There is a lot of money being made because of the failure experienced by those who blindly start a network marketing business online. It is an opportunity that is exploding to say the least. Like it or not this fact will not be changing.
Here are a few facts to look at first as we begin our review of Multi-level Marketing opportunities.
- There are countless network marketing, MLM companies. Some of these companies are well know household names around the world and are billion dollar companies.
- The vast majority however are not that well established.
- Many people have become wealthy in Network Marketing, but too many of the would be MLM’ers never make it! (perhaps you)
So let us begin our review of “why” 98% of the would-be MLM’ers don’t survive.
There are three categories for us to review:
- Your chosen MLM Company/Business Op has serious problems.
- New and seasoned network marketers can not ADEQUATELY recruit new members.
- Network marketers run out of BELIEF in themselves and the industry because of lies and a myth that it will take off over night. The results is to wither and die a slow natural death.
By law MLM companies (and distributors) cannot aggressively “blandish” the opportunity as the main reason for joining the program. Emphasis must be placed on the services or products and clarify the MLM opportunity as only an extra benefit. It is for this reason of legality they must be careful about what their promotional material, advertising and literature states and of course what is said at the business opportunity meetings. It is sheer irony!
We are all attuned to the fact; irony, that there is a problem with this situation. The irony is that the real reason most people even look at network marketing is for the business opportunity with the affixed extra income potential. It is truly a catch “22”. Yet distributors and the promotional information cannot directly inform you without fear of crossing the fine line of legality. MLM Law states…it is illegal to promote a MLM company if the only goal is to earn profits from sign up bonuses of new recruits, regardless of the usefulness of the service or product.
As a new the terminology that is thrown around is mind boggling to say the least. New distributors are overwhelmed by the terms and concepts. It is all so confusing. As a new recruit you must remember this feeling?
So if you think that the terminology is confusing, then wait until you get into the meat of a compensation plans. There is more than one. Which one is best, which one really works. Especially since every company is promoting their compensation plan as the very best on the net. Questions begin to creep in, Is this a pyramid scheme? Is it legal? Can I really make the kind of money promised? In most cases the potential prospect will not sign up.
How will you choose an opportunity when most new MLM companies never make it through their 2nd year in business? Network Marketing Companies are no different than your typical “brick and mortar” 9 – 5 business when it comes to failure. 98%of new start up business never make it to their second birthday. Companies do not make it because they are not properly financed, they are not offering a really great product or service (technology is tough since it changes every day, something new comes next week), or the federal (Fed’s ) government shuts them down because of ruthless distributors or a member/s of the company management team is a crook!
I once told a friend of mine that was looking at a MLM opportunity that there is a good side and an ugly side when it comes to some companies. It seems that many company management teams skirt around the truth when it comes to the potential of the opportunity and never seem to explain the real facts to you. But look, it is YOUR investment. You need to know that MLM is not all roses and butterflies. If you were to invest $5,000 to $25,000 as some opportunities are asking you to do,you may as well know now that there is the good, the bad and the ugly when it comes to your investment.
Here are a few problems some new MLM’ers have:
1. MLM’er cannot generate good leads
- The new recruit has just signed up in an exciting network marketing program. The method taught by his upline and online webinar meetings is to make a list of family, friends and co-workers to be able to share the “deal” and product. Most uncomfortable with this, you find many sleepless nights. You want to keep your friends, I have seen many friendships destroyed because one friend could not make it and blamed the other for his failure. Unless his upline sponsor can show him what to say immediately, this guy is sure to be toasted!
2. There is no true duplicative system
- If the chosen method of duplication is to buy leads not just anyone can do this. Not everyone whom you sponsor will be able to afford thousands of dollars to purchase “prospects”. It is a highly expensive method and is NOT duplicatable. If you are told you must learn how to sell, close or to speak and conduct an opportunity meeting, take notice that this is just NOT duplicatable by most who will join you.
3. No Upline support after joining the opportunity
Your new recruit is “green” in many cases. Failure in this instance is based upon the neglect of his upline not actively helping him get around the new program and learning techniques. This could be due to a couple of things, the sponsor is very new himself and or the sponsor is a sponsor monster and is just concerned with how many he can get into the program with no regard or concern for the outcome of his new recruit. To decrease the failure rate due to this problem it is crucial to get the new recruit receive help from his upline as soon as possible. Walk him through the set up of the back office and give whatever other assistance is needed. Failure in this area will surely lead to certain death of the new recruit.
4. New MLM’er give up to soon
- This is overlooked by many who join an opportunity and that is thinking that it is going to happen over night. It is like any business that starts up…it will take several months before you see much of anything in the way of progress. Go in to any business opportunity with a two to five year plan of action. You should be able to comfortable invest for at least one year and determine that you are going to persist with this plan for at least one year! Just good business suaveness.
5. MLM’er are not “convinced” of the MLM Company Or Service
- New MLM’er to align himself with a solid 5 Pillar company with an unquestionable management team, products and services!
- If the company is not at least two years old, it is not a 5 Pillar company and things will become unmanageable quickly.
- Chose an established 5 Pillar, financially secure MLM company with a long term business plan of their own, that is at least two years old with unquestionable products or services. You will feel much better about your decision and the products and company you are promoting. Knowing in your own mind that you are able to speak to your prospects with honesty about your company. Don’t select a company solely because you are “in love” with the product. Remember you became a network marketer to make money, not to “fall in love” with a product. Remember the money making potential if you want success. As a side…it is not about the money either, it is about WHAT AND WHO you can HELP with the earning potential once you have made it as a network marketer.
If you are ready for success in the business of YOUR choice, then take advantage of all the free training. Make sure that you chose the right opportunity and learn to become a leader in your company.
"You cannot teach a man anything. You can only help him discover it within himself." — Galileo
Dave and Darlene Mills
Leadership With A Vision