Sure, 95% of network marketeres what?!

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Sure, 95% of network marketeres what?!

Postby Timothy Norton on Tue Oct 20, 2009 3:17 pm

Sure, there is a high failure/dropout rate in network marketing (like 95%?), but there is a 95% percent failure rate in any business. Even Michael Gerber writes about the fact that 90% of small businesses fail in the first year and about 90% of those that make it through the first year will fail in the next five years.

What is that, a 99% failure rate among small businesses in general? Whenever you mention network marketing to someone and they say "no one makes money in those things" or "most people never succeed in those" please remind that person that 99% of people who start any kind of business don't succeed.

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Re: Sure, 95% of network marketeres what?!

Postby Ryan McMullen on Tue Oct 20, 2009 8:06 pm

Yup, it's pretty easy to bash the network marketing industry because so many people fail, but how many actually gave a REAL effort?

Tim Sales says it best when he compares the industry to golf. Basically, you go out spend thousands of dollars on equipment, you don't play well, get bent out of shape because of the money you spent and you give up. Who failed? Did the equipment fail or did you fail? An able golfer can pick up those same clubs and shoot great.

You don't see too many blogs out there bashing Titleist because their clubs are faulty and are making people play bad. Boy, do you see a lot bashing our industry. We could spend the day listing why that is, but I agree with you that, "So What?!" How does what 95% of people are doing totally wrong affect my business?

Thanks Tim
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Re: Sure, 95% of network marketeres what?!

Postby Sandeep Nath on Wed Oct 21, 2009 12:49 am

Roger, I might be wrong but I sense a thought-mix-up here.

Generally reimbursements are not an issue in network marketing.
Generally training and practice are critical to network marketing success.
Generally people expect to become overnight millionaires in NM and the golf analogy is a reality check.

That said, I have 3 observations about quitters (there are no failures, only quitters) which I just shared on another post:

1. 'Quitting' is a personal trait, not an industry issue. The quitters will quit anything when the going is uphill. Network marketing is great because it creates an uphill really fast (usually by the next morning) and thus filters out successful people automatically.

2. Dropouts are higher when people join 'somebody else' in business. When they start their own business dropping out hits ego, and is therefore less. So how do you position your opportunity? Yours or theirs?

3. Having a systemreduces dropout rate because newbies get something to hold on to and learn from, even while their sponsor is doing other things. In the process they grow and that strengthens them to not quit.
“...principles that will help you grow, not only in business but in life... in this well written treatise.
No networker should be without this book.”

- Doug Wead, Bestselling Author, Adviser to 2 US Presidents, Networker and Historian
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Re: Sure, 95% of network marketeres what?!

Postby Steven Johnson on Wed Oct 21, 2009 5:15 am

95pct (or higher) fail in network marketing because the industry has largely operated like this for 70-odd years:

1. 3-foot rule or "vapor on mirror inserted under prospect's nose" test

2. sponsor anyone who passes the test

3. go to prayer meeting after they sign up (where everyone PRAYS that some small percentage will magically morph into actual marketers)

Alternative strategy (mostly thanks to heavy worldwide broadband market penetration and it's logical result - social media marketing web sites)

1. TARGET people who are ALREADY MARKETERS and ENTREPRENEURS (the "B" quandrant types of the Rich Dad / Poor Dad map)

2. Work with them to become BETTER NETWORKERS (oh, is that the name of this site? )

3. THEN and ONLY THEN invite them into your business - AFTER they have proven they can market, take direction, grow into leadership, etc.

I bet you wouldn't have 19 out of 20 drop away with the 2nd approach...
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Re: Sure, 95% of network marketeres what?!

Postby CLIFFORD COVILL on Wed Oct 21, 2009 7:51 am

I think Steven put it best.

I would just add the comment of are you looking for short term gain or long term investment.

If Short term gain then just go out and recruit anyone and anybody to get the usually quick start up bonuses companies offer. Of course your attrition rate will be sky high regardless of what kind of support you offer.

If Long term investment is what you are looking for then Steve's Alternative strategy is what will bring a long term large residuals to you.

Of course the Heavy Hitters do a little of both. They study their ROI closely on Short Term fast start gain with recruiting beginners via Internet Marketing and then look for other Heavy Hitters for long term growth potential.

To your success,
Cliff Covill
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Re: Sure, 95% of network marketeres what?!

Postby Anthony Morris on Wed Oct 21, 2009 8:32 am


I just want to say business is a business no matter what you do, and, quitters only win one thing, not achieving.
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Re: Sure, 95% of network marketeres what?!

Postby Colleen Rocha on Wed Oct 21, 2009 9:11 am

I got some really great pointers from every post.
But the bottom line is that in every industry and all factions of life the 80/20 rule applies.
20% of people carry most of the load and 80% don't do anything.

You can throw in all kinds of marketing and industry information out there and it is all true but fact of the matter it; this rule will apply no matter what.

So I am now out there looking for those 20% (I guess those become my targeted market) and with a few quick questions I am able to determine who they are and concentrate on working with them.

Great info. though from everyone. I just love this site!!!
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Re: Sure, 95% of network marketeres what?!

Postby Jeffrey Taylor on Wed Oct 21, 2009 11:02 am

There are many reasons people fail at small business and home business. I have worked w/ small business owners for years and the reasons many of them fail are similar to why many MLM people fail.

Poor marketing skills, lack of leads (customers), and eventually they run out of money!

Sure there are lazy people w/ distorted realities. But i have met people that worked 12 hour days at their business and still failed. Why? Because they were good at what they did but lousy marketers. They did not seek out the proper training and eventually they ran out of money.

