96% of all people who start a home-based business in Network Marketing fail. 3% probably sign up and throw their distributor kit under the bed, never to open it again and wonder why they never got rich. Another 3% probably even earn some money and then give up when they learn that it takes hard work and dedication to get up to where the top earners are. But what about the remaining 90%??? That number is just too high to blame on laziness and treating their business like a hobby.



The main reason these statistics exist is because people don't know true marketing techniques and principles to grow a business. Companies won't teach you these because they focus on playing the numbers game, which is good for them but not for the independent person trying to make ends meet. Companies want you to talk to everyone you meet instead of finding the people who really have a need, want or desire for what you are offering.

All of this boils down to 5 main reasons why people fail in network marketing. Once you understand them you have the power to change your business around for good.

The first reason why people fail in network marketing is a lack of passion for the products or service they endorse. If you are not passionate, you will struggle trying to get others to be passionate. Ask yourself if you would still continue taking the products or using your service if you could no longer make money endorsing them. If you answer no, you'll probably find yourself among the 96% of people who fail at network marketing. Find a product you can't live without first, then start your home-based business.

Your next challenge is to avoid most of the outdated techniques that companies are still teaching their distributors. It's easy to see on paper how talking to everyone you meet will eventually make you rich, but it doesn't work. Do you really think that spending all of your time and energy putting flyers on cars, day after day, is the best way to reach people? It's not, and neither is hosting home parties and talking to your friends and family. Using these outdated techniques is the second reason why people fail in network marketing.

You must know who your audience is. It's not your brother just because you know him. I'm sure your product or service could help everyone in some way, but not everyone wants it. You need to learn the techniques that will get those people calling you. This can happen through a variety of ways, including the internet and leads of people who have recently purchased products similar to what you are marketing.

One of the first things they teach you to get your business moving is to contact your friends and family with the help of your sponsor and 3-way calling. The reason this doesn't help you in any way is because it is telling everyone that your sponsor is the leader, not you. In order to grow a successful home-based business, you have to be a leader with the mindset of a CEO. People fail because they never get past the phase of just being a distributor to grow their upline's business, and it's reason number 3.

Reason number 4 deals with one of the latest trends that is fueling failure in network marketing...online business systems. These fancy websites and costly lead programs prey on the innocence of brand new distributors by playing a numbers game with inflated prices. Mostly designed as supplemental income for the top distributors who conceive them, it disguises itself as a support system with monthly fees and "special" trainings.

If you ever find yourself being talked into joining one of these programs, even if it's by your upline, run away as fast as you can. Only people who are willing to throw thousands of dollars to the wind every month without any guarantee of making a profit should sign up. Not only do you have to come up with the money yourself, but you have to convince other people to drain their savings accounts as well. Not only doesn't it work, it leads to debt and bankruptcy.

Lack of proper marketing education is the 5th reason most people wind up quitting after years and years of trying everything under the sun to grow their business. Companies will only go so far as to train distributors to sell their products rather than market them. It's easier and cheaper to guide distributors through the various ways of reaching the masses to get their products into anyone they can. This way your customers can keep buying things from them long after you've had enough and quit.

When you learn how to market properly, you can learn how to save time and money by reaching only those who already want what you have. It's not rocket science, but it does take a willingness to change your way of thinking. I found a program that guaranteed my money back if their marketing techniques didn't work for me, but it did. When you learn how to fill a demand with supply, words like "fail" and "debt" suddenly disappear from your business dictionary.

Success in network marketing does exist. You simply need to stop being a follower and start being a leader. When you become wise about your education and the techniques you practice, others will be sure to follow.