Thursday, July 10, 2008

Basic MLM Economics: Revealed

Companies say, "We Keep 93% of Our People!"

They lie.

Truth: There was a phone company a few years back that had to
publicize their retention rate, because they were publicly traded.
Take a guess. Out of every 100 people they signed up, how many
were still in the business a year later?

50%? HAH!

25%? As they say in the Hertz commercial, "Not exactly!"

10%? You're getting warm ...

The public record showed 6% to 7% retention. That's not 67% ...
it's 6 to 7% retention. So you build your business for a year, you
buy advertising, you do 3-way calls, you go to meetings, you talk to
all your friends & relatives,and you wind up recruiting 100 people!

Yippee! You're almost rich.

Well, not exactly. Why? Because what you have left is 6 to 7 people
out of 100 still building the business.

Ooops ... wait ... that's not all you've got. You also have
smashed dreams,maxed-out credit cards, and probably a LARGE
bunch of people who hide when they see you coming.

I'm sure you will agree that is not a MLM comany
you want to sign up too.

Whatever you do in network marketing must be duplicatable for the
masses. Six to 7% retention is not smart business.


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