Why People Fail In Network Marketing/MLM

Network marketing/MLM isn't for everybody. While some people swear by Network Marketing, rnothers simply swear! rnRegardless of how YOU feel, however, let’s take a moment to rnclear the air. ALL major business organizations, regardless of what product rnor service they sell... are Multi-Level Marketing organizations! Virtually ALL types of organizations, from sales organizations, rnto the military, to athletic teams, to the federal government rnitself are inherently "multi-level." They HAVE to be in order rnto preserve a chain of command and a smooth flow of duties and rnresponsibilities. You see, there are several levels of responsibility, rnand that certainly sounds "multi-level" to ME. Why do so many people fail in network marketing rnand why do so many still struggle to "make it"? This industry is filled with tons of hype and B.S. rnabout how you can make a bunch of money by sitting rnon the couch or on a beach somewhere, but it isn't rnthat easy now is it. By the time you get to the end of this article you will rnbe left in no doubt as to why people fail in network rnmarketing, what it takes to succeed in network marketing, rnand 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. rnSharing - through product or business philosophy - is the basis rnof network marketing. Network marketing is a multi-billion pound industry involving rnmillions of independent business people around the globe. Network marketing is a 'BIG' small business, which offers everyone, rnwith or without business experience, the opportunity to start and run rna home-based business. rnNETWORK MARKETING rnVs rnTRADITIONAL MARKETING The traditional way of marketing products is to move them from a rnmanufacturer through a network of middlemen. National Wholesalers, rnregional wholesalers, Cash & Carry warehouses, retailers, - the 'middlemen' - all add their 'valueless' percentage to the price rnof the product. By the time the product or service reaches you, the end user, you're rnnot only paying for the product, but a percentage of the price for rneach and every middleman in the network. In network marketing there rnare no middlemen. Instead of paying them, a network marketing company rnwill pay you for whatever amount of product you cause to be 'moved'. As a sole individual operating alone, the amount of product or service rnprovision you could 'move' from your own efforts, would be relatively rnsmall. In network marketing however, the amount you 'caused' rnto be moved INDIRECTLY could be HUGE. Here then is the essence of a network marketing compensation plan. rnFor not only will you be compensated for the product or service provision you rnpersonally cause to be moved from your own direct efforts, you will also rnreceive indirect compensation for the product or service provision that rnyour 'organisation' 'causes' to be moved. rnYOUR 'ORGANISATION' To be successful in network marketing you will need to build an 'organisation'. rnThat is to say you will need to 'share' the benefits of both the products/service rnprovision and the business opportunity with others. In network marketing rnthis is referred to as your 'downline'. The 'serious' money to be had in network marketing is to be had from what is rntermed as 'over-ride' commissions from the 'movement' of product or service rnprovision from the 'downline' your 'sponsor' will help you to build. (In network marketing it is the responsibility of your introducing 'sponsor' rnto help you build your 'downline'.) All you need to do initially to build a 'downline' is to 'share' with others rnthe information about the products or service provision and the business rnopportunity on offer. Theoretically, if after 'sharing' the information with others and you rnsubsequently attracted just five SERIOUS individuals who decided to rnjoin you in your network marketing business - for illustration purposes rnonly - your 'downline' could equate to the following after five levels rnof geometric growth: You You sponsor just 5 SERIOUS people into your business. rnYour level 1 = 5 They duplicate your efforts and each sponsor 5 SERIOUS people. rnYour level 2 = 25 These 16 duplicate your efforts and each sponsor 5 SERIOUS people. rnYour 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 rnpeople on your fifth level. rnAN 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 rnand every one of those 3,905 potential distributors in your downline. Network marketing then is about a LOT of people 'moving' a LITTLE product. rnThe more people you introduce, the greater your income potential. Notice rnthat I said SERIOUS people. You may find that you have to introduce 20, rn30 or even 50 new distributors before you find a person who Gets SERIOUS rnabout the business. If you want to toss aside the potential earnings on offer as being ridiculous rnor 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. rnThough the majority of networkers earn hundreds rather than many thousands per rnmonth, (most working part-time) it must be understood then that if you are to rnmake serious income, you must put in serious effort. No free lunches here! The professionals in Network Marketing (those that earn HUGE incomes) recognise rnthat to become successful you must "go through the numbers". That is, sort through rnlots and lots of people until you find those people who get SERIOUS about the rnbusiness. Here's an example of "going through the numbers": You may have heard of Bill Britt, one of the most successful network marketing rndistributors ever. Some years ago, 20/20 did a feature story on the network rnmarketing company he worked with. They spent 19 minutes interviewing distributors rnwho 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 rnhis palatial home. He was asked, "Mr. Britt, this business has obviously rnworked for you. What's your secret?" rnHe replied, "There is no secret. I simply showed the plan to 1200 people. rn900 said, 'No.' and only 300 signed up. Out of those 300, only 85 did rnanything at all. Out of those 85 only 35 were serious, and out of those 35, rn11 made me a millionaire." Like all successful networkers Bill worked through the numbers. rnANY business is a numbers game, plain and simple! Ever heard of Colonel rnsanders? No? Then I'm sure you WILL have heard of KFC... as in Kentucky rnFried Chicken! Did you know that Colonel Sanders the founder of KFC rnapproached over 1,600 prospective outlets for his now famous recipe rnbefore 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 rnunsuccessful 