Higher Barrier of Entry = Less Attrition

by Michael Berry on February 26, 2016

There is a basic problem with most MLM businesses. The barrier of entry is too low. Let me explain.

Most people think that the lower the cost to get started in a MLM the more people can afford the business. While this might be true the attrition rate (those that just quit) is very very high in those businesses therefore you have to keep bringing in more and more people just to overcome the attrition. Here’s a fact; people’s determination is effected by their pocketbook and how much they’ve invested in their business. It’s much harder for a person to quit if they’ve invested a couple of thousand dollars vs a few hundred. It does not matter what their financial situation is. You might be thinking yea but, it’s harder to bring people in to a higher barrier of entry business. I’ve been with both and know many other people that have been as well and we are unanimous in our opinion. There are just as many people that see the bigger picture and understand that they can expect more money from their efforts as those that are looking for the small profits.

I don’t always tell people what they want to hear, but I will always tell people what they deserve to hear.

Personal development is our business and our life.
 
Michael Berry
michaelberry@prosperyourmind.com
http://www.prosperyourmind.com
http://blog.prosperyourmind.com
In personal development we learn that “we all see and experience the world not as it is, but as we are”.


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{ 4 comments… read them below or add one }

Brock Blohm September 27, 2011 at 3:51 pm

I’m with you.

I do feel that there is somewhat of a happy balance with price. Too high, and less people join. Too low and too many people that want something for nothing, join. That gets you nowhere. lol

For those who have the sign up at a reasonable price, there is profit to be made and it doesn’t reject/prohibit those individuals who want to get in because they see the opportunity, but are starting out with a low budget.

Good, bad, right, wrong…I don’t know. That’s just how I feel anyway 🙂 Regardless, a low MLM isn’t the way to go. No money to be made and you get all of the wrong type of people.
Brock Blohm recently posted..My Epic Weekend In Phoenix

Michael Berry September 27, 2011 at 4:13 pm

Good points Brock. As always I appreciate your comments.
Michael

Jane Araguel October 19, 2011 at 1:53 am

You must input money to get money. If you invest in something small then the profits you get will definitely be small and vice versa. Most people want to spend very little yet get a lot of profit. This is very rare as the profit you get in most cases is determined by how much you spent in the first place.

Michael Berry October 20, 2011 at 5:42 pm

It’s so interesting that so many people just don’t see this. But then again they really don’t want to because they’re not really to invest in themselves and their capabilities.
Michael

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