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brandon123
Member
Joined: 28 Jan 2009
Posts: 18
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# Posted: 28 Jan 2009 22:45
Reply
web20mentor: But why? (If you have failed at MLM, you don't get to answer here...we know you hate it and you want to make sure that everyone knows that your failure had nothing to do with your inability to gain enough mental leverage on yourself to do what was necessary to figure out an effective sales and recruiting approach...we have heard it 1,000,000 times already...we got it) Regardless of how I feel about people's sudden lack of personal responsibility when it comes to failing at things, the sad fact remains that 97% are failing. So while I am not one to buy into people's excuse-making, I also know that the basic business model is pretty messed up if your getting results like that.
I feel the exact same way. People always want to blame the program for their lack of ambition and determination. The truth is that anyone can make as much money as they want to within any business venture. They just have to decide whether they are going to put the time and effort into in.
Brandon
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Zacman
Member
Joined: 30 Jan 2009
Posts: 4
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# Posted: 30 Jan 2009 22:04
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brandon123: I feel the exact same way. People always want to blame the program for their lack of ambition and determination. The truth is that anyone can make as much money as they want to within any business venture . They just have to decide whether they are going to put the time and effort into in. Brandon
Any business Brandon?
Come on, the vast majority are scams. The only value to 99% of network marketing opportunities is that they will teach you what not to do online. LOL
Check out almost any sales, squeeze, or capture page and for crying out loud they all look the same.
Make x amount in x amount of days, weeks, months etc.
I made x amount and you can too. etc.
Is your MLM not working for you? etc.
Are you tired of working for the man? etc.
Any of this sounding familiar?
OK,
Now there is more,
Sites that tell you that 97% of network marketers fail because they follow the old methods of offline marketing.
Duh,
I'll give you my opinion, as I'm not one to put on aires.
Most companies suck, their products need a scientist to explain, and they won't let you make any claims about their products because it is against the law!
OK, I want to get involved with a company like that. NOT!
Some even won't let you join multiple MLMs to diversify your income streams.
Others are so blatantly pro company they promote marketing crap like over priced business cards, brochures, upgrades, co-op ppc you name it!
Did you know that it is not uncommon for companies to make more money off their members/distributors than from selling their actual product?
Yes it's true!
Do you know what the answer to all of this is?
Get a good company that appeals to the majority of the population.
Don't buy add on promotional material that is over priced.
Get involved with a team of people who know what they are doing and not only will help build your downline, but will help mentor your signups and teach them how to succeed.
OK,
Rambled enough,
BTW,
Nice to meet everyone.
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moopsi
Member
Joined: 30 Jan 2009
Posts: 2
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# Posted: 1 Feb 2009 16:11
Reply
the real problem is simple, it's laziness. most think you can jump into it and have money flow instantly and when it doesn't, they give up.
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mr127500
Member
Joined: 13 Jan 2009
Posts: 50
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# Posted: 5 Feb 2009 21:55
Reply
Finally, some people speaking with conviction, I love it. Of course people fail in mlm, for the same reasons that only x amount of people move up in organization and only x amount of people become ceo's. BEcause its not easy, its a tough job and unless you have the fortidutde to treat it as such(a job) and not a get rich quick, you have failed already. Great posts folks. Thank you!
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MoneysLikeWater
Member
Joined: 20 Feb 2009
Posts: 3
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# Posted: 21 Feb 2009 00:14
Reply
Nice post!
I agree 100%!
You notice how the people with an advanced skillset make it while the others just hop to the next opportunity.
The reason in my opinion is because people don't understand that you need to improve in the things that it takes to be successful in "NETWORK MARKETING"
Selling skills, marketing, public speaking, marketing, leadership.
Notice I said marketing twice. But most people get into network marketing hoping it will solve their money problems and then they don't become the type of person, leader that it takes (with that advanced skillset) to make it.
Knowing your market is so huge too i agree.
Going up to people in the supermarket, gas station is like going door-to-door selling dictionaries.
That's it for my rant.
But yeah, knowing your market and learning how to market to them is big.
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websmarts
Member
Joined: 21 Jan 2009
Posts: 9
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# Posted: 21 Feb 2009 08:09 · Edited by: websmarts
Reply
This is a great post because it gets right to the point.
