Failure Rate in the MLM Industry: The Truth About MLM

Today, I want to discuss failure in the MLM Industry.

This is a controversial topic that few people really understand.

It definitely gets taken out of context a lot and gives our industry a bad reputation.

My goal today is just to clarify things so you can see both sides of the story.

I’ve read countless articles and blog posts online that only a small percentage of people who get involved with network marketing actually make a profit, and a very TINY percentage of those people earn a substantial or full-time income!

If you read any company’s “average earning’s statement” you will find that only a very small percentage of distributors make a full time income with the company, about one to three percent of the distributors.

A decent amount of folks earn between $100 and $300 per month, and a small group of people earn $500 to $5000 per month, but MOST people don’t earn anything at all.

Yes, these numbers do vary slightly by company, but the bottom line is that most people in our industry do not make any money with their network marketing business.

Failure rate in mlmThe Three Groups of People in MLM

As I see it, there are three different groups of people in MLM.

Unfortunately, all three groups are “combined” into one group when companies publish their “average earnings statement.”

First and foremost, are the product users.

Believe it or not, not every joins a network marketing company to make money.

Many folks sign up as distributors just to get the wholesale-retail difference on their personal purchases.

I’d bet close to 75% of my personal team falls into this category.

Are they MLM Failures?

Heck no.

They’re just happy product users.

Saying these folks “failed” in MLM is far fetched to me.

Another group you have is people who get in and do nothing.

Trust me, most people do nothing to build their business.

This is the person who joins with the desire to make money, but doesn’t do the work.

My question to you is “how can you call someone a failure if they quit their business in less than a year and/or never even sponsored a few people?”

You can’t fail something you haven’t started, but you can quit.  

Don’t confuse the words quit and fail.  

They are two totally different things.  

I’d bet 80% of the people who join a company and WANT to make money fall into this category, maybe even more.

The next type of person is someone who gets in, works their business consistently week in and week out (at least 10 hours per week) for two to three years and still fails.

I’ve personally NEVER met anyone who fell into this category, but I’m sure there are some folks out there.

To me, this is the ONLY group of people that should be considered “MLM Failures,” people who actively tried to build their network marketing business week in and week out for several years, but still couldn’t get it to work.

The Most Important Question

People get so wrapped up with the high failure rates in our industry, that they often end up neglecting the most important question.

That question is , WHY do so many people who WANT to make money in network marketing not make any money?  

And I think that question is really a million dollar question.

In the paragraphs below, I will do my best to answer that question honestly and objectively.

We will also review what the top earners do to succeed.

What the Top Earners Do to Succeed

When you study the successful people and the unsuccessful people in any industry, you start to notice patterns and trends.

Simply put, successful people do certain things in a certain way, whereas unsuccessful people do things differently (or they don’t do anything at all).

Here are some of the patterns and trends I’ve noticed from top earners in the network marketing industry.

  • They find a company with products/services they are passionate about and stick with that company for the long haul, at least five to ten years
  • They have a crystal clear vision for their business
  • They have lots of personal customers
  • They are on auto-ship and use and believe in all of the company’s products
  • They have “sold out” to the concept of MLM and their specific company
  • They take their business education very seriously: buying books, attending seminars, listening to audio programs, and participating in Mastermind Teams
  • They have a successful mentor who serves as their personal coach; in some cases they even pay their mentor
  • They set time in their schedule to work their business every day
  • They work their business consistently for several years
  • They accept 100% responsibility for their own success
  • They treat their business like they have ONE MILLION dollars invested in it

Trends of MLM Failures

On the other hand, when you study people who “fail” or “quit” our industry you also noticed trends.

Here are a few examples:

  • Jump from company to company every few months or years
  • No vision
  • They don’t have any customers
  • They aren’t on auto-ship and don’t believe in the products
  • They haven’t completely “sold out” to the idea
  • They don’t invest money in their business education
  • They don’t have a mentor
  • They don’t work their business consistently for any period of time
  • They blame their lack of results on everyone but themselves
  • They don’t have any type of game plan
  • They think about their business a lot, but they don’t do anything

***** Are there any exceptions to this list?  

Of course, there is always an exception to any rule.

But for the most part, these are the major differences I’ve found between the people who make it big in network marketing and the people who fail in network marketing.

Other posts you may enjoy:

  1. MLM Successes: 35 Must Read Blog Posts
  2. Why People Hate MLM
  3. How to Go from Bad to Good to Great
  4. The Four Hour Work Week by Timothy Ferriss: A Review
  5. Top 19 MLM Tidbits

Failure Rate in the Real World

Furthermore, I think it’s equally important to compare the failure rates (quit rates) in the MLM industry to other things in life.  

