Why 98% People Fail in Network Marketing?
Are you struggling to make it big in a Networking Marketing/Multi Level Marketing business? You need to understand that 98% of other network marketers also do struggle more or less in this industry though most of them say that they are earning great money.
I personally have seen at least 70% of the starters quit the company (not being active) within the first 3 months itself though they have invested and started with a lot of dreams.Though there are a lot of reasons for the failures like in any other business the below are 4 ‘technical’reasons why network marketers fail.
Why 98% People Fail in Network Marketing ?
1. Sponsor : Yes, I keep the sponsor first here. One of the main reasons why anyone fails is because of improper knowledge of the sponsor. Many a times I have observed that wrong or bad information is being taught to the down-lines They are not bad people as such. But they are not aware of what they are teaching sometimes. You cannot teach the same sales marketing techniques to a software engineer what worked for sales people. Engineers have a different analytic mindset whereas other professions have other. The sponsors need to train the down-lines based on their family, educational and professional backgrounds.
Keep the things practical. Do not over promise in your first business plan itself. It makes people loose trust in you and vanish in the first 3 months itself.
Mentors are required for successful business group, not just sponsors.
2. Lack of Leads : The raw material for network marketing business in Leads/Contacts. Lot of people fail to provide quality and relevant leads which leads to a very less or very slow progress. It is important to have a FUNNEL of prospects for your business to make your products/services sold out.
If you are not sure on how to do it or if you have any problem in providing quality leads, sit with your ‘mentor’ and take his help. A proven system should help you a lot in this regard.
3. Lack of Cash Flow : Bitter Fact – 90% of MLM members make less than $15 per week !!
If you have to run any business, a continuous cash flow is required. Though MLM doesn’t required millions of capital it requires some money to attend the training sessions, business travel, investment in training material and tapes etc. If you are making only $15 a week for 6 months you are out in the next month for sure.
4. Marketing Techniques : Are you still practicing 3 foot rule? Are you still following the age old marketing techniques like handing out flyers, listing out relatives and their relatives numbers? Are you being updated and using the fastest growing trends?
Remember, If you are not being updated you are outdated.