Why People Fail in Network Marketing and MLM

Why People Fail in Network Marketing and MLM

Over the past few years, I’ve tapped into that “teaching gene” I had the pleasure of using during a 14-year career as an elementary school teacher and have directed many entrepreneurial seminars by the Community sets Education Departments of several colleges and universities in the southern California area.

The most popular of these seminars is targeted for entrepreneurs who are tired of average success in their current business of choice and are ready for a breakthrough year, or those who’ve earned a few success stories under their respective belts in addition want to work smarter and more efficiently. Some of the attendees have had some experience with a “home business” before, but like most, have been left feeling cheated and disillusioned. Of course every seminar is always peppered with those who’ve jumped from opportunity to opportunity; each time hoping things will get better and instead just go round and round in the proverbial course of action wasting money and that most precious of commodities: time.

Prior to starting the class, as folks are settling in for what lies ahead, I ask the attendees to please fill out a survey I placed upon their desks prior to their arrivals. Basically by this survey I ask the class to proportion with me the reasons why THEY think most people fail in network marketing, multi-level-marketing (MLM)… Or any home business for that matter.

If I asked you that same question, would your answer be similar to the most shared answers I receive during the seminars? Let’s see, as they’re listed here:

· without of sales or marketing skills
· without of discipline and consistency
· without of personal growth
· without of desire
· Not enough time
· Not enough effort
· Not enough money
· Unrealistic expectations
· Fear of rejection
· Fear of taking risks
· Fear of failure
· Fear of success
· Quitting too soon

Truth be told, those things used to be the main reasons why most people failed in the past and they keep important factors to this day, but the real culprits today go much deeper than that.

So let’s take a look at some of the inner causes that aren’t always discussed, and get to the actual root of the problem.

already though there have been (and nevertheless are) a small percentage of super successful people to appear in the industry, the network marketing business form, by its very character, creates a tremendous amount of resistance because it requires people to confront one of their biggest fears – REJECTION. Many people hate selling and will do just about anything to avoid it.

But as you’ll soon find out, this is just a façade that hides some of the more thorough-seeded reasons behind MLM failure…

Today’s “Work at Home Network Marketers” are fighting an uphill battle against cut-throat competition and rising advertising costs, while the promises of residual income are being ripped out from under their feet!

in spite of of all the “rah-rah” and glamor shots of beautiful people standing beside expensive cars in front of million dollar dream homes, the network marketing companies themselves (already those with crystal chandeliers in their lobbies and debt-free Dunn and Bradstreet ratings) have failed to deliver on its promises to 95% of the people they’ve attracted.

With an average customer/distributor retention rate of less than three months, the potential of building a obtain residual income in a traditional MLM business within three to five years is all but dead for the average person.

It may have been true in the past, but not today. Those days are gone, and one can’t blame the recruits when there is such an expensive failure rate.

The truth is, most people don’t have a chance at making any real money in traditional network marketing these days and it’s not because they fear rejection, without desire, confidence, or marketing experience, etc.

Be warned… I’m going to be as blunt as possible and give you the plain, unvarnished truth based on my two-plus decades of real-life experience:

· Most people who join will do NOTHING! Many of them are lazy and expect it all to be done for them. Most people will not already use the products they buy to qualify for commissions each month. They won’t read books and they won’t listen or watch CD’s or DVD’s so they can grow personally… already if you provide them for free. Why? Because they never have the “time” because they’re too busy doing… NOTHING. Only around 25% to 30% of people will do a little, but less than 10% will be committed.

· Recruiting, for most people, is about as enjoyable as a prostate exam or PAP smear because the large majority of us are not salespeople and will consequently resist selling (or anything) that involves facing ones fears of rejection. When “newbies” are inevitably told to make out their list of friends and family or buy biz-op seeker leads and cold call them, only a small percentage of these fledgling networkers will follow by. The majority will ultimately sneak quietly out the back door, never to be heard from again.

· Only one third of one percent of all network marketers will make enough money to cover ALL of their expenses. The other 99.67% will lose money or break-already. Most of the money is gobbled up buying expensive (though required) products, not to mention the required promotional material, books, CD’s, DVD’s, and, of course, the babysitters, fast food meals and HUNDREDS of gallons of fuel to attend all the meetings, “rah-rah” rallies, and presentations.

· Blatant lying, putting down other companies, and the use of hype is standard. Leaders will tell you anything to keep you ordering products and pushing the opportunity.

· A typical MLM business puts enormous stress and pressures on marriages and other relationships. Some people become so “focused” on building their business that they lose sight of everything else in their life. The pressure to “keep on keeping on” is intense and most people spin their wheels for years and years without ever getting ahead.

Building a complete-time income by the traditional network marketing business form is like trying to regularly fill a leaky bucket.

I reiterate: The big promises of MLM and building a “life-long” residual income in just three to five years is never going to become a reality for the average person.

It may have been true in the past, but not today. Those days are gone.

The pursuit of the “Network Marketing Dream” has cost hundreds of thousands of people their friends, time, and in a lot of situations, their holy honor. MLM is fatally flawed, meaning that it CANNOT work for most people.

And what makes it already worse is that the 95% failure rate reaches across all companies, all compensation plans and all products. Sure, most companies can point to the handful of “superstar” recruiters who have earned megabucks. They’re simply part of the 5%.

What they WON’T do is show you the list of the THOUSANDS of ordinary people who have SPENT and SPENT and SPENT… Without earning already a single commission check!

And do you really think MLM companies and their top earners want the masses to know their “dirty little secrets”? Sadly, we both know the answer to that question.

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