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The Number One Reason Why People Quit MLM- This Will Shock You

BY: Greg Preite | Category: Others | Submitted: 2010-11-05 08:03:01
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Article Summary: "There is one fundamental reason why people quit MLM. It may surprise you to find out exactly what it is, but here's the truth..."


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This article is intended for those of you that are already working in network marketing, or perhaps you have been in the past. You've spent countless hours doing all of the stuff your upline has instructed you to do, writing goals, attending meetings, making a list of people you know, 3-way phone calls, books, DVD's, webinars, you name it. But still you are having difficulty building your organization. You have bordered on quitting but you honestly do believe in the idea of MLM. Well, I'm about to tell you the number one reason why people quit MLM. It will possibly surprise you because the reason network marketing people quit is the same reason that some will say is essential for long term success. Are you prepared to hear it? Well, before I tell you, first let me say that there may be a few of you that will argue with my assessment. That's ok, just promise to read this entire article so that you will hear my entire argument.

Ok, so now are you ready to hear the #1 reason why people quit MLM?


Here it is... Autoship! Yep, you heard me correctly, it's Autoship. I can already hear so many of you practiced network marketers telling me that I'm crazy and that without Autoship, no one would ever have residual income and without Autoship, company volume would go down and companies would go out of business, and all the other arguments against my declaration. But wait, allow me to explain.

Most companies compel reps to purchase or sell a minimum of $100 or so worth of product or service every month in order to be considered "active". This is the company's tactic of making sure they have guaranteed sales each and every month. Veteran MLM'ers will often comment that a company needs to have consumable products so that people will use them and then reorder every month automatically (the fundamental basis of autoship). So I won't battle the traditional wisdom here... At least not too much... But here's the massive glitch.

Very few distributors will actually sell the $100 worth of products they have to procure every month. Not only will they fail to sell them, they will not even consume them anywhere near fast enough before guess what? The following batch arrives. Now whether we are talking about vitamins, juice, cosmetics, skin care, or cleaning supplies, the bottom line here is that 90% of the distributor force will not get through them as fast as they receive them. So guess what occurs next? One day, Mr. or Mrs. Distributor walks to the closet, opens it up, and sees 3-4 month's worth of merchandise. Merchandise that they will most likely never use, product that could perhaps expire and be worthless within a few months to a year, and product that cost them hundreds of dollars. Now, if they are one of the fortunate ones that is making $1000 or more every month, this may not bother them. But if they are barely earning enough to cover the price of the autoship order (or perhaps not even that much), then standard logic kicks in and they decide that they really don't want to get any more shipments and they cancel the autoship order. This, my friends, is the beginning of the end. Now, it is just a short matter of time before the distributor quits completely and the whole system breaks down. This, in my 14-year opinion in MLM, is the main reason why network marketing people fail- forced autoship leading to resignations and attrition.

But maybe your company has a service as its product. It could be internet service, wireless service, phone service, satellite service, a web based shopping service, or any of the other forms of services out there. The problem now is that as a rule no one uses the service other than people who are trying to develop a business. So if the consultant has a tough time recruiting people (as is frequently the case), they soon realize that they are paying for a service which is really intended to make them money, but instead it is costing them money. A few months of this and they get rid of the service.

The inherent predicament here is that people are forced to buy a product or a service that frequently costs more than a similar item out there in the marketplace. They do it, however, because there is a business opportunity attached and they have dreams of being able to make money. When the money doesn't come, they begin looking at the monthly fee on the credit card statement and often decide that they are paying for something that provides little, if any, benefit so they resign.

How do you escape this?

You really need to step back and take a close look at your business and the direction you are heading. Ask yourself one basic question... Does anyone ever get on autoship with my company if they are NOT building a business? If that answer is "no", then sooner or later you will be in trouble if you ever stop recruiting. More significantly, you'll have difficulty within your downline. If you want low attrition rates and more stability, then you must find a company with a product that people other than distributors will buy every month, a product that people want, and a product that people will keep buying every month even if it piles up on their shelves or if they can not sell it. Sound ridiculous? Well, it's tough, but it's not impossible. You just need to do your research and due diligence if you want to avoid that #1 reason why people quit MLM.

About Author / Additional Info:
With autoship requirements causing a good deal of attrition within network marketing companies, click the following link to view a YouTube video revealing a new way to prevent people from quitting your MLM. http://www.youtube.com/watch?v=6g1SgK20t3U&rel=0

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