Are you one of the people who is not making money in network marketing? It’s very common to make no money in MLM.
Depending on which study you read, you’ll hear that over 97% of network marketers fail. I recently read a study from the FTC with evidence of an even higher percentage of MLM failure rates.
“The loss rate for MLMs is at least 99%. This means that less than one in 100 MLM participants make a clear profit, and at least 99 out of 100 participants actually lose money!”
Even with such a high failure rate, people continue to join network marketing businesses in hopes of achieving success and freedom in their lives.
If you are one of those people, you can change the odds for success. Learn the top reasons why people fail to make money in network marketing so you can avoid making the same mistakes.
Reasons You Do Not Make Money in Network Marketing
There are so many reasons why people fail in network marketing. Regardless of how enthusiastic they are when they start, they usually fail due to these reasons.
1 – Lack of Preparation
One of the main reasons why people do not achieve network marketing success is a lack of preparation.
People are so excited to get started and shell out the money for the start-up package. But, they often don’t realize that there is much more to MLM success than just buying the best package.
One requirement for any network marketing business is a time commitment to training. That’s right. A person has to learn about the products as well as how to run a home business.
For example, if you are going to talk to people about the products or business, it’s important that you understand what to say.
That’s what training is all about.
I’ve heard all the excuses from people that have joined my team over the years. People complained that they weren’t making any money.
I always ask the simple question: did you go through the training?
No, I didn’t have time.
If a person does not make time to learn how to operate their network marketing business, how can they expect to succeed?
2 – Taking Action on Non-Income Producing Activities
People can be busy all day doing a whole lot of nothing. That type of busyness won’t lead you to network marketing success.
In the past, I’ve heard from people who said they were busy all day working on their business but didn’t get any positive results.
It’s mainly due to spending time on the wrong activities. That is those activities that don’t contribute to producing an income.
A person can be on Facebook all day long just reading the news feed or liking posts. That is not an income-producing activity.
On the other hand, income-producing activities involve talking to people about your products or business and inviting them to take a look.
Instead of spending the majority of time on non-income-producing activities, change the ratio. Spend 80% of your time on activities that can have a direct impact on your network marketing income.
3 – Having the Wrong Expectations
Many people come into network marketing with incorrect expectations.
I remember talking to a guy who was so eager to get started. He expected to be making N1Million a month by month 3!
If a person has that type of expectation, they will be disappointed. Sure, there are maybe a tiny handful of people that can achieve it but it takes a LOT of work.
It’s not a reasonable expectation at all.
Another false network marketing expectation is that everyone you talk to will be just as excited about your products and business as you are.
Again, that is simply not true.
With great expectations comes great disappointment.
Understanding the nature of any network marketing business is a must so you can set yourself up for success instead of failure.
I hope you got value from the Top 3 Reasons You’re Not Making Money in MLM.