Retention rates: one of the best keep secrets in the Direct Selling Industry…
We define Retention as the number of distributor & customer Renewals or/ and Autoships per 1,000 distributors in 1 year.
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 the retention rate will be 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 rate the stronger your business is.
The guys in the corporate Direct Seling World do not like to share the retention rate. Why? A low retention rate is not very motivating. However we at Business For Home.org believe you need this facts and figures to improve your retention rates. It can be improved…. with training, communication, leadership, recognition and enrollments. You can create a huge boost in your income with only a modest increase in your Direct Selling retention.