Why Do Distributors Join, Stay or Leave a MLM Company?


If you are a network marketing company or a distributor, you know that recruiting and retention are the lifeblood of the business. What factors make companies successful and the distributors successful? Of course, a competitive compensation plan is a given. But, some very helpful industry studies, many by the Direct Selling Association, have been done and there are some real pearls of wisdom in the results that should be taken to heart and clearly demonstrate that consultants stay with the company because “it is not just the money” after all.

Why Do People Join?

You might think that the main reason to join is for the money, but believe it or not, that is number four, five and number six on the list.

1. Number one on the list in the studies is that people join because they like and believe in the product;

2. Second on the list is, “I like being my own boss”;

3. Third, “I like working from home”;

4. Fourth, “The harder I work, the more I make.”

Again, earning extra income is obviously important, but it would be a mistake to ignore the “intangible” factors that pull people into the business.

Why Do People Stay?

Company owners and distributor leaders are always asking, “Why do our representatives stay with us and what can we do to support their retention?” On a list of the top five factors, take a look at where earnings comes in… number five, and then think about what you are doing.

The top five reasons that distributors stay:

1. A favorable response to the products;

2. They relate to the leadership, management and owners of the company;

3. They relate to the leadership of the sales force, i.e., the top distributors and their sponsors;

4. They relate to the vision of the company. If it’s about women’s empowerment or about health, they relate to it; if it is about helping households save money to create a better life, they relate to this vision;

5. And maybe you will be surprised… or not… but the fifth ranked reason that distributors stay with companies is “earnings.” Go figure.

Why do Distributors Leave?

Read the full article here: http://mlmlegal.com/MLMBlog/?p=538

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Written by:


Babener & Associates on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.