You see, you have to put things in context.

You have to compare apples to apples.

I want to show you a few examples of failure (quitting) so you can see things from a complete perspective.

Here are a few facts about failure that you should know about (sources are cited).

  • 95% of all blogs fail.  According to a recent study 95% of all blogs haven’t been updated in 120 days.  In other words, the blogger gave up on their dreams of having a successful and profitable blog (Source).
  • Nearly 50% of marriages fail (source).  This varies by age, gender, race, and by state.
  • 70% of small businesses fail in the first 10 years (source).
  • Most people, a large majority of people fail with diet plans.  They lose weight temporarily and then gain most of it back fairly quickly (source).
  • 67% of gym memberships never even get used (source).

Ask any real estate or insurance broker how many people they have to recruit to find someone who PRODUCES.

Ask them what percentage of their recruits drop out and don’t earn anything at all.

I think you will quickly discover that most realtors never sell one house and most insurance agents never sell one policy!

The truth is, selling is not for everyone.

It is typically a tough profession with a high turnover.

Just ask anyfailure rate sales manager in any company!

Another truth is that most people fail/quit in everything they do.

Most people QUIT their diets, marriages, savings plans, New Year’s Resolutions, fitness plans, and just about everything else in life.

Why would MLM be any different?

Yet, how many times do you search the Internet and see a blog like this:

  • A disgruntled blogger writing why blogging is a scam
  • A disgruntled small business owner writing why owning a business is  a scam
  • A disgruntled person trying to lose weight who writes why dieting is a scam
  • A disgruntled person who bought a gym membership writing about why gym memberships are scams
  • Etc., Etc., Etc.

In most cases, you will never see a blog, forum post or online article about any of these topics being a scam.

Yet, everyone and there brother will plaster the Internet writing stories about why the network marketing company they worked with is a scam.

It absolutely amazes me and annoys me at the same time.

The Bottom Line

Here’s the bottom line.

You can succeed or fail (quit) in anything you do.  

  • There are successful network marketers
  • There are successful bloggers
  • There are successful entrepreneurs
  • There are people who are successful at losing weight and keeping it off
  • There are people who buy gym memberships and transform their bodies

Rather than spending all your time studying and reading about the failures (and quitters), why not study what the successful people?

Why not find out what the successful people did to become successful and then simply do what they did?

In my opinion, that is the quickest way to become a success yourself.

truth about mlmFurthermore, just because you didn’t achieve success with something does not mean it was a scam!

Yes, you have freedom of speech and can call it whatever you want to.

But before you label our industry a scam, why don’t you call everything you quit a scam?

Once again, it’s also important to differentiate the difference between failure and quitting.

Most people don’t fail at things: they quit things.

And there is a big difference between the two.

Here’s why.

If you get started with something, learn from your mistakes and keep pressing forward, you will eventually succeed.

Most people simply don’t have the vision, the discipline, the work ethic and the perseverance it takes to succeed at different things in life, including network marketing.

What are your thoughts on this subject?

What do you think about the failure rate in the MLM Industry?

What do you think about the network marketing industry itself?

Please leave a comment and share your thoughts.

I look forward to hearing from you.

Thanks.

Facebook Comments
Please Share Our Content If You Enjoyed It:
chuck holmes
Sincerely,

Chuck Holmes

Webmaster, OnlineMLMCommunity.com

Phone: (352) 503-4816
Email: chuck@onlinemlmcommunity.com
SKYPE: mrchuckholmes

Here's what you should do right now:

# 1 Sign Up for My FREE 7-Day MLM Bootcamp

# 2 Check Out These Awesome Tools and Resources

# 3 Join My Free Facebook MLM Mastermind Team

73 thoughts on “Failure Rate in the MLM Industry: The Truth About MLM

  1. Britanica

    The people who fail are the ones who either go in not knowing anything about MLM or they go in expecting to do little work and get rich fast. That is why there is a large fail rate. There are too many of those people and not enough serious people with realistic goals. Great post!

    Reply
  2. Alyssa

    I just started with a company you may be familiar with…Body By ViSalus. I was very impressed with the tangible advice you have given to encourage those of us who wish to pursue the MLM route. At the end of the day, work is work is work. Or so my grandpa says! So choose what you wish to work at, and do it to the best of your ability. Cheers to you Chuck, for setting a good example!

    Reply
    1. chuckholmes Post author

      I’m glad I could help. Failure is high in every aspect of life and in business. Most marriages fail. Diets fail. Careers fail. In most cases, the failure happens because of lack of commitment and work. If you really want to succeed at something you have to do the little things day in and day out.