Everyone works on on a different motivation level.
What we need to do more of is finding out what our clients big WHY is. When we do this we start to show them what they have to work for.
I think we need to treat everyone this way initially because we never truly know who will be our diamond in the rough.
I continue to work with all my prospects this way, and I know that when they give up they are not giving up on me, but on their WHY and I can't change that
Keep up the great posts
Mike Weiler
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gregfleming7
Member
Joined: 9 Feb 2009
Posts: 7
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# Posted: 22 Feb 2009 15:42
Reply
I think the biggest problem with network marketing / mlm is that there are tons of great products out there with sucky pay plans (or just too difficult to understand and share) or there may be really awesome compensation plans but when you boil it all down you're selling a "program" and not a "product". Very few companies have put together a product that appeals to the masses and a payplan that can make an average person a substantial income. Find a product program with those two combined and you'll easily make your six figure income. Whenever I look at a product/program, I always ask myself, "okay Greg, if no one EVER buys this from you, are you better off USING the product than you were before you started?" The answer should always be YES.
To everyone's success!
Greg Fleming
ProxyCommPros Team
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kitsune
Member
Joined: 26 Feb 2009
Posts: 1
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# Posted: 26 Feb 2009 01:29
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web20mentor: What is the definition of insanity? nobody wants to use the "attraction" marketing model. They choose to use the "chasing" model.
Heh, I think you've answered your own question.
I think the failure rate in MLM speaks exactly to what you've said. It seems to me that often the businesses/companies using MLM to promote themselves are the ones perpetuating the stone-age marketing ideas that get people into that land of frustration that you hear about all too often. And to me, that perpetuates, to a certain extent, industry-wide, that you don't have to do any work. Why they want to do the work for the "chasing" model (as you correctly named it) over the attraction model is out of my intellectual reach.
Be well.
Christopher
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PaulM
Member
Joined: 24 Feb 2009
Posts: 7
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# Posted: 25 Mar 2009 10:35
Reply
Danny, You have hit the nail on the head. Like I've heard before, most of us are bad at this when we first start, but we don't have to stay there. If we want to become better, we MUST develope ourselves and work hard to learn what we need to do to become very successful. Many of us were not entrepreneures when we started but have a chance to become one by learning from those who are.
Thanks for all the good comments!!
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diannakelly04
Member
Joined: 3 Apr 2009
Posts: 10
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# Posted: 7 Apr 2009 16:21
Reply
This is such an amazing thread that I put together a summary to share with my team. I thought it would be helpful to post this summary here - it's easy to miss some of this important information (forgive me if I missed anything in my summary):
The traditional MLM strategy is to teach inexperienced distributers to chase down their target market. These distributers are not trained to identify their target market because they are told that anyone is a potential customer. They are then trained to "sell" the business to other distributers by focusing more on the potential income than the product.
MLM distributers are attracted to MLM because of the low cost of entry. This lack of investment can lead to a lack of commitment. When they find out that it is actual work to run the business it is easy for them to walk away from their investment.
You don't have to 'do MLM' the way it has always been done. You don't have to hound your family, friends, and everyone you come in contact with to try to build your own income.
The solution to the traditional MLM strategy is to treat your business as a business. Identify your target market, then "add massive use value to your market." Adding massive use value is about finding your passion and having as much fun doing it as you can. When you teach others how to improve their lives, they become fans and fans want to do what you are doing.
Adding massive use value is different for everyone. Everyone has something that makes them unique. They should use this uniqueness to add value in their target market.
Some ideas for adding value:
Give away free samples.
Teach anything!
Train people to succeed before they pay you any money.
Do testimonials for people you want to meet or network with.
Do a weekly Q & A on something you love talking about
"It doesn't matter how many people you know. What matters is how many people know you." Once you have added value to your market, people will come looking for you (attraction marketing).
The NEW definition of marketing is the process of adding more in use value than cash value received with the intent to inspire, empower and build long term relationships based on the needs, wants and desires of others and not our own. Have fun, follow your passion and serve others without any connection to what they can do for you.
