In terms of network marketing, I have been involved in 4 different companies in the past 4 year XANGO, ZRII, Mandura, and Evolv. I am currently still with Evolv and Mandura. 4 in 4 years seems like alot for most, but truthfully most network marketers are involved in 4 different companies within a year. I have gone back in my head regarding that plague in our industry known as attrition and will let you know that most companies in our industry have very high rates of attrition. I cannot be altogether certain, but I thought I read somewhere where the average attrition rate in our industry was 70%. That means for every 10 customers only 3 will continue to order on a regular basis.
Since I am doing a review this month on MLM Companies I thought I would simply put XANGO, ZRII, Mandura, and Evolv all together. My attrition rate with Xango was about 10% (9 out of 10 customers stayed, also fairly good economy), with Zrii my attrition rate was about 70% (3 out of 10 stayed), with Mandura it was about 50% (1/2 stayed on autoship), with Evolv it's about 60% (4 out of 10 stay on the product).
Why is this important? It's critical you get this. You need to know your company's attrition rate so you know how many people you need to recruit and they need to recruit to become profitable. It is also a great way to evaluate your products and company. If 70% attrition is the industry average and your company is at 90%, then you have a serious problem, that maybe you cannot fix.
From now on start paying close to your attrition rates, as if you don't your not being a smart business person.
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