Let’s face it, businesses are in it for the money. They may provide a great product or service but no one wants to work for free. How do the top MLM companies make their money?
Grocery stores make money by selling groceries. The more people that come in to buy their groceries, the more influence they have over what people purchase, and the demographics of their shoppers will dictate the amount of money the store owner makes.
Multi Level Marketing Businesses are basically the same. The more people that come to buy their product or service, the quality of those people (the demographics) and the influence that they have over their audience will determine their profitability.
That’s why your MLM company can make a killing in this industry. They get you to join the MLM business opportunity with the idea that you can make money from home and then they influence you to buy more and more of their product or service and share it with everyone so that you have to buy even more of their product.
What Do The Numbers Tell Us
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 what MLM company you are with, what your up line tells you or anyone else tells you, the chances of you making your multi level 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 says that most network marketers will put 2.5 people into their downline before they quit. Why do they quit? They quit because their 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. Out of that list you may get 2 or 3 people to sign up.
- Most network marketers quit marketing their 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 of getting people to join your network marketing program it really is discouraging to see so many people drop out. Have you ever wondered how you are supposed to build momentum with such a high attrition rate?
Don’t get me wrong. I’m not trying to tell you that it can’t be done using these techniques. I’m not bashing on MLM companies or this industry. The simple fact is that they have to survive and if they don’t, you don’t get a check because they will go out of business.
Most network marketing distributors that get involved don’t have a clue how to build a business, so MLM companies are forced to teach methods that are very easy and simple for everyone to use and understand. If people knew that they were actually going to have to “sell” something, they probably wouldn’t get involved in the first place. So you may use the techniques taught by your company and you may even put 10 or 20 people into your business, but it might take you more than a year to do it and it may take you more money than you will earn to do make that happen.
Of course, you may also be one of the lucky 2% and make it to the top of your MLM company using the techniques that are taught. But the numbers aren’t in your favor.
