What is direct selling attrition?
Let's first understand and learn about direct selling attrition in detail. The rate at which distributors leave the direct selling business over a time due to various reasons is called direct selling attrition. The reason for direct selling attrition can be personal or due to differences in opinions within the business. The increase in attrition rates will create an imbalance, confusion in the sales network, and lead to the loss of experienced distributors, which eventually shows an increase in recruitment and training costs in the business.
Overall direct selling attrition disrupts the stability in a direct selling company. Therefore, it is important to try and maintain the balance. In order to balance the negative impacts, it is important to know the root cause. By understanding the major cause, direct selling companies can take the required effective measures. This will help in retaining the talent thereby driving success and creating a culture of loyalty within the team.
The main reasons for direct selling attritions
- The fruit of hard work is undoubtedly income. Now, what would an individual go through when they learn that their income is not close to their teammate's income despite equal effort? The person would be hurt and begin to have self-doubt which then leads to inability to succeed.
An individual should be informed about the earnings as compensation and commission when joining a direct selling business. The individual should have a clear picture of the Income Disclosure Statement.
- Let's consider a teacher who has no experience in teaching. What would happen to the class of students? The students are likely to fail because of their low performance. Similarly, there are people who would like to jump into direct selling businesses without even knowing the ABCs. These kinds of people believe direct selling businesses are an opportunity to earn extra money. This could lead to low performance. From this we understand inadequate training is equal to low performance, which leads to them leaving the direct selling industry.
Therefore, it is important that before jumping in, people should be given the necessary training which will increase their skills and enhance their performance.
- What happens to an individual when there is no growth? The person will be bored with limited growth opportunities. People look forward to growth opportunities and elevation to the next level. Similarly, distributors have a tendency to leave when they feel their potential isn't used to the maximum. Not everyone gets an opportunity to grow, growth varies from person to person. For some it might be growth in finance, for others it might be regarding a position, whereas for few it might be both.
Features like rank advancement, increase in commission and bonus will ignite a competitive spirit and make people think one step above.
- When an individual must work and maintain personal life, what can they do to maintain the balance? They try to bring a balance to their work and life. Nowadays, people are trying their maximum to maintain work-life balance. When there is pressure from one side, the balance is disrupted, leading to lack of work-life balance, which eventually leads to an increase in attrition rates.
Balancing work and life aren't easy, it will take time and understanding. It is important to prioritize mental well-being and peace of mind over the targets. Flexibility and freedom while working plays a major role.
- Industries are facing a rapid change day by day, be it fashion, entertainment or even investments. People are ready to try new trends creating a shift in market dynamics.
Companies need to be well equipped while handling these trends and preferences if not chances are that distributors will move out and opt for other brands. Therefore, it is important that businesses understand the market pulse.
To sum up, direct selling companies need to focus on success rate, adequate training, provide work-life balance, opportunities to grow, and shift in market dynamics.