---
title: "If Key Members Can't Be Retained, Distributors Can't Grow!"
description: "A recent study of distributor team building reveals that retaining key staff is far harder for distributors than for brands, due to both subjective perceptions and objective lack of HR structures. This article defines key members, analyzes five types of 'harm' bosses inflict, and offers two retention methods: boosting sales through knowledge, skills, attitude, and follow-up, and diversifying incentives beyond traditional socializing."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2023-03-19"
language: "en"
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---

# If Key Members Can't Be Retained, Distributors Can't Grow!

> A recent study of distributor team building reveals that retaining key staff is far harder for distributors than for brands, due to both subjective perceptions and objective lack of HR structures. This article defines key members, analyzes five types of 'harm' bosses inflict, and offers two retention methods: boosting sales through knowledge, skills, attitude, and follow-up, and diversifying incentives beyond traditional socializing.

Recently, I've been studying the issue of team building among distributors and have visited many in person, deeply realizing that building a team is far more difficult for distributors than for brand owners. Subjectively, salespeople entering a 'manufacturer' job subconsciously feel it's more like a 'regular army' than working for a distributor. Objectively, many distributors indeed lack corporate culture and the necessary structures and processes for team building; most don't even have HR or training departments, with the boss doubling up, and emotional bonding relies on primitive means like drinking, dining, and karaoke. This leads to poor 'sense of presence' and 'belonging' among the team, and poor staff stability. It's important to emphasize: we're not asking distributors to set up HR departments like brand owners; if conditions allow, that's best, but if not, don't force it. It depends on your business scale and profits; think twice before spending money, and there are alternative methods that can achieve the same effect. Meanwhile, distributors are acutely aware that key personnel must be stable; if they leave, the company suffers huge losses, and if they go to a competitor, the loss is even greater. Today, let's discuss how to retain key distributor personnel.

**Defining Key Members and Turnover Rate**

During visits, I asked many distributors this question, and answers varied: some required certain education, some work experience, some gender, some age, etc. Undeniably, these requirements are all valid; every distributor wants their team to have good basic conditions from the start. But my definition of key distributor members must meet four basic conditions:

**1. Loyal to the company and team:** Loyalty is essential; we can't demand absolute loyalty, but as long as you eat the company's rice, don't break the company's pot—that's the basic requirement.
**2. Good moral character (reputation):** Distributor teams are relatively small, and 'rule by man' often outweighs 'rule by law,' so flexibility in rules requires employees to have good character; otherwise, to put it bluntly, you'll have headaches over expenses.
**3. Not spreading negativity:** Complainers absolutely cannot be kept; their complaints affect others, like one bad apple spoiling the barrel, reducing the team's overall combat effectiveness.
**4. Achieve and lead in performance:** This is also a basic requirement for key members; they must be able to carry weight and lead by example in performance.

Other conditions for defining key members can be added based on the distributor's situation, but more isn't necessarily better; the key is mutual 'matching'—if you pay more, you can demand more; if you can't meet salary expectations, demand less. As long as the above four are met, other aspects can be considered flexibly. Regarding turnover rate, my summary is: a reasonable turnover rate is survival of the fittest and ensures healthy team development; I suggest keeping the annual turnover rate around 20%. The basic principle for controlling turnover is always: select people, motivate people, select capable people, motivate capable people.

**Distributors at Different Business Stages**

**Possible 'Harms' to Key Members**

For distributor teams, the vast majority of key member departures are due to 'harm' from the distributor boss. In many cases, the boss is unaware of this harm, even clinging to their own beliefs. Let me outline a few points to share.

First, look at some cases:

Case 1: Ms. Chen, working as a salesperson at a trading company, was appreciated by the distributor boss for her decisive and bold style and promoted to manager. After promotion, Ms. Chen became harsh, often intimidating and criticizing employees. In the end, she lost all prestige, and employees were full of complaints. Reflection: Employee 'discontent' arises from this; if no measures are taken within six months, a 'wave of resignations' among key members will occur. Simple analysis:

** _1. Influencing others doesn't mean being autocratic;_ **
** _2. Don't handle business when emotionally unstable;_ **
** _3. Shifting pressure onto others is not advisable;_ **
** _4. Judging others by your own standards is foolish;_ **
** _5. Don't be stingy with a simple word of praise._ **

Case 2: Zhang San is the boss of a trading company, gentle but not strict enough. He believes in discussing things and making money peacefully. The result? Very unsatisfactory. All subordinates know the manager has a good temper, so making mistakes is no big deal; they develop a lazy and slack work style, and not only don't appreciate her, but even think she's weak and pushable. Reflection: Friendliness doesn't mean lowering standards; otherwise, the excellent ones will start a 'wave of resignations.' Simple analysis:

 ** _1. Insist on reasonable requirements and guide employees to understand;_ ** ** _2. Never become a tool for subordinates;_ ** ** _3. Don't accommodate or indulge subordinates' wrong behavior;_ ** ** _4. Don't avoid or shirk your own responsibilities;_ **
 ** _5. Express your requirements directly and clearly._ **

Summary: The above two cases are the most common ways distributors 'harm' key members. These management styles don't affect mediocre members because they have no possibility of 'job-hopping'—the boss says what they want, but they just don't listen. Also, mediocre people, to survive in the company, do everything well except for poor performance and weak ability. Over time, distributor teams are left with these mediocre people, lacking any combat effectiveness.

