Over the years, Network Marketing has managed to maintain an alarmingly high failure rate of about 95%. With mass exposure to global resources and creative networking one would think that the stats would decrease significantly, as the Information Age expands. That is not the case. The numbers are actually more like 97%. Why? We'll examine six major reasons Network Marketers fail in today's era.



Old School Network Marketing

Sales Professionals, and people with influence were more successful using “Old School” marketing methods such as: The 3 foot rule, hotel & home meetings, contact lists, cold calling, etc. These top 5% percent were able to grasp these concepts and succeed producing sizable organizations, while the rest failed miserably. Nevertheless, people with no real foundation in sales, marketing, and business were still encouraged to duplicate what they learned. As a result, their downlines suffered. Network Marketing promotes the idea that anyone can succeed by simply sharing products and/or services with their “friends & family.” This can only be accomplished with strong communication skills, influence, and a laser focus on targeting similar individuals. Although the training is re-shaping for the 21st Century, most will still be taught to re-produce old school techniques that don't work for the majority.

The Internet Is No Place For Prospecting

Since the Internet was introduced, it began to revolutionize the way we communicate, conduct research, and do business. Network Marketing slowly adapted to this change. The Internet became a great asset for Networkers to do business related research. However, the majority aren't skilled enough to use the Internet for marketing. Most are just taught to use “new school” tools to leverage their “old school” strategies. Meanwhile, many of the Top 5% are able to successfully incorporate the Web into their business practices. The rest still struggle with warm market lists, opportunity seeker leads, and CDs.

The Next Big Thing!

Every nine to twelve months new mlm companies go into pre-launch, adding to the reasons Network Marketers fail. They promise better comp plans, products or services, technology, and training. These “ground floor opportunities” open doors for starry-eyed Networkers to succeed from the top. There is nothing wrong with members moving on, however, their downlines are influenced to follow. Heavy Hitters making the same career move causes much larger devastation. Remaining members suffer major consequences. Their downlines dwindle, and so does their commissions!

Large Overhead -- Little Return

“Lack Of Funds” have killed many dreams. Although a Network Marking business cost very little to join, there are still monthly fees and marketing expenses associated with maintaining business. It costs an average of $200 to $600 to get started, $100 to $300 per month to maintain, and $100 to $300 per month for an Ad Budget (optional but necessary). These figures may seem fair, however, it is often difficult for members to balance expenses if they aren't quickly breaking even at $500 per month. They loose more than they earn so they drop out in within 3 months.

Employees Not Ready For Business

Here is one of the little-known or over-looked reasons Network Marketers fail in today's era. With an estimated 150,000 new members joining this global industry every week, most are employees with no real sales, marketing, and business knowledge. They bring to the table their employee habits and experience. So they seek security, guarantees, and “microwave” solutions. Since most receive pay checks, and are not accustomed to earning performance based commission, they lack the self-motivation to go the extra mile. Top Income Earners don't believe that the majority will invest in real-world the business and marketing education needed for Network Marketing. So, they pass down simple marketing tactics and tools to keep average members optimistic, and in the pipeline. Business is business -- money is money.

Sponsors Don't Know What They're Talking About

Some have good Sponsors. Most aren't so lucky. New members are taught that Network Marketing is the business of helping people, not sales. Sponsors teach members to avoid the Internet because it is too difficult to build business based on loyalty and integrity. Sponsors teach members to prospect alone but discourage learning to close alone. Surprisingly, in many global companies, you will still find Sponsors heavily promoting antiquated tactics which are counter-productive to our era. And where are the Sponsors that are “missing in action?” Members can't become successful Leaders if they are mislead, indirectly programmed to follow, and set up for failure.

So how can Networkers succeed in this era if the odds are stacked so high against them? To increase chances for success in Network Marketing, members must establish a foundation in business, sales, and online-offline marketing. They must also position themselves as Leaders by taking charge and learning to effectively market their # 1 Commodities: Themselves! Prospects and customers will then view them as confident business savvy leaders with concrete solutions.