95% MLM Failure Rate-How True Is This?
First Of All?
The 95% Network Marketing failure rate is a Myth!
Second Of All?
It is a myth!
Please, patiently read on as I uncover the truth behind this lie.
This thing about MLM having 95% failure rate? Today’s post is on the major reasons behind the 95% failure rate in Network Marketing and what the 5% are doing differently.
Well, I want to inform you. There is a proven statistic that 70% of people that join the business of MLM end up dropping out of the business.
I believe you would agree with me that, that is different from failing. Have you seen anybody that sent out a survey asking people “did you fail at network marketing?”.
No one so far.
How many people would you ask “did you fail in network marketing” and expect them to take responsibility for their failure and say yes. I have actually. Only one person was noble enough to give me the honest response of losing motivation.
According to him, he had a really high expectation because of the unrealistic sweet things his upline told him to make him join the business.
Personally, I failed twice in MLM and if I hadn’t learnt how to succeed which I did the third time; I would have still blamed everything on my sponsor, upline, the company, the products and so on.
Or give excuses of not having time or can’t talk to people like some people who have failed in network marketing who I asked.
What does that prove?
The 5% that succeed are the ones that engage in skill training and taking action to work their business and are therefore able to build a substantial residual income. This is what the 95% aren’t doing.
For me, anybody that tells me network marketing fails or “I try network Marketing, it just didn’t work”, I take the person to mean that they did not fully engage in personal development and skill training, or they did not put in what they learnt or they just had bad training. The last happens actually.
Too bad for most people, all they did was to find reasons to quit like saying their upline abandoned them or their upline exploit them or knew nothing and so on.
Others? They would tell you they couldn’t stand hearing ‘no’ or they did not like the products. You will also hear that the products are too expensive and they do not know how to invite people.
Another person would tell you “my friends and colleagues made a fool of me when I alienated them” and other endless excuses.
95% MLM Failure Rate – So, Let’s Do The Maths…
Let’s subtract the 70% voluntary dropouts by people from the lie of “95% MLM failure rate. The statistic drops to 25% failure rate.
Isn’t that like the general failure rate for most jobs and small business where people work 40 good hours in a week?
The 70% people that drop out are majorly those that leave the business because of 3 major reasons.
- They do not believe they can do it
- Discouragement and depression that comes from constantly hearing “No” from their friends and family that they have already included in their prospect list.
- Those that were tough couldn’t get their team to be the same.
Even if they are touch and able to hustle their way through all the disappointments and rejections, do you think all their team members would be able to toughen up and do that as well?
Personally, this is something I have had to deal with many times.
There are many ambitious, eager and willing network marketers out there. But the above vicious cycle crushes their drives and kills their spirit.
The Annoying Part
The Annoying Part? It is mostly network marketers that are spreading and taking advantage of this 95% MLM failure rate to instill fear in the minds of people that are new to the business in order to recruit them.
It is being used as a recruiting technique, which personally makes me angry. It’s either that, or they use this failure rate lie to sell a recruiting system or an ebook in order to fund the building of their MLM downline. This is because they don’t want to make use of the old school MLM, telling people it is dead.
I keep wondering why it still works for me.
95% MLM Failure Rate – How Exactly Do You Define Failure In This Situation?
Is it by losing money, dropping out of the business or breaking even? What about hundreds of people just signing up, sitting back and waiting for the “magic” to start happening so that they would be receiving alert and swimming in wealth? Even as they do this, without taking any actions necessary to start a business?
Will you also be separating network marketers, retailers and final consumers? Statistics varies from one business to the other. So, it is complicated. This is a simple myth.
Another Reason Why People Fail?
According to research, about 50%-60% of people that sign up do not take business actions and only around 10%-15% works the business. Starting a business in Network Marketing really isn’t the problem. It is easy.
But the problem is people not taking their investment seriously. Because the investment is low, they decide to treat it like a hobby. If you take your business as a hobby, then expect to be paid like a hobby.
You may enjoy your products, but do not expect to be paid for doing nothing. You only get paid when the products move. Will you really count that as the system’s failure? Don’t think so.
The truth is, Network Marketing is not for everyone. Here is why...
The Way Out?
A good Network Marketing company will give you back your money of you decide to return their products within 90% days of purchasing products and getting your starter. So, I see this as a great way of starting a business at a low risk, or even no risk at all.
If you are no longer interested, you can just drop out with little or no loss, since you got products of your money’s worth. Generally, people that take action in Network Marketing make good money and reap many opportunities in the industry.
So, the way out is for you is to quit if you are no longer interested or start doing what the 5% are doing.
Do you want to know the ONLY and MAJOR difference between the people that quit and the 5% who do not quit and succeed in MLM?
It is their ATTITUDE!
For 95% MLM failure, the blame goes to the people who failed to engage properly, take time to learn the skills required and APPLY them.
DON’T blame your upline, the products or the industry!
95% MLM Failure Rate – What Are The 5% Doing Differently?
so, why did it work for the 5% who did not quit?
- They engaged fully in developing themselves, learning, acquiring the essential skills and applying the skills.
- They were happy to make mistakes and learnt from them.
- They understood it is a business and it needed time.
- They did not see Network Marketing as a magical bullet for wealth.
- They learned to handle ‘rejection’ and did not feel depressed about it or take it personally.
- They also realized MLM is a serious business and they took their work seriously.
- They fully committed themselves to the tasks of sponsoring, inviting and building their team – no matter how long it took!
- THEY NEVER QUIT.
You just have to decide to work with the 5% who engage and be sure you really are one of them – ATTITUDE is important.
Do this, and I would be seeing you at the top in few years time.