Why Most Network Marketers Fail

Most network marketers are taught very specific
ways to grow their business.

The problem is, the ways they are taught do not work
95% or more of the time.

Most of the time, network marketers are taught to buy
and cold call generic business opportunity leads.

What they fail to take in account is these leads are looking for
a home business of some sort. These leads are not
necessarily interested in a MLM opportunity.

They also fail to realize the lead list they purchase are
sold and resold again and again.

When the network marketer contacts them to present them
with their network marketing opportunity, the lead does not
know anything about their MLM opportunity and probably
could care less.

This leads to a ton of "No's" and a ton of rejection.

The network marketer starts to get discouraged and after
months of experiencing rejection will soon quit.

I know from experience because I spent months and months
contacting leads to no avail.

This is why I am now a firm believer in generating my own
leads because at least, I know where they have come from
and they are interested in what I've got.

- Kevin Tyler Smith

Hi there,

I disagree with your generalisation that all Leads are shared. What I do agree with is instead of paying $10-$15 per lead invest that money in Google Adwords and direct to a splash page of your own.

Even better why not trial referral generation. Off the top of my head there's a great book by Joanne Black called No More Cold Calling.

This lady uses 100% referrals to grow her business.

I've never heard a good story about bought leads. I think that with as much spam as there is today, the only way to get anywhere is by getting permission from your prospects. Sure, referrals are great too, but where did the original person who gave the referral come from? You've got to start somewhere.

I know for a fact that there are a lot of people out there struggling to generate leads or who have had bad experiences with paid leads. I offer a generic leads generation system and I talk to people every single day who cannot figure out how their going to find people to market their products and opportunities to.

The worst part about it is that their uplines are not teaching them anything. How does one expect to build a solid business without a strong foundation and without training and rising up their leaders? I just don't get the thinking on this. I though that the point was to train enough go-getters to be able to kick back eventually. Am I crazy or does the whole system seem backward?

Even when the companies themselves have no training in place, how do they expect to make it big? This is an industry that requires business savvy and marketing education but it's also a business that attracts people who have no experience at all with running a business.

Sorry about the venting there but I just can't wrap my brain around this complete lack of team effort I see all the time. What good does that do anyone?

Sheree

Nothing like a good opti-in email page and Google adwords. Generates daily leads that are targeted and responsive. Most people are not patient enough to let Adwords build their list. You have to have a budget and spend a lttle money.

Hello all,

I'm new here, and am genuinely concerned about generating leads, as I am 99% sure I am going to join LLI (Liberty League International) as soon as I receive my income tax return. Truth be told, I haven't a clue which software, or lead sheets to start out with, nor am I troubled by this challenge.

Although, I don't exactly know how my "future"or "soon to be" sponsor found me?.. his marketing techniques directed me to a site with video, audio, etc... and truth be told, he avoided the telephone nonsense, until I called him. In fact, I was ready to join without him ever calling me. I am confident he will share the same proceedure he used to find me, to help grow my leads. Thus, I think the presentation is important, and his was near perfection.

It's been nearly 20 years since I dabbled in any MLM or similar opportunity, I seriously think the general formula for failure, in a lot of cases, is our prior experiences.

For example; at age 17, I attended an Amway convention that changed the way I viewed life. I didn't sell a single product, and gave up shortly afterwards. However, the people that spoke, and the positive vibe, influenced me to change my entire life. I was self-employed 2 months later, and have been ever since.

The shame is, I took what I liked, and left the rest. Learning later, I had created the very hell, I was trying to avoid. I was spending on ave $10-$40k per year to earn $60-$100k, and truly thought I was on my way to being independently wealthy running a small sub-contracting service (which was 90% labor driven), and I did this for nearly 18 years.

My business was a small self-operated contracting service. I worked 60-80 hours per week, and physically reached burnout 2-3 years ago. This took a mental toll, as well. Especially, when I stopped long enough to realize, I was no better off, than my family members, and friends who punched a time clock.

Heck, they received vacations, health ins., 401k, and generally invested half as much time working as I did, and some had a lot more to show for it. Most of them seemed happier than I was too.

The point being, in these order of events, I learned that I would never be "independently wealthy" if I continued trying to be independent. I could never generate enough income from my own labor, and hiring people only increased my costs, my headaches, and decreased my pay!. Even in my best months of $15-$20k, I would always incur a financial issue, or suffer burnout the next month from exhaustion, whereas, my extra efforts never really increased my income.

Therefore, I think the leads are important in any business, but more over, believe those of us who truly "see" beyond the illusion, know the product in any business is people.

People (being the leads you speak of) are often conditioned to accept the life they are living, and have become content to do so, all because the world abroad radiates the foolish notion we cannot trust anyone, and continually tries to herd us into this belief system, that we have specific limitations.

This is the real problem! It defies every spiritual teaching, and basic principle of what we are, and limits many from expanding or growing on a larger scale, let alone the damage it causes when money is introduced to the equasion.

I myself ama self-taught, entrepreneurial spirited individual, and have always believed any true success derives from people making sacrifices for the greater good. i.e., I scratch your back, you scratch mine.

Unfortunately most business owners, or people, want their back scratched, but refuses to repay the favor. As a result, I almost gave up, believing money and people were all wicked!

Yet, I refuse to surrender my values, principles, or God given conscious for any amount of money!

For all the contractor's who's businesses to which I was loyal, and dedicated to help build, it proved to always be one sided. As soon as a cheaper service provider stepped up, I became expendible.

I think the leads are important, but truly believe before anyone succeeds at anything, they have to be ready to share, educate, and sacrifice something for the benefit of the whole.

Naturally, leveraging time, effort, people, and money, are key ingredients to success. But if you leverage any one of them for too long, without giving anything in return, success can not be achieved in totality, and failure is likely to happen.

I believe thousands will join me, and spend $2k to start, so long as I don't stop searching for those who truly want to change their life. For me, the positive vibe, the people, and the community helping one another is #1, not the money. So what's $2k, or buying leads worth, when compared to the return?

I believe because I have not given up on people, despite the treatment I've recieved prior, that I am already successful.

Those who only "see" the money, and are driven by greed, just might succeed financially, as my prior clients/employers/ contractors have used their money to make more money... but at the end of the day, anyone who is willing to enter a MLM, or a business, and is not prepared to give up a part of themselves, and effort, and some financial investment, doesn't deserve to succeed, and should keep their day job, and their complaints.

I think the leads would increase, if the majority of people snapped out of the hypnotic trance, opened their eyes, and could see the power in helping each other, rather than railroading over one another, as the world maintains their focus on selfish gains, and greed driven agendas!

I've met few successful people who were able to do both, but I'm determined to be one in favor of people, and no matter how many leads it takes, I know their out there!

And if I have to spend money to find the right tools I need build the business, I'll spend the money, any day.

After all, what business doesn't require a financial investment, and an on going commitment to put money in, hoping to pull more money out. It's simple, find god hearted people, driven to succeed, and stay there until you are!

Can't soar with the eagles if your hanging out with the turkey's!

I believe most marketers fail because they are let down by training as far as marketing goes.

You spoke about purchases leads in the first post. I have had a great experience with them. They cost me $3.60 a lead and are sent right to my website. I did not find this company, it was handed to me by the company I am with.

I also have postcards I can send out for less than .50 each. And they are targeted specifically to business opp seekers. For every $1 spent we take in $2.

I tell you this because if you are with any MLM/Networking company and are getting little or no assistance with lead generation, you should consider if you are in the right place. All of this should be provided to you. You should expect nothing less of an opportunity that is claiming any amount of success with using their system.

Bill Chechel,

With the charge to go online for promotion its good to see somebody using postcards.

Not many net marketers are using them and it sounds like you are onto a winner there.

Aaron Riddell

Good point,

With the charge to go online for promotion its good to see somebody using postcards.

I agree, some businesses do very well with postcard system, I know it works for me as I can purchase mailing list to specifically target my best audience, the senior citizen market.

I get better than a 11% response rate and then it is a simple matter of answering questions, no selling, just telling them what we offer and it works, so again, don't overlook the old post card systems. Not everyone is online yet, and many probably won't ever join the online community in my opinion, so post cards is a good marketing strategy, always will be.

Good luck to all, Mike

Hello Mike,

I placed an order for a batch of customized "postcards" last night. I will be specifically targeting fellow network marketers in my own country with a training system to enhance their own online activities.

I keep hearing this phrase.....the "sniper approach is better than the shotgun approach". And postcards are a neat way to become a better sniper.

Offline to online, online to offline is a great strategy.

Have fun all with your postcard marketing.


Aaron Riddell

My primary focus is on Cooperative Marketing where you can buy all the customers you want rather than spending so much money on advertising, the co. takes care of all that. Although for those in this with me that cannot afford initially to buy enough customers, I have heard that in addition to traditional online marketing, that post card marketing is still quite effective.

Anyone familiar with good places to get lists that have leads for this that are targeted to the market you are advertising too?

Hi Anna,

I'm using my phone directory "white pages" and targeting specific well known MLM companies.


Aaron Riddell

Aaronbiz: the "sniper approach is better than the shotgun approach". And postcards are a neat way to become a better sniper.

No - No - No....

Both a Sniper and Shotgun approach will only succeed in blowing someones brains out and you will maybe attract others who will do the same - but be prepaired for low numbers of responses if any.

You need to change your approach to "Helping" others to realise their dreams.

Suggest you start reading a few books - Start with Zig Zigler. There are two quotes that come to mind.

#1 If you go out looking for friends, you're going to find they are very scarce. If you go out to be a friend, you'll find them everywhere.

#2 You can have everything in life that you want if you will just help enough other people get what they want."

I believe others posting here realize that helping others helps ourselves, but were also suggesting a few offline ways that are inexpensive to add to the customer base. I have not tried offline yet, but it may be a good idea to attract some customers. I would not use it to attract business affiliates/distributors. Having customers for our products is a must and some of those are not always online like we are.

annadenise: also suggesting a few offline ways that are inexpensive to add to the customer base

I agree - It is vital to develop and encourage approaching and obtaining customers. It is the amount of product turnover that determines your success in this industry.

Too many people get into this and hope that their distributors own purchases gives them the volume they need to earn $$$'s

I spend about 50% of my marketing time in seeking retail customers.

Hello Aspire,

Thanks for your comments about helping others. Yes you are correct.

Both Zig Ziglar & Jim Rohn are inspirational. I have a library of DVD and audio material as I learn by mainly visually seeing something or/and hearing it.

At the end of the day though we need to ask ourselves - WHO is our customer?

Let's say I sell Nike shoes. Can you guess how many Nike shoes I would sell to someone over 80. Unless that shoe met a specific need my sales would be zilch and I would go out of business if I targeted my advertising at this age group.

So I would need to sniper in on say a niche market - say teenage ladies between 11-14.

Can you see where I am trying to come from here? I hope I'm not missing the mark here.

Kind Regards

Aaron Riddell

Aaronbiz: Can you see where I am trying to come from here

Yep - I can understand exactly where you are coming from Aaron. Your approach has to be styled upon the public acceptance of your product.

I think it is important to know your product well and offer it to the correct market, but do you really want to push product only??? If so shouldn't your product be publicly accepted by a majority of the population?

If I were to start marketing Aardvark Extract Ingrown Toenail Ointment, I could expect very limited acceptance of my product and would have to sell it hard to gain turnover.

If I were to market a very cheap light bulb that gave 100 watts of light and only consumed 5 watts of electricity everyone would be beating a path to my door.

The story of Microsoft comes to mind with them going against all popular opinion at the time and marketing a product for every home in the world to use. Previously the computer market was held captive by Apple with a "Sell it to a limited market at a high cost" marketing strategy. Thus was born the IBM compatible computer.

I personally prefer to try and get 1 cent from every house in the country offering a product that everyone wants and needs, in preference to trying to push expensive Aardvark Extract to a few people and make $7,265 a jar.

Using this strategy, I now have a significant clientele that has gone global and have developed a marketing approach based on word of mouth. This works for me and also feeds me with qualified leads for my mlm. (they actually ask me to join)

The most important aspect of any business is the people that make it work - everything else takes second place. You have to give mind to what will motivate them to work for your business. Usually more money and better lifestyle win out each time.

In a previous life I was a sales manager for a company with a range of products that gave insects a really bad day. Every day was consumed with market research, marketing strategies, market share wars, advertising and constant struggling to maintain corporate acceptance in a retail marketplace.

Whichever avenue you choose, the people and their goals and needs have to be looked at first. (both the customer and distributor if you are in mlm)

I have a product of mass appeal on a world stage, and spent most of my time pushing the benefits of this great product to people. You know what??? ??“ looking back now, I spent most of my time advertising and selling ??“ I WAS BACK WHERE I WAS IN A PREVIOUS LIFE.

I changed everything around to offering people a solution to their needs and promoting a way for them to achieve them, and momentum kicked in. With the products, I continued to promote them, but to volume markets instead of members of the general public as end users ??“ should have done it ages ago.
Probably rambling on a bit now ??“ have been up for 17 hours ??“ been a great day, looks like my doorway to the Mainland China market is opening (probably won't get too much sleep tonight either)

Hope this has helped.

Regards
Paul

Hi Paul,

Very enlightening & appreciated.

It's just great to get different points of view on the ways people work and think.

I suppose everybody in the MLM business is at a different "stage of the process".

I do have a larger vision of what I want to do within the industry, and actually draw upon forums like this and other mentors and experiences to keep me moving forward.

Aaron Riddell


Aaron Riddell

sorry if i don't go on the topic here, but I find that by building a great relationship is a great key to success. by that with truth and trust, there will be more holes to jump across and avoid more failure variables. marketing with friends is easier when you have great credibility and business. (get fun personal relationship)
thank you

best wishes,
-josh

Good point Josh,

If your customer becomes your friend, that will lead to a "golden chain" of referrals.


Aaron Riddell

I believe in building relationships. People want to do business with people they like, know, and trust. You must be able to generate your own leads. I wasn't successful until I found out how to market. You won't be either until you figure out how to market YOU!