Increase Direct Selling Retention Through Better Relationships

When most of us think about direct selling retention, we understandably focus on the financial damage that churn causes. Why not focus on preventing it by building better relationships? 

After analyzing over 16 million direct sales lifecycles, we’ve found as someone leaves an organization, about 50 percent of their downline also leaves the company within 30 to 60 days. That’s pretty scary, right?

Yet, most firms only seem to care when it’s a leader who’s leaving. “Doug’s quitting? But he’s a $200,000-a-month guy! That’s a huge hit!”But chances are, the people in Doug’s downline are collectively doing even more business than Doug. Lose half of them, and that’s another huge bite out of your bottom line. 

So, instead of simply trying to increase direct selling retention by keeping our star performers around—and then thinking it’s doomsday when they do leave—we should be focusing on making sure all those distributors under Doug are engaged and happy. 

So what can you do to keep your leaders and their team active and engaged? 

Create Better Spokespeople for Your Brand

Every time someone leaves a direct selling organization, they don’t keep their experiences to themselves. They may go on Facebook or Twitter and share their thoughts. Or they may be more low-key about it and simply express an opinion every time someone mentions your company in the future. But either way, there will be a spokesperson working on behalf of your company. 

Now, if you’ve taken the time and made the effort to keep that person feeling engaged and valued during their time with you, they could actually make a positive impression on dozens or even hundreds of other people over the months and years to come. The resulting positive buzz will keep them happy, make it easier to attract new sales reps and can also make customers more inclined to buy your products: “I like their clothes, and I’ve also heard really good things about their organization!”

Look, some amount of direct selling churn is inevitable. But it’s not inevitable that your ex-customers and ex-sales reps will trash you. Here’s how to prevent that from happening. 

Improve Retention to Grow Your Team 

As you aim to improve rep retention, strive also to ensure that the people who do leave your organization are doing so with a good taste in their mouths. 

How? Focus on the lifetime value your people get from your sales reps—not just how much you get from them. 

You can improve direct selling retention by forming symbiotic relationships with your distributors. By creating satisfying experiences with them. By meeting their needs. 

When someone comes into your organization with specific income goals, your focus should be on helping them meet those goals—and then perhaps to bump up those goals over time. At no point should they be handed a list of different goals generated by one of your leaders. 

Someone who comes into your organization with million-dollar potential is probably going to go after it no matter what you do. Someone who doesn’t have that potential is going to love the sound of a million bucks, but they’re never going to do the work it requires—and then when they fall short, they’ll blame it on you. 

So why not listen to that person’s goal of making an extra $200 a month to cover their car payment, and then help them achieve it? Sure, they’re only generating $200 per month, but by giving them a satisfying experience, you can extend their lifecycle from four months to forty. You’ll not only pull in more revenue from them in the long run, but also help ensure that they leave saying nothing but good things about your organization.

How can you gain a deeper understanding of your sales reps and customers so that you can give them a satisfying experience that improves Direct Selling retention? Learn more about Distro, our artificial intelligence robot!

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