The Age of AI is upon us: How Modern Direct Selling Companies can Automate Revenue and Increase Retention

How to Prevent the Bust after this Direct Selling Boom

There’s a sales and recruiting boom happening currently in direct selling. Regardless of the diverse operating methods, products or services offered, several teams I’ve spoken to are experiencing this same boom. And having no consensus on how we got here makes one thing clear: our business fundamentals are not responsible for this sudden and inexplicable growth. 

This puts us on a dangerous trajectory towards an extremely painful and equally inexplicable  bust to follow the boom. Our industry is on a slippery slope. If we don’t do something now to curb the inevitable bust, more direct selling companies will “pop and drop” than ever before in history.

There is one sure way to tell if you’ll be one of them.

Direct Selling Churn Predicts the Bust

Despite the diversity of methods, styles, and fundamentals, there is one thing I’m willing to bet 99.9% of every booming company does have in common: their churn rates are up.   

Churn is the primary ingredient of pop and drop. Because no recruiting boom lasts forever.

“The only thing anyone ever learned from history is that no one ever learns anything from history. “ — Hegel

Do companies learn from their history? Although countless companies have faced historic “pop and drops,” I believe these same companies will soon see their enrollments slow down without having taken any preventative measures. There will be a reckoning. And this is only because they haven’t dealt in advance with the combined higher churn rates and foreseeable recruiting drops—which will likely happen en masse. 

There is no need for your company to face this same outcome. You can enjoy the pop and put a nice cushion in place to avoid the drop; all you need to do is focus a couple hours per month on retention.   

Direct Selling Retention Prevents the Bust

Do you know how many customers each month will never buy from your company again? If you don’t know the answer to this, you’re in trouble. This number roughly indicates your monthly enrollment target in order to avoid decline. During this time of near-universal boom, those never-to-be-seen-again reps and customers probably add up to at least 60 to 90% of the number of new enrollments you’re creating each month.  

You can close this gap quite quickly when recruiting wanes, by focusing on retention now.  

You may feel like your plate is full at the moment, as you scramble to process all this amazing growth. But the hardest part—the drop—is yet to come. Don’t let history repeat itself. By introducing an ounce of prevention through direct selling retention today, you earn a pound of cure for later.  

At DirecTech we automate incremental lifts in retention by as much as 13%, requiring a corporate time commitment of only about two hours per month. This accelerates growth in the good times and when things slow down, it provides a much-needed cushion, preventing and slowing the drop when the bill of high churn comes due.  

Our platform Distro can be live in 60 days, immediately reducing churn with minimal corporate effort. Ask us how we do it.

Related Content

© DirecTech Labs 2020. All rights reserved.

Privacy Policy

Follow Us

Phone: (310) 730-1246