I've summarized five types of 'harm' distributors inflict on key members:

**1. Tyrant who ignores the process:** These distributors are new to the trading business. They think: I need to buy a car, rent a warehouse, hire people, pay for goods, deal with local industry and commerce and taxes—huge investment. Every day I open my eyes, a thousand or two in expenses go out. If the team doesn't produce results quickly, they become anxious and unconsciously pass it on to the team, making things worse.

**2. Overly caring mother:** These distributors have been in the trading business for a few years, business is basically stable, but they still want to develop. They realize the importance of the team, can't do without it, and don't dare offend it. Over time, management becomes chaotic, and when chaos appears, key members leave because this 'soil' no longer suits their development.

**3. Solemn and strict father:** These distributors are generally successful in the trading business, having operated for a long time, even over a decade. They've carved out their position step by step, are around fifty years old, and their team consists of 'children' in their twenties and thirties. They act like strict fathers, educating employees in the name of 'caring for their development,' and many key members leave due to 'rebellion.'

**4. Brothers without distinction:** These are mainly 'second-generation' successors. Before taking over, they got along well with employees, calling each other brothers and eating from the same pot. Once they take over, they fail to realize the change in identity. The team needs to rely on the trading business for a living. Those who are 'good at socializing' often have poor business ability, and they can't decisively treat people differently, nor achieve visible intimacy and invisible distance. Over time, key members inevitably leave.

**5. Partial and selfish superior:** These are usually newly promoted managers selected by the distributor. They need to prove themselves in a short time and 'make achievements,' so they may be somewhat extreme and take credit for others' work. If not adjusted in time, the consequence will be that the key member closest to them in 'ability distance' leaves, causing huge losses to the company.

Summary: The above five types basically outline the scenarios and results of distributor key member management. To retain key members, avoid these situations, constantly self-reflect, and ensure you are not the reason for key members leaving.

**Two Methods for Distributors to Retain Key Members**

Many will say: If you pay high enough, will key members still leave? Of course, that's not wrong, but what is the purpose of a distributor's business? The essence of business is to profitably satisfy customer needs, where 'profitably' is key. I often say: High sales bring high profits to distributors, and high profits bring high income to employees. Talking about income without considering sales is 'playing hooligan.' Retaining key members without considering costs, leading to the business failing, makes that key member worthless. So first is performance, second is diversified incentives.

**1. High sales = Knowledge * Skill * Attitude * Follow-up:** These items require the distributor to figure out how to comprehensively enhance the team's combat effectiveness. Let's analyze with examples: Without sufficient product knowledge, you can't get store owners to accept the product; without skilled negotiation and communication, you can't close deals smoothly; without a positive attitude toward difficulties, you'll be disheartened by setbacks; without timely follow-up, you might encounter customer rebate losses during the transaction, affecting cooperation. All these can affect high sales, which in turn affect high income, ultimately leading to key member loss.

**2. Diversified incentives:** Let me give two examples I saw during visits.

a. Mr. Zhang's learning incentive: He signs agreements with employees, each person's tuition is 4,800 yuan, with a 2-year agreement (24 months), 200 yuan per month, and the company advances the tuition. If an employee doesn't work for the full 2 years, they must refund the money. Of course, participation in external training is voluntary, and the company also screens from various aspects; if they don't meet the conditions, even if willing, they won't be allowed. The purpose is to let employees learn voluntarily, autonomously, and spontaneously, so they gain something.

b. Mr. Li's car purchase incentive: He gives excellent employees a 'car down payment incentive,' which includes the down payment, totaling 30,000 yuan. He signs a 5-year agreement; if the employee still works at the company within five years, the down payment is fully borne by the company. 5 years is 60 months, with 500 yuan deducted from the employee's salary each month for 60 consecutive months. If the employee is still working at the company in the 61st month, the company will give a one-time reward of 30,000 yuan for the car down payment; if the employee resigns midway, they must return 120% of the down payment to the company.

We can clearly see how these two bosses retain key members. Facing post-90s and post-00s employees, distributor bosses must keep up with changes, shifting from drinking and singing to more incentive forms—whether learning incentives, car purchase incentives, family travel incentives, or others.

In short, in this materially abundant generation, we must grasp their pursuit of 'a better life' while developing with the distributor's business, sharing the fruits of labor, so they are willing to follow the boss wholeheartedly. In this way, key members will naturally settle in the company.


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Contact: zhaobo258@gmail.com · +86 158 5481 7671