Attrition

One of the things I've learned over the years when evaluating a business plan is what the rate of attrition is going to be. In other words, what is the percentage of people that are going to quit each month that you are going to have to replace in order to maintain an income.

That meant I had to learn to get beyond the hype.

You've seen it. "Catch the great new wave" "Get in while we're in pre-launch" "Make a gazillion dollars on this free program" The truth is that 95% of these programs will not be in existence in two years or morphed into something else so the owner can try to milk a little more out of it.

Once you've gotten that out of your system and bring your dreams back down to reality - the next task is to find a product that people actually want to buy. Well, there are certainly a lot of products to choose from. Most of the Internet only programs sell "products" that you can get better quality elsewhere. You know: leads, e-books, "systems". Then there are the ones that have sensational, cutting-edge technology behind them like magnets or magic mushrooms or goji juice. Now while these things may or may not improve your life, the fact is that practically all products being sold today through MLM or network marketing programs are overpriced to support recruiting payments. Few people would continue to buy these products otherwise.

Thus the huge attrition rate for most programs. There are better alternatives to building a substantial income, but more about that later.


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