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 rngenius, and you don't need to be *educated to succeed in this rnIndustry. All you need to be is persistant. * (Though I suppose it would help if you could read and write.) Moving swiftly on... There are two prongs to earning in Network marketing. First, is, of course, rnbuilding a downline. But remember, a large organization of rnpeople who do NOTHING other than sponsoring others, earns NOTHING! Second is, BALANCE and CONSISTENCY. Spend some time building your organization rnyes, but also spend time PROMOTING your products/services to others and use the rnproducts/services yourself! rnHOW 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. rnYou want those who convince themselves. If they are TRULY looking for a way to rnbecome successful (assuming the network marketing company you are working with rnis offering a QUALITY product or service) then they'll come to you to go after rnit. The key to achieving success in network marketing is NOT to be had by rnconvincing people, but by helping those (SERIOUS) people who want to become rnsuccessful themselves. Neither do you want to attract those who "NEED" the opportunity you are offering. rnYou need to attract those who "WANT" the opportunity you are offering. Our society rnis full of "Needers". The "Wanters" (Leaders) are about as rare as hens teeth! There's an rnold saying in network marketing: "Amateur Networkers sort for needers. Professionals rnsort for leaders". And THAT is precisely what you should be looking for...Leaders. rnThose who get SERIOUS about the business. The single most important factor of building a large organization is the quality rnof the people you sponsor. What type of people do you think will build your business rnfaster ... Needers or Leaders? The biggest Reason why people FAIL in Network Marketing is NOT because they rndon't want residual income, it's because they're NOT prepared to put in the necessary rneffort 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, rnpeople 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 rnshare it with your friends and family hmmm??) As it has been estimated that 20% of the working population - MILLIONS of people - rnwould be interested in starting their own business, the marketplace in the USA rnalone is truly enormous. When you take into account that many network marketing rncompanies operate on a GLOBAL basis the potential for growth is quite staggering. rnWith a recent MORI poll indicating that 50% of 16 - 25 year olds were interested rnin starting their own business, the marketplace is actually growing! One of the most important things to recognise is that the most precious resource rnavailable to you is in the new blood - the millions of business opportunity seekers rnwho are not presently involved in networking. For it is there that you will find the rnsuccess 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 rnbeing offered that is the single most important aspect for its success. rnThe most lucrative compensation plan in the world will NOT provide you with an rnon-going residual income if the product or service doesn't provide tangible rnvalue and benefits for yourself and your customers. rnProvide a product or service that people need, want, coupled with a business rnopportunity they are willing to tell their friends about, and you can build rnyourself 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 rnbeing 'sold' primarily on the benefits of the compensation plan with the rnproduct or service being offered as a secondary consideration, then read rnthe 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 rnI'm considering joining one that I'm willing to share with my friends and family? rnThe comment "I don't want my friends and family to know what I'm doing, l want to rnbecome successful FIRST - then I'll introduce them!!" is almost legendary in rnnetwork marketing. (A comment oftimes made by failed networkers who had no real rnbelief 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, rnyour friends and your family know about the network programm you're considering rnjoining, have belief in the company and its products/service provision, have rnconfidence in your introducing sponsor, then you have probably chosen the right rncompany to work with. Tip# 3/ Don't be impatient by expecting things to happen overnight! Building a rnmoderately productive downline in any network marketing programm takes TIME - rnmany months not many weeks. Tip# 4/ Read tip 3 again and avoid like the plague any company which suggests rnotherwise or does not require you to invest in the development of a distributor rnbase. If your prospective sponsor in the network marketing program you're being rninvited to join doesn't stipulate that it takes TIME to build a significantly rnproductive downline then it's not a business your being invited to join but a rngame - and one you're bound to lose! Tip# 5/ If you want to dine with the classes - deal in products or services rnwanted by the masses! TO SUM UP Network marketing isn't for everybody. While some people swear by network rnmarketing, others simply swear! (Read tip No. 2 again to find out why). rnTo succeed in network marketing you will need determination, commitment, rnpersistance, enthusiasm and most importantly - a burning desire for success. rnIf you believe you have those qualities get back to the person who provided you rnwith the details of their network marketing opportunity today. Have you heard?... * 70% of all North Americans say they're carrying so much debt, rnthat their home life is unhappy. * #1 resolution this year is getting out of debt - overtaking weight rnloss for the first time. * Personal bankruptcies totaled 1.7 million, and is climbing. * The average North American spends $1.05 for every $1 earned. * Primary causes behind bankruptcies: job loss, family break-up, rnand medical reasons. Did you know?... Out of all people that start employment at age 20, by age 65... * 1% are wealthy * 4% have enough money to retire * 3% are still working (can't afford to quit) * 63% depend on Social Security, friends or charityrn * 95% of all Americans retire in poverty after working for 45 years! rnIf you have tried Network Marketing before and failed, you probably rnchose 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 rncase you will keep on getting what you've always got OR you can get rnback to the person who provided you with the details of their network rnmarketing opportunity today. Your call. Yours in success, Kevin Quigley.