Even if you do sign ’em up (yes, you will get lucky on occasion), do you think
they’re going to stay on the books for a while? Yes, you won…
you tugged hard enough and got ’em to sign on the dotted line.
Good for you. Tell your upline what you did, share the big news with your spouse, call the local media and do a write up.
The reality is that you just wasted a bunch of time to earn a few bucks. Now
you’ve got an associate on the books that never wanted to be part of your
organization. Crappy spot for both of you. Think they’re going to do any work?
Think they really even got involved?
They didn’t wanna be there in the first place. They’re thinking long and hard about how to get out of this mess. They’re searching for the first “quiet moment” where they can call into customer service and cancel their membership & autoship.
Convincing others has nothing to do with building a business. Yes, it helps fuel our egos…
we can say, “We got another one!”
But the celebration really isn’t
warranted – it’s short lived.
One of the closely guarded “secrets” in network marketing is the concept of
retention rates. There’s a big difference when someone keeps buying from you month after month for say 18 months, on average, VS if your average associate was only “on the books” for 4 months.
Most leaders in this great industry are doing weekly meetings (or even more frequently) because they HAVE TO.
Yes, they can hop on a cruise ship for a week, but the moment they get off, they need to get back to “work”. They realize that if they took a few months off and did no meetings or sponsoring engagements, there business would CRUMBLE AT THE SEAMS.
They would lose a lot more people during that period compared with new
associates that came into their business. We need to know how to properly setup a “post enrollment” system that guides your new associates down a path. Ever get into a new business and just “dumped”? Don’t let your new associates feel that way.
A post enrollment system (FOLLOW-UP) is EQUALLY important as a pre-enrollment system (your marketing) as this can literally mean the difference between someone staying with you for a year or more instead of a couple of months. Don’t work to create a marketing system that enrolls new associates like gangbusters, but because the post enrollment system is so weak they’re dropping off like flies.
I won’t get into too much detail here, but your main focus is to maximize the
lifetime value of a prospect – the longer someone stays “on the books”, the larger this number is going to be.
Here’s an example…
Let’s assume that when someone signs up into your business, you make (on
average) $100 in “now money” (commissions from starter kit, product package, etc) and you make $20.00 per month (on average from each associate).
If your average retention rate is 6 months, each associate would be worth $200 ($100 for the first month and $20 per month for the next 5 months). So, you could spend up to $200 in marketing and advertising, but no more right?
For the sake of simplicity, let’s keep things right there – there are advanced
techniques where you can (and should) take that same list of prospects/buyers and sale them complementary information online to further monetize that list. Here, I’m going to keep this right here to convey my point…
Let’s assume the same math applies from above, but you created a rockin’ post enrollment system so your associates/distributors are staying on average for 18 months. This changes the math in a big, big way…now your average lifetime value of each associate is $440 (17 X $20 + $100).
We just more than DOUBLED the amount of marketing dollars we could now
spend under this analogy! Think of this in terms of “inputs” and “outputs”…
kinda like an assembly or manufacturing plant.
If you add different inputs, there’s going to be a change in the output right?
Well…now we have A LOT more $$ to play with on the marketing side of the
equation to create more prospects that want to speak with you. If you have more prospects (the input) what happens to the output?
Assuming apples to apples, you’re going to generate more closing attempts and more new associates. Once you have the prosper SKILL SET and the ability to communicate (like I discussed a couple of days ago), this quickly becomes a game of math.
If I change certain inputs, what impact will it have on the output? What you do on the front side of your business (lead generation), will have an impact on every thing else behind it…
just like an assembly plant.
Worry about the front side of your business first. Once you have a system that is generating an endless flow of leads every day…THEN worry about creating a post enrollment system to keep your new associates on the books for a longer period of time and increase their average lifetime value.
Dedicated to your success…
For more information on Building an effective FOLLOW UP system, drop an Email to firstname.lastname@example.org
Put the word Follow-up in Subject Line