Monday, October 18, 2010

Network marketing: top 4 reasons people fail

Translate Request has too much data
Parameter name: request
Translate Request has too much data
Parameter name: request

Network marketing is probably the best business model the

average person can use to achieve real success in their

life. The low start up costs, excellent training and

support, and the friendship and mentoring of other like

minded people all combine to make it a real opportunity

that is available and easily accessible to people from any

walk of life.

But most people fail miserably. Why is that? Well,

first of all, it's important to realize that most people

fail in any type of business venture. Look at the facts:

-95% of small businesses are out of business within the

first five years according to the Small Business

Administration (SBA)

-According to the Social Security Administration, by age

65 only 1% of Americans are wealthy, 4% are financially

independent, 5 % are still working (against their will!)

36% are dead, and 54% are flat broke.

Both examples point to the same thing: Only five percent

of people succeed in life. Just five out of a hundred

businesses make it, and just five in 100 people earn

financial independence in their lifetimes. This is

important to understand, because the failure rate of

network marketing (which happens to be 95%) is easily

misunderstood, and the industry as a whole is condemned

because of it.

So if the problem isn't really the industry as a whole,

but simple human nature, are ninety five percent of us

doomed to failure and there's nothing we can do about it?

Of course not! As a matter of fact, often times the

difference between the successful and the not-so-successful

is very small. Usually a difference in choices,

mindset, and that elusive quality entrepreneurs call

"intestinal fortitude". Successful people just don't quit

as easily as most.

So, assuming you have the qualities of success, and you

want to succeed in Network Marketing, it's important to

know why it is most people fail, and how you can avoid the

pitfalls.

So here are the four main causes of failure:

1. Lack of money

This one is a deal breaker for a lot of people. They just

don't have the money to market their business. Often

times, they joined the business and didn't understand that

it was a business! Yes, Network Marketing is a business.

But it's unique from all other businesses in that you start

at the top of your organization, and work down. In

traditional business you start at the bottom and work up,

but not here. You are, on day one, the CEO, President,

Vice President of Marketing, and Chief Bottle Washer all

rolled into one! And your business needs to be marketed.

The days of "Make a list and talk to your friends and

family" are all but gone. That method may work for a short

time, but who are you going to talk to when you run out of

friends and family? You need to market your business.

Whether it's through calling purchased leads on the phone,

marketing to a lead capture and sales page, running ads in

papers, or doing meetings and parties, you need money to

professionally market your business.

The good news is that you don't need very much money. And

with the emergence of the internet, I'm proud to say that

the amount you need is going down while the results are

going up. As a matter of fact, my leads now pay me! Talk

about a paradigm shift. I used to spend hundreds of

dollars every month marketing my business, now my marketing

budget is funded 100% through my marketing efforts. More

on that later.

The first thing you need to realize about Network

Marketing is that it's designed to be part-time. There are

people that desperately need to make money, that just flat

out shouldn't be in the business yet. The idea is to have

a J-O-B (Just over broke!) that makes you enough money to

live on, and spend $50-200 a month on marketing your

network marketing business. Once your business gets going,

make sure and invest a portion of your income back into

your business. I invested 20% of my commissions into my

business for the first nine months, and when my Network

Marketing income exceeded $4,000 a month, I didn't have to

spend near that much any more. But investing 20% was more

than enough to get my business up to a full-time income. I

know other people that invest ALL their money back in until

they make a full-time income. The point is, make sure your

financial house is in order while you build your Network

Marketing business, or it takes a lot of the fun out of it.

2. Lack of Activity

This one will drive you nuts if you are a leader in your

organization. You find somebody great, they have all the

skills, they are willing to invest in their business, they

look good, smell good, sound good, but they don't DO

anything! And you spend your time coaxing, prodding,

inviting, chauffering, paying for their convention ticket,

but in the end it's all a waste of time. Remember the

statistic: 95% fail in ANYTHING? Well, this is a major

reason why. And you can't do much about this, all you can

control is you. Here's the best advice I can give on this:

1. If you want your team to go into momentum, YOU have

to go into momentum.

2. Work with the willing. Those that would rather

watch the season finale of latest reality show, rather

than work their business, just aren't going to the top

with you. Don't waste your time. Keep looking!

