You can’t really expect to build up your direct selling or Network Marketing business quickly with cancellations constantly setting you back.

If your team brings you 2,000 recruits this month, but 2,000 members from previous months cancel, you are basically churning by with the same exact numbers and not getting to a point of real growth.

This kind of turnover can cause us to scratch our heads and think: “What is the problem? I work hard, I do my best, but people still keep canceling. What can I do?”

Well, what can you do? How can your company fix this problem, and how can you fix it now?
The answer is actually fairly simple:

Onboarding

The problem with most distributors isn’t one that magically appears one month, two months, or six months into their new sales career. Rather, the problems start from the very beginning…

It is what we fail to do with new recruits in the first 24, 48, or 72 hours that can color their experience from then on.

Often, there’s no clear path for the distributor, a path that removes all doubt in the beginning and tells them exactly where they need to go and what they need to do. To make matters worse, different recruiters may have different styles, and may give their recruits varying instructions.

For example, some distributors might say to their recruits:

– “Go through your contact list first.”
– “Give some prospects a call.”
– “Just let me know when your products arrive.”

And yet others still might say things like:

– “Don’t go through your contact list yet; we will do this together.”
– “I will guide you on how to make your calls.”
– “Let’s open your kit when it arrives and go through it together.”

You can just imagine the disparate results that these varying styles of onboarding can create. What happens when you have thousands of recruiters and they all have differing ideas on how new recruits should be shown the ropes? In short, a high turnover rate is exactly what happens.

Is this really that bad, though?

Well, let’s do some math to illustrate.

What would happen if members that canceled would have instead stayed on for just one more month?

Let’s say the average order is roughly $100.
Let’s say that, over the course of the year, you suffer a loss of 10,000 members.
$100 X 10,000 is $1,000,000.

That is one million dollars of additional revenue that you will have missed out on. One million dollars added to your bottom line. What if you could have kept their interest for 2 more months instead of 1? What about 3? Or 4? How about 5 more months?

As you can see, this lost revenue can add up. You could potentially stand to greatly increase your revenue without increasing distributors if you simply have better retention.
The process of retaining recruits, however, starts from the very beginning. It starts with a good onboarding plan.

How To Onboard New Members

First, determine what your initial goal is. Do you want:
New distributors to sign up more people?
For them to get testimonials about your product?
For them to get their first sale?

Pick a singular, achievable goal for your new distributors to focus on, and lead them towards their first taste of a small success. Think about what tools you should provide them to achieve these goals. What can you give them that will help them achieve their first objective in no more than three days?
It really doesn’t have to be complicated. Keep things as simple as possible. Here are a few things you might want to consider:

Clear Daily Objectives

What are the small, individual tasks that you can assign to the new recruit that will lead them towards their first goal? Think of these as bread crumbs that you can sprinkle along their path.

Email Sequence

Create a sequence that outlines everything they need to know, including how to make their first order, how to make a conference call, and other essentials. Discuss their compensation and give them tips on how to grow their business.

Centralized Documents

Have a centralized, cloud-based storage location that can be accessed by any new distributor and contains all of the documents and sales materials that they need. This can include flyers, presentations, catalogue material, and more.

Make the experience fun, like a game. People pay more attention and learn better when they’re having a good time. They are also more likely to stay with your direct selling company. After all, why would someone cancel if they’re having fun?

Want to learn more about the Krato Journey Mobile App can help your company achieve better engagement? Visit krato.com to learn more.