Does Everyone Fail in MLM?

What should you know about the MLM Failure Rate? Well, for the purpose of this article, I would like to discuss a few facts, myths and opinions about the failure rate in this industry. It’s been said that somewhere between 95% and 98% of the people who get involved in this industry fail. I’m not sure if any company or agency could statistically back that number up, but let’s just go with those numbers for now.

I think it’s important to understand the word “failure” before we get too deep into this topic. According to one online dictionary, failure is “lack of success” or “an unsuccessful enterprise, person or thing.” Personally, I define failure as not getting what you want. However, most people confuse the terms “failure” and “quitting.” When it comes to this industry, most people do not fail. Instead, they quit!

Sure, lots of people don’t achieve the results they expect with their network marketing business. But, it’s also true that a large percentage of those people who fail, don’t do the required work it would take to succeed. It would be like buying a gym membership, going for one week, and then saying you failed to lose the 20 pounds you wanted too. In this example, you didn’t fail, you quit! The same holds true in network marketing. I just think it’s important to keep things in context.

For the rest of this article about the MLM Failure Rate, I would like to answer some common questions people have. This should give you a deeper perspective about the failure rate in the network marketing industry.

• What is a MLM Failure? This is the most important question that needs to be answered. Personally, I define a MLM failure as someone who worked on their network marketing business consistently for at least one year, day in and day out, and did not make any profit! I do not include anyone who worked their business less than 10 hours per week, every week. Also, people who didn’t go on autoship, people who never sponsor even one person and people without customers are not included.  Anyone in those categories is not serious and should not be included in the statistics.

• Do lots of people make six figures in our industry? Of course. There are thousands, probably tens of thousands of distributors, throughout America and the rest of the world that earn a low to mid six figure income in network marketing. And there are some who earn seven and eight figure incomes, too.

• Do lots of people earn $300 to $1,000 per month? Oh yeah. Tens of thousands of people earn $300 to $1,000 per month with their MLM Business. Personally, I would consider anyone in this income level a success.

• Do lots of people earn enough each month to get free products? Absolutely. Hundreds of thousands of distributors earn enough to get their products free each month. Are these folks failures? Of course not.

• Do most people who join our industry treat their business like a real business? We all know it’s a proven fact that most people who get started in network marketing don’t treat their business seriously. Most distributors don’t work their business consistently for any period of time. They don’t sponsor anyone. They don’t find any customers. Heck, they don’t even order their own products. Instead, they try it out for a month or two and then quit.  These people are quitters, not failures.

• Do most people who treat their network marketing business like a real business achieve success? This is another important question. Most distributors I know personally, who treat their business like a real business, for a consistent period of 2-5 years, do achieve financial success and make a substantial income.

• Does everyone who gets involved in MLM Fail? Nope. Once again, most people quit. Very few people do what they are taught: (1) use the products, (2) share the business with others, (3) get customers and (4) build a team. Most of the people who quit didn’t do any of these activities. A few people might have went all out and done badly, but most didn’t.

• Is there a difference between failing and quitting? Yes, in order to fail, you have to give something a chance to succeed. That means you have to follow certain steps for a certain period of time. This holds true to anything in life. If you give up before you did the work or followed the steps to success, you didn’t fail. You quit! Please don’t confuse the two.

• Do must businesses fail? According to the SBA, nearly 96 out of 100 businesses in business today won’t be around in 10 years from now. So, it’s a proven fact that most businesses fail. And the number one reason for failure in business is this: the owners didn’t know what they were doing!

The moral of the story is to not confuse failure with quitting. Most people quit everything in life. This includes marriages, diet plans, businesses, savings plans, and just about anything else. Network marketing is no different.

More importantly, I think you can learn more about our industry by studying the people who succeed, rather than just focusing on the people who quit. If you compare people who succeeded with their business and those that failed, you would quickly discover that they did things very differently!

What are your thoughts?  Leave a comment below and let us know.

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5 thoughts on “Does Everyone Fail in MLM?

  1. Diamond Grant

    Many people judge MLM’s success in monetary terms, and if they are not making the kind of money they desire then they automatically deem it as a failure. You stated that anyone making between $300-$1000 is a success and I would have to agree. I also think success can be gauged in terms of how you progress. If you are in the same position you were when you first began 12 months later, something may be wrong. However, if you are gradually growing and gradually generating money then I would consider that a success too.

    Reply
    1. chuckholmes Post author

      All businesses take time to build. Not everyone fails in this industry. Most people never even get started. People confuse quitting something and failing at something.

      Reply
  2. Faye

    It is just plain silly for people to say that MLM’s fail. MLM’s do not fail, or they wouldn’t be around any more. The people who do not do their homework before choosing a company to join, and then do not put in the time or the work needed to make their business successful, fail. Unfortunately, those who fail for those reasons are extremely vocal about it, while the ones who are successful are happy and quiet.

    Reply
    1. chuckholmes Post author

      It’s funny. We are the only industry I can think of where so many people are so vocal about it. People who stick with it actually do quite well. People confuse the words fail and quit. Most people quit.

      Reply

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