The Really Real Reason That MLM-Network Marketing Fails

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There are many great articles out there; a lot of great information floating around about network marketing.
Well, strike that.
There is a lot of information floating around about network marketing, but it is not all that great.
It seems to me now that everyone wants to jump on the bandwagon and "sell" the secret of why MLM / Network Marketing Ventures fail, and want to be the one to "sell" you the "real" truth about what it takes to succeed.
Obviously, if you use "their" program, then "obviously" you will succeed.
So what are you waiting for? Well, friends, neighbors, fellow entrepreneurs and network marketing gurus, I am here today to blast the "secret" all over kingdom come.
I'm writing the one article that will rock the Internet, will shake the MLM business down to its core, and will forever change the face of network marketing.
OK, maybe it's not going to be that earth shattering, but it will be some good information.
Unfortunately, I'm about to destroy the latest MLM "selling the secret" rage.
Six thousand businesses are about to crash, because I'm going to give it to you free.
It won't cost you one dime.
So what is the secret? Why is it that MLM / Network Marketing Ventures fail? Are you ready? Is your pulse pounding in your temple, your breath caught in the back of your throat? Has time slowed to a crawl and the drum roll sounded as the highly sought after, much coveted secret information is about to be revealed? Sorry to kill the climax, but let's look at something else first.
I recently read an article by Mr.
Devlin Smith - 7 Tips for Network Marketing Success, May, 2005.
I thought Mr.
Smith's article had some merit.
In it, he identifies six key elements that are crucial to the success of any MLM / Network Marketing Opportunity, with which I agree.
These are: oCompany Stability oExcellent Products / Services oExcellent Compensation Plan oCompany / Management Integrity oMomentum and Timing oSupport, Training & Business Systems I then read a related article by Mr.
Michael Sheffield - Why Some MLMs Fail, August, 2003.
In his article he identifies the reasons for Network Marketing Company failures.
They are: oInexperienced management oInsufficient capital oIneffective distributor team oInability to recruit distributors oIncommensurate compensation plan oIneffective products oLack of uniqueness But let's face it.
MLM / Network Marketing Opportunities have come a long way.
There are many companies that have the six key elements, but 97% of the business owners are still failing.
There are many network marketing companies with experienced management and sufficient capital who have effective teams and are able to recruit distributors, who have great compensation plans, effective products and unique opportunities (whew! that was a mouthful) - 97% of the individual MLM / Network Marketing distributors don't make it.
NOW here it comes (drum roll please, but don't hold your breath).
The main reason that people who work at home, who utilize MLM / Network Marketing as their home based business model fail in their home business is this.
It's wrapped up in the titles Multi Level Marketing and Network Marketing.
People don't know how to market.
The Cat is out of the bag.
Colossal, huge million-dollar secret rocks Internet! Wait! Did you blink and miss it? Let me throw it out there again.
People don't know how to MARKET.
The MARKETING part of MLM and Network Marketing.
People don't know how to market their business.
People don't know how to market their product.
There is so much hype out on the Internet today.
Everyone advertises that their plan is the easiest, you don't have to do anything; just sign up and make it rich.
You've got to ask yourself, "Self, if I can sign up, do nothing, and get rich, why isn't everyone doing it?" Because you and I both know this is not the case.
To me, this mode of business building doesn't make much sense.
If I sign up a bunch of freeloaders who want a home business that's free and easy, who expect to do nothing and yet make money, what is my business going to look like? It will look like exactly what it is.
I'll have a bunch of bums signed up who will contribute absolutely nothing to their success nor mine, who will blame me that they didn't succeed.
My business is doomed to failure.
Well, I don't need any more of THOSE pancakes, thank you very much.
Now most people know better than that.
They know there has to be SOME work involved, but even then, they get immersed in a program or opportunity, still not knowing exactly what it takes to be successful.
The one thing you NEVER find is someone saying, "Look dude, they only way you're ever going to make it is if you know how to market your product, service, or business.
" It's the one key that is ALWAYS missing.
I don't care how great the program is, how unique the opportunity, great pay, great product - in the grand scheme of things, it just doesn't matter.
If you cannot get that opportunity out to the masses for them to see or use, you're going to fail.
You can go search the Internet right now and find a number of "great" systems and software that will supposedly help build your distributor network.
But none of them work AT ALL unless someone else SEES it.
