The problem is NOT entirely the network marketing industry, but, to a great extent, failure occurs because of the mindset of the people getting involved in network marketing and affiliate marketing. Most people have had little success in other areas of life. When they get involved with a network marketing business they already have a pre-established notion that they will fail, even if they are not consciously aware of it.
There are 6 attitudes or reasons that should be considered when trying to build a successful network marketing business. Here are 6 potholes in the road to success in network and affiliate marketing:
1.) The easy road to wealth. There is no free lunch! Many people who are enamored with the idea of becoming wealthy think that, simply by signing up with a network marketing business or as an affiliate of a business, they have won the lottery. They buy their ticket and collect the money. No matter what the hypnotic hype implies, this is NOT how it works.
2.) They are told and believe that if they start at a higher level, they won't have to work as hard. Some MLM companies allow you to buy a higher status, which allows you to purchase products at a lower rate. This allows the rep to make a higher commission for each sale. Buying in at a higher level doesn't replace good old fashion diligence! Starting on a higher level, simply put, means that you have invested more money, which means that you will have to work harder to recover your investment. Beginning in your company in a higher position does not mean that you have already built your downline, which is where your success lies.
3.) Falling for the promise that your up line will recruit people for you. Waiting and hoping that your up line will give you new distributors will guarantee your failure. If you are with a company that has a binary compensation plan, then it is easy to get caught up in this mindset. It is not your up line's job to build your business for you, unless they receive a matching compensation for the new recruit. This is rarely the case. Most likely when your up line gives you a few new reps, it usually is for their benefit more than yours.
4.) Laziness! The hard to swallow pill, Laziness!" Building a business takes time and a great deal of effort. A half-hearted attitude will produce little to no results. Successful businesses have been created by diligence and a 'success' attitude.
5.) The Greed appeal Anyone who looks at the 'hyped up' headlines in the MLM industry can see that the greatest majority of these headlines are outright lies or misconceptions. When closely scrutinized, these 'tag lines' are designed to excite the greed in the potential affiliate. The copywriters for these offers do absolutely nothing but bait those who are gullible enough to believe the outrageous claims of 'wealth without effort.'
6.) Lack of proper training Too often people are led to believe that they will be trained by their up line in the latest marketing skills to insure their success. Even with the best intentions, this is not usually the reality. As the number of Internet users grows (and it is growing exponentially) the technology is growing exponentially. What worked in the early days of Internet Marketing does not work today. The old techniques of 'screaming your offer to anyone within three feet of you' or 'badger you family friends and strangers with your offer because they need your product but don't realize it yet' will only alienate everyone from you.
There is a fresh new attitude or marketing mindset that will bring success. Proper training and the willingness to work diligently to grow your business is a key factor in your success.
The 3% who are making an absolute fortune on the Internet have done this because of their nose-to-the-grindstone work ethic. They do not use the outdated, rehashed garbage that is fed to the multitudes of Internet Opportunity seekers. They use techniques that are tried and true and are very rarely shared.
The 97% failure figure of Network Marketing correlates with the 80% failure figure in the 'brick and mortar' world. 80% of all new businesses fail within their first year (for basically the same reasons.) Does this mean that no one should start a business? Absolutely not!
This means: 1.) research, 2.) plan, 3.) seek wise counsel, 4.) create within yourself an attitude of diligence, and 5.) prepare to work as hard as is necessary to realize your goals.
Copyright (c) 2008 The Christian Success Institute
Ever hear the statistic that 95% who try network marketing fail at it? Well if you’ve been involved in the home based business arena for longer than a few months, then I bet you have. But I bet you’ve also heard the statistic that 95% of Americans end up broke. So here’s a question: Do you think it’s just a coincidence that both of these groups have a 95% failure rate?
The answer is no. The reasons that most fail in network marketing are the exact same reasons that most fail financially as a whole. And as you might guess, these reasons really aren’t all that complicated as failure in anything almost always comes down to either quitting, or worse, never getting started.
Let’s start with the quitters. Unfortunately, this describes most home based business goers today. They go from one income opportunity to the next, never really building any solid foundation from which to launch a successful business. They try something a time or two, but once they encounter any serious resistance, rejection or failure, they throw in the towel.
Worse still are those who start a brand new network marketing business out of their desire to achieve financial independence, but never go beyond the first chapter of the training manual or dial into their second training call. These folks start with the best intentions, but eventually allow procrastination or fear to get the best of them.
Now to be fair, I must admit that, yes, there are scams out there. Also, some network marketing companies have less than stellar training programs, and/or some uplines fail to provide adequate contact, support and training as well. And the list goes on and on. The point is that things happen outside of our control and these things often contribute to the inevitable failures we endure on our journey to success.
However, when something like that happens, we must see it as nothing more than a failed approach to realizing a goal, and not a failed goal itself. Meaning, if our goal is to achieve financial independence and our first attempt at it fails for reasons beyond our control, then we owe it to ourselves to simply find a new approach.
Suffice it to say that the 95% failure rate in network marketing really isn’t all that significant especially when you consider that it’s certainly possible to succeed where countless others have failed. It just requires finding out what they did or failed to do, and avoiding those same mistakes.
So the next time you hear about the 95% failure rate in network marketing notice where it’s coming from. More often than not it will be used as part of a sales pitch by someone trying to sell you something that will supposedly keep you out of that 95% bracket. Buyer beware! What determines a person’s success in network marketing over the long run isn’t something they can buy. MLM success is about a commitment to acquire the skills necessary to succeed, as well as a decision to relentlessly pursue success until it’s achieved.
Both Bobby Keating & Brett Taylor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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