Network Marketing is about creditability. If you give your customers expertise and advice in addition to your product you will be far more successful. To do this though, you need to be an expert. You must increase your self-value by educating yourself with useful information. Focus on selling skills, marketing, public speaking, and leadership.
Do not try to be like your upline. People cannot be replicated, only the process can be duplicated. Think of who you'd most like to work with and then become that person Work more on improving yourself than your business, then consistently work the system. Once you have branded yourself you will have positioned yourself as a leader in the field.
It is our duty as mentors - people who have been there, done that - to be available, to act with integrity and to share our tips and tricks of the trade freely with anybody who asks us for help and to warn them of any challenges they might have to face ahead. Understand the "why" of the client/downline so you understand what they are working for. If they give up, they are not giving up on you but on their "why."
It is impossible to be successful as a new entrepreneur without some hard knocks and set backs to learn from, however most people let their fear of failure overcome their desire to succeed. If you commit to a person before they buy into the program, you are adding value for that person and they will be more committed to the business.
A good MLM opportunity should meet the following:
1. The company's management team must be composed of currently successful leaders who have the highest level of personal integrity and who have proven themselves in the field.
2. The company must be strategically positioned and poised in front of the trends currently developing in the global market.
3. The line of products must be remarkable enough to grab customer attention. They must do what they are designed to do. And they should be products that people would buy even if there was no business opportunity attached.
4. The company must have a compensation plan that pays the part timers well enough to make it all worth their while and the full timers well enough to achieve their dreams.
5. The company must have a simple, repeatable system in place that trains new distributors. It must attract prospects and convert them into customers and distributors.
The number 1 reason people quit MLM in the first 30 days is that they don't see the money coming in as fast as they had expected. To avoid this, your downline must be trained in marketing and what it takes to run a business. They must understand that they have to deal with rejection and that they must build credibility before they make significant money.
For additional security, don't invest solely in 1 MLM you have no direct control over the overall success and failure of their company.
Finally, create your own definition of success. If you spend the rest of your life believing in your dream but never actually have millions of dollars...have you failed?
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wealthcreation
Member
Joined: 12 Apr 2009
Posts: 3
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# Posted: 12 Apr 2009 22:32
Reply
web20mentor: It's very simple. MLM'ers have not learned how to stop CHASING DOWN THEIR TARGET MARKET! For that matter, they don't even know how to assess who their target market really is! And even if someone does know how to define who their target market is, many will then go into that market with a big pile of business cards and their nice suit ready to put on a show:
I couldn't agree more, been there myself. Sad thing is that MLM companies bank on the unsuspecting to follow their outdated marketing systems. 
Most traditional MLM's ask you to call your circle of influence and post flyers around town. You can never succeed with these mthods of lead generation. These days it's all about the web.
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ouzo12
Member
Joined: 13 Apr 2009
Posts: 24
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# Posted: 14 Apr 2009 10:21
Reply
Great article diannakelly!!!! I'll just add it to my favourites!!!
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profitweaver
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Joined: 28 Feb 2009
Posts: 11
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# Posted: 20 Apr 2009 06:55
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I think that choosing the right MLM opportunity in the first place is critical. Many that I have seen over the years have a short shelf life and all the energy you put into building these up for yourself is wasted.
Choose your business with care people!
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mrsforex
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Joined: 30 Apr 2009
Posts: 10
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# Posted: 5 May 2009 16:25
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I truly believe that affiliate marketing can work if you know how to do it. But honestly, I'm not a huge fan of it.. I do a little on the side of my main business and it does okay
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richfutureahead
Member
Joined: 12 May 2009
Posts: 1
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# Posted: 12 May 2009 10:02
Reply
MLM can be a good opportunity for everyone. Unfortunately, only the top 10-20% succeed. I agree that people chase down their customers and don't really care of the needs of the customers but their own desire to succeed at others expense.
I joined one MLM company some years back but gave it up as I didn't like the way the uplines would "hound" and "stalk" you if you did not bring in new business.
Anyway, in my opinion, online business is better and more convenient. It give me the opportunity to spend more time with my family and now I have time to do what I really like.
Cheers!
