Statistically speaking, the majority of people that get into network marketing won’t make any money. Let’s take a quick look at some facts about the network marketing industry that you may not be aware of:
- The success rate in this industry is less than 2%. It doesn’t matter if you joined one of the top MLM companies, what your up line tells you or anyone else tells you, the chances of you making your network marketing business grow using what is currently taught is less than 2%. Bugging your friends and family, passing out fliers (CDs, DVDs, business cards, etc.), dragging people to meetings and home parties, doesn’t work for most people and it isn’t likely to change just because you are excited about your opportunity.
- The national average proves that most network marketers will put 2.5 people into their downline before they quit. Why do they quit? They quit because their MLM company only teaches them to use their warm market to market to. Most people can make a list of their friends of family and come up with 100-200 names. So out of that list you may get 2 or 3 people to sign up.
- Most people quit working their network marketing business in 90-120 days. Why would you stay in a business where you aren’t making any money? The retention rate goes to zero if you have nothing more to offer than a failing system. After all of the hard work to getting people to join your network marketing business it is really discouraging to see so many people drop out. How you are supposed to build momentum with such a high attrition rate?
These are the facts of network marketing that the top MLM companies don’t want you do know. Do you want to know why the top MLM companies continue to teach things like making a list of your friends and family, passing out fliers and so on?
There are two reasons. First, your MLM company has to provide some sort of training or people wouldn’t join in the first place. Most of the people that join a MLM company and become a network marketer don’t have any sales experience and really don’t want to become something that looks like a pushy used car salesman. (I apologize if you happen to be a used car salesman. I meant no offense.) So, MLM companies teach you to approach your friends and family and hand out fliers or DVD’s and tell you that the network marketing product sells itself.
The second reason the top MLM companies teach this way is because it works for them. Think about it. For every network marketing distributor that joins, they know that 2.5 more distributors will come on board. Yes, most of them will quit but almost 20% will stay and continue to purchase the network marketing product. Besides, it’s not their money they are spending to grow your business.
Don’t get me wrong. Your MLM company isn’t out to hurt you. They are out to make money. If they told everyone that you would have to learn how to market and sell your network marketing product, most people wouldn’t sign up. So, they teach methods that are very easy and simple for everyone to use and understand. And yes, there are some people that can make money using these methods. In fact, I’m pretty sure that they are part of the 2-5% that do succeed in network marketing and make it to the top of their MLM company.
