribe to a monthly program, however I have yet to see a substantial profit.

I feel like I just launder money. Money comes in and goes right back out the door to build my business bigger. At what point should I expect to make a profit that I can use towards the family budget? HELP - I must be doing something wrong!”

Mr. X

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This is a fantastic question and there are several answers to it.

I see two pieces of the puzzle missing in this scenario.

This first is momentum and duplication which are two required ingredients to building a substantial check with an MLM pay plan.

This organization has been in play for two years now with a total of 200 participants. That comes out to 8 new customers/month throughout the team.

And then there's the attrition factor... How many current reps drop each month? 10%, 20%, 30%?

Securing a healthy,  growing business that allows you to leverage the efforts and production of your downline requires you to get ahead of the rate of attrition by a substantial amount.

If you don't, it's simply a revolving door.

The key to conquering attrition is momentum.

On average, you'll start to see momentum and exponential growth kick-in once you reach 300 active distributors.

BUT!

The time frame is vital...

That number needs to be reached in less than 4 months. Preferably sooner because it's the large amount of activity and production in a short amount of time that creates the momentum and rockets you ahead of the attrition curve.

You might have 300 reps on your team but if it took you a year to reach that point, there is zero momentum and any current production is simply replacing the volume that dropped off last month. Attrition has caught up with you and killed the profitability that comes with the leverage of fast growth.

So how do you build an organization of 300 active reps in less than 4 months?

Three things:

1: Leadership and enthusiasm. Your downline will do as you do. If you are truly stoked about building your business and you're  completely invested into the process, you're team will adopt the same excited state.

2: Massive action. This is a numbers game and you need to personally sponsor at least 10 new reps per month. If you sponsor an average of 1 out of every 25 leads you prospect, then you need to generate/call at least 250 leads per month or 8 leads per day, 7 days a week. And I don't mean "call" 8 leads per day. I mean "speak" to 8 people per day.

If the massive action is not present, you will never get ahead of the attrition curve or achieve momentum.

3: Money to fund your massive action.

This is the second missing piece to Mr. X's puzzle today.

Considering that 90-95% of your prospects will say "no" to you and your business, you MUST monetize them in an alternative manner if you want to be operating above the line during the beginning stages of your business.

MLM compensation plans ARE NOT designed to generate you a profit based upon your own efforts, so you MUST find ways to add income to your business through alternative means until you have an established organization that takes full-advantage of your compensation plan.

This is one of the primary skills taught in the Magnetic Sponsoring Course… Basically you learn how to use a business model and methodology that allows you to generate endless leads and instant profit in any MLM.

You must realize that a network marketing company is not a business that you own, and it's not something that you will likely "will" to your family when you pass away like a true asset because it is not one.

I know that every CEO at every event you've been to says otherwise, but here's the bottom line...

A true asset is something that you own, and that cannot be taken away from you.

You do not own your network marketing business or your downline. You are a 100% commissioned sales rep that can be terminated at any time whenever the home office feels like firing you.

In a true business, an MLM opportunity is simply a piece of the a much bigger pie... Not the pie itself.

My point is that there are many additional ways to monetize the leads you produce and the organization (distribution chain), that you build.

The money that comes from this monetization should ideally pay for you business expenses, leaving your MLM check as pure profit on the back-end.

If you want to learn more about this strategy, simply pick up a copy of Magnetic Sponsoring. For a much more detailed course that get’s into the nuts and bolts, MLM Traffic Formula is the way to go.

It represents a historic change of approach in the new internet age of MLM.