Reasons People fail in Network Marketing
Posted on | January 25, 2011 | Comments Off
Firstly we have to understand that network marketing is a business. Like all businesses, there are many more who fail compared to the number of successes. Statistics tells us that only one in five business survive the initial five years. And most of these failed entrepreneurs have confident and also commitment when they embark on their business since most businesses require heavy investment.
Network marketing on the other have have an even higher failure rate.
The reasons are :
1. Lack of commitment from distributors themselves
Having only invested low capital, the vast majority of distributors are not active at all which is not surprising why they failed. Having just called or talk to one friend, getting rejected and that is the end of their MLM business.
Even those who are commited are just doing it part time. I am not suggesting that you need to do MLM fulltime to succeed. In fact one of the beauty of MLM is you can earn additional income stream without quitting your job. However, the reality is part time effort seldom produce full time income.
2. Lack of quality distributors
For most conventional businesses, the barriers to entry are high. For example: if you want to start a restaurant you will need to have enough capital, some cooking skills (if you are planning to do the cooking yourself), management skills, marketing skills and financial management skills. Only people who believe they have what it takes will start a conventional business.
Network marketing business on the other hand has very low barriers to entry. You can pay less than a hundred ringgit, get a started kit and you are already in business! No experience needed. No skills needed. Just follow the system. This is a lie. Like all businesses, you need to work on your skills set such as one on one presentation skills, stage presentation skills, leadership skills and learn product knowledge. Just look around and you will noticed that almost without exception those that earn high income have took time to developed the skills mentioned above.
3. Emotion is the main reason why people join
The vast majority of the working public will love to have higher income, more flexibility over their working hours, dislike office politics, loves the freedom that network marketing can offer. Hence when a MLM distributor comes knocking unsuspectingly, and start giving an illusion that they can have all they desire by joining the business, some gets emotional and joins without much thought. When reality strikes (usually when they get their first rejection) they quit.
Lets face it. Business is HARD. If it is not hard many would already be in business. Network marketing is a business. Network marketing is difficult. However it is not more difficult than other businesses nor it is easier.
Therefore the tips to succeed in MLM is ask yourself constantly:”What is the real reason that attracted me to this business?” Is it because you wanted to make more money? Is it because you wanted to make a positive shift in your life so that you could start enjoying life a bit more? It is vital that we learn to find our WHY, since this is what would encourage us to continue taking massive steps to improve ourselves and our skills and to make our business a success.
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