There are many great articles out there; a lot of great information floating around about network marketing. Well, strike that. There is a lot of information floating around about network marketing, but it is not all that great. It seems to me now that everyone wants to jump on the bandwagon and "sell" the secret of why MLM / Network Marketing Ventures fail, and want to be the one to "sell" you the "real" truth about what it takes to succeed. Obviously, if you use "their" program, then "obviously" you will succeed. So what are you waiting for?
friends, neighbors, fellow entrepreneurs and network marketing gurus, I
am here today to blast the "secret" all over kingdom come. I'm writing
the one article that will rock the Internet, will shake the MLM business
down to its core, and will forever change the face of network
marketing. OK, maybe it's not going to be that earth shattering, but it
will be some good information. Unfortunately, I'm about to destroy the
latest MLM "selling the secret" rage. Six thousand businesses are about
to crash, because I'm going to give it to you free. It won't cost you
So what is the secret? Why is it that MLM / Network
Marketing Ventures fail? Are you ready? Is your pulse pounding in your
temple, your breath caught in the back of your throat? Has time slowed
to a crawl and the drum roll sounded as the highly sought after, much
coveted secret information is about to be revealed? Sorry to kill the
climax, but let's look at something else first.
I recently read an
article by Mr. Devlin Smith - 7 Tips for Network Marketing Success,
May, 2005. I thought Mr. Smith's article had some merit. In it, he
identifies six key elements that are crucial to the success of any MLM /
Network Marketing Opportunity, with which I agree. These are:
o Company Stability
o Excellent Products / Services
o Excellent Compensation Plan
o Company / Management Integrity
o Momentum and Timing
o Support, Training & Business Systems
then read a related article by Mr. Michael Sheffield - Why Some MLMs
Fail, August, 2003. In his article he identifies the reasons for Network
Marketing Company failures. They are:
o Inexperienced management
o Insufficient capital
o Ineffective distributor team
o Inability to recruit distributors
o Incommensurate compensation plan
o Ineffective products
o Lack of uniqueness
let's face it. MLM / Network Marketing Opportunities have come a long
way. There are many companies that have the six key elements, but 97% of
the business owners are still failing. There are many network marketing
companies with experienced management and sufficient capital who have
effective teams and are able to recruit distributors, who have great
compensation plans, effective products and unique opportunities (whew!
that was a mouthful) - 97% of the individual MLM / Network Marketing
distributors don't make it. WHY??
OK. NOW here it comes (drum roll please, but don't hold your breath).
main reason that people who work at home, who utilize MLM / Network
Marketing as their home based business model fail in their home business
is this. It's wrapped up in the titles Multi Level Marketing and
People don't know how to market.
The Cat is out of the bag. Colossal, huge million-dollar secret rocks
Internet! Wait! Did you blink and miss it? Let me throw it out there
People don't know how to MARKET. The MARKETING part of MLM and Network Marketing.
People don't know how to market their business.
People don't know how to market their product.
is so much hype out on the Internet today. Everyone advertises that
their plan is the easiest, you don't have to do anything; just sign up
and make it rich. You've got to ask yourself, "Self, if I can sign up,
do nothing, and get rich, why isn't everyone doing it?" Because you and I
both know this is not the case. To me, this mode of business building
doesn't make much sense. If I sign up a bunch of freeloaders who want a
home business that's free and easy, who expect to do nothing and yet
make money, what is my business going to look like? It will look like
exactly what it is. I'll have a bunch of bums signed up who will
contribute absolutely nothing to their success nor mine, who will blame
me that they didn't succeed. My business is doomed to failure. Well, I
don't need any more of THOSE pancakes, thank you very much.
most people know better than that. They know there has to be SOME work
involved, but even then, they get immersed in a program or opportunity,
still not knowing exactly what it takes to be successful. The one thing
you NEVER find is someone saying, "Look dude, they only way you're ever
going to make it is if you know how to market your product, service, or
business." It's the one key that is ALWAYS missing. I don't care how
great the program is, how unique the opportunity, great pay, great
product - in the grand scheme of things, it just doesn't matter. If you
cannot get that opportunity out to the masses for them to see or use,
you're going to fail. You can go search the Internet right now and find a
number of "great" systems and software that will supposedly help build
your distributor network. But none of them work AT ALL unless someone
else SEES it.
To me it is reminiscent of all the diet marketing
you see on television. Whatever the pill, drink, meal, shake, etc., the
marketing always includes the phrase, "with proper diet and exercise."
With their phenomenal product, AND diet and exercise, you'll lose
weight, VIOLA! But then I say to myself, "Self, if I just had the proper
diet and exercise, I would lose weight and wouldn't need their awesome
product. In fact, I NEED your product, because I DON'T diet and
exercise." It's the same way in MLM / network marketing circles. People
don't know how to market, so they need programs and software and schemes
that will do the job for them. Accordingly, there is an entire
ancillary network marketing industry that's making millions of dollars
selling the shovels required to mine the gold. Selling you all the
marketing tools you need to be successful.
What a deal. What's
really interesting, is that if you ask around, you will find that most
people spend more money on the plans, software and programs, TRYING to
entice distributors, then they spend on using or marketing their product
/ service / business. It's like this massive rat race, everybody's
wheels spinning, running in circles, spending enormous quantities of
cash in every direction, except in the one direction that can really
make the difference. So at the end of the day, when all is said and
done, the money was spent, no marketing was performed, Joe Home-Biz is
broke, and he's now one of the 97% who only made it three months before
his business caved in. Hey, but that's OK, because at 100,000 people
looking for a home business every month, there will be a long line of
network marketers lining up for the newest program, who still don't know
what it takes to be successful.
So what's the answer, you ask?
Why, Thanks! I was hoping you'd ask that question, because now it's my
time to shine!! I'm neither a network marketing guru nor an expert. I'm
actually a Safety Professional, so if you need help with OSHA
regulations, I'm the guy. But I've also been through the school of hard
knocks within the MLM / Network Marketing Industry, and so will make a
few observations. (If you've read down this far, you might as will drink
your coffee and finish this article!)