If you are a in a home business, 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 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 People Leave?
Finally, one of the industry’s leading direct selling companies
pondered the issue of the departure of its distributors. So much so,
that the company conducted a series of “exit” interviews with
distributors.
Again, although money is important, the answers demonstrated the glue
of the company-distributor connection as relationship-driven. Almost
across the board, the answer was “communication,” or lack thereof.
Consultants need to feel that somebody is responding to them, that they
are communicating with them. If consultants feel ignored and this is
true in every realm of business, they vote with their feet and they
leave.
The following factors were disclosed as leading to departure:
- Poor Communication;
- Inferior Support;
- Inadequate Leadership;
- Lack of Training.
What Can We Learn as Companies and Distributors?
Of course, the necessity of a competitive compensation opportunity
goes without saying. After all, home based business are a business
opportunity. With that in mind, however, the driving force that bonds us
all is quality product and attention to relationships. Actually, this
should come as no surprise. The takeaway here, get plugged into your team's training, do some kind of personal development daily and surround yourself with like minded people. One thing I have always done in the almost 10 years of being in my home business, is treat my customers and team members the way I want to be treated. What kind of training do I need, what kind of coach do I need? And then I provide my team with that.
My pray for people who are joining, staying or leaving: People come and people go. Father, help me to not take it personally. Help me to see all sides of the equation, and if there is an area that I can improve on, please help me to see that. I pray that you would let me be a part of someone else's success, and because I have been brave, help them to be brave and courageous in their en devours as well. Please help me to represent you, even when I have been blindsided or hurt by the people who have worked for me. Help me to cut down turnover by hiring like minded people right from the start. Help me to find the right people for my team, who join my team for the right reasons and who will stay with me for the long haul. And if I have people on my team who are not for me, I pray that you will help them to move out of my business and onto something better suited for them. My business is only as good as my team. I pray for strong, like minded, encouraging people to join my team! Amen
Ephesians 4:32 "Be kind to one another, tenderhearted, forgiving one another, as God in Christ forgave you."
Hebrews 13:5 I will never leave you nor forsake you.
Deut 31 : 8 The LORD himself goes before you and will be with you; he will never leave you nor forsake you. Do not be afraid; do not be discouraged."
“Somebody once said that in looking for people to hire, you look for three qualities: integrity,intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.” ― Warren Buffett
“A bad attitude from a chronic complaining employee is like a cancer; it will only spread and infect others. This can take your business down in a nanosecond. You must cut out the cancer and invite them to seek employment elsewhere. Quickly.” - Beth Ramsay
“If you wanna hire great people and have them stay working for you, you have to be run by ideas, not hierarchy. The best ideas have to win, otherwise good people don't stay.” ―Steve Jobs
I hope this helps you in many ways! Please feel free to share it with your team. If I can help you in any way in your business, please don't hesitate to reach out to me directly at 612-208-9434. I am always here and happy to help :)
To your success~
