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.

Most of these people have invested a sizable amount of cash to get into their business opportunity and quite often have spent money on products that are tucked away in a cupboard never to see the light of day again.

Why Do People Give Up On Their Network Marketing Business?

The reason people quit their MLM is because they are not making any money. In fact, the vast majority of people are losing money by being part of a MLM business opportunity!

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.

Always wanting to get that network marketing super star on your team will be harmful to your long term success. If it happens it great but having a slow and steady approach to business will bring better results.

The Main Reason People Fail in Network Marketing

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.

As the cost of autoship starts to pile up with no signs of success, peoples confidence in being able to succeed in MLM starts to wain. This is the time most people are likely to quit.

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.

Getting Through The Network Marketing Dip

As mentioned earlier, a limited budget is one of the main reasons people fail in MLM. What’s the solution to this? One way that many savvy network marketers are getting through this dip is finding a way to bring in extra money while attracting their prospects. In many cases it’s a simple matter of creating a report that they can sell for a small price, typically between $20 and $40.

This has 2 major benefits;

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 MLM business are much more qualified than any people that you approach.

Creating Your Information Product

You don’t have to write an encyclopedia on your topic; a simple, well written 30 to 40 page report will do the job just nicely. If you have already written some articles you can just bundle them together so that they make sense and use that as your report.

If you haven’t written any articles before and you don’t feel confident to write a report, you can always outsource it. For a very reasonable price you will be able to get a very good report written, they will even do the research for you.

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.

Killing 2 Birds With One Stone

As mentioned in earlier, lack of cash flow is one of the major reasons for failure in network marketing. The other major reason for the high failure rate in MLM is lack of qualified leads. This simple method of attraction prospects through good content and offering them an inexpensive report solves both of these problems.

Most of the top network marketers are building their businesses this way.

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 MLM dip and avoiding network marketing failure I’ve got just the story for you…