If you were to do any kind of statistical research into Network Marketing, you would probably find some shocking results. The drop-out rate is over 95%, lots of people find themselves filing for bankruptcy and some are left with nothing but a garage full of unused products to show for their time and energy. All of this leaves bitter and skeptical feelings about Multi-level Marketing, but most of the blame is being misdirected. It's not the company who supplies the products who are at fault, it is mostly due to separate organizations who misuse the internet as a way of convincing people to grow a business. Although everything looks good on paper, these "turn-key" plans focus more on playing a numbers game and less on providing proper education. If you ever find yourself being lured into an online business system that sounds too good to be true, it probably is. Here are some reasons why most of them do not work for the average distributor.



Reason #1: Over-Priced Leads

Let's start out with a bang. This is the main reason why you should turn 180 degrees around and run as fast as you can from these systems. Here's how people get into financial ruin. The plan they have laid out for you revolves around you purchasing "quality" leads. They will tell you it's a numbers game, meaning, the more you buy, the more money you will make in return. This would make sense if the leads were cheap and there actually was such a thing as "quality" leads. But since the leads are sold to you at an inflated price, people are led to believe that it's a good buy and it isn't long before your deep in debt.

You should not have to spend big money to start a business from home. Leave that stuff for the aspiring McDonalds franchise buyer. The kind of leads that are generated for these programs are available on the internet to anyone for pennies on the dollar. You just have to know where to find them. Never sign up for a program that tells you the more you spend, the more you make...especially if there is no guarantee. Bottom line…if you are spending more than 25 cents per lead, then who is really making the money? The lead company, the coop or you? It's definitely not you. Most of the leads stink whether they cost 25 cents or $25.00. The best leads you can have are the ones you generate yourself by using proper techniques.

2. Designed To Benefit The Top Leaders Only

Most of these systems are designed by top disributors and have nothing to do with the company as a whole. These people are successful business owners who have figured out a way to make supplemental income by "providing" you with a business plan. The more people they enroll, the more money they make. Why else would they invite people outside of their downline to join in? An alliance is made with a lead-generation company and both parties make an enormous profit selling you their cheap leads at inflated prices. Aside from that, they also make money from collecting monthly "fees" which they will explain covers the use of their websites and trainings which are already set up. Just think about it. If a low estimate of 100 people each paid $50 a month just to be a member, that's an extra $5,000 a month! For what? If they are only interested in your successs, why do they even need to collect a membership fee? Shouldn't the extra income from your soon-to-be exploding business benefit them enough?

3. Website Mis-Usage

Since most of these systems require you to pay a monthly fee to use their awesome websites, they have probably spent some good money to make it look pretty through the help of a graphic artist and web designer. This may make the site look really cool, but it doesn't mean it will cause your business to explode because you have it. The way a website works successfully depends on the kind of people who look at it and how you get them to look at it. The kind of people you want are those who already have a want, need and desire for what you are offering on that site. You don't get them there by spending tons of dollars on leads and then telling them to "take a look at it." They aren't qualified because they haven't done enough to want to be there. If you had a convenience store out in the middle of the desert, it doesn't matter what it looks like when that thirsty person searching for a cold beverage walks ten hot miles to find it. They're going to want what you have regardless.

4. Teaches You To Lead With The Business

One of the reasons there is a 95% or more drop-out rate in Network Marketing is because people join without a passion for the product they are selling. You simply cannot be successful if you don't believe in your products, and if you are only joining to make money, it's the wrong reason. Many of these systems push "Work From Home" leads that provide you with contacts who want to make money working from home. When you spend all of your time and money on people like this, your business will not move forward. Sure, you'll probably find a few people a month to enroll and attempt to follow your system, but they won't be grounded on the products and they will soon quit. This system is wonderful for the distributor who can convince their already huge downline to keep spending the money to enroll these types of people. They make money without purchasing the leads because the money passes up. It is the new person spending money to get these contacts who suffer financially.

5. Takes Focus Away From Company

Whenever a system focuses on you spending all of your money on advertising, websites and lead-generation, it not only takes a toll on your checkbook, but on your comittment to the parent company you are distributing for as well. Many times these systems focus on their own trainings to build their credibility with you, and you begin to focus on the wrong things. You wouldn't be in business without the products or the company who allows you to sell them, and if you spend all of your money on your system, you have nothing left over for personal inventory and product usage. When you use the products and are passionate about them, it will come across in what you say. If you always have products on hand, people will want what you have without waiting for the someone to ship it to them. When was the last time you went into a shoe store and bought a pair of shoes that were in a catalog because the owner didn't have anything on the shelves?

If you truly want to grow a work from home business through Network Marketing, the first thing you must do is find a product you are passionate about. Something that you would still take or use even if you could never ever make another single cent from selling it. The second thing you must do is promise yourself to never ever join a system where you are told that in order to succeed you must continually invest money on marketing leads and membership fees without have any kind of written guarantee for success. Focus on educating yourself on how to market a product, not just simply selling it. There are thousands of people out there who want what you have. In order to be successful, you must learn how to find them and help them.

So, the answer to that 6 figure income from home is not just about your product, service or compensation plan. Ultimately it's about you, your mindset and your ability to position yourself as a true marketer. You see… understanding the power of mindset and positioning are the true reasons behind success in Network Marketing. This is how I turned my business around after much trial and error and I continue to help others to do the same.

Much can be learned from the costly mistakes of others before you.