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 someday, 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.
Seven Reasons Why Your MLM Business Fails
1. Lack of Commitment
It's important to begin your MLM business with the right mindset. There are many things that can distract you, including friends and family asking for favors. However, successful network marketers believe in their products 100% and don't let any distractions deter them from achieving success! If you're not fully committed, it will be difficult to make sales...and ultimately fail.
2. Underestimating the Competition
The market is already saturated with many great network marketers. However, if you work hard and have a good product, it will set you apart from your competition! One way to get ahead of other network marketers is by attending training sessions that teach marketing skills. Another strategy involves doing research on successful lead generation strategies so that you can improve your business' bottom line. Oftentimes success stems from simply being better than everyone else in your niche...so do not underestimate the importance of working harder than the rest!
3. Not Investing In Leads
Marketing is a very important aspect of any MLM business. If you want to make sales, it's crucial that you invest money in marketing efforts. Whether this involves buying leads or advertising your business on social media sites, investing in new lead generation strategies will only help your business! Don't be afraid to spend some money on things that can really grow your income...and ultimately save time and effort as well by generating quality referrals for you!
4. Focusing on Recruiting Instead of Selling
One common mistake network marketers make is focusing too much energy on recruiting...and not enough time making sales. If you want your MLM business to be successful, it's important that you are able to generate income from retail customers! Take some time each day or week to go out into the field and sell products directly. This will help hone your skills as a salesman while also growing your downline through quality referrals. A strong referral system can lead to new recruits who bring others, improving the strength of everyone in your organization! Make sure that you do not neglect this crucial component if you want all of those recruited beneath you working hard for their own success!
5. Poor Leadership
Leadership skills are a crucial part of running a successful MLM business! You can have the best products and marketing strategies, but poor leadership will destroy your company from within. Make sure that you invest time into becoming an effective leader by attending training sessions or reading books about new ways to lead effectively. Becoming a strong leader is not something that happens overnight...it's important to consistently work on it every day if you want your team members to be engaged and productive for their own growth as well as yours! Create systems where all employees know what is expected of them at each level in the organization...and make sure they follow these guidelines so everyone succeeds together through collaboration and support!
6. Failure to Follow Up
It's important to follow up with customers and team members regularly so that they know you care about them! If a customer or downline member hasn't been active, consider sending them an email checking in on how their business is going. You can also use this time to find out what challenges have come up for the person...and offer support if needed. By doing this, you will show your interest in others' success while encouraging engagement within your organization which leads to more sales of products! Additionally, don't forget that it's equally as important not just following up once but twice...the second being after someone has responded back providing feedback regarding the first message sent ! This way even more people are aware of who you are and what you do!
7. Neglecting Your Own Personal Development
If you want your MLM business to be successful, it's crucial that you grow personally! It's easy for many people to fall into the trap of being so busy with team activities and building their downlines...that they lose sight of themselves. While others are growing in an organization, if you're not also growing then there is no way that your company will succeed long term. Think about what areas could use some improving within yourself...and work on these things every day by attending training sessions or reading information online related to personal growth opportunities. Whether this means working towards a certification in marketing management or simply learning how to become more confident when speaking at events, developing self-awareness skills can help make your business a success!
As you can see, there are many things that can go wrong with your MLM business...but it's important to keep in mind what needs to be done if you want the company to succeed. By following these tips and continuing to grow personally, I have no doubt that your downline will become stronger as well!