      Reply
  3. Jamie

    I’ll say that the percentage of failed MLM businesses is much higher than the percentage of any other failed businesses (I’d guess about 30% higher). I would attribute the higher percentage of failed MLM ventures compared to any other businesses to the nature of MLM. High pressure tactics used by some MLM representatives to sign as many people up as possible is probably almost exclusively responsible for the 30% difference (unfortunately this is just the nature of the MLM business model).

    People that need to be pressured into signing up for MLM Likely have no real drive to make an MLM business work or any other type of business. Entrepreneurs are go-getters by nature and if a person had the entrepreneurial drive to make any business work (MLM included)they wouldn’t be sitting around waiting for an MLM representative to talk them into it. Most of the MLM representatives I’ve met aren’t making any real money (not to say some don’t). Unfortunately they’re selling themselves a dream just as hard as they are trying to sell it their prospects.

    One massive flaw I see with any MLM business that I feel is very important in a real business is this:absolutely no stability or security. Although MLM reps are sold on owning their own business, they can never actually build a stable business. Why? Because the ability for rep to operate their “Business” relies 100% on the longevity and profitability of the MLM Company.

    Unfortunately the reps aren’t the ones calling the shots at the top. So If the MLM Company is shut down for FTC violations, well sad to say the reps business, financial investment, passive income, and time invested all goes down the crapper too. This is like opening a business that relies only on Facebook to generate leads. If you never diversify your lead flow, you’ll never have stability and your business will be finished if Facebook shuts down.

    Personally I just don’t understand why someone with the drive and ambition to make an MLM business work wouldn’t just start a business of their own. One where they call the shots and can be 100% accountable for their decisions, rather than working to build a business for someone else that they have no control over. Oh yes, I read “Influence” by Robert Cialdini so I know exactly why people are drawn to MLM. 🙂

    Reply
    1. chuckholmes Post author

      Jamie,

      You make some great points, some I agree with and some I don’t.

      I know that most businesses fail. Just drive around any town in America and you will see lots of “out of business” signs and empty buildings. Even worse, many of these folks had tens of thousands of dollars invested in their business, if not more, so they are really experiencing financial hardship from their business failure.

      I agree with you that when you build a MLM Business, there are a lot of things out of your control. If the company shuts down you are screwed. However, my mentors and I teach people to have their MLM Business simply be one income stream in their You, Inc. business. That way you are diversified and your income is protected.

      While our industry is far from perfect, I like the idea that people who want a business of their own, but don’t have access to much capital, can get started for a really low cost (less than $1000).

      Are there better opportunities out there? That depends who you ask. I am personally involved with several different business models and enjoy them all. But all of them require hard work, time, money and even with that there is no guarantee of success.

      I’m a very driven person and I’m attracted to this business model. Once you’ve had employees and dealt with all the hassles of a traditional business, the concept of network marketing is very appealing. The ideas of leverage, residual income, low start up, even lower monthly overhead costs, etc. are very appealing.

      I appreciate your comment and want to say thanks for visiting my blog.

      Chuck

      Reply
    2. Diamond Grant

      Very thorough response Jamie. Pressure tactics do not work. Yes, in the short-term you may have a lot of people who sign up because they feel like they have to. However, they will quickly drop off and leave your business in a world of trouble. The goal should be to get people to see the value in the business and product while still being realistic with them so they know what to expect. That kind of integrity and leadership will get you far and keep loyal team members.

      Reply
      1. chuckholmes Post author

        I couldn’t say it better myself, Diamond. If you have to convince someone to join you will have to convince them to do anything at all, and convince them to stay active in the business. Ultimately, you are looking for people who are looking.

        Reply
  4. Beverly

    More than 90% of the people I have brought into the industry have quit within 12 months of joining. However, I have made some nice cash from the 10% that stuck with it and eventually built a good sized team. The truth is, people quit just about everything, including MLM. Your job is to look for the serious people and let the tire kickers weed themselves out.

    Reply
    1. chuckholmes Post author

      Very good point, Beverly. You can build a six, even seven figure income, off two to three real serious people. You might have to go through a few hundred people to find those folks, but it is well worth it. And you’re right, people quit everything.

      Reply
  5. Elaine

    I’ve never met anyone who made money in MLM, ever! I think that says a lot about the industry. I understand that most businesses fail, but it seems like the only people in MLM who get a good deal are the companies and people at the top!

    Reply
    1. chuckholmes Post author

      Elaine,

      I’ve met plenty of folks who do well in MLM. I agree that a lot of people fail, but you also have to look at why they fail. Most people who so called fail actually just quit. They never do the right activities for any period of time and that’s why they don’t make money. They want to blame their failure on something other than themselves so they blame the industry. The truth is, most businesses in every industry fail, but we are the only industry that gets a bad reputation for this failure.

