network marketing 2
Network Marketing: Top 4 Reasons People Fail
Tip! You give a two-hour network marketing presentation to a very interested couple and as soon as you finish, they want to show you *their* network marketing presentation.
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.
Tip! A Realistic Opportunity- The Internet has become oversaturated with hundreds of network marketing programs, all of which claim to be the best. It is important only to promote programs with realistic opportunity in the long run.
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.
Tip! High fees. Network marketing training scams typically require a large, one-time fee to be paid in full in advance, which reflects the hit and run mentality.
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.
Tip! A company that is able to redirect the dollars people are already spending in traditional retail outlets to the products that come through a network marketing distribution system.
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:
Tip! Don't quit your day job! At least not until you are making more money in network marketing than you are in your nine to five.
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.
Tip! Use your products regularly. This is Number 1 for a reason, this is the most ignored part of ANY network marketing business.
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.
Tip! As soon as you finish reading this, run out and buy Wave 4: Network Marketing in the 21st Century by Richard Poe. I don't know Richard Poe, but I do know that this book explains everything.
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!)
Tip! Failure among those recruited to one's business team to duplicate successfully the method(s) used to recruit them. Since duplication is the sine qua non of ALL network marketing, this is a huge, and often, fatal problem.
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:
Tip! Some distributors don't give ample time or attention to their network marketing group.
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.
Tip! Some companies think that Business Cards are the answer. Most beginners in Network marketing buy expensive cards with their company log on and start distributing them.
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.
Tip! They pitch their mlm, network marketing, internet marketing, or home business opportunities to their family, friends, and co-workers. Then they run out of people to talk to, and out of money to advertise.
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.
Dave Sherwin is a full time Network Marketer who has discovered the secrets of growing an organization 100% on-line, and making money whether people join his organization or not. It's all explained at: ==> http://escapethematrix.net
| 