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BHP
Member
Joined: 10 Oct 2008
Posts: 43
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# Posted: 30 May 2009 23:25
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You know what else is difficult? College. And yet 97% do not fail. This disproves the notion that 97% of people are lazy do-nothings. Sorry to bust everyone's bubble, but mlm is a faulty business model except for people who either start one, or have incredible manipulation skills. I would recommend getting a college education, and don't stop w/ just a B.A or B.S. Get a Masters of PhD. Your hard work will pay off, you will get paid for doing it, and you won't have to spend nights worrying about your downline.
Just my two cents. Any product that you will be required to purchase for being in mlm you can find on the open market for cheaper, and most products you will find that you don't need.
That's the part I have a hard time with - convincing people to get in on a 'business opp' when I know the product is worthless, and I KNOW 97% will fail (while I pocket the sign-up bonus).
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BHP
Member
Joined: 10 Oct 2008
Posts: 43
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# Posted: 30 May 2009 23:32
Reply
Oh - and after you get a good job with your education (get a good degree - something in engineering or science), put $5000 or so of your income/year into mutual funds. You will build real wealth, and unlike mlm, which come and go, leaving their 'believers' stranded after 6 or so years, your mutual fund will stay. By retirement, you will have real savings.
You can make massive $ w/ mlm, but most dont. Treat your $ and time wisely.
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WARRANTIES4LESS
Member
Joined: 20 Feb 2008
Posts: 351
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# Posted: 31 May 2009 13:44
Reply
BHP: You know what else is difficult? College. And yet 97% do not fail. This disproves the notion that 97% of people are lazy do-nothings. Sorry to bust everyone's bubble, but mlm is a faulty business model except for people who either start one, or have incredible manipulation skills. I would recommend getting a college education, and don't stop w/ just a B.A or B.S. Get a Masters of PhD. Your hard work will pay off, you will get paid for doing it, and you won't have to spend nights worrying about your downline. Just my two cents. Any product that you will be required to purchase for being in mlm you can find on the open market for cheaper, and most products you will find that you don't need. That's the part I have a hard time with - convincing people to get in on a 'business opp' when I know the product is worthless, and I KNOW 97% will fail (while I pocket the sign-up bonus).
Funny,
You want to compare college with starting a business and use the same old 97% failure rate, now that is brilliant, I can tell you have your PhD. lol
Like everything in life, if it is worth working for, it is worth having, and that applies to college or starting a new business, they both take hard work, dedication and sticktooitness. Would you like to tell us how many drop out of college before graduating? Quitters never win, and winners never quit, and this holds true with everything, not just MLM or any new home business.
Success to all,
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BHP
Member
Joined: 10 Oct 2008
Posts: 43
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# Posted: 31 May 2009 14:48
Reply
I would love to tell you how many people drop out of college before graduating! - thanks for asking!
I've seen the drop out rate for college as high as 46% (54% who start end up w/ degree 6 years later). Shall we talk about return on investment?
Bachelor's degree - from $20,000 - around $80,000/ year, depending on you degree.
Masters - higher.
PhD - much higher.
There is no valid comparison.
Though drop-out rate of 46% is high, it does not compare with the 97% drop-out rate of mlm.
You have some money. Please don't fall for putting it into mlm! Even if you do get a big downline, your company will likely fail (go bankrupt), leaving a huge pile of people at the bottom who have put their $ on a sinking ship.
I am all for being positive and upbeat. But more than being positive and upbeat, I am all for being smart with your money.
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homebiz18
Member
Joined: 8 Jun 2009
Posts: 1
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# Posted: 8 Jun 2009 01:07
Reply
i think you are right. 97 per cent failure rate is true. But how to find 3 per cent genuine people.
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AxelG
Anonymous
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# Posted: 9 Jun 2009 04:08
Reply
What an amazing thread.
@Dianna Kelly, I really love your post, as it's just about what I teach in my free mentoring sessions.
Many people here put the blame on people to fail in MLM.
Well fact is 98% fail with MLM. But failure with MLM is not their fault! I can prove it to you.
If you join a company where the compansation plan is only rewarding the heavy hitters, gues how big your chance is to make money with that company. If a company has a retail and a wholesale price for products, guess why this is - to recruit people into the business instead of selling products to customers.
If you have to pay for training material, who's making money from that - the company or some heavy hitters!
