Building a business is not easy.  It is a well known fact that over 90 percent of all businesses fail within the first five years.  Network Marketing / Multilevel Marketing businesses are no different.  However, MLM businesses have unique traits and therefore unique reasons why more people are not as successful as they could be.  Listed below (in no particular order) are the top 6 reasons people fail in MLM businesses.

Reason Number 1 – Price of entry is low

Yes…this is one of the major reasons a lot of people are unsuccessful in network marketing.  Because the price of entry is so low, a lot of people treat it as a hobby, not a business.  It also makes it easy to walk away.  You can give up on an MLM business where your total “investment” is $50 to $1000 a lot easier than you can walk away from a franchise business where you have invested several hundred thousand dollars to over a million dollars.  The irony here is that network marketing truly has the capability to produce more profits to the owner than most franchises.

Reason Number 2 – Lack of consistent effort

Similar to the first reason, a lot of people get involved in Network Marketing and work at it only when it is convenient.  The most successful people in Network Marketing have a plan and schedule and work that plan on a daily basis.  If you only have one or two hours a day to work your business, then have a plan for that one or two hours and work to your plan every day.

Reason Number 3 – No system or failure to follow the system

If you do not have an up line with a proven system that works for everyone who works the system, you have lost already.  A large number of people who get into MLM do not follow the system their up line has in place and try to create their own.  Unless you have years of experience in THIS industry, then you should follow the success of others who do have that experience.

Reason Number 4 – Failure to get trained

It is an interesting characteristic of the network marketing business that quite a few number of people that start an MLM business do not believe they need to be trained in how to do the business.  This in spite of the fact that most professionals either require years of training or college, and additional years of experience, to be successful.

Reason Number 5 – Unrealistic expectations

Sometimes this is due to how people are recruited.  Promises of get rich quick, an easy business, all you have to do is get three, etc., etc. do not do anyone justice.  When the success does not come as quickly or easy as expected, the new distributor says “this doesn’t work” and gives up.

Reason Number 6 – Not enough budget

Some people get in MLM thinking their only “investment” is the initial product order or the distributor entry fee.  You need to have a budget (like any other business) for phone expenses, travel, training, internet, etc.  Many people are surprised with the required normal business expenses if not forewarned.

In summary, a lot of people fail in network marketing, not because of the type of business MLM is, but by not treating it like a business or not doing the necessary research before getting involved.  Not having or following a plan, not taking the time to get trained, or not taking consistent action are the fastest ways to fail in Network Marketing, or any business.

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