By definition the Retention Rate is the number of distributor & customer Renewals and or Autoships per 1,000 distributors in a 12 month period. If you have a downline of 1,000 people, a retention rate of 15 % would indicate that 150 people are active distributors include preferred customers and distributors purchasing products directly from the company. An average retention rate would be around 15 – 20 %. In startup companies this will be slightly higher.
Herbalife is reporting in the annual report 2010 a total of 2 million distributors. 324,000 are active distributors so a retention rate of 16%.It is a great indicator of a residual income and the product marketing mix. The higher your retention rates the stronger and more profitable your business will be.
The guys in the online business of Direct Selling World do not like to share this information. The main reason for this is very simple. A low retention rate is not motivating. However I believe you need these facts and figures to be able to improve the professionalism of your MLM business.
To be truly successful and improve your business you will have to comment to ongoing training, professional growth and excellent communication skills and be the leader/role model by creating value.
By becoming dedicated to professionally developing your distributors you will create a dramatic increase in your income with only a small increase in your rate of retention.
Next, you have to have a step-by-step system. Put it into writing. Keep track of what is working. Share what is working now. Learn how to use and work with the best tools the online industry is changing fast and you need to be on the cutting edge to survive.
Jonathan R McGowan is a expert in Network Marketing who shows network marketers how to use the latest technology to profit in their Business
