Every direct selling company seeks ways to improve sales and boost revenue.
However, increasing sales doesn’t have to be difficult. Traditionally, most businesses feel they need to chase new customers or constantly add new distributors to enhance revenue. More distributors means more money, right?
While that is true, increasing your distributors and customers isn’t the only way to improve your revenue. It’s not even necessarily the best way. So how else can you earn more without increasing your distributor and customer numbers?
A simple but highly effective way to increase revenue is to improve your retention. If you can keep your current distributors and customers happy, they will stay with you longer.
How Does Retention Affect Your Business?
No business can grow properly if distributors keep canceling. Even if you continuously bring in new members, with so many old members jumping ship, you’re not growing.
Quick turnover can prevent increased sales and foster low brand loyalty, making it harder to bring in new prospective partners who may be wary of the high turnover rate.
Just imagine, a new distributor signs up 10 new people within one month and all of them cancel the following month. Compare that to another company where a distributor signs up 5 people and 4 of them stay for 5 years. With a good onboarding process focused on retention, you don’t need as many distributors joining every month. This is good for the company and even better for your distributors because that means a healthier business.
But why do people cancel?
They may do so for several reasons, but one of the top reasons is one that you may not have thought of yet— is improper onboarding.
Why Onboarding for Direct Selling Companies Matters
The reason most partners jump ship isn’t usually for reasons that appear months after they’ve signed on.
Chances are, their issues have been present from the very beginning.
This is why onboarding distributors properly is so important. Onboarding is called the HR Management discipline, which has the biggest potential to boost retention and attract new talent. By providing new employees with a structured and clear onboarding process, companies help decrease employee anxiety, give them clear goals, and reduce employee turnover.
The same is true for direct selling businesses. If you improve your onboarding processes, you increase the chances of success for your distributors. This will vastly improve their desire to stay.
As it currently stands, most direct selling businesses do not have a thought-out and structured onboarding process. This can create problems and miscommunication from the get-go.
How to Properly Onboard Distributors for Direct Selling Companies
To properly onboard new members, you need to be very clear about your goals and processes. In this way, you can effectively communicate them to your distributors.
Here are simple steps to onboard efficiently:
Write down clear and achievable goals.
You want your distributors to achieve great things, but you don’t want to overwhelm them. List simple achievable goals and share how they can achieve those goals. If you set them up for success from the beginning, it will set a good precedent.
Give them the answers to top questions that are probably subconsciously running through their head.
What is the one thing they need to do once they sign up with your company? Show them how to use the products? Do they need to prepare a launch meeting? Post on social media and show its importance? Urge them to contact their friends/family invite them to the company launch? Read the product instructions?
This step is so important but most companies completely overlooked it.
You have to be very clear about what you want them to do, especially in the first 72 hours. If you take longer than 72 hours there’s a high probability your distributor might get discouraged to even try the products.
Have business processes readily available
There are going to be a lot of questions on how to do things.
Mitigate confusion by having a process document prepared. Create a sequence outline that lists everything distributors need to know, including how to order, a pricing guide, communication channels, compensation, and more. Make it simple. Avoid dumping all the documentation to them. Instead, send them one email with just one key action. Tomorrow, they should get another email and so forth.
If you have clear processes on how to do things, your new member will thank you for it.
How to sponsor a new member?
How soon do I get paid?
Where do I see my commissions?
Create a central drive or mobile app
Have a simple storage drive or shared mobile app that everyone can access for all your documents and sales materials. In this way, distributors have easy access to all your sales documents, presentations, and more.
We like to create a HeadQuarters HQ page specifically for distributors (we’ll talk more about this in another article) where they can access everything related to building their business.
Standardize the process
The onboarding process will work most efficiently if it’s standard for all members. This way each distributor has the same easy and efficient experience.
What does that mean?
Your list of activities should have the same activities a top producer is currently doing.
Say for example: a top producer makes 20 calls per week and schedules 5 weekly meetings. Based on those numbers, you will create a new process for new members that reflects the successful activities of that top producer. The idea is to make replication possible.
Make it fun
Onboarding is an important process, but that doesn’t mean it shouldn’t be fun. People stay with companies where they can also have a good time while working. If you can include some fun into your onboarding, you’ll create a lasting good impression. include some gamification concepts and watch your programs take off!
If you improve your onboarding process, you will surely see improvements to your bottom line.