Why is the failure rate in network marketing so high? People are attracted to this industry because they want time and money freedom but many never stick around long enough to realize that dream.
To get into a business opportunity, people usually spend a reasonable amount of money and then on top of that they typically will spend money each month on products that may never get used…sound familiar?
Why Do People Quit Their MLM Business?
The short and straight answer to this question is because they are not making any money…plain and simple. Not only are they not making any money, more often than not they are losing money!
It takes time to make any real money in MLM, it’s definitely not a get rich quick scheme. Every now and then you hear stories of someone that got rich after sponsoring a superstar but it rarely happens in the real world.
In fact, banking on sponsoring an MLM superstar in the making is damaging for your long term chance of success in MLM. It’s the slow and steady building of a business that will bring more reliable results.
The #1 Reason People Fail In MLM
Not having enough capital to market aggressively is the number one reason people fail in network marketing. Depending on the MLM company, autoship requirements may be quite high leaving little or no money for marketing activities.
People’s confidence starts to waiver when the debt starts to pile up and no real visible signs of success are showing; this is when they are most likely to quit — they get out while they still haven’t lost a small fortune.
The period of time from starting a business to the point of it becoming profitable is sometimes referred to as the dip. Starting a business is easy but sticking through until you come out the other side of the dip and see profits takes patients, determination and focus. The average CEO takes about 25 years to work up to that position…sometimes it pays to stick at one thing for a length of time.
Making It Through The MLM Dip
If people are failing in network marketing due to a lack of marketing budget, what can they do about it? Many network marketers that are building their business on the internet are getting through this dip by making a profit while they attract targeted leads to their business. The easiest way to do this is to sell an inexpensive information product related to your home business or your product.
The has two big advantages;
1. The sales of these information products injects cash flow into your business which allows you to expand on your marketing.
2. The people that are willing to spend money educating themselves about building a home business are much more qualified than any people that you approach.
Creating Your Offer
Your report doesn’t need to be and exhaustive thesis on building a home business, a well written report with 15 or more pages will do fine. If you already have some articles written you can just put them altogether and use them as your report.
If writing is not your thing then you can always outsource the task. There are some excellent outsourcing companies on the internet and you will find that for a reasonable price you can get a good quality report written.
Another option is to sell someone else’s report and get a commission on the sale. There are quite a number of programs on the Internet that allow you to do this and at the same time you get the purchaser’s information so that they become your lead.
Having Your Cake And Eating It Too
Wouldn’t it be nice if you could get quick cash flow into your MLM business while at the same time attract highly qualified leads. This simple method of creating a report to sell does both these things. This takes away the 2 major causes for failure in MLM; no cash flow and no leads.
Many of the top MLMer’s are building their businesses using these exact methods.
Did you know that 97% of network marketers never get through the dip that was mentioned in this article? If you’d like to know more about the secret of getting through the home business dip and avoiding network marketing failure I’ve got just the story for you…