Why Most People Will Never Make Money in MLM - The Truth Revealed

By Martise A Armstrong

One of the most startling and shocking statistics about Network Marketing for me is that about 98% of all Network Marketers end up failing in their businesses. And when you think about it, isn't that crazy? 98%!!!! Do you know what that means? That if you put 100 Network Marketers in a room, only about 2 of them will be making any significant income!... I've got 2 words for that: Absolutely Ridiculous.

According to one company's statistics, only 1% of that particular company's distributors or associates made any income at all. And out of that 1% who actually made any commissions, only 10% of those people made over $100! Again: Absolutely Ridiculous!

And the sad thing is that no matter how much we may think our company is different, the truth is that it's not! Just look at your company's income disclosure statements. You'll see that this is true.

But the question is: "why?" Understanding why so many people fail will help us to understand what not to do; and will also help us to see what we need to start doing in order to get results. Does that sound like a good idea?

So, let's see if we can get to the root cause as to why so many people fail in Network Marketing.

From my many years of experience being around and studying Network Marketing, I have found out what things that ARE NOT effective in growing a Network Marketing business, and I'm going to list these things here so you can avoid them in the future, and stop doing them if you are already using them. Then, afterwards, we're going to go over why your Network Marketing companies tell you to do these things in the first place. Then, you'll be able to finally have clarity on what this industry is all about, which will empower you to make wise decisions for your business in the future that will actually make you money. Once you understand this information, you will absolutely not be able to fail in your business. You won't be able to help it - you WILL have success. So, pay attention. And make sure you save this information and share it with as many Network Marketers as you can. We all need this!

So, here it is:

Things that aren't effective (and that end up wasting your time, money, and energy):

1) Approach your friends and family

This doesn't work because it's based on the idea that your friends and family will join simply because they know you, and you have a certain level of influence on them. So, in effect, we end up asking them to "do us a favor" and join our business.

But, true marketers know that unless your friends and family have a need for your products or services, you shouldn't even be approaching them in the first place. And if they did have a need and you felt that you need to approach them, then make sure you don't "sell" them. Just let them know what you have, how it can help them, and then ask them if they want to move forward. Don't pressure them. They might come back to you later.

The key is: don't bank on your friends and family. Understand that no successful business of any kind - including Network Marketing - is built around friends and family. To verify this, look at one the top earners in your company. Look at who makes up their downline. I can guarantee that all of the people are NOT friends and family. In fact, out of the thousands of people in their downline, maybe a couple of them are actually friends and family, and they probably only joined AFTER the top earner started making good money! I'll show you a way to have thousands of people who would actually love to buy your products and services.

2) Apply the 3-Foot rule

The 3-Foot rule states that you need to talk to anybody that breathes, be it at the mall, in a restaurant, at gas stations, in parking lots; passing out flyers, DVD's, brochures, and business cards in an attempt to bring someone in your business.

Again, this isn't very effective because it is based on the theory that everyone is a prospect. But, just as we mentioned above, a true marketer understands that unless someone has a need for your products or services, they are not a prospect. Or even more specifically, unless they have given some sort of indication that they may be looking for the benefits of what your products or services have to offer, then they are not a prospect.

In other words, if you sell a health care product such as vitamins or a juice, although everyone may need to take care of their health, not everyone is interested in doing so. So, unless they have given you some sort of indication that they have an interest in improving their health (and not just a need to do so), then it would not be a wise use of your time to approach them about your business. Like I said before, there is a way to get a hold of thousands of people who all have shown that they want what your products and services have to offer, and the 3-Foot rule isn't the way.

There are other things that are quite ineffective, but these are 2 of the biggest. So, needless to say, if you are using these strategies to grow your business, you may want to stop. These have proven to eat up money and time.

Now, here's the part that might get you upset: Our Network Marketing companies know that these strategies are not very effective. These strategies have been taught for years and years, and the failure rate has been about 98% for all of those years! And these MLM companies know this when they start!

So, the question is: Why do our Network Marketing companies teach these strategies, knowing from the start that these strategies are going to produce a 98% failure rate?

The reason why is because they are in the business of making money, and they realize that the Network Marketing model is a great one in order to explode their own profits! Here's what I mean:

When you gets started in an MLM, you pay a startup cost, which may be anywhere from maybe $10 to about $600.

After you pay for that, then you have to pay for your products or services, which from what I've seen, could soar up to about $250 a month!

Add to that the costs of DVD's, brochures, flyers, business cards, and the monthly fees for any websites that, of course, they recommend that you get. Not to mention, the company "trainings", events and conventions! All of this equals huge profits for the Network Marketing companies. And since they know that you will not make much money or no money at all, they know they will not have pay much money out, since only about 2% actually make a descent income using these tools and strategies.

So, doesn't that sound great if you were a Network Marketing company? Huge profits and low payouts! Sounds like a great deal to me!

