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Why do 97% of Network Marketers fail in their MLM Company?If the headline shocked you, it should. It is a proven fact that within the first12 months of a person joining a MLM company, there is a 97% chance their hopes anddreams of success have melted away and they have stopped being active in theirbusiness. Is Network Marketing such a bad business model that only a select fewcan succeed? The answer needs to be a qualified No. A qualified no because NetworkMarketing in and of itself is not a bad business model, it is because of the wayMLM companies train their representatives.Back in the 1950's and 1960's when Network Marketing was just getting started, themodel worked great because people actually interacted with their friends andneighbors. They had barbecues together, they chatted about their day at work andthey liked to help each other. Selling a MLM's product and opportunity wasrelatively easy and profitable because most people had a strong network of friendsand family or what is affectionately called their 'Warm Market".Fast forward to 2009. People are stretched thin in their jobs, they might talk toone of their neighbors and their family is spread out all over the country. Theirwarm market of friends and family is essentially cold. Couple that with the factthat most adults today have been approached at least once to join (and haveprobably already failed) a MLM company, it is next to impossible to grow a MLMbusiness from your warm market. The techniques Networking companies teach to askyour warm market for 'a favor' or 'help me out' just do not work past getting 2 or3 people in a downline. If you look at the vast majority of compensation plans ofthese companies, you need to have at least 50 or 60 people in your downline tostart seeing a measure of success. With even a liberal sign up rate of 10%, youwould need to have 500-600 friends and family to talk to.The other problem with using your warm market to 'help you out' is that you aretrying to sell them something they necessarily don't need or for that matter want.How hard is it to sell a vacation package to your home bound uncle or sell atelecom service to your mom and dad that already have bundled services or a healthtonic to your neighbor the couch potato? You are not selling products andservices that people want. You are trying to leverage your relationship toconvince them to just 'try it, you may like it'. Chances are that if you are areally great salesman and you do convince them, they won't continue on for morethan 6 months. Then, your hard fought battle to build a downline is gone and youare back at square one.So, how do those people you see in the MLM companies' promotional DVD getthousands of people in their business? And better yet, how do they keep them intheir business? Here are a few ways:1.Find people who want what you have to offer.2.Effectively present your products, services and opportunities to thosepeople.3.Give them compelling reasons to join you.4.Help them get started in their business.5.Give those people reasons to stay with their business by giving them theskills and training they need to succeedIf you have people that truly believe in your product or service, have a passionto sell that product and they achieve at least some measure of success, then youwill have people that will stay in your downline. A lack of passion is a majordownfall for many businesses out there in and of its own. A lack of passion and alack of skills is a sure fire recipe for failure.
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