Why network marketing is not working
Network marketing promises one of the best solutions for our money problems.
It seems so easy and simple (and it is).
All you have to do is sign up, get 10 people to also sign up. They get 10 each (gives you 110) and they get 10 each (gives you 1110) , etc. If you earn R10 on each person in your business you will be making a forunte. And what did you do? You only signed up 10 people and teach them to do the same.
This is the theory.
But how realistic is this. Can it work that way?
My experience is that it does not work that way for various reasons.
There is nothing wrong with the concept but the following are reasons why the theory does not work 100% as advertised.
1. Peoples’ limited believes and narrow mindedness – This is the one biggest reason why the network marketing concept does not work. It is so simple and easy that 95% of the people does not believe that they can make money so easily. One thing with MLM is that if you do not believe in what you do or have a passion for the product you are promoting you will not make a success. So most people get involved in a MLM business half heartedly. They start off with the idea that it is to good to be true but they will try anyway. So their attitude is the first thing that ensures their failure.
Another problem with people’s attitude is that they have been so brain washed with the idea of “you have to work hard for your money” that they do not believe that there is an easier way to make money than grinding the mill each day. So if you show them an easy way to make money, they just do not believe it. If you are one of those folks, please wake up. You are doing yourself and your familya huge disgrace.
Work is not supposed to be hard and terrible. Work is supposed to be something you love. Do yourself a favour and complete the following steps. I promise you that after you have done this a whole new world will open for you.
a. Subscribe to the FREE eCourse at http://www.inspired-entrepreneur.com/entrepreneurship_course . This course is about “The job you were born to do.” You are supposed to love what you do each day.
b. Go to your local book store and buy the book called “Rich Dad, Poor Dad” by Robert Kiyosaki. It is a world best seller and all bookstores would have it in stock. Or go to http://www.businessbooks.co.za and find it under the personal development section. Once you find it READ THE BOOK
By completing above mentioned two steps your attitude towards your time freedom and the way you earn money will drastically change.
If you can overcome your narrow minded attitude towards network marketing it can be as easy as you find 10, who finds 10, who finds 10 and within 6 months you can be earning R20,000/month.
2. Another reason why network marketing does not work is because most of the companies who run most of these businesses teach the wrong concept. Most of them believe that if you signed up your ten people you must teach them to do the same. You must teach them to also find 10 each.
In principle I have no problem with this concept except that 95% of the people who signed up in the business does not know what to do in the first place. So if you do not know what to do or how to do it, how will you teach your new recruits to do it?
Or if we look at it at a different angle, if you do not know anything about mlm, what will you teach your new team members? The same nothing you know?
In theory the “I teach you and you do the same” principle can work. If the new company starts off with ten experienced networkers and they teach their new members, etc, etc then it can work.
But what these companies do not realize is that being a networker is not something that happens overnight. Being a network marketer is a profession just like any other profession. It takes time to learn how to do it successfully. You cannot sign up somebody, give him one or two lessons and then expect him to start training others to do it.
To sum it up: In my experience as network marketer I found that the two main reasons why people fail in network marketing are their own limited narrow minded believes and lack of training from the company’s side.
The Solution:
Hopefully the exercise I gave you earlier will help you with your attitude and limited believes. That is not something anybody can change for you, you have to do it yourself.
On the company and training side I know this one company who tends to do things right I can see that the success rate of fellow networkers are far better in this company than any one of the others I have been involved in the past eight years. The one big difference is that the owner of the company personally train all the new members by means of online courses, eBooks and daily motivational emails. You can even try it out for free for 9 days.
Go register for the free trial at http://www.bemotivatedtoday.com/1239 and have a look. This system does it all for you. When you register you get your own free web page which you use to promote the business. All you have to do is promote your link. From there the system does the rest. It sends out the follow up emails and it trains your new recruits.
MLM | Pieter | January 28, 2009
earn, MLM, money, motivated, network marketing, rich dad poor dad
Yep Pieter, I totaly agree with point nr1. People are narrow minded. They just don’t see the potential. About 10 year ago I signed up with one of these MLM’s that sell health products and got nowhere slowly. It doesn’t matter how good the product or commision is, it must be affordable. Especially in today’s economic climate.
Thanx for the great eBook on passive income. I’ve already started applying some techniques. I’ll get there eventually.
Groete
Pieter Joubert
Hi Mark. That is why it is important to choose the correct one. Personally I do not like MLM with physical products. After being involved with BeMotivatedToday for 7 months now I also do not feel to look at MLMs where you have to take people to meetings either.
If you choose the correct one it can be so much easier. With BMT I do not have to work 24/7. If I spend an hour a day it would be much.
As for the numbers, one of the biggest MLMs in South Africa took something like 9 years to grow their business to 1 million members. Then there are about 500,000 people who leave school each year. If you do your calculations that way round you will see that it would not get saturated very quickly unless you have a brilliant plan which can get 20 million people to join within one year.(Which is about 55,000 per day and I am glad I do not have to sort out the admin)
I agree 100% that there are many people who never make money with MLM. That is why you have to start it with a winning attitude so that you can be among the couple who do make money.
Thx for an interesting read,
I believe there is another reason MLM doesn’t work and that’s the maths issue.
If you DO get 10 people and they DO get 10 people each etc. etc. and everybody does what they must then you won’t have enough people on the planet to complete the matrix.
And of course if you battle to get 10 people and they battle and the whole thing collapses then it did not work either.
So either way you lose.
I believe that if you choose to run a MLM business then you need to make it your full time job and work at it 24/7. You need to recruit and train and recruit and train till the day you die!
I have clients with HerbaLife that have been with them for more than 15 years and they still work their butts off.
People need to be very careful before choosing a MLM company/business.
Keep Evolving
Mark