But unfortunately for the actual Network Marketer, this setup usually means thousands of dollars of debt and never being able to break even; leaving thousands of Network Marketers wondering what went wrong, and why they can't seem to make any money.

What ends up happening is that the Network Marketer ends up jumping from company to company, not making much or any money in any of them, thinking that the problem is with the product or the service, or that there is no one who wants to buy those particular products or services.

But in reality, the problem lies in the Network Marketing Company basically setting us up for failure! Do you guys see how that works? Again guys, I want you to understand that this is not theory. All the facts that I've stated here can be checked. These facts are all true.

My belief is that if you are going to get into something, you have to know exactly what you're getting into. Don't you agree?

So, armed with this knowledge, hopefully this gives you more clarity as to what this industry is all about. Hopefully you'll feel empowered- more determined- to do business the right way and avoid these money-sucking activities.

So, what is the right way to do business? How do you really obtain success in Network Marketing? Well, since it's obvious that our Network Marketing companies don't have faith in us, what is it necessary for us to do if we want to succeed?

We need to have 2 things:

1) Proper knowledge of how to market effectively

2) Develop the proper skills to having success.

Since it's obvious that the strategies taught in Network Marketing don't work, it only makes sense to acquire knowledge OUTSIDE of the Network Marketing industry. If we look at any successful marketer, we would see that he uses other techniques not taught in Network Marketing, and has acquired certain skills that you are not encouraged to learn in our industry.

First of all, they have learned how to truly market. These big earners do not do time-wasting activities.

How many times have you seen a 7-figure marketer chasing down people in parking lots, or practically begging people to join their business? Ask that guy or gal if they still bug their friends or family; or ask them how much of their business actually came from passing out business cards or applying the random 3-Foot rule!

The truth is: a long-term successful business cannot come from doing random activities, such as the ones mentioned above that your companies teach you to do. The 2% that actuallly make a good income in our Network marketing companies (or in any business for that matter) know how to do the 1st thing mentioned above very well: THEY KNOW HOW TO MARKET!

That's true! They know 2 things extremely well that comes under this Marketing category: 1) They know their Target Market. This is a description of people who are more likely to buy your products or services and join your business. And (2), they know an effective Market Message. In other words, they know exactly what words to say to get their Target Market almost falling over themselves to buy. And most likely, they share this same knowledge with their own downline, which, of course, ends up growing their downline even more, and in effect making them more money.

Have you ever wondered how come it always seems like the big earners in your company always seem to get a lot of other big earners in their downline? It seems like all the money-makers are all in one person's downline - doesn't it? Well, now you know why! It's because they know how to market effectively and they teach their downline how to do the same thing.

So, again comes that nagging question: Why doesn't our Network Marketing Company teach us how to market effectively, instead of teaching these strategies that seem more like busy-work than anything else? Well, besides the reason we mentioned at first (that it's not convenient for their pocket-books), another reason is that these dead-beat strategies are easy to do! Our Network Marketing companies know that we do not have one particular thing that is necessary for success: Skillset!

You see, our Network Marketing companies know that even though they tell you that "everyone can do it", the truth is that they know very well that it takes a proper skillset to be successful. They just tell people that "everyone can do it" so that it will inspire more people to join. And if more people join, then doesn't that mean more people buying more products and services; attending more "trainings", events and conventions; buying more flyers, DVD's, brochures, and business cards? They know that you'll probably spend hundreds or even thousands of dollars on these "tools", and bring in a few other people who will spend about the same amount of money. And since they know that only 2% of the people will actually make money, they know they probably won't have to pay you much or anything at all! Yes, they know that they can make tons of money off of the "average Joe", because they know that the "average Joe" doesn't have the proper skillset to make a business successful. Does that make sense, guys?

So, how do we as average Network Marketers curve that 98% failure rate?

1) We have to learn how to market correctly. And

2) We have to apply that knowledge into our business. And over time (perhaps a matter of months - usually after about 3 months of applied knowledge), we will come to acquire a skillset which will stick with us no matter what we do, even if we decide to switch business ventures.

Unless we stop what we're doing right now, and dedicate the rest of our time mastering these 2 main components, we are doomed to failure!

So, apply these points in your business. Stop doing things that are wasting your time and energy, and that are just getting you into debt. Stop applying the techniques that your company - who really does not have your best interests at heart- is teaching you to do. Invest in your self-growth. Learn how to market correctly, and spend your efforts on building your skillset. This is what will stay with you for the rest of your life.

By doing these things, you will be part of the 2% of all Network Marketers who finally make it happen with their businesses!

To find out more specific information on growing your business correctly and fast, go to http://expandyourdownline.com. Also, to find out a specific process for having success in a matter of months, go to: http://expandyourdownline.com/networker.

Article Source: http://EzineArticles.com/?expert=Martise_A_Armstrong