Online Marketing Unplugged

Wednesday, March 29, 2006

Why 90% fail in MLM...

About 2 weeks ago, I was speaking on the phone with a distributor who had just joined a 25 year old company.

He explained to me the reason why he'd joined a particular team he did and the logistics behind his decision.

I was somewhat shocked at his reasoning for pursuing that business.

However, I was even more shocked when he told me that the opportunity to make money was NOW.

But beyond all things said, I just about lost it when he said that they had the highest distributor retention rate in the entire world of MLM.

I didn't want to burst his bubble so I just wished him well and we parted ways.

About 5 days later as I was watering my lawn, I felt my phone vibrating and recognized the number on the ID.

After the normal greetings, I realized that this was the same guy i'd talked to just a couple of weeks prior. As he started to talk, I noticed that his voice didn't have that same tone of excitement.

A few minutes into his venting session, I found out that things weren't looking good at all for his newly discovered business.

He was frustrated and felt cheated.

He went on and on about the high advertising costs and "eye catching" ads his upline wanted him to place. He talked about the leads that they "recommended" using and the high conversion rate they were supposed to have.

Supposedly, he decided to buy leads and do the advertising instead of paying his electric bill (which was already 1 month late).

And yes, you guessed it... His electric was getting shut off the very next day.

It's so sad to see so many networkers going through similar experiences and trying to compare themselves to their supposedly "average upline" distributor.

It truly irritates me when someone from some company says that they have the newest breakthrough system that will erase the odds of their new reps failing in business.

I always hear how a certain system will completely wipe out the fear of prospecting...because you won't have to. Even worse, is the ridiculous claim that the product and the system will sell itself. yada yada yada- and so on.

Despite the snazzy, sexy, breakthrough exclusive system, 99% of the time it will boil down to
2 things...

1) You will have to pay devastating amounts of cash to get the proper ad space that will have a prayer of catching the eye of an unsuspected reader. Furthermore, you will have to run the ad multiple times to ensure the "effectiveness" of the ad.

2) You will have to sink hundreds or thousands of dollars into a "recommended" lead source from your upline.

The worst thing about these leads is that every single one of these companies will never divulge their source of how they themselves obtained these HOT leads.

That's it.

No matter how they will sugar coat their breakthrough technology...
It will always boil down to those two things.


This brings me to my closing point.

The reason why 90% fail in Network Marketing is because they will spend themselves out of their business faster than the money coming in from it.

All of this would be avoided if they only knew how to correctly market their business and create their own leads.
99% of Network Marketers don't know the first thing about MARKETING.
The 10% who DO know how to correctly market, are the ones who are wealthy beyond imagination and could rise to the top 1% in any company regardless of which one it is.
Read that last paragraph above, and you'll start to see what I'm talking about.
Stay tuned for tomorrows post that will leave you in awe.

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