The Reason Most MLM/Network Marketers Struggle

Read More: Mindset  |  Personal Development

Back in early September 2008 I attended a marketing seminar and conference. I met up with some old friends and made a few new ones. More than this though, I also spotted a trend some people have mentioned for some time.

You see, so many people were just doing things wrong!

A few weeks ago I was facilitating a strategy session at a large corporate - sales managers from 6 different countries had come together for 3+ days of strategising... and they were also doing it wrong!

Now this is only my opinion, and I go in to more details in my network marketing manifesto and workbook, but here is the gist of it. I hope it generates new insights and choices for you that get you closer to where you want to be.

A lack of fundamental business building knowledge is really a major root cause for so much struggling, time wasting and tears. It is sad and tragic. It’s the overwhelming reason why typically in excess of 97% of people that start in MLM will fail to achieve their dreams, even if they do everything the MLM company says, they buy lots of products, keep stock and work really very hard.

For example, profit does not mean you will survive. Cash flow does. The two are not the same, and woe betide you if you don't get this...

Making a tiny margin on each item you and your downline sell is OK if you are selling these quickly - it's how large supermarkets can make massive amounts of cash, even though they only make pennies per item...

Knowing the true value of your time is the key to making the right decisions about how to grow your business. Richard Schefren explained this pretty well, yet I'm amazed how many people in all kinds of businesses don't get this either.

There's a lot of conflicting information doing the rounds, and if you are in some state with your finances for example, well, chances are you will hear what you want to hear... such as some of the lies and myths out there about the fact you don't need (much) cash to get started, or no training is needed, or even that there is no selling involved. Students of Ann Sieg will be familiar with some of this.

So do yourself a favour and get a decent understanding of business fundamentals. Read Ram Charan's excellent "What The CEO Wants You To Know".

Have a good one!

With very best wishes for your own success,

Martin Schmalenbach


Martin Schmalenbach helps individuals and organisations make informed decisions about enhancing business performance. He has worked all over the world with all manner of individuals and organisations. Involved in MLM since 2001 he is the author of The Network Marketing Manifesto & Workbook. He lives in the south of the UK with his wife Tracy.

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About the Author: Martin Schmalenbach

Member Since: 01/31/2009

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This is great information

Martin you said it. Making a profit does not mean that you are going to retire, having a constant cash flow will. This is one reason, of my many, why I will never by an affiliate program again. I paid for one and it did not do a thing for me. I also had a lady call me about training me for $2500, guaranteeing me that I would make $50,000 by the end of the year. Man am I glad that I dodged that one. I would rather make money off of my opportunity then to constantly try to sell an affiliate program any day. Yes people do make money from them, but that is not the point that you, I assume, and I are trying to make. The point is that you are going to have to sell this affiliate program for the rest of your life if you are trying to make a living off of it. This is not what I would call a good retirement plan, especially if you cannot replace your full time income with your part time income. 

Best wishes to you,

Alfonzo Gasaway II

Alfonzo Gasaway II — Mon, 02/02/2009 - 5:43pm

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