In the Network Marketing industry attrition rates can run as high as over 70%. This means that the majority of people who try a Network Marketing company don’t survive the first few months! The upside of this is that 9 out of 10 of those who survive through ten years become very wealthy. This industry has produced more selfmade millionaires than any other single industry in America. What a recommendation for Network Marketing!
So if this industry has produced so many selfmade millionaires, how is it that more people aren’t staying for the long haul? First we would look at some of the major reasons for failure and then some tips to help you escape these traps.
5 Main Reasons Network Marketers Fail
Human beings are complex creatures and so it’s always a little risky to make general statements. Over time however, a pattern emerges and we can get a very good idea why so many people start this business and then drop out.
1. Rejection from close family members and their warm market.
When someone is first introduced to the concept of Network Marketing they become very motivated—mainly by the income possibilities—to start recruiting right away. Most companies will teach you to start with a list of your warm market and work from there. Even though this is a logical route, rejection from this group can be very discouraging and most people stop there. This means that the majority of recruits will give up after speaking with their spouses for example.
In the New Age of Internet Marketing, Network Marketing has once again become recognized as a viable and respected profession, but many are still quick to cry, “Oh! You mean a pyramid scheme!” This comes because of the negative press that many famous companies have received and the general misunderstanding of the public. Best advice here: DON’T TRY TO RECRUIT FRIENDS AND FAMILY! Most likely they aren’t interested in your business and never will be unless you show them piles and piles of cash you’ve made directly from your new business.
Instead, stick close to the methods and strategies contained in this Book!2. False expectations for too early results with too little effort.
Depending on the way in which the business is presented, one can get the impression that there is not much effort involved. I mean, just get two who gets two and you can become rich. When early recruits realize that considerable networking and marketing is involved in Network Marketing, disappointment quickly sets in. There is work involved, and any business that presents a plan to you and says that you don’t have to do anything is peddling a lie. All successful network marketers worked for their success.
Many marketers do not factor into their planning the cost of advertising their business. This cost can eat up a good chunk of your investment especially when you are just launching. The idea here is that you have to regard this as a normal business and not just a trial run venture.
3. Lack of focus.
Network marketers have gained a reputation of jumping around and changing companies like they change clothing. At least this applies to those who flirt with success but never reach it.
As I mentioned before, those who survive the early years normally go on to do very well. However, there are many people who are looking for the ‘next big thing’ and keep jumping from opportunity to opportunity.
The rule of thumb here is that you should establish yourself in one solid company before venturing off into other companies. And if you do work more than one opportunity, make them complementary to each other. A perfect example is working a leads company which you’ll need anyway to feed your primary Network Marketing company. In fact, if you find any tools that enhance your business, why not purchase from a company that has a compensation plan attached?
4. Failure to work an easy to duplicate recruiting plan.
With the advent of the Internet and all the new communication means that it affords, Network Marketing has come a long way from the home meetings and house to house presentations. Doing these presentations was very intimidating to many people and so the recruiting chain often broke along the way.
The key here is that if the recruiting machine does not have a system that anyone can comfortably do, it will come to a screeching halt.Good trainers know that a simple system must be in place or the trainer’s efforts will not be properly duplicated. If the impression is given that a recruit must be turned into an instant public speaker giving motivational speeches at the local Hilton, they can be easily scared off.
At the same time, you must take the time to learn the system and become familiar enough with the products that you can tell another about its benefit. As a user yourself, this should not be difficult. A caution here is to work the system that has been field tested, rather than trying to invent your own methods.This doesn’t mean that you shouldn’t be innovative, but there is no use to reinvent the wheel either, so be teachable.
5. Babysitting their downline members.
Teaching is surely a part of the game of building a strong team. Some marketers make the mistake of doing too much for their downline members thinking that if they didn’t their recruits will leave. This often backfires, however, because the downline members become comfortable and depend too heavily on their upline and never grow strong enough to build their own team.
There is only so much you can do for someone and no more. These spoiled over dependent downline members can become a liability instead of an asset to your team. So avoid the temptation to micromanage your team; you’ll get burnt out.
Teach your team members to fish instead of fishing for them.