Remember, "You can run with a thousand, but you can't

carry three." -Jim Rohn

If a person is struggling with activity, it's probably for

one simple reason: They don't want it bad enough. If

their why is big the how becomes easy. But again, you

can't fix this, you simply have to go through the numbers

until you find those passionate few that really want

success, then sprint with them. If you are personally

struggling with your activity level, you need to evaluate

your why. You simply don't have enough passion for what

you're doing.

3. Lack of People to Talk To

There are three types of leads in Network Marketing:

1. Warm Market. These are the people that already know

you and (hopefully!) trust you.

2. Purchased leads.

3. Self Generated leads.

Your "Warm Market" is a list of people that already know

you, like you, and trust you. Your Warm Market is your

personal network. According to Paul Zane Pilzer, author of

"The Next Millionaires", this personal network is absolutely

key to your success in any venture you attempt. In Network

Marketing this is especially true. Even if somebody in

your warm market isn't interested for themselves, they have

their own network that they will open up to you if they

trust that you will show respect and be professional in

your marketing to their friends and family. Warm Market

leads are great because they are free, the problem is that

most people in Network Marketing never graduate past their

list of friends and family. And very few people are ever

going to be good at cold market prospecting. But if you

work your warm market effectively, you will probably find a

handful of leaders for your organization, and learn the

skills and company knowledge you need before heading into

purchased leads and self generated leads.

The next type of lead is a Purchased Lead. These are leads

that you purchase from a "Lead Broker". Purchased leads

are easy to get, there are a million lead brokers out there

selling batches of leads, in varying quantities. Be

careful, and make sure and deal with a reputable lead

broker, but leads can be a good way to go, especially if

you are new. But I recommend that as soon as possible you

learn to generate your own leads.

Self generated leads are the third type of lead. One

method of self generated lead I really like is called a

"Funded Proposal". This method is a lot of fun, because it

not only generates good quality leads, but it makes you

money! For example, here's how I do it. I found a book on-

line that I really like. It cost me $27, and has full re-

sale rights. What that means is that I can sell the book

for whatever price I want, and keep all the money. The

book I sell is called, "Net MLM Profits". The reason I

like to sell it is because it has so much good content for

network marketers, teaching all the latest on-line

strategies

and skills network marketers need to succeed in their

business. To market my e-book I have a

Capture Page and a Sales Page where people can buy the

book. I charge $27, the same price I paid. I then market

the book on the internet (I learned how to do that in the

book!)

Now, this is where it gets fun. Who would be interested

in a book about succeeding in Network Marketing? That's

right, Network Marketers. Who responds to my

advertisements and goes to my sign up page? Is the light

bulb coming on for you right now? I hope so. You see,

every month I generate HUNDREDS of qualified network

marketing leads. And enough of them buy the book that it

pays for my web-site, my advertising, and even makes a

profit! It's the best system I have found for generating

leads. To see the system I just described go to:

http://escapethematrix.net

4. Lack of Skills and Knowledge

This is the fourth reason people fail in the business.

Who can learn something new? Anybody can if they want to.

But how many people are willing to? Did you know that 65%

of High School graduates never read another book in their

life?! Sad but true. Referring back to our 95% failure

rate, if the majority of people don't even read a book

after High School, it adds a lot of light at the end of the

success tunnel for those of us willing to learn and apply

ourselves! It doesn't take much to beat the masses. All

the wisdom of the world is available free on-line and at

the library, but here's another statistic for you, only 3%

of Americans own a library card! Again, you don't have to

be a superstar to get in the 5% club, you just have to be

willing to learn the skills and habits of success.

In Network Marketing the buzzword for developing skills is

"Personal Development". Every decent Network Marketing

company that lasts long term has a culture of personal

development. What is personal development? The best

explanation I ever heard was this one:

1. Read at least 10 pages a day in a personal

development book.

2. Listen for at least 20 minutes a day to a good audio.

3. Attend a live seminar at least quarterly.

These are three habits that anybody can work into their life. It doesn't take that much time to read ten pages,

just give up one half hour date with the idiot box. And

listening to 20 minutes of a good audio is easy for most

people as well, because we spend that much time or more

driving. The radio is nothing more than "bubble gum for

the brain", why not turn it off and put on something that

can change your life? And again, personal development

audios are available from the library if you are on a tight

budget.

So those are the four main reasons people fail, and how to

succeed in spite of them. It has been said that, "a

problem defined is halfway solved." Hopefully just by

identifying the four main causes of failure you now can

tackle your Network Marketing business with more confidence

and enjoy the "Rock Star" income Network Marketing promises.







No comments:

Post a Comment