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[Linda Husser Contribution Level: 2]

There are many who join network marketing everyday. Most are highly motivated and can see the new house, car and stacks of money as they sign on the dotted line. But in 3 months, it's all down the tubes and they are badmouthing the opportunity. What do you think is the cause of this, and what can be done to keep distributors motivated?

[Joyce Penner Company: Life Force International Contribution Level: 8]

It's not Linda. It's the same with brick and mortar businesses - 90% of them fail (or quit) as well.

I remember a clothing store that opened in our little town. Two sisters decided to start this business, went out and purchased the building, the inventory, spent hours making the place attractive and then quit before a year. These two, never owning a business before, forgot or didn't even realize they needed to tell people they were there. They did nothing to market their business. And went away extremely bitter.

They forgot to take massive action to share with people what they had to offer ! Doesn't that sound familiar? No business background/education and no or the wrong actions to getting the word out.

That about sums up most network marketers and then they quit.

To your success,
Joyce Penner

[Chris Tryon Company: Jerky Direct Contribution Level: 4]

Linda, you are on a roll today. The failure rate/quit rate in mlm is so pervasive for a lot of reasons. I know I have quit my fair share of businesses in the last 20 years.

So, here are some of the reasons that I have quit. #1. I bought into the hype. I didn't realize at the time, that I am not a natural born sales person and thought that if I invited enough people to hotel meetings, once they saw the opportunity, they would readily open up their wallets and get started just like I did. That didn't happen. (Most of them never showed up for the meetings).

#2. Building any business takes time. More time than the average person is willing to commit to. Commitment is HUGE. Most people simply don't have that much persistence.

#3. This is the age of the internet and information over load. There are just as many systems to use for marketing your business as there are people to market your business to. And in most companies, there is just as many systems within the same company as there are people marketing the same product or service.

#4. Goes along with #3. Duplication. There MUST be a system in place that the average person can spend an hour or two a day working that they can achieve RESULTS with. The reason most people quit in 3 months is that they haven't earned any money, even though they have been trying to work the system. Or they simply run out of capital before they see a return on their investment.

I hope all of this makes sense to you. I am sure there are many others than can be added to this list.

[Peter Fuller Company: AdzZoo Contribution Level: 3]

I believe the reason the success rate is low is that it is so easy to start a business online. Just a few clicks, make a small payment, and you are in.

Compare that to starting a garage home business or a brick and mortar business, where you have a much higher barrier of entrance.

I have certain business philosophies that I also appy to myself.

For example, just because you join a Netwwork Marketing business does not mean you are automatically in business. You are just a consumer until you actively decide to build a business.

So, how does success rates change if you eliminate those who never move beyond being a consumer.

[Daniel Herzner Contribution Level: 3]

Great question, I can sum it up in two words: people quit. Nobody ever really fails at anything but most everybody is willing to give up when the going gets difficult.

Unfortunately there is a fair amount of deception in this industry. Plenty of people will say the things others want to hear such as it's easy to make money in MLM or join me and I'll build your business for you. So, it's up to the individual to make sure they're getting involved with an ethical person and a reputable company. But, on top of that, having a thick skin and a refusal to quit is the most important quality one can have.

[Tristan Richards Company: Organo Gold, Inc. Contribution Level: 3]

I wrote a similar post on my Blog about this topic, Why Only a few businesses make in on the internet.


Tristan Richards

[Kristoffer Claro Contribution Level: 2]

I agree with Daniel, people quit because it's the easiest thing to do when the challenge gets tough. I remember my first MLM experience. I bought in to my classmates hype and joined a network marketing not knowing what I was getting myself into.

I do the opposite of what my uplines do. When I get prospect that's excited and new to network marketing, I tell them to go home first and think about it for at least a day or two. I explained to them that I don't want them to join right away because their decision is based on emotion. Some don't come back and some do and those that do comeback understands the challenges ahead. Those are the quality people I look for.

One thing I've learned in this industry is you have to be honest from the start. I never sugar coat myself and about the business. I let them know what's expected and that they have to put work into it.

[Chris Brown Contribution Level: 3]

My friends owns a gym says that 80% of the people who buy a year membership will stop coming after 90 days. It is just human nature people will drop out.

In a gym the only what helps a person become motivated? It's a personal traininer . The same is true in a business you must hire a personal business coach. I am not talking about your sponsor in your MLM either.

[Jim Ticehurst Contribution Level: 4]

Linda I think that your question is most likely the one that is asked the most often in the mlm business and here is my 2 cents worth: I have recently left an mlm company where about 70% of the people that 'signed up' did so so that they could buy the product for themselves at discount. They had no desire at all to become distributors. So there's 70% who failed at mlm straight away (or so some would say).
Out of the remaining 30% I would have imagined that most of them had been in at least a couple of other mlm companies before they went there (lets guess at 2 out of 3) so that's 90% that have experienced failure? But is it really?
If I have learned one thing on this site it is this: most people that eventually get success in mlm are those that persevere. There are very view that join up and become an overnight success. Were I to join another mlm company (which I do intend to do) my mind would operate totally differntly to how it did before (yes, when I failed)... I would never imply that I would (or could) teach people how to run their business...there are some great websites where you have to pay to learn, but I now believe that that is the only way to learn. I just do not have the tools, knowledge (or patience) to teach people.
I read an article yesterday that said: 'The Pony Express' started in 1860 and althrough it captured the countries imagination it was financially disastrous enterprise and only lasted until October 1861' how soon we forget?... think of the success's not the failures! thats it, regards Nemo

[Linda Husser Contribution Level: 2]

Jim,
Thanks a bunch for that.. I hadn't even thought about the fact that people would join an opportunity to get a DISCOUNT? Now that is an eye opener indeed!