      Chuck

      Reply
    1. chuckholmes Post author

      I tell them that there are plenty of people who have been with the same company 20+ years and enjoyed a great income. If people call it a scam, I go look for someone else to share my business with.

      Reply
  6. David

    Just about everyone I’ve ever sponsored into my Herbalife business has quit. Through the years, I’ve probably sponsored just over 120 people personally. Of those 120 people, more than 100 have quit. In fact, I currently have 14 active legs from those 120 people. BUT, from those 14 legs I have two REALLY serious people that both make six figures with Herbalife, which provides me a nice residual income. So even though most people quit MLM, if you can find some MAVERICKS from the people you sponsor, you can make some really serious cash.

    Reply
  7. Dustin

    So many people lose money in MLM that I am surprised that it isn’t illegal yet. It’s like one big scam. Sure, a few people make the big bucks, but it is at the expense of everyone else. What kind of business model is that?

    Reply
    1. chuckholmes Post author

      Dustin,

      I agree with you that a lot of people lose money in MLM. But you have to put it in context. 90% or more of all businesses fail. So just because lots of network marketers fail does not mean this industry is a scam. Also, everyone starts at the bottom and has to earn their way to the top.

      Just my two cents. Thanks for the comment.

      Chuck

      Reply
  8. Megan

    I’m so sick and tired of reading all these comments and complaints about how many people fail in MLM. Compare it to anything else, especially other business models, and you will see the failure rate is pretty similar.

    Reply
    1. chuckholmes Post author

      I agree with you Megan. No one likes to talk about it, but it’s hard to build a profitable business of any type. I’ve known people who tried several different traditional business models and failed repeatedly. And those folks lots tens of thousands of dollars.

      The primary reason people fail in MLM is that they don’t get customers. Success is not about recruiting hundreds of folks. Get 3-10 customers and you will have a profitable business. It really is that simple. Focus on customer acquisition and let sponsoring be a byproduct of that.

      Reply
  9. Janice

    People fail in every business. Nine out of ten businesses fail in the first five years, so the rates in MLM aren’t that much different than a traditional business. The problem with MLM is that it is so easy and cheap to get involved. Most of the folks who get started have never owned a business before so they are absolutely clueless about how it is to build a profitable business of any kind. Success requires massive action, a solid plan, and hard work. Most distributors don’t do any of the things I just mentioned, so they end up quitting, but tell people they failed.

    Reply
  10. Cherise

    People fail in everything. The MLM Industry is probably the only industry that people fail in and then go out and badmouth the industry. How many people who joined a gym, but never went, and therefore never lost weight, created a blog to bash gyms? Probably none. The truth is, people don’t fail, they quit.

    Reply
    1. chuckholmes Post author

      Good points, Cherise. I know people that fail in marriage, with diets, with businesses, with paying off debts, etc. Yet, none of these failures felt compelled to set up a website bashing the thing they failed in. But for some reason most MLMers feel compelled to do the opposite.

      Reply
  11. Tony

    The definition of failure is “an unsuccessful person, enterprise or thing.” Using that definition you could argue that most people who get involved in MLM are failures.

    Reply
    1. chuckholmes Post author

      I guess it depends upon what your definition of success is, too. Not everyone in MLM is trying to make millions of dollars. Many folks sell a few products and sponsor a few people just to supplement their income and make a few hundred extra dollars per month.

      Reply
  12. Mike

    This industry is one big conspiracy. I cannot believe the FTC hasn’t shut down all of these pyramid companies that are doing business today and ripping people off.

    Reply
  13. Lauren

    People literally fail in every industry you can imagine. When a traditional business owner fails, they normally lose a HUGE amount of money, sometimes six or seven figures. When someone “fails” in MLM, they might be out $500 to $2000. The difference is huge. Also, most network marketers don’t treat their business seriously. When things don’t turn out the way they expected, they simply give up.

    Reply
    1. chuckholmes Post author

      Very good point, Lauren. I know lots of folks who have failed in traditional businesses and many of them have lost $50k or more. I know some people that lost money in MLM, but I’ve never met anyone who did the work and DID NOT achieve success and make money. Most people simply like to make excuses and justify why they don’t get the results they want.

      Reply
  14. Rosie

    I don’t think the failure rate in the MLM Industry is bad. Look at the failure rates of everything else, such as marriages, businesses, weight loss plans, etc. Most people simply can’t follow through with what they start UNTIL they succeed.

