Network marketing has a 95% failure rate mainly because of two reasons. Firstly, many people lack the marketing skill and knowledge needed and secondly most people don't use a truly duplicable system. Network marketing is an industry of marketing, training and promotion pursued by many people who have no idea how to market, train or promote.

The secret to this industry is to have a marketing system that works, one that doesn't require you to sell or host meetings and one that is truly duplicable. You may think that you have a really great product (and you probably do) that people will just love and want to buy. But products don't sell themselves no matter how good they are. Leadership and marketing systems sell products and build down-lines.

A system that is changing the way people are doing network marketing is called a Funded Sponsoring Franchise System, (FSFS). When you use this system you never have to sell anything and anyone can duplicate your success just by using the same system no matter what their background is, what their experience levels are, or how good of a communicator they are. With a FSFS you are able to make money even if no one joins your primary business, and you never have to ask people to join your business, they will contact you.

Unfortunately many people are going about network marketing all wrong. They will start with their warm market. That is friends and relatives and anyone they know, and try and sell them on a product or business. Then they have the task on generating their own leads, either by presentations, cold calling, three way calls etc?. Neither of which are duplicable as not everyone is going to have the same sales skill, presentation skills or communication skills.

In fact most people will go poor before they start to learn anything. It could be 6-12 months down the track before they start to build confidence, and most don't stick around that long, as they are losing money.

The fastest way to make money in this industry is to solve other people's problems. When people look for a business, they are looking for a solution to their problems, not a compensation plan or products to buy. When you bring someone to a meeting or call them to talk about your business and your products, your creating a problem not a solution, because now they're thinking they have to buy these products when all they want to do is make money.

If you're presenting information on your network marketing company you're showing complication, because if you did the presentation yourself they would no doubt realize that if they were to join the business they would have to do the presentation as well. This may create a problem for them especially if they lack the confidence.

The point is you may have a great product and compensation plan, but that doesn't mean anything to the prospect. Sell them a solution to their problem. Fix their problem and become a reliable source for them and them eventually provide information on your primary business.

A prospect's main problem is usually money. If they are already in a network marketing business they're problems may include generating leads and building their business. A FSFS shows you how for free, in an easy to understand guide.

A FSFS consists of three parts where your primary business is promoted last instead of first.

The first part includes a low cost opportunity that produces residual income and can help pay your marketing and advertising expenses. It also helps to attract prospects that are interested in network marketing, and provide you with a good source of leads that you can show your primary to later. As it is low cost it is harder to turn away from than say your primary business which may be $500-$1000 to join. It also allows you to spend time with a select few people who are already interested.

The second part is a medium cost program, which provides another source of residual income before you've even shown your primary. It also provides you with a steady flow of leads every month, which will be used to promote the first program. So before you have even shown your primary you have leads, cash flow and are building a list of interested prospects.

The third part is your primary business. You are now able to build your business with true customers that are willing and not pressured, and understand that they are building the exact same thing you are. Recruiting existing customers is easier than recruiting strangers. Even if they don't join your primary business that's OK because you are still earning an income from the first two opportunities and it is always there for them in the future.

For further information on a Funded Sponsoring Franchise System simply click on the link below: