MLM - Do Most People Fail?
62Do people really fail at MLM? That is the question I come across quite often and even received an email from a lady earlier today who claimed that nobody makes money in MLM. I sent her an email back and said, "To you that is probably true, but I have met many who have made money in MLM". I personally get nervous if its been more than a few weeks and I haven't seen a check in the mail from one of my MLM Ventures. This business is all about creating residual income - isn't it? I recall talking to my brother a few years back about this business and he claimed he had never met anyone who made money in MLM. That was probably true at the time as most people don't, because they quit.
I am going to use an example of a time I joined an MLM program. I went to the meeting got all excited, bought my starter kit, a few products, made my list of people to contact, and didn't even pick up the phone. After 2 days I was done. Did I fail? No, I simply quit. Failure is when you work for days, weeks, months and perhaps years and then quit. I spoke to a man tonight who said he didn't want to join my business because it cost money. I gave him an answer as to why every business cost money, and I came to the understanding that anything that cost money in this mans world was a scam. Even if I was able to sign this guy up, he wouldn't last 24 hours. He probably gets buyers remorse at 7/11. You see folks, in order to fail you have to go out there and give it your best shot. And then if you fail, the only reason is probably that you didn't follow direction from your upline, re-invented the wheel, or simply just didn't work.
Anyone who tells you that you can get rich working only a few hours a week is a liar. This business takes work like any other business and you have to constantly be working on improving yourself and becoming a leader to attract people to you. I personally won't even sign up someone into my group who cannot invest at least 10 - 15 hours a week. If they don't invest that much time, they have no chance of making it and might as well not even join the party. So if you want to become an MLM Superstar understand that most people don't fail in MLM, they just quit. And also understand that MLM is no different than trying to become a professional singer, athlete, lawyer, or small business owner. It takes work, knowledge, and performance. I bet you that the 3% that make it in MLM are generally the 3% that just never quit.
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Bravo to both of you! One way to determine the liklihood of failure, is to guage the initiative of a potential distributor. It is important to have your recruit actively participate in the recruiting process. Have them follow action steps toward making a decision on your opportunity. If they are unwilling/unable to take action on these pre-enrollment steps, it is unlikely they will take appropriate action upon enrolling in your business.
You are absolutely right, John!
Additionally, statistics show that 95% of ALL businesses fail within 5 years. MLM is no different. In fact, when you factor in low startup costs, inexperience in running a business, the general lack of training out there, and unprofessional people with a get-rich-quick motive, the fact that we maintain a national average is quite remarkable! One would think we'd be a lot higher than national averages!
What I have found the difference to be why people fail is lack of mentoring and training. We are told, make your list and start calling. Or 3-way your upline in. Period.
We need so much more and a lot is available. Finding upline who is dedicated to training is crucial. If yours is not, then find someone crossline or even out of your company. There are excellent trainers out there, but you have to find what you like. Personally, I like Tim Sales of www.brilliantexchange.com - training in high integrity selling and recruiting, lots of free stuff too.
Hope that helps someone!
Warmly,
Carol Anderson, MS - Usana Health Sciences
I agree with you John. Most people quit because they don't get proper training. A new person gets caught up in the excitement and want to succeed, but if they are just told to contact their warm market and make a list...they are doomed.
It takes a good mentor (and support team) to help teach you the skills you need. I wish I had had the proper help when I first started in MLM; but, that is another story!
I found a great suppport and training system with Mentoring For Free~~~~www.jkhanson57.com ~~~~
I also like the philosophy of The Slight Edge by Jeff Olson. Take consistent action toward your goal. It is those small, often seeminly unimportant, steps on a consistent basis that will take you to your goal. Don't give up and quit, as you say John.
Regards,
Janet Hanson
We are all in agreement. Lack of training is the main reason why most people quit. Once the initial enthusiasm is gone and you've signed up your closest people, most people don't know what to do. I know it happened to me. Then I went online searching for answers and guidance.
Found a great site in http://www.betternetworker.com/ it's a social community for home business owners. It's helping me put together a duplicable system that I can pass on to my downline so that we can all become profitable. John is right that without a system of training and mentoring your downline will disappear.
Good luck to all...
Well put John. Skills and knowledge, the essential ingredients most people fail to acquire, largely their own fault, but not entirely. We have no shortage of companies that relentlessly promote the idea that you need only join and follow, and all will be well. The folks that step into these ventures, with no intention of finding and developing, those skill sets and the knowledge base, necessary to lead effectively, are doomed. But they know that, even if they fail to acknowledge that fact. The companies that rope them in know that too. They are very aware of it. Skills and knowledge. Success is no accident.
John Deighton 3 years ago
Absolutely right, AMEN to this! My entire downline evaoporated after six months when I first got started, I soon realised it wasnt them, but it was me. I'd been a bad sponsor, I hadn't learn't how to pass that baton of knowledge and leadership and consquently they all dropped out.
I could have quite, most would I'm sure, but I realised my mistakes, brushed myself down and started again, this timeit wasn't about me failing, it was about making sure that my new downline didn't fail. They put their trust in me, I neeed to ensure that I trained them and showed them the way to duplicate and pass the baton of leadership. It can be done, it takes as John says a determination, don't quit, keep at it, this is an incredible industry. It's a lot easier to make six figures in this industry than it is to make just a few hundred a month, why, because when yo get true duplciation, that's when your organisation goes thousands deep, you know that there are many who are having a positive financial experience, that is a true blessing, one to be proud of.
Like John I wish anyone involved in this incredible business the very best, don't give up, keep learning, keep applying correct principles and you will succeed, it's only a matter of time, effort and activity. Regards, John.