Six Reasons For The 97% Failure Rate In Network Marketing

Why do 97% of people who try to make a living 9or a fortune) with Network Marketing or MLM fail miserably? The answer to this question is so simple, but we'll get to that.

The problem is NOT entirely the network marketing industry, but, to a great extent, failure occurs because of the mindset of the people getting involved in network marketing and affiliate marketing. Most people have had little success in other areas of life. When they get involved with a network marketing business they already have a pre-established notion that they will fail, even if they are not consciously aware of it.


There are 6 attitudes or reasons that should be considered when trying to build a successful network marketing business. Here are 6 potholes in the road to success in network and affiliate marketing:

1.) The easy road to wealth. There is no free lunch! Many people who are enamored with the idea of becoming wealthy think that, simply by signing up with a network marketing business or as an affiliate of a business, they have won the lottery. They buy their ticket and collect the money. No matter what the hypnotic hype implies, this is NOT how it works.

2.) They are told and believe that if they start at a higher level, they won't have to work as hard. Some MLM companies allow you to buy a higher status, which allows you to purchase products at a lower rate. This allows the rep to make a higher commission for each sale. Buying in at a higher level doesn't replace good old fashion diligence! Starting on a higher level, simply put, means that you have invested more money, which means that you will have to work harder to recover your investment. Beginning in your company in a higher position does not mean that you have already built your downline, which is where your success lies.

3.) Falling for the promise that your up line will recruit people for you. Waiting and hoping that your up line will give you new distributors will guarantee your failure. If you are with a company that has a binary compensation plan, then it is easy to get caught up in this mindset. It is not your up line's job to build your business for you, unless they receive a matching compensation for the new recruit. This is rarely the case. Most likely when your up line gives you a few new reps, it usually is for their benefit more than yours.

4.) Laziness! The hard to swallow pill, Laziness!" Building a business takes time and a great deal of effort. A half-hearted attitude will produce little to no results. Successful businesses have been created by diligence and a 'success' attitude.

5.) The Greed appeal Anyone who looks at the 'hyped up' headlines in the MLM industry can see that the greatest majority of these headlines are outright lies or misconceptions. When closely scrutinized, these 'tag lines' are designed to excite the greed in the potential affiliate. The copywriters for these offers do absolutely nothing but bait those who are gullible enough to believe the outrageous claims of 'wealth without effort.'

6.) Lack of proper training Too often people are led to believe that they will be trained by their up line in the latest marketing skills to insure their success. Even with the best intentions, this is not usually the reality. As the number of Internet users grows (and it is growing exponentially) the technology is growing exponentially. What worked in the early days of Internet Marketing does not work today. The old techniques of 'screaming your offer to anyone within three feet of you' or 'badger you family friends and strangers with your offer because they need your product but don't realize it yet' will only alienate everyone from you.

There is a fresh new attitude or marketing mindset that will bring success. Proper training and the willingness to work diligently to grow your business is a key factor in your success.

The 3% who are making an absolute fortune on the Internet have done this because of their nose-to-the-grindstone work ethic. They do not use the outdated, rehashed garbage that is fed to the multitudes of Internet Opportunity seekers. They use techniques that are tried and true and are very rarely shared.

The 97% failure figure of Network Marketing correlates with the 80% failure figure in the 'brick and mortar' world. 80% of all new businesses fail within their first year (for basically the same reasons.) Does this mean that no one should start a business? Absolutely not!

This means: 1.) research, 2.) plan, 3.) seek wise counsel, 4.) create within yourself an attitude of diligence, and 5.) prepare to work as hard as is necessary to realize your goals.

Copyright (c) 2008 The Christian Success Institute

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Pastor Bobby is the Director of The Christian Success Institute. You can learn more about Pastor Bobby at Pastor Bobby's Blog. He is dedicated to teach Biblical Success Principles with practical applications.

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