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In a report to the FTC, the Direct Sales Association (DSA) reported that “there are 7.2 million direct sellers nationwide and the industry has a very high attrition rate due to the temporary and part-time nature of 90% of our sales force.”

In fact, the direct sales industry is recruiting, on the average, over 70,000 new people per week. Additionally, 6% of U.S. households currently, have an active direct seller living there. 14% of U.S. households have a person who has been a direct seller at one time living in that household.

Sadly, the average attrition rate for Direct Sales companies is approximately 40%, meaning just under half of the people you recruit will stay on for a year – at most.

Most network marketing business owners who have managed to make an effective go of their first year in business find that their second year – and subsequent years – are much more fulfilling, and less problematic. The reason? With a learning curve behind them, consultants are now better able to handle not only product questions, but recruiting, training and the typical sales cycle “ups and downs” as well.

So how do you navigate the rough waters of the start-up year in order to come out ahead in year two?

First, don’t panic. Realize that you’re in business to make money, and that building a business takes time. Most recruits that stick with a company for a year, find that success comes much more easily in subsequent years so keep that result in mind. Commit yourself to staying “active” for a year.

Second, commit to working your business like a business. Hobbies are an occasional activity – something you might participate in a few times per month. In order to be successful in direct sales, you should insist on doing something related to your business every day of the week. It might be customer calls, or hostess coaching, or labeling your catalogs, but every day SOMETHING should be done to improve your business position. Take the weekends and holidays off, but make sure that you’re “operational” during regular business days.

Third, mark your time. Touching your business every work day shouldn’t take the entire work day. On the contrary, you should expect to spend no more than an hour each day that you’re not making presentations. On presentation days, I strongly encourage you to focus on the presentation and not have a lot of other business activities to deal with. You’ll be working hard enough doing your demo, you don’t need your mind distracted with creating hostess packets, promotional, flyers or other items related to your business.

When trying to figure out where you want to take your business financially, it is important to look at your metrics – your average sales per customer, lifetime value of a customer, and average show sales are a good place to start. Start keeping track of this data so you can periodically review it to see what needs improvement.

Next, consider catering to your target market. Target marketing is the process of focusing on a select and specific group of people you are advertising to. And it has everything to do with the product you are selling. For example, if you are marketing infant products, it would be very unwise to market to the elderly. While it’s possible there may be a few clients in that group (like grandparents), your best bet is to focus on new moms – a group that is likely to need infant products! Get to know the people that need your products. They are your target market and that is where you need to focus your marketing energy.

Remember to read and educate yourself by investing time into study. Learn the tricks of the trade. Make friends and associates with reputable trainers and others in your industry. Mastermind with others who have already done what you want to accomplish. It may mean a monetary investment, but you are trading it for valuable experience to shorten your learning curve. Don’t go hog wild, and set a training budget – and stick with it. There’s nothing worse than a new recruit spending all their earnings on the latest training program only to quit because they ran out of money. There will always be training opportunities – and don’t let anyone fool you into thinking otherwise. There

are also plenty of good books at your local library that won’t cost you a dime to read. Don’t make excuses. Learn more to earn more.

Lastly, apply what you have learned. Knowing and doing are not the same. At the end of a year, you will see a dramatic difference in your life, your mindset and your business. Start now to overcome the hurdles of the first year start-up blues. You’ll be amazed at the results.

After nearly 10 years in Direct Sales, Lisa Young stopped listening to her up-line and started seeking professional sales and marketing wisdom from the far corners of big business. Today Lisa offers ready-to-use insights, tips and inspiration to others in the Home Party Plan community looking to run their business like a business and achieve success. Lisa’s free monthly newsletter “PartyOn!” features articles from a business perspective designed to help MLM reps reach their booking, sales and recruiting goals. You can sign up for the newsletter at http://www.HomePartySolution.com