Multi Level Marketing has an unbelievable 97% failure rate. This appalling statistic, this wake-up call, is rarely shared with new MLM distributors. Now – this is not to deter you from pursuing a business with Multi Level Marketing. Rather, it is to orient you in reality, so that you aren’t taken advantage of. There are a LOT of reason why the attrition rate is so horrendous. I will discuss the three main reasons below. It is key for you to understand those reasons, and ensure that if you ARE pursuing Multi Level Marketing as a means to financial freedom, you know where the biggest land mines are, and how to avoid them.
Lack of Action – the #1 Cause of Failure in Multi Level Marketing The reasons for a lack of action include:
I got no support from my up-line. Unfortunately, a very common situation. Many up-line mentors sign you up, take the commission check, and keep moving. This is no way to bring someone into the business.
People I spoke to just don’t trust the MLM concept Indeed, a large percentage of the population mistrust the MLM business model. This is because many pyramid schemes abused the lack of regulation early on in the industry. Most of these are gone from the system – but the bad taste remains. The trick is for you to not try to convert people who aren’t into MLM. At the same time – don’t let them convert you. See things for what they are – there are some bad MLM companies, and some good ones. Avoid the bad ones, but don’t throw the baby out with the bathwater.
I just wasn’t comfortable selling to people. This is a fair assertion. The sales techniques most MLMers are taught can be abrasive and just plain pushy. There are better ways to do this. Knowing the difference between product customers, and business opportunity prospects is a big one. Don’t push the MLM business opportunity on people who just want the product.
I didn’t see any results early – so I couldn’t get enthusiastic Being an MLM distributor means you’re building a franchise business. Imagine owning a Subway franchise. Once you’ve bought your franchise license, your work is just beginning. You’d have to rent a storefront, hire and train staff, learn how to operate a Subway franchise, advertise the business in the local area, and so on. You probably wouldn’t even earn the first dollar until weeks or months after you had bought the franchise. More on this shortly. Same deal with an MLM distributorship. Just paying to be a distributor doesn’t mean your “Open For Business” sign can go up. So expectations must be realistic. But there are ways to earn money even while you build the foundation of your business. More on this as well, shortly.
I didn’t have the time to build the business Indeed, if you can’t dedicate at least 10 hours a week to your MLM business, you likely are not on the path to success. This is a question that every potential MLM distributor should ask themselves BEFORE they sign up for the business. The person signing up a new distributor into their down line should be very forthcoming about how much time and energy it takes to build a successful MLM distributorship.
I didn’t know where to start Again, up-lines are often negligent in training their down-lines for success. We’ll talk about how to combat it, if you have felt lost.
Lack of a Marketing Budget (Running out of money) This is more common than you might think! After investing hundreds of dollars to become a distributor, ordering product, procuring business tools like pamphlets, business cards, a company web page, DVDs, and so on… you’ve spent a LOT of money. And haven’t made a dime yet! You then have to invest in marketing, travel, time and money spent on prospecting / lead generation, and so on. And you still haven’t made a dime yet! Probably half of those who fail, do so because they run out of money to fund their nascent business. Even worse than running out of money, is not spending the necessary money on your business, to allow it to grow. So you don’t run out of money, but your business stagnates. Wasting your precious time, before you eventually decide to move on. Maybe years later.
Lack of Focus (Overwhelm) Overwhelm (lack of focus) is the opposite of lack-of-action. While some are frozen into inaction for the reasons mentioned earlier in this article, another segment of distributors get SO MUCH INFORMATION from so many different sources, that they don’t know what action to take next. They end up hopping from one strategy to another, one plan to another, one mentor to another. In the end, they’ve worked REALLY hard, they’ve done a lot of stuff, but their progress has been to go in a circle. Instead of walking in a straight line toward a singular goal.
Any of these problems could plague you, as an MLM distributor. They plague about 97% of us MLM distributors. So how do you beat the odds? How can you succeed, when 97 out of every 100 fail? How to succeed, where 97% of distributors fail Lack of Action
No support from up-line? Find a place to get high-quality and consistent training.
People don’t trust the MLM concept? Don’t target those ppl. Target previous MLM owners for your down-line. They’re already sold on the MLM business model, and just need to be convinced that you as their up-line can equip them to succeed.
Not comfortable selling? Cold calling / cold selling / selling to ppl who don’t want what you have to offer is not comfortable for anyone. Instead, you should find ways to attract interested people to you. And position yourself as a helpful, trusted advisor. That way – when you are having conversations, ppl are grateful for your time. You could even charge them for your time – yes, this is possible, and is happening regularly with some MLM distributors!
Not enthusiastic because of lack of early results? It’s true. The biggest motivator is positive results. In your new MLM business, you want to see cash flowing in as soon as possible. While this can and does happen with your MLM product – recruiting ppl into your downline takes a lot longer. This is because an MLM biz is a very specific type of offering, for a small percentage of the population. And requires a high level of trust before someone who is even looking for an MLM business opportunity will buy from you. Better to have a lower-priced, front-end info product, related to MLM, that is a much easier sell. From those who buy this info product from you, you can then slowly introduce your MLM business opportunity, over time.
Lack of a Marketing Budget (Running out of money) This very common problem requires a different approach to network marketing. Distributors need a revenue stream coming in early, to supplement the retail revenue that comes in from selling the MLM’s products to customers. An information product is a great way to do this – I talk about that more in the links at the end of this article. This is a critical step. If you’re coming out-of-pocket every month to fund your MLM business, your growth will either be very slow, or non-existent! I know from experience – that the slow death of a poorly-funded business is a lot worse than a business that stays alive, but is limping along the entire time. Don’t cheat yourself, or your business. Learn how to generate a multiple streams of income to grow your business. Lack of Focus (Overwhelm) For those already taking massive action toward your success – congratulations! Now, the key is to take the right action at the right time. And not be tempted by what others are doing – they may be at different stages of their growth than you are. Picture it this way – you’re trying to build a skyscraper (your business). You walk downtown, and look at all the beautiful skyscrapers. You want to immediately be where they are. Do you start picking themes for your decor, purchasing furniture, measuring drapes, and renting out office space? Or do you start by identifying the spot where your skyscraper will be built, and dig a foundation? That’s the challenge. You’ve got to do the hard, unglamorous things early on, to build on a solid foundation. An 1800-foot skyscraper could require a 300-foot deep foundation. Don’t build your skyscraper without a foundation. If you can avoid these three huge pitfalls, success in Multi Level Marketing is in your future.
Discover How to Succeed in Multi Level Marketing
Learn how to succeed in Multi-Level Marketing [http://www.rat-race-escape-artists.com/ann-sieg-internet-marketing-strategy.html], from Ann Sieg’s 7 Great Lies, Renegade Network Marketer, and Attraction Marketer’s Manifesto. Find out how MLM Attraction Marketing [http://www.rat-race-escape-artists.com/attraction-marketing.html] can help you combat lack of action, lack of money, and lack of focus.
Bolaji Oyejide
Rat-Race-Escape-Artists.com.
Twitter.com/RatRaceEscapee.
Escape the Rat Race. And Find your Buried Cheese.
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