Below are the top 5 reasons why success in Network Marketing (MLM) and Direct Sales is so appalling.

Reason 1

the razor of rejection

The Network Marketing business model, like most businesses, is based on relationships. In network marketing, a new recruit is taught to contact people he knows and with whom he has a pre-existing relationship. The trust factor is already built in due to the relationship that has been established for a long time. The new MLM recruit approaches the people he knows with a mistaken belief and expectation how your friends and family will react after watching the presentation. The new recruit feels that he has located the golden treasure map. They can’t wait to show it off to his friends and family. After introducing them to the business, he is not prepared for rejection, skepticism, and utter dismay at how he could have gotten involved in such a scam or industry. Many new recruits aren’t prepared for the objections they hear and then the perceived ridicule they encounter. The new recruit, whose only intention is to share this new wealth generation strategy and system, is criticized by the people closest to him in his life. He just can’t understand why his hot market can’t see this glorious opportunity for wealth that he has shown them.

Reason 2

Network Marketing Opportunities Easy Entry Easy Exit

Most network marketing opportunities are very easy to get into. Start-up costs are much lower relative to a typical brick and mortar industry. Even for the entrepreneur who goes to the extreme of establishing a business name, incorporating the business, obtaining business cards, etc., their start-up costs are still considerably low. With start-up costs so low, most people view a network marketing opportunity as a low-risk investment. Start-up costs generally depend on what the opportunity is, the structure of the business (sole proprietorship vs. incorporation), etc. In general, startup costs can range from several hundred to several thousand dollars. When business isn’t doing as well as planned and cash flow is tight, starting businesses is relatively easy. The new business owner depletes or gives away any available inventory. There are no lease or rental agreements to worry about, and no employees to fire. All you have is the owner who closes the business and leaves.

Reason 3

Network Marketing and Greed

Most people who see the opportunity early on are blinded by the potential income it can generate. They see the potential income and their greed glands begin to throb. I mean look at the scenario you’re presented with: you recruit three people who go out and recruit three and within six months you have a network of people selling products and recruiting. Now they can live the high life and sit back and earn an income. The network marketing industry must accept some responsibility for making everyone’s greed gland swell. How many ads are there, or presentations that show a potential prospect how easy it is to earn a considerable income in such a short time. Sure it actually can (and has) happened, however it must also be recognized that it takes a lot of work, time and effort to create such a success. It’s really funny that most of the people who sign up for your MLM business rarely see or pay attention to the profit disclaimer that is displayed. You know the one that shows how much the average network marketer really makes in a year. Always make sure any potential new recruit sees and understands what the earnings disclaimer means. Failure to do so usually leads to the scenario I described in reason two of easy entry/easy exit in the network marketing industry.

Reason 4

Lack of necessary business skill sets

Most new Network Marketers are basically not business minded or oriented. They lack the necessary communication or marketing skill set to get their businesses up and running quickly. Keep in mind that the network marketing business model is not the normal business model that people are used to. So they jump in with both feet and tremendous exuberance. Unfortunately, they are offered limited training on how to invite people effectively, how to handle objections, etc. So when the new recruit decides to go the cold market route, advertising on the Internet, he is shocked when he suddenly realizes that he must learn how to buy and operate the following: a domain name, web hosting, autoresponder programs, and learn copywriting and advertising techniques to name a few. Realistically, most people who get involved with network marketing have no real concept of how to run a business effectively. Then there are the people who don’t see it as running a business to begin with. They view their network marketing or direct sales opportunity as a hobby rather than a potential income generating business. Learning to operate a business is a skill anyone can learn, you must be prepared to learn new things and build your business in a realistic time frame.

reason 5

Eternal mindset and faith

This reason to me is the number one main reason why the success rate in Network Marketing is so low. We know that there are people with great success stories in the network marketing industry. Ask any of these successful people and they will be happy to tell you at what cost this success came. They will talk about the many hours of work, sweat, and effort they put into building their organizations. All the training they went to and everything else about doing this business. Many have done this while still working 40-hour weeks, tending to family and household matters. They came in with the right mindset to build a huge and profitable organization. Meanwhile, they have unwavering faith in the role they play in generating network marketing success for themselves and their team.

Learn to avoid these pitfalls in your Network Marketing or Direct Selling business and you will generate enormous success.

If you would like more information on how to build and truly achieve success in network marketing, please go to the resource box below and sign up for your free 10-Day Success Plan.