Network Marketing Failure: The Top 5 Reasons People Fail and How to Avoid Them
There are plenty of things that can lead to Network Marketing failure, and I am sure this won’t be my last article on the topic. However, the main 5 reasons people fail in Network Marketing are industry specific and easily rectified. Therefore an understanding of them can help you to overcome any barriers to success.
1. Trying to Sell
This is a mistake a lot of new network marketers make, and it is understandable as to why. Some product based companies have monthly quota’s to hit. Others require minimum monthly purchase orders in order to hold your rank. NOTE: These are not good Network Marketing companies. If you want to learn how to choose the right NM company for you, click here. In fact, it is this poor practice on the companies part that leads to so many people ‘failing’ in the business in the first place.
Nonetheless, whatever the cause of the action, people do not like to be sold to. Not to mention they know when you have an ulterior motive. To successfully grow your business and avoid Network Marketing failure, you need to adopt the right attitude. That means genuinely wanting to help people and to share your product or service with them. Most of the time you really do have an amazing product or opportunity.
BUT, If they aren’t interested, that’s it! That is your job done. Stop looking at everyone like a dollar sign. Don’t get emotional about it, and appreciate that not everyone cares as much as you do. Sometimes a no just means not right now.
2. Not Learning the Skills
You wouldn’t walk onto a concert stage and play the guitar without knowing how to. You wouldn’t enter a construction site and start pouring concrete if you had never learnt how. But for some unknown reason, people begin NM business’s and expect that they will magically generate a huge income without learning any of the skills involved!
I’m here to tell you that it won’t happen. NM, like any business, has its own skill-set. Don’t get turned off just yet, there aren’t many! In fact, the entire business model can be reduced to only a handful of skills that are all incredibly learnable. However, if you don’t even put in that small effort you are destined for Network Marketing failure.
Give Me an Example
Let’s put this into perspective with a high paying job. Say you study to be a doctor. You’ll need:
- Incredibly high grades in school.
- To complete a 4-year degree in medicine.
- Followed by a minimum of 3 years residency to practice with a licence.
- Skills in general medicine and surgery (to name the bare minimum).
- An advanced knowledge of illness, diseases and treatments
- Followed by another 4 years to specialise in a field.
- Ongoing training and study for life.
So at the very least, we’re talking 11 years full time just to become qualified, and specialise, before you even start to earn the ‘big bucks.’ But we aren’t all born to be doctors.
Network Marketing, on the other hand, has 7 skills that can be learned in less than 6 months. That’s not to say you will stop learning at that point. But it does allow every-day people like you and me the opportunity to earn 6 and 7 figure residual incomes in the space of 3-5 years. Notice I said OPPORTUNITY. It is up to you to develop the skills you need, and build your business to succeed, not anyone else.
3. It’s Just a Hobby
Bullshit. Anyone who buys into an NM business to say it’s just a ‘hobby’ is full of it and just making an excuse for when they fail. Sure it can be a part-time gig. In fact, for the first few years, it absolutely will be. I don’t promote leaving your job until you can survive without the cheque from your NM company. Unfortunately, though:
The greatest thing about Network Marketing is also one of the main reasons for network marketing failure- the low cost of entry.
Risk vs. Reward
Joining an NM opportunity can cost anywhere from $30 up to a few thousand. Sure it might seem like a lot if you consider it a hobby. However when you take into consideration that the overheads on a traditional business e.g. a retail store or a gym could start upwards of $100,000 it doesn’t even come into comparison.
Therefore the risk associated with an NM business is incredibly low. In fact, the only costs you have to incur are your sign up fee, and possibly trialling your companies products (more on this in point #4). Yet the fact that NM is low cost and low risk is the exact reason it causes Network Marketing failure.
Using the above example, if you had invested $100,000 into a traditional business you are going to make sure you do everything you can for that business to succeed. By comparison, though, if you are only spending $200 on a business opportunity, the cost of failure to you and your family isn’t anywhere near as great. Because of this, people throw NM into the air and say it doesn’t work, when really they never committed in the first place.
So I implore you, please, if you are going to be a network marketer, understand that it is a business. Commit to it. Treat it like a business and become a leader. Be a professional.
4. Choosing the Wrong Company
I won’t go into too much detail about this, as I have written a more in-depth article on choosing the right company for you (I will link it here soon). However, choosing the wrong company is a sure-fire way to lead to network marketing failure. There are a number of things you should look out for, and you should avoid companies which:
- Require you to hit a monthly quota to be paid or maintain your rank.
- Have products you have not personally used or tested.
- Sell products that you do not believe in.
- Require you to purchase stock and on-sell it.
It is these negative practices that pressure people into over purchasing products and cost more money than they allow you to earn. Good NM companies are those that work for their business owners by handling all of the supply, shipping and billing of the products. They also do not punish you for having a ‘slow’ month. This allows you -the distributor- to become the middle man/woman by sharing and recommending a product or service that you believe in, and earning a commission or payment for it.
Always remember that it is OK to leave a company that you no longer believe in. They may change the compensation plan, or the products, or any number of other reasons. If it is no longer for you, it is ok. You already have the skills to succeed! Just find a company that better resonates with you
It might sound obvious, but the number one cause of network marketing failure is quitting. If you persist long enough and plug into the system, you will develop the skills it requires to build a successful business. Here are some simple truths about NM:
- If other people are selling products, your product isn’t too expensive.
- If someone else is making money and you aren’t, it’s not the compensation plan, it’s you.
- You and only you are responsible for your success. Develop yourself, and the rest will follow.
- It is called netWORK marketing.
It’s going to take work! It isn’t anywhere near as tough as a 10 hour day labouring in the sun, but making endless phone calls and chasing people up can be just as draining. Some people just aren’t prepared to actually work at this. Regardless of how bad you want it for them, you can’t force people to do something.
We are all more connected than ever before and the most successful businesses in the 21st century are all based around networks. Just be happy that you are one of the ones to see the opportunity early enough to really make a change in your life, and ask yourself:
‘If not now, then when? If not you, then who?’ Simon Mitchell- Network Marketing Mastery
Have you decided to commit to a Network Marketing business? Have these points helped you to avoid network marketing failure? I’de love to hear from you in the comments below or on Social Media!