Why do 97% of Network Marketing Business Opportunities Fail?
Network marketing can be a great way to make a living. It allows one to have tremendous freedom in their daily life as well as showing others the opportunity to take control of theirs.
But why do 97% of network marketers fail to get the job done and therefore 97% of all network marketing business opportunities fail for one or all of the following reasons:
1. Using marketing methods that don’t work.
Most network marketing business opportunities instruct their new members to chase down friends and family. Big mistake! This outdated marketing tactic does not work anymore. You will do harm to yourself by alienating these people in the long run. Rejection, is part of the game in any form of selling but also getting it from friends and family is twice as brutal. Your new endeavor should be enjoyable so it can continue during some hard times.
2. Product that are saturated.
Another reason 97% of network marketing opportunities fail is too many companies are selling the same products. While this will tell you it is a good market and profitable, the beining member will have a tough road ahead.
3. Too complicated commission schedule.
The main reason entrepreneurs or new members get involved in a network marketing business opportunity is to make more money. The promise of the residual income stream is very enticing but can be complicated to explain. Selling a product is hard enough. If it is more complicated to explain the opportunity, one is headed for dissapointment. If it is hard for you to explain and understand don’t get involved.
Network marketing is about duplication. If you can’t duplicate yourself and business it won’t succeed. Again, I go back to enjoyment in your new business. When the reality of one has to work for the rewards it is better to have fun than to be a chore.
4. The company one chooses.
I believe this is one area the beginning marketer often over looks when making a desicion about a new opportunity. This is where the due diligence is crucial. You do not want the company going out of business in 8 months after you have worked so hard to build your business. Understand who is running the ship.
While 97% of all network marketing business opportunities fail, 3% succeed.These 3% leaders are the ones you should look to. They have persevered in the jungle and understand what it means to succeed. We should always try to model after them. Remember it is duplication that breeds success in this business.
My next article will be on what it takes to be a 3% leader.
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