Top 4 Reasons For Network Marketing Failure!

Discussion in 'Network/Multi-level Marketing' started by srogersconsulting, Mar 27, 2007.

  1. srogersconsulting

    srogersconsulting New Member

    What Are the 4 Major Factors that Hinder 95% of Network Marketers from Achieving True Success?

    1 ??“ Lack of a Marketing Budget/Knowledge of Target Marketing

    If you don't have a budget, your business will suffer. How can someone treat mlm like a business if they don't even commit to investing in it each month. This is not a hobby, but a true business. It doesn't have to be a lot, but you need to set aside a certain amount of money each month to invest in your business. Just as well, you must have a true understanding of target marketing and the art of attracting prospects to you. You must leverage your efforts through proper tools and systems on the front end, and then master the skill of developing relationships to retain people and truly support your organization.

    2 - Lack of True Effective Action or Any Action at All

    I'm not talking about 'busy' action. I'm not talking about going to meetings, being on conference calls, and driving around town doing one on one presentations at the local Starbucks or at someone's home. What I AM talking about is income producing DAILY action. You can work your business part time or full time, but not 'some time'. Being on a conference call or going to a meeting is NOT a true income producing activity. However, creating and marketing your own website online and attracting suspects to you and then converting them to true prospects through the use of effective tools, systems, and good old fashioned relationships IS an example of a true IPA ??“ income producing activity. You must know and be able to track the difference between busy work and true IPA's. True IPA's can be tracked and measured right down to the income that particular activity produced.

    3 - Lack of Consistent Flow of Quality Prospects

    If you don't have people (and the right people) to contact every day, then how are you supposed to gain momentum and sponsor many people? Prospects (leads) are the lifeblood of your business. You may have a great opportunity, but if you are not in contact with people on a daily basis, you are not being productive in your business and you can never gain personal momentum. You can generate your own leads (which is the most effective way) or buy leads from a respected source.

    4 - Lack of Training and Underdeveloped Skills

    Ok, let's say you DO have a constant supply of fresh quality prospects (leads) to talk to everyday, will that solve your problem? No, because most marketers out there are using the WRONG approach with people and not getting the results they could. Contrary to popular opinion, uplines, etc., you do not spill information on people and then try to close them on your opp or product. You must gain the knowledge and skills necessary to you position yourself so others seek you out and you don't go 'prospect' people. That starts with being taught what actually produces results in prospecting and recruiting, rather than 'trying' what the other upline guy did and hoping it will work for you. You DO need skills in this business. You also need to know where to get those skills and how to apply them, so every month is a good month for you.
  2. jgb777

    jgb777 New Member

    Great points. Nice website too! Looking forward to the emails.
    Number 2 of your points is so important. I love what Jim Rohn says "An apple a day keeps the doctor away. But seven apples on Saturday isn't going to do it!". You see that again and again. Small (or massive) but consistent action.
    May I add a point? On my blog I have a post on compensation plans. What to look for and what to avoid. [Link removed - Admin].
    As Sherman Unkefer said "If you are running laps on the deck of the Titanic, its doesn't matter how fast or far you run the results are more or less a foregone conclusion!"
    If everyone doesn't win, no one wins and I think you would agree. I won't put words in your mouth but would value your opinion after you have read my post on this.
  3. Gailtravel

    Gailtravel New Member

    Hmmm... I thought this sounded familiar then I realized that it was in the Leadership Club CD that someone sent me. The points were interesting though.
  4. pcwork

    pcwork New Member

    The quality of the product or service also makes a difference
  5. RecruitingChamp

    RecruitingChamp New Member

    Good Tips. Consistent daily action is the key to success in any business. Could you imagine going to your boss and saying "I think I will work my 40 hours from Mon - Wed as I have plans during the week. Make it happen daily! What's at stake if you don't?
  6. jschuman

    jschuman New Member

    Good list. I see failure in network marketing and affiliate marketing as coming down to a couple of things.

    1. No personal attachment to the product.

    2. Most people can not sell anything. In mlm this means either retail or sponsoring.

    Once the excitement of the dream of making money wears off it becomes work and most people just will not do it.
  7. turps

    turps New Member

    Hi I agree with Jeff it is a great list.

    Point 2 could really read "most people have a fear of or dislike being associated as a sales person even though we all are sales people one way or the other.

    For example how do you sell the idea of playing golf on Saturday to your wife or she having a shopping spree?
  8. BeAChampion

    BeAChampion Member

    Quoting: srogersconsulting
    1 ??“ Lack of a Marketing Budget/Knowledge of Target Marketing

    That is definitely the #1 reason for failure I believe as well.

    Very accurate post. Thank you.

  9. Crystalcash

    Crystalcash New Member

    I definitely agree with "lack of action." Most people think because they work online they get to do less work. The truth is, you have to run it like a real business, no matter where your business is based. I have to keep this in mind with my blog because I have a bad habit of only posting 2/3 times a week.
  10. gordon

    gordon New Member

    In my case, up until a year ago, it was definitely a lack of marketing
    and promotion skills. It took me a long time to recognize and crystalize that in my mind.

    For me, and I dare say most people, marketing and promotion is like
    driving a car at night with no lights.

    I think it is important to recognize that NWM is not for everyone.
  11. MandyB

    MandyB New Member

    I think that the main reason for network marketing failure is really a mixture of your point 1 and 4. Network marketers are taught to chase after friends and family who really may have no interest in the product that they are selling rather than learning how to select and market to the target market that is right for the product. If network marketers were taught to treat their business as a business and market it in the same way that many other businesses market then I am sure there would be a lot greater success rate.

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