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Why People Fail In Network Marketing/MLM

by Kevin Quigley Author


Network marketing/MLM isn't for everybody.

While some people swear by Network Marketing, others simply swear!

Regardless of how YOU feel, however, let's take a moment to clear the air.

ALL major business organizations, regardless of what product or service they sell... are Multi-Level Marketing organizations!

Virtually ALL types of organizations, from sales organizations, to the military, to athletic teams, to the federal government itself are inherently "multi-level." They HAVE to be in order to preserve a chain of command and a smooth flow of duties and responsibilities. You see, there are several levels of responsibility, and that certainly sounds "multi-level" to ME.

Why do so many people fail in network marketing and why do so many still struggle to "make it"? This industry is filled with tons of hype and B.S. about how you can make a bunch of money by sitting on the couch or on a beach somewhere, but it isn't that easy now is it. ;)

By the time you get to the end of this article you will be left in no doubt as to why people fail in network marketing, what it takes to succeed in network marketing, and whether this business is for you.

But first, just in case you're new to the concept...

What is Network Marketing??

To begin with, the concept behind network marketing is simple. Sharing - through product or business philosophy - is the basis of network marketing.

NETWORK MARKETING Vs TRADITIONAL MARKETING

The traditional way of marketing products is to move them from a manufacturer through a network of middlemen. National Wholesalers, regional wholesalers, Cash & Carry warehouses, retailers, - the 'middlemen' - all add their 'valueless' percentage to the price of the product.

By the time the product or service reaches you, the end user, you're not only paying for the product, but a percentage of the price for each and every middleman in the network. In network marketing there are no middlemen. Instead of paying them, a network marketing company will pay you for whatever amount of product you cause to be 'moved'.

As a sole individual operating alone, the amount of product or service provision you could 'move' from your own efforts, would be relatively small. In network marketing however, the amount you 'caused' to be moved INDIRECTLY could be HUGE.

Here then is the essence of a network marketing compensation plan. For not only will you be compensated for the product or service provision you personally cause to be moved from your own direct efforts, you will also receive indirect compensation for the product or service provision that your 'organisation' 'causes' to be moved.

YOUR 'ORGANISATION'
To be successful in network marketing you will need to build an 'organisation'. That is to say you will need to 'share' the benefits of both the products/service provision and the business opportunity with others. In network marketing this is referred to as your 'downline'.

The 'serious' money to be had in network marketing is to be had from what is termed as 'over-ride' commissions from the 'movement' of product or service provision from the 'downline' your 'sponsor' will help you to build. (In network marketing it is the responsibility of your introducing 'sponsor' to help you build your 'downline'.)

All you need to do initially to build a 'downline' is to 'share' with others the information about the products or service provision and the business opportunity on offer.

Theoretically, if after 'sharing' the information with others and you subsequently attracted just five SERIOUS individuals who decided to join you in your network marketing business - for illustration purposes only - your 'downline' could equate to the following after five levels of geometric growth:

You
You sponsor just 5 SERIOUS people into your business.
Your level 1 = 5

They duplicate your efforts and each sponsor 5 SERIOUS people.
Your level 2 = 25

These 16 duplicate your efforts and each sponsor 5 SERIOUS people.
Your level 3 = 125

These 125 duplicate your efforts and each sponsor 5 SERIOUS people.

A little arithmetic will tell you that's theoretically a total of 3,905 people on your fifth level.

AN UNLIMITED INCOME POTENTIAL
Imagine the power of a business-building plan that would pay you an agreed 'over-ride' commission on each product or service provision 'moved' by each and every one of those 3,905 potential distributors in your downline.

Network marketing then is about a LOT of people 'moving' a LITTLE product. The more people you introduce, the greater your income potential. Notice that I said SERIOUS people. You may find that you have to introduce 10, 20 or even 30 new distributors before you find a person who Gets SERIOUS about the business.

If you want to toss aside the potential earnings on offer as being ridiculous or impossible - DON'T. I personally have met people who are earning $5,000 to $50,000 per month (yes per month) from network marketing for part-time effort. Though many pro active networkers earn hundreds rather than many thousands per month, (most working part-time) it must be understood then that if you are to make SERIOUS INCOME, you must put in SERIOUS EFFORT. No free lunches here!

The Top Earners in Network Marketing (those that earn HUGE incomes) recognise that to become successful you must "go through the numbers". That is, sort through lots and lots of people until you find those people who get SERIOUS about the business.

Here's an example of "going through the numbers":

You may have heard of Bill Britt, one of the most successful network marketing distributors ever. Some years ago, 20/20 did a feature story on the network marketing company he worked with. They spent 19 minutes interviewing distributors who had failed and showed the garages full of products they couldn't sell.

During the last minute of the show, Mr. Britt was interviewed in front of his palatial home. He was asked, "Mr. Britt, this business has obviously worked for you. What's your secret?" He replied, "There is no secret. I simply showed the plan to 1200 people. 900 said, 'No.' and only 300 signed up. Out of those 300, only 85 did anything at all. Out of those 85 only 35 were serious, and out of those 35, 11 made me a millionaire."

Like all successful networkers Bill worked through the numbers. ANY business is a numbers game, plain and simple! Ever heard of Colonel sanders? No? Then I'm sure you WILL have heard of KFC... as in Kentucky Fried Chicken! Did you know that Colonel Sanders the founder of KFC approached over 1,600 prospective outlets for his now famous recipe before getting to a single "yes". Now that's what I call persistance!

As Calvin Coolidge US president once said:

"Nothing in the world can take the place of persistance.

Talent will not - Nothing is as more common than the unsuccessful man with talent.

Genius will not - The unrewarded Genius is almost a proverb.

Education will not - The world is full of educated derelicts.

