Four Things That Make Network Marketing Success Hard

If 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.

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