Four Things That Make Network Marketing Success Hard

success in mlm network marketingIf network marketing is such a great home business opportunity, then why do so many people sign up and then make no money or achieve any level of network marketing success?

I hear this question from time to time, especially from skeptics who believe that the MLM business model is corrupt and destined to fail for most people.

I don’t think failure is a result of the business model itself. There are other factors that aren’t always obvious. Let’s take a look at four key reasons that people fail to make money and have profitable network marketing businesses.

Going Into Business for the Wrong Reasons

When starting a traditional small business, there is a process you typically go through. This process includes substantial market analysis, creating a solid business plan, and obtaining financing and operating capital. There is an understanding from the beginning that hard work and ongoing commitment will be required. It isn’t a quick decision but the result of significant research and planning.

In contrast, a network marketing business is very easy to start. Given the low cost of entry and relative lack of commitment and planning that is required up front, many people sign up for emotional reasons.

  • great ground floor opportunity
  • celebrity endorsement
  • encouragement from family or friends
  • told it was easy money for little work
  • hurting for money and looking for hope

So, right in the beginning, many get started without a whole lot of due diligence and thought. There is no firm concept of what it will take to make money and be successful.

No Cash Flow or Marketing Budget

Many new networkers go into business without considering ongoing expenses. There will be required product autoships or purchases, advertising expenses, etc. If they’re short on cash and struggling to make ends meet, it can be difficult to justify spending the money required to effectively grow a home business.

A great advantage of network marketing over traditional small business options is that you can start your business literally on a shoestring. It’s necessary to have a plan, though. You need some money coming in from the business as quickly as possible to cover your necessary expenses.

Lack of Sponsoring and Marketing Skills

Despite what anyone might tell you, network marketing success does require learning some sales and marketing skills. You never need to be like a commissioned salesperson who must close a sale the first time or forget it, but there are still some things to learn.

Fortunately, there are excellent training resources out there to help you. A good training with  marketing and presentation tips can make a big difference in your success. The more you study and learn, the better you will do with your business.

Lack of Opportunity Seeker Leads

Your warm market can provide a decent supply of potential prospects, but what happens when you’ve gone through that list? You’ll need to think about how you will attract people who are seeking opportunity. This goes back to the cash flow and marketing budget issue I mentioned above. Unless you are really good at meeting people and spend a lot of time prospecting everywhere you go, you’ll need to spend some money for advertising and promotion to attract leads to your opportunity.

Bottom line, for network marketing success, you’ll need three things for sure:

  • cash flow for marketing and expenses
  • education & training on how to build your business
  • a continuous stream of MLM leads to follow up with

There are different approaches to addressing these three needs. I am currently using a funded proposal system that provides a way to get all three. If your upline team has a good marketing system and training to help you get into profit quickly, that can work very well too.  The key is making enough to cover your business expenses + personal development and education while you’re building that residual income for the long term.

Did you get some value from this post? If you did, I would really appreciate you sharing it with others! And, your comments are welcome below!

Got a minute? Take a look at what’s working in an online business for me...

Eldon Beard, Home Business Success Coach

If you have a home business and are happy, that's good. If you are looking for the right opportunity, the right mentor, and something you can build online, I would enjoy the opportunity to share what I'm doing. Click here and let’s explore the possibilities.

About Eldon Beard

Making money with a home business should be fun! I help others create a profitable global business from anywhere using an Internet connection and a phone. Send me a message and let's talk! Connect with me on Google+.


  1. Bryan McHeyzer says:

    Hi Eldon,
    Here from TSA.
    I do agree with you that people who join a network marketing company do so with the wrong mindset.
    Reguardless of what you may think you know about mlm it is a business model that does work.
    The key work “Business” so it need to be treated as such….
    We need to let new distributors who join us know that it may be inexpensive to join but there will be a lot of hard work in front of them if they want success.

    Great Post.

  2. Thanks for your comments Bryan! The key to all this is treating your MLM business as a BUSINESS, not a part time hobby.

  3. Eldon,

    I agree, you must have a system to keep funds generating daily. You must reinvest in order to grow your business. To many people belief this home base business, is just a hobby and give up. Your time is worth far more than, any revenue amount.

    Due diligence, is the first step period. Without researching people, and company you not going to get far. That plus, a passionate team of dedicated supporters. The person who introduces you to this awesome project. Should have this in place.

    You will be learning daily. This is something all great leaders and coaches, mentors in our industry learned, the hard way. You get this for no price. You must continue to keep yourself educated by all means. This is a lifestyle, and not a job. Your sponsor is not going to keep telling do this or that. You must develop habits, that will serve others. Your going to duplicate the one who brings you into the business. Make sure you have a strong reason, to help others in some area. Focus on making your name stand out, as a passionate giving person in our industry.

    Eldon, your a true visionary and great coach. I get inspired reading your articles and post. I look forward in your next blog entry. Thanks for all the support you continue to bring for our readers and I.

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