Failing in Network Marketing

Many People Fail in Network Marketing but it’s Often NOT Their Fault

Although the failure rate in network marketing is over 90%, thousands of people build a home-based network marketing business in an effort to become financially independent. The high failure rate can be explained with more than one reason but the main reason is that many network marketing companies don’t have business models that include distributor support. Without support, you’re doomed to fail from the start.

Here are other compelling reasons why you can’t blame yourself for failing in network marketing. It doesn’t matter if you have completed the training, had three-way calls with prospects, bought leads, attended company events, and everything else you may have done: you failed. Before you start blaming yourself and wondering what is wrong with you for not succeeding, keep reading.

The most important reason for your failure is a lack of attention and care from your network marketing company. If it doesn’t have a strong foundation of integrity, it’s extremely hard to succeed. You can also think about the multi-million dollar home offices that you have seen on the companies’ websites. Where did the money come from? It came from the compensation plan. Network marketing companies don’t have several streams of income; they only have the compensation plan. The money may not make it back to YOU in the compensation plan.

Now think about those large and expensive home offices again. How do you think they stay beautiful and well maintained? Cleaning staff, ground upkeep, utility bills, workmen’s compensation, 401(k) s, vacation pay, sick pay, and holidays are eating up money. Add the bonuses and wages that a company must have for its employees and you can see that a large share of the money in the compensation plan is going that way.

Although you and many other distributors will likely never use your company’s multi-million dollar building, you still have to pay for it. Many would see it as unfair and that’s not even including their future plans. Don’t you think that they will keep on spending more money? You got it.

Another thing to consider is the cost associated with your company’s warehouse. They have to keep all this stock somewhere, right? It would make sense to keep it in a warehouse in an industrial district with low costs and cheap rent. You may be surprised to hear that it isn’t the case for most network marketing companies. They keep their warehouse right next to their million-dollar office. Sure it looks nice and impressive, but it’s also a major drain on funds.

Hopefully your eyes are now slightly more open to see why failing in MLM is likely not your fault. The mlm business model of your network company is likely to blame with its large overhead expenses that are funded by the compensation plan. Once they’ve paid all their bills, there is little left for you and the other distributors.

Not all companies are the same and there are some great network marketing companies out there with very strong business models that were built to support the distributor. Do your research and you might just find one for you.

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