As far as MLM goes I think the Tim Sales analogy is painting a broad brush on everyone that fails. Realistic people do not buy expensive golf clubs and expect to be Tiger Woods. However, when a newcomer to MLM buys a hyped up marketing system they expect it to work. Even worse, when a newcomer signs up under the illusion that an outdated duplication system is their ticket to success are they suffering from unrealistic expectations?

When it comes to the 95% Failure rate there is plenty of blame to go around.

Yes, I agree that a certain percentage of people should have saved their money and never gotten involved. They just aren't cut out for home business. Some are just lazy, some are desperate for a quick fix to their money problems, and some are just not ready to work on their own.

I also realize that there are a lot of quick buck recruiters out there hyping up potential to prospects and saying whatever it takes to get that sale. Then they leave the person out to dry once they sign.

But, MLM will have a hard time ridding itself of the bad rap as long as major companies and top company trainers keep shoving the old outdated marketing systems down the throats of newcomers as the most effective way to build their business. Unfortunately, many MLMs know that the churn and burn system works for their bottom line as long as they can keep the revolving door spinning.

Here is a great example of a letter i received from THE TOP EARNER at my MLM last week. Does this letter look like a system moving forward giving newcomers a solid system to grow their business or just a face lift to the same old marketing crap?

We've got a good problem.

XYZ is growing fast and has begun to transition from start-up to high-growth company. They have the systems in place, the operations in place and the sales are moving us forward fast.

It's time for the field of affiliates to transition, too.

Now that the new XYZ websites are here we can do this -- we can all focus on one simple duplicable website -- your website!

The company will be making an announcement soon that all non-corporate website need to be taken down. I've already taken down www, which many of you were using before the new websites. It's time to stop using your home made websites, too.

The reason this is so important is because duplication is more important than sales. What this means is that you might be able create a website that sells better to a certain group of people, but that website will not duplicate. You need a website and a system that EVERYONE can use. Multiple websites from different affiliates causes confusion among affiliates. It slows everything down and kills momentum. It's normal for a start-up, but it is a disaster for a high-growth company.

One team. One website. One system. -- these are the words that build empires. Everyone is on Team XYZ. Everyone uses the www, website. Everyone sticks with this system.

The paragraph above is probably the most important thing for all of us right now. As a team, we have to make the transition from start-up to high-growth company. I believe that as a team we can all make more than as individuals.

Let's do this together!

With passion,
Mr Top Money Earner

No where in this letter does it talk about personal branding or how to build your own team. The training system they are pushing is 100% chasing people and sending them to this new website. There is absolutely 0 internet marketing or attraction marketing anywhere in the fast start training manual. It is all warm market lead acquisition.

When I called to get clarification I was told by corporate that the internet is a distraction and you need to focus on their system. What???

A Network Marketing company is made up of many different teams. Although they have their rules there are always some teams that do better than others because of its leaders.

You may see dozens of different systems but there are usually a few that just seem to work better. I'll bet the best teams and their systems do not have a 95% failure rate. These are the leaders that smart people flock to. I just don't see how one giant one size fits all system using warm market techniques is effective for most people.

Now, I use personal branding and can work around this new system through my own marketing. But what about all the newcomers being fed a line of crap that this is the only system they can use. The new site has not even been tested yet and it is being hailed as the best way to build your business.

Not every person in the 95% number is a lazy get rich quick moron. In fact, I think that most people really do want to make it work. Those are the people that hopefully will go out and find people like Mike Dillard and Jonathan Budd to seek alternatives. Those are the people that hopefully will seek out team leaders teaching attraction marketing and providing realistic guidance.

My question to you is if you have a person on the phone w/ credit card in hand that you know will never succeed, do you take his money?
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Re: Sure, 95% of network marketeres what?!

Postby Jeffrey Taylor on Wed Oct 21, 2009 2:31 pm

Ah... The 80/20 rule, not to be confused with 90/10 rule brought on by the Peter Principle.

Wouldn't it be nice if we knew exactly who that 20% were? Remember folks we are dealing with human beings here and not statistics.

There are definitely ways to increase your odds by using carefully selected target markets and avoiding hyped up get rich fast ads, but in the end we are dealing with living breathing human beings.
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Re: Sure, 95% of network marketeres what?!

Postby Joyce Penner on Wed Oct 21, 2009 2:47 pm

You replied back to Ryan that Tim Sales was, in no uncertain terms, wrong. The difference in between your response and what Tim is saying is a very simple thing (although huge). Tim bought his clubs, paid for coaching lessons, practiced a bit and then quit. His golf clubs are collecting dust in his garage. He blames only himself for that. You on the other hand if I've read you correctly have gone out, bought the clubs, hired a coach and you're not in Tiger's league so you blame the coach. He scammed you, he didn't hold your hand, he didn't phone you up to get you off the couch. His fault - not yours. Tim freely accepts responsibility for his lack of success.

You response to Colleen was in a similar vein. Colleen is realistically looking at life in general and confirms the 80/20 rule. It's a given in all things, including network marketing. Twenty percent of her people will step up to the plate to swing and possibly make some homeruns. Eighty percent will show up for the game but won't practice in between games, some will come just to sit on the bench, some will come to play but won't give it the effort it deserves. She is going to focus on the 20% who practice, come to ever game, are enthusiastic, willing to do whatever it takes to win. Any coach does that with the understanding that if any player in the 80% come and say "OK coach, I'm ready to do it", he/she will commit to helping them too.

If you or anyone on your team is not seeing the success they feel they deserve, the first place to point fingers is the one looking back at them in the mirror. If the upline isn't there or doesn't know enough to train then it's their responsibility to find the training they want. It's out there but it will take some work and that weeds out the 20 from the 80.

To your success,
Joyce Penner
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