You may have heard about or experienced yourself the pain of building a large organization only to have it shrink faster than you can rebuild it. This is called “attrition″ and is like fighting to keep your head above water. The question is what causes it and whose responsibility is it to handle. Especially in network marketing where it is easy to blame the company or the members of your group who failed to build it along with you.
Slowing down or stopping attrition requires that one establish whose responsibility it is. If a distributor blames the company or his sign-ups, he cannot do anything about it. He has by that blame put the whole matter in someone else′s hands. If you do not want to work so hard only to watch it shrink, decide first that you are the one who can fix it.
Those sign ups who are only there to see what happens and leave after a short time to try something else are part of the overall scene. Leaders who take their group with them and move to another opportunity is also common. But this article is about the kind of attrition where the whole thing backs up.
Some say that the health market is saturated. One of the top marketers stated recently that he was through with marketing health products. I’ve heard several others mention that the health market had too much competition. I’ve seen repeated derogatory comments about “the next juice″ or “miracle health” item. Yet those marketing the products profess that health and diet are a billion dollar industry, the largest of most network marketing companies. And, obviously there are some distributors doing very well with these products.
If you are considering a nutrition or consumable product for your home business, thorough research is vital. You will hear, for example, that nutrition is a multi-billion dollar industry. If you divide that by the thousands of companies, how much money is that for each company? Are they still expanding. How many distributors are there already that want a piece of that pie?
Supply, Demand and Delivery are the three vital factors that affect you as a home business owner or online network marketer. It is important to understand the difference between a CUSTOMER and a DISTRIBUTOR. When you supply a product or service with which a person is happy, you have a customer. A distributor wants an income. Any third grader learns that there is a balance between supply and demand that is manipulated by price. Yet most network companies never alter their price. You, as the distributor, must be able to control the balance of supply and demand.
A serious distributor who truly wants to build their home business will get trained on these points. There are millions of people looking for a home business on the internet. Are they looking for a vitamin? Or, are they looking for a way to make money. If you don′t find the demand, you won′t know what to supply.
It is good advice to keep an eye on what the top earners are doing, to befriend them, subscribe to their websites and learn from them. Obviously, those who have succeeded are the experts. For example, if you were planning on making some investments, you would study Warren Buffet, right? You would read books, learn as much as you could before turning over your hard-earned money to a broker. True?
In selecting a home business, you might want to pick up two of them. One would be all your training, a marketing system and connect you to top earners all in one neat package that can be given to your group members easily. Such a company would provide multiple income sources in an “earn while you learn″ manner.
Several such companies exist. There is a lot to be learned about network marketing and having a system that includes training available for the members of your group can severely reduce attrition. It adds value to your program as well as additional income. It can move a consumer into a position of a willing distributor. Knowledge is power.
In regards to supply and demand, we have the factor of price. A non-consumable product that fairly priced or saves the consumer money reduces attrition. When a distributor makes money within the first 30 days, he is also less likely to leave.
People want something of VALUE with no shelf life. You drink the juice and when it has been drunk, it is gone. Psychologically, that can translate to a lower value. When you research the rise and fall of network marketing companies, do it on a professional level, choose wisely and provide your sign ups with the training they need to succeed.
As you look over the various network marketing systems and potential home businesses, there are questions you should ask yourself. Do you feel the product is worth the price and in demand? Does the company have a good customer support service? Do you have a marketing system to offer your customers/distributors? If they do not make money in the first few months, would they be happy with just the product? The answers you get will tell you if this is the right home business for you or a short term venture that will die out from attrition.
Want to find out more about network marketing systems, then visit Cheryl Currie′s site on how to choose the best top internet marketers for your needs.