Four Reasons Why MLM Failure Rates Are Still So High

There are tens of thousands of people who start in the network marketing industry each month. Whether you are just starting or you already have a network marketing business, it is critical for you to really understand what are the common mistakes that you should avoid.

I would say that there are 4 main reasons why people fail in mlm.

1. Getting involved in the wrong company: the majority of people who contact me first tell me about their network marketing company and ask me my opinion about their company. They are completely right, because they realize that choosing the wrong company will highly jeopardize their chances of success.

What's a wrong company? There are different factors here, but the main ones are the products, the management, the compensation plan, how many years the company has been in business and its financial strength.

There are companies who have stand alone, high quality products but whose management is weak and finances are bad. There is a higher probability that they go out of business. Some companies have a good financial strength, a good management, but the products are not competitive or effective, or the compensation plan is not very attractive, and the company's reps will then struggle a lot and most probably leave the company within the first one to two years.

Then, if a company is not yet 5 years old, statistically it still runs a high risk of going out of business. On the contrary, if a company is more than 25 years old and financially strong, it should stay around but the momentum phase may be so advanced that the opportunity is not as great as it once was.


2. Having the wrong upline: even when people sign up with a good company, it is nearly impossible for them to build a successful network marketing business without an upline offering weekly training and support. Without a strong training and support, new distributors are left on their own and there is a 95% chance that they will fail.


3. Not having any system: Most people that approach me are very excited about getting started. They don't always realize that they will not succeed on their own, though. And in MLM, even very determined individuals will usually fail within their first year if they don't have a system that enables them to leverage their resources.


4. Not developing persistence and being committed: most people who want to start a network marketing business are actually looking for a way to make money with no effort, and want to take the easy path. It's hard to find people ready to step out of their comfort zone to build any business. And lack of persistence is the number one reason for failure in MLM. Quitters don't succeed. And without a strong commitment from your part, even the best company, upline, or system will not be able to help you.


If you think you have the right mindset to build a business, if you can find a reputable company, with a proven system and a team of experts, you will greatly increase your chances of success in the MLM industry.

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