Persistance and persistance alone is Omnipotent."

So, you don't need to be talented, you don't need to be a genius, and you don't need to be *educated to succeed in this Industry. All you need to be is persistant.

* (Though I suppose it would help if you could read and write - lol!)

Moving swiftly on...

There are two prongs to earning in Network marketing. First, is, of course, building a ?down line?.

Second is, BALANCE and CONSISTENCY. Spend some time building your organization yes, but also spend time PROMOTING your products/services to others and use the products/services yourself!

HOW DO YOU CONVINCE PEOPLE TO JOIN YOUR BUSINESS?
The simple answer is you DON'T. You don't want those who need to be convinced. You want those who convince themselves. If they are TRULY looking for a way to become successful (assuming the network marketing company you are working with is offering a QUALITY product or service) then they'll come to you to go after it. The key to achieving success in network marketing is NOT to be had by convincing people, but by attracting and helping those (SERIOUS) people who want to become successful themselves.

Neither do you want to attract those who "NEED" the opportunity you are offering. There's an old saying in network marketing: "Amateur Networkers sort for needers. Professionals sort for leaders". And THAT is precisely what you should be looking for...Leaders. Those who to get SERIOUS about the business.

The single most important factor of building a large organization is the quality of the people you sponsor. What type of people do you think will build your business faster ... Needers or Leaders?

The biggest Reason why people FAIL in Network Marketing is NOT because they don't want residual income, it's because they're NOT prepared to put in the necessary effort to "go through the numbers". No one is going to say "No. I don't want extra $5000 per month in residual income." They say NO to what they have to do to get it!

WHERE DO I FIND PEOPLE TO JOIN ME IN MY BUSINESS
Who do you know who would welcome an extra stream of income? Friends, family, people you come into contact with every day would be a good starting point. (If the opportunity you're offering is so darn good why WOULDN'T you want to share it with your friends and family hmmm??)

As it has been estimated that 20% of the working population - MILLIONS of people - would be interested in starting their own business, the marketplace in the USA alone is truly enormous. When you take into account that many network marketing companies operate on a GLOBAL basis the potential for growth is quite staggering. With a recent MORI poll indicating that 50% of 16 - 25 year olds were interested in starting their own business, the marketplace is actually growing!

One of the most important things to recognise is that the most precious resource available to you is in the new blood - the millions of business opportunity seekers who are not presently involved in networking. For it is there that you will find the success stories of tomorrow for your downline organisation.

CHOOSE THE RIGHT COMPANY
In any successful business it is the quality of the product or service that is being offered that is the single most important aspect for its success. The most lucrative compensation plan in the world will NOT provide you with an on-going residual income if the product or service doesn't provide tangible value and benefits for yourself and your customers.

Provide a product or service that people need, want, coupled with a business opportunity they are willing to tell their friends about, and you can build yourself a business empire in network marketing!

TIPS FOR THE TOP?
Tip# 1/ If you're already involved in a network marketing program and you're being 'sold' primarily on the benefits of the compensation plan with the product or service being offered as a secondary consideration, then read the above paragraph again and MOVE to a company whose products or services 'move'.

Tip# 2/ Ask yourself this important question: Is the network marketing programme I'm considering joining one that I'm willing to share with my friends and family? The comment "I don't want my friends and family to know what I'm doing, l want to become successful FIRST - then I'll introduce them!!" is almost legendary in network marketing. (A comment oftimes made by failed networkers who had no real belief in the company or the products they were promoting in the first place!)

If you immediately feel comfortable with the prospect of letting your neighbors, your friends and your family know about the network program you're considering joining, have belief in the company and its products/service provision, have confidence in your introducing sponsor, then you have probably chosen the right company to work with.

Tip# 3/ Don't be impatient by expecting things to happen overnight! Building a moderately productive downline in any network marketing programm takes TIME - many months not many weeks.

Tip# 4/ Read tip 3 again and avoid like the plague any company which suggests otherwise or does not require you to invest in the development of a distributor base. If your prospective sponsor in the network marketing program you're being invited to join doesn't stipulate that it takes TIME to build a significantly productive downline then it's not a business your being invited to join but a game - and one you're bound to lose!

Tip# 5/ If you want to dine with the classes - deal in products or services wanted by the masses!

TO SUM UP
Network marketing isn't for everybody. While some people swear by network marketing, others simply swear! (Read tip No. 2 again to find out why). To succeed in network marketing you will need determination, commitment, persistance, enthusiasm and most importantly - a burning desire for success. If you believe you have those qualities get back to the person who provided you with the details of their network marketing opportunity today.

Have you heard?...
  • 70% of all North Americans say they're carrying so much debt, that their home life is unhappy.
  • #1 resolution this year is getting out of debt - overtaking weight loss for the first time.
  • Personal bankruptcies totaled 1.7 million, and is climbing.
  • The average North American spends $1.05 for every $1 earned.
  • 95% of Americans will retire broke and at or below the poverty level.
  • Primary causes behind bankruptcies: job loss, family break-up, and medical reasons.
If you have tried Network Marketing before and failed, you probably chose the wrong company, the wrong sponsor, or the wrong product.

You now have a choice...

You can either keep on doing what you've always been doing in which case you will keep on getting what you've always got OR you can get back to the person who provided you with the details of their network marketing opportunity today.

Your call.

Yours in success,
Kevin Quigley.

P.S. If you've enjoyed this article, please be sure to forward it to a friend.

© Kevin Quigley, All rights reserved.
Kevin Quigley is the former Publisher/Editor of the Online Internet Affiliates Resources Directory and the offline Business Opportunities Directory (UK). Visit: http://thewinnersteam.homestead.com

Submitted on August 23, 2009