If you come across a company and first thing they teach you is to make a list of friends and family, do yourself a favour, run away from them.
There is just a simple test you can do on your opportunity to find out if this is working for you.
Ask your sponsor or some one else in the upline this simple question: "How many people do I need on my team to make $10,000 residual income per month?" - The answer should be just a number! There are companies where you only need about 300 people to achieve that goal and companies where you need 2,000 or 4,000 or even 10,000 people to make that money. So I'm asking you, which company has the better compansation plan.
Failure in network marketing is not your fault! You are perfect just the way you are! 98% of the people fail in network marketing as they just don't have any chance to succeed with their company!
There are quite a lot of opportunities out there and most of them are scams, are pyramid schemes, are illegal.
So before you start a business think twice about the company and the products you like to sell. Would you buy this product if there would not be an income possibility included?
Take a look at these ebook scams! Is there any author at Amazon telling you: "if you buy my book you can copy it as many times as you like and sell it and keep all the money?" - of course not, no one would expect that. But why do you expect that this is working with an ebook unless the ebook is rubish, 10 years old and no one would read or buy this ebook anyway. So, how to make money with rubish? Just that simple, tell people it's worth a fortune and they can sell it for what ever price and keep all the money.
WOW that sounds great, doesn't it? Can you see the opportunity to sell your rubish to people.
I never met any guy who made enough money for a living from affiliate programs, selling leads, selling ebook licences, etc. - So why people think they can do it?
Indead network marketing is the only opportunity to earn unlimited income. You only need 4 things for that:
1. the right company
2. the right product
3. a proven duplicatable working system
4. you need to know, that building a business may take at least 12 - 36 months until you can become financially independent.
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executiveleads
Member
Joined: 8 Jun 2009
Posts: 5
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# Posted: 10 Jun 2009 03:23
Reply
Mlm is bound to fail within' 4-6 months. I know this because I have been in several MLM programs. I make my money and pull out. That is what the guys on top do, so I try to follow their lead.
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BHP
Member
Joined: 10 Oct 2008
Posts: 43
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# Posted: 10 Jun 2009 21:45
Reply
AxelG - well said.
executive leads - your post is why mlm is bad. you and your ilk leave all the people you RECRUIT RECRUIT RECRUIT stranded. shame on you.
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GlennELee
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Joined: 27 Jun 2009
Posts: 47
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# Posted: 29 Jun 2009 23:50
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I find one of the main reasons so many people drop out of programs these days is largely due to them waiting on or wanting someone else to make their business flourish for them. They fail to stop and look at the truth regarding any business in general. Businesses always take time and effort, otherwise it's not a business.
This is especially apparent in forced matrix programs. It's scary how many people will pay their way into a company with a forced matrix built in and then sit there collecting dust, not working at all. I've known people in a program called Revolutionary Matrix in which people will sign up and check everything out, then pay for a few months. After a while, after being personally contacted by system administrators, these people say, "Oh yeah, I haven't logged in for a month or so so I don't know how it's going."
I don't understand why people try to get into an online home based business but yet they don't log in often enough nor work it enough in order for it to be a business. The main reason I see failures happening in MLM is largely due to laziness, not just the lack of support from the upline.
Heck, sometimes the upline doesn't know what's needed in order to draw in the masses and these people that get underneath someone seem to think that this person they sign up underneath is supposed to be some sort of god when it comes to network marketing and even worse so when it's a forced matrix still.
There are some that also say, "Well, I haven't done anything because I don't know what to do in order to market." There are tons of people promoting completely free training sites open to the entire public with great information and they seem to overlook these resources quite often. Other times they get into said training sites and look at one thing, read a couple paragraphs then throw it out and judge the whole site by one single marketing plan or article amongst hundreds of articles.
My general experience though is laziness. Most people expect their business to be built for them or to be told this wonderful secret in MLM entirely that is such a best kept secret.
Here's the best kept secret the big hitters don't want you to know (according to everyone else). MLM and any business takes work, time and effort. That's the secret.
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edwinb
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Joined: 7 Sep 2009
Posts: 4
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# Posted: 7 Sep 2009 21:27
Reply
Lots of great replies on this post. Just joined the forum today and found this post and felt obliged to add my 2 cents.
