Understanding Failure Rates in Multi Level Marketing Is Key to Avoiding Failure

If you are, or have been, in a home business then you have probably been given the playbook from your upline.  It may sound familiar:

  • Put together a list of people you know and talk to them
  • Talk to people you meet when you’re out shopping, at a restaurant, etc
  • Hand out company literature twice/day
  • Follow-up
  • Invite to a meeting
  • Sign someone up in your business and train them to do the exact same thing as you
  • Rinse, Repeat

This technique has obviously worked for a great number of people, as network marketing has produced many wealthy individuals.  But the flip side is this cold, hard truth:  97% of network marketers fail. Why do they fail?  The video “Do Most People Fail”  by Tim Sales may shed some light.  Essentially, he talks about those individuals who quit their business.  But let’s dig a little deeper…why do they quit?

In many cases it comes down to training.  These individuals are presented with a terrific business opportunity.  They are told they will have the full support of their upline.  All you need to do is follow their business model and they will help you put more people into your business.

Sadly, this does not happen as often as it should.  And as the weeks turn to months, and the months to years, people become frustrated and quit.  The system that can be “duplicated easily” just did not work for them.  Why?  If a person is truly concerned with making their business work, is willing to put the effort into it, and they are given a system that has worked for others, it should work for them, right?  So tell me again why 97% fail in their network marketing business.

My opinion is this:  The system may be easily duplicated, but that does not necessarily mean it will always work for everyone.  The reason is quite simple…people lead different lives.  Not everyone has a multitude of contacts with which to interact.  Not everyone has the time to travel around talking with people.  Not everyone has the courage to approach complete strangers at the grocery store and start a conversation.  Not everyone has the starting cashflow to run advertising campaigns or purchase telephone leads (which, in my humble opinion, are only good for training purposes…but that’s the subject of another post).

So what is a person to do?  Easy.  Find a system that DOES work for you, even if it means going completely against what your upline is telling you.  If you have given their system an honest attempt and just don’t have any success with it, don’t be afraid to go in a different direction.

Instead, play to your strengths.  Join a group, utilize social media like Facebook, shoot videos of yourself and post them on YouTube, write articles and submit them on an article submission sites such as EzineArticles.com, go to a lecture or seminar, attend a health fair, etc.  Think about what you do really well or spend time doing, and then try to work in into your business.  “Hide not your talents.  They for use were made.  What’s a sundial in the shade?” ~ Ben Franklin.

Personally, I have tried many of these techniques.  Some have been successful, some have not.  I am currently seeing good results from hosting my own video web tour.  Regardless, what has worked for me may or may not work for you.  The secret is finding your comfort zone by trying different methods.

Two roads diverged in a wood, and I-

I took the one less traveled by,

And that has made all the difference. ~ Robert Frost