Discover the 7 Top Reasons your MLM Business Fails
The statistic is mind-boggling – there is a 97% failure rate in MLM (Multi-level Marketing). So what is in the MLM business that attracts thousands of people every single week, and only to end up failing and losing money? The lure of the business is the promise of a lucrative income with not much effort on your part. It seems to have let loose the entrepreneur in these people with the dream that some day, they will also become millionaires like those who have been successful in this industry.
So, somebody told you about this great MLM business opportunity, and with much enthusiasm and eagerness, you sign up and pay the fees. Then you do the preliminary things, like reading the training materials, attending the meetings and webinars, and creating your own website. And then things start to go downhill because of a countless things, like not getting the right leads, losing the drive and motivation or getting frustrated because things aren’t working out the way you envisioned it. So, you quit before your business has even started, and you haven’t figured out what went wrong, and try to find the solution.
We will now try to present you with the top seven reasons why some people fail in the MLM business, and the pitfalls that you should try to avoid as a newcomer.
• Signing up without knowing about the company
Before you sign up with any company and give away your hard earned money, do some research. Get to know more about the company and the products that you are going to sell. Treat this as a business and read the policies and procedures, including the fine lines. Also, make sure that they will provide you with the adequate support system and training especially during the crucial initial stages. Remember that training is the heart and soul of a successful MLM business.
• Thinking that you will become rich overnight
This business is not a get rich quick scheme as what many people think it is. As with any other type of business, it requires time, perseverance and hard work. Don’t get caught in the hype of earning tons of money in a snap of a finger. On the average, it takes about ten years for a business to really be called successful and reap millions.
• Selling using old school methods
Traditionally, MLM marketers would go around traveling to get prospects, make phone calls or host home parties. Though these methods may still work, times have changed and the internet has made everything so easy and accessible. Take time to explore around, utilize social media, and find the right programs to aid you in running your business.
• Lack of selling skills
This could be one of the major reasons for failure in this business because they have no previous experience in selling anything, in dealing with people or in facing rejection. People start out excited and think that everything will be smooth sailing, and when they get rejected, their eagerness fizzles out.
• Inability to generate good leads
After they sign up and learn everything about the products and how to sell them to family and friends, they think that it is going to be easy talking to these people and convincing them to buy their products. The problem is most of them are scared of imposing them to people they know, and would rather present them to strangers. Remember that in this business, leads are everything, whoever they may be. Also, as a word of caution, never buy leads.
• Lack of upline support
Being a new MLM marketer, you need all the help and support in starting your business from your upline. They should have an active role in training you and in teaching you the fundamentals, or else it could lead to your failure. Some uplines don’t really bother to assist their downlines once they have signed up, and that could spell disaster.
• Quitting too soon
The MLM business requires a lot of time to nurture and prosper, and this is where most people stumble. Statistics reveal that more than half of the people in this business quit within 30 to 60 days. You cannot expect to see results right away. Dedicate your time and effort to it for at least 1 to 2 years before you could see if your business is thriving or dying, and then make the appropriate adjustments. From then, you can decide whether this is the right business for you or not
Now that you know what things to avoid, bear in mind that getting in the MLM business is not easy, and would require a lot of determination and persistence before you could enjoy success and reap the benefits, like financial freedom. Failing is part of the game, but getting up and picking up the pieces are the keys because quitting is not an option.