Let me start out by saying I am in MLM and am a believer!!!
What I see as one of the biggest issues with people failing is their upline making promises of instant success and massive amounts of money along with "I'll be there every step of the way to support you" and then disappearing because that's what they learned from their upline. Too many people come in not knowing anything about running a business and the potential tax breaks they can get even while they are not profitable. In fact, they can actually take home more money every month (given they have a job) by utilizing the many tax breaks they get from claiming their expenses.
Also, many of the successful upline folks actually make much of their money selling tools to their downline and not teaching them anything about how to stop marketing to friends and family and start marketing on line. They are left in the dark and keep hearing about all the "other" successful people so they get frustrated and quit. I don't blame them, often times they have been sold a bill of goods.
However, with that said, I think MLM is still one of the best vehicles for financial independence and freedom to choose how you live your life. You will work your tail off, so get real, if it were that easy everyone would be doing it and everyone would be successful.
The key is to find a good product with great support and stick to it until you figure it out and start to have success. Nothing motivates like a little bit of success. There is a lot of great free info out there to help you. Look for it and use it.
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BHP
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Joined: 10 Oct 2008
Posts: 43
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# Posted: 15 Sep 2009 08:55
Reply
Haha - I think ol' Danny web20mentor has given up and gotten an honest job! Cracks me up - haven't heard from him in ages, except to start a topic looking for leads. Poor guy - must've grown a concience!
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mountainmom5
Joined: 30 Aug 2007
Posts: 2057
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# Posted: 15 Sep 2009 09:29
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BHP: Haha - I think ol' Danny web20mentor has given up and gotten an honest job!
Come to think of it - I haven't seen him either, but then it happens a lot... people pop on and stay awhile and then move on...
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cthen
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Joined: 4 Jan 2009
Posts: 23
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# Posted: 15 Sep 2009 18:45
Reply
Danny-
I think that was some of the best advice I've seen.
All the best,
Connie
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just23
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Joined: 21 Oct 2009
Posts: 1
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# Posted: 21 Oct 2009 13:20
Reply
different motivation results different achivement...
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shaun
Member
Joined: 23 Oct 2009
Posts: 35
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# Posted: 24 Oct 2009 01:24
Reply
Why is there such a large dropout rate in Networking, direct Sales
Because, there are 2 different types of folk when it comes to network marketing and business in general.
The 2 types are
The Opportunist and the Strategist!
The opportunist conastantly is on the lookout for an "opportunity" that will "explode" and make them lots of money...quickly. If they dont get a satisfactory level of "istant gratification" then they are on the lookout for the next opportunity.
A perfect example of opportunists are the hordes on Twitter heralding the greatest thing the MLM world has ever seen.....ie: The Trump Network! This is not to say there is a problem with The Trump Network, just, what were these hordes heralding before the Trump Network!
The opportunist is saying to themselves can i make money from this? They dive head on into their NEW chosen opportunity until they see another "opportunity" that they think will quickly make them money.
In other words they are motivated by the easiest way to make money. You can easily identify opportunists becasue they'll tell you how they have been in this MLM and that and sold this and sold that.
Now, A Strategist exhibites none of these behaviours. A strategist has a vision of what they want to become and where they are going. A Strategist chooses a business that aligns with their vision and has clear well defined strategies to achieve this vision or goal if you like. They maximise their chance of success by studying their competition and the marketplace they are entering. The actual "opportunity" is almost secondary. This is the important factor. Strategist's have parameters, criteria and a vision....does the "opportunity " match my vision ? That is the question they will ask of themselves. Whereas, stated earlier, the opportunist asks "Can I make money?"
So ask yourself and your potential business partners - Are you a strategist or an opportunist? Do you or your potential prospects understand what it takes to achieve your goal or are you just looking to make a quick buck by hoping onto a system that "does all the work"
Sadly , most people are opportunists and this is no different on the internet. Just look at Yuwie as an example...its filled with opportunists!
Inevitably its the 'opportunists" that drop out and become the 95% you speak of Palma. So dont be an opportunist and dont sponsor one and you should be ok !!
One of the most profound changes I went through was to identify my own "opportunistic" behaviours and make amends. Hence Im still here !!
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