To me it is reminiscent of all the diet marketing you see on television.
Whatever the pill, drink, meal, shake, etc.
, the marketing always includes the phrase, "with proper diet and exercise.
" With their phenomenal product, AND diet and exercise, you'll lose weight, VIOLA! But then I say to myself, "Self, if I just had the proper diet and exercise, I would lose weight and wouldn't need their awesome product.
In fact, I NEED your product, because I DON'T diet and exercise.
" It's the same way in MLM / network marketing circles.
People don't know how to market, so they need programs and software and schemes that will do the job for them.
Accordingly, there is an entire ancillary network marketing industry that's making millions of dollars selling the shovels required to mine the gold.
Selling you all the marketing tools you need to be successful.
What a deal.
What's really interesting, is that if you ask around, you will find that most people spend more money on the plans, software and programs, TRYING to entice distributors, then they spend on using or marketing their product / service / business.
It's like this massive rat race, everybody's wheels spinning, running in circles, spending enormous quantities of cash in every direction, except in the one direction that can really make the difference.
So at the end of the day, when all is said and done, the money was spent, no marketing was performed, Joe Home-Biz is broke, and he's now one of the 97% who only made it three months before his business caved in.
Hey, but that's OK, because at 100,000 people looking for a home business every month, there will be a long line of network marketers lining up for the newest program, who still don't know what it takes to be successful.
So what's the answer, you ask? Why, Thanks! I was hoping you'd ask that question, because now it's my time to shine!! I'm neither a network marketing guru nor an expert.
I'm actually a Safety Professional, so if you need help with OSHA regulations, I'm the guy.
But I've also been through the school of hard knocks within the MLM / Network Marketing Industry, and so will make a few observations.
(If you've read down this far, you might as will drink your coffee and finish this article!) There's not a business out there that doesn't market.
Even McDonald's, the world's most successful fast-food franchise, markets their products.
How many times have you ever seen a McDonald's franchise owner set up a meeting at a hotel, or tell all their friends and family to eat at only their restaurant, literally begging them to join their business? It doesn't happen! So why should network marketing be any different? Well, here are my observations: 1.
The best distributor is the one who faithfully uses the product or service they provide to others - they really believe in it.
That's the best marketing around.
Not to mention it is a bit hypocritical otherwise.
I've seen many times where individuals join a program, but never use the product or service they expect to sell everyone else on.
So my observation is that it is better to focus on selling the product or service, and then introducing those who really believe in the product or service to the opportunity.
This would also help to maintain distributor retention rates versus having someone join the opportunity and then needing to convince them that the product or service is excellent.
Me personally, if I don't believe in it, I absolutely won't tell anyone else about it.
Anyone going into business needs to plan on marketing the product or service, to include a monthly budget.
If you fail to plan, then plan to fail.
Enough money needs to be budgeted on a monthly basis to fund purchasing the product or service for personal use (your minimum PV, etc.
), and to facilitate some type of marketing campaign.
This is a small paragraph, but probably the most important aspect regarding success in network marketing.
In fact I would say that this is the root cause for such a high failure rate in the industry.
This is the reason people don't make it, the reason people can't stay in long enough for the network marketing exponential multiplication to take effect.
See, the BIG DOGS in network marketing know that if they just stay in long enough and keep marketing, eventually the business will take off and they'll make money.
If you really want to be successful in a MLM / Network Marketing Venture, then you need to get with a COMPANY that understands the importance of merging direct marketing techniques with the network marketing business.
Old school network marketing is dead, and those who understand that fact will be the ones who have massive success in the future.
Successful network marketing companies fully embrace direct marketing techniques.
These would include: oInternet Marketing oTelevision Commercials oRadio Infomercials oAds in Newspaper and Magazines oEmail Marketing oEzine Marketing oDirect Mail oand others...
Network Marketing can be a successful business venture if you plan ahead and really understand what you are getting into.
You must be able to invest in your business (and future), and be willing to stay in for the few years that it is going to take your business to grow.
But most importantly, when considering which business you'd like to promote, always check with the "management" of the company and see if they have a solid for marketing your business that includes off-line and online techniques.
Remember, no one is going to be more concerned about your business than you.
So look hard, understand the requirements, and GO FOR IT! Now you know the really "real" reason that Network Marketing / MLM ventures fail.
To be forewarned is to be armed in advance.
And don't forget, you heard it here first!
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