    Reply
    1. chuckholmes Post author

      The failure rate in our industry is actually pretty low if you weed out the people who quit and the people who never did anything to build their business.

      Reply
  15. Stephaine

    Yes, the failure rate is pretty high in MLM. It’s a tough industry. I believe that if you can make money in MLM, you can make money in any business. I finally left the industry to start my own traditional business. I have to admit that starting a regular business was a lot easier than building and maintaining a downline.

    Reply
    1. chuckholmes Post author

      The secret is to find a business that works for you. MLM is not for everyone. I believe it is a good first business, because you learn so much about running a business. As far as running a traditional business being easier, I don’t know. I have a traditional business too, and I work like a dog to keep it profitable.

      Reply
  16. Keith

    The failure rate is high because the industry is nothing more than a scam. The whole success of the MLM Industry revolves around recruiting new people. Even worse, you put hundreds or even thousands of dollars into the machine and are lucky to get even 5% of it back.

    Reply
    1. chuckholmes Post author

      I agree that one of the keys to success is recruiting. But you also need to create volume. You can recruit millions of people but if no one orders the product, no one gets paid. In the same sense, all businesses need customers. Without a nice flow of new customers and orders, EVERY type of business would fail.

      Reply
  17. Dirk

    I’m tired of reading about the failure rate in MLM. Rather than reading about it day in and day out, why not go out and do something about it? Make it a point to do something to grow your business every day and you won’t have to worry about failing.

    Reply
    1. chuckholmes Post author

      Most people find it easier to make excuses than they do to make time to do the work required to be successful. It is just human nature. Sad but true.

      Reply
  18. Eileen

    I’ve studied several company’s earnings disclaimer and just about all of them show a 95% or higher failure rate. Personally, I think that’s pretty bad. Of course, that doesn’t factor in everything. I mean, of those 95% how many actually tried to build a business for any period of time? Probably not too many of them. And while it’s true that some people earn a boat load, most earn nothing. I think there are many other better business models to pursue.

    Eileen

    Reply
  19. Ross

    The failure rate in MLM is high because that is the way the business model is designed. Lots of people have to lose money so a few people can make most of the money. I’m not sure how anyone in their right mind could participate in a business model like that.

    Ross

    Reply
    1. chuckholmes Post author

      I’ll have to respectively disagree with you Ross. People don’t have to lose money for others to make money. In fact, you get paid by helping others succeed. The more folks you can help succeed the better off you will be.

      Chuck

      Reply
  20. Emelia

    I don’t know why anyone would want to get involved with MLM, when it has such a high failure rate. Personally, I think people would be much better off to simply get a part-time job, than they are to get involved with MLM.

    Reply
    1. chuckholmes Post author

      Emelia,

      Yes, MLM has a high failure rate. But so does every other business model (except franchises). The benefit of MLM over a part-time job is (1) the tax benefits and (2) the education you receive. MLM really is better than business school. You learn so much in areas of sales, marketing, communication, leadership and team building. You can leverage these skills to build other successful businesses too.

      Chuck

      Reply
      1. Joe

        I owned two traditional businesses before I ever joined the MLM Industry. I ended up losing more than $150k between those two traditional businesses. As a final resort to own my own business I joined the MLM Industry. I’ve been in network marketing for 15 years and I’ve had a profitable business every year. People talk about the high failure rate, but I would argue that most people fail in everything they do. It’s more about the person than it is the industry.

        Reply
  21. Vicky

    I don’t know of any industry that has more failures than MLM. Do yourself a favor and AVOID the MLM Industry at all costs. You will be glad that you did.

    Reply
    1. chuckholmes Post author

      Most businesses fail, Vicky. Statistics say that over 90% of all businesses, from every industry, fail within their first five years. I think the so called failure rate in MLM is pretty similar to any other industry. For example, more than 90% of all blogs don’t make any money! But no one writes comments saying that blogging is a scam. It actually baffles me!

      Reply
  22. Eric

    People fail in the MLM Industry because it is a scam. I’ve tried three different companies and never earned $1 profit. I’m not sure why anyone would ever get involved with MLM. The only thing that will happen is you will lose lots of time, money and friends.

    Eric

    Reply
    1. chuckholmes Post author

      Eric,

      I’m sorry you had bad experiences in our industry. I can assure you, it is not a scam. Plenty of people make money in this industry. But it is hard work.

      If you don’t mind me asking, what companies were you with? How long were you with those companies? And how many people did you sponsor?

      Let me know and maybe I can provide some additional insights.

      Chuck

      Reply
  23. Amy Skalicky

    Addressing the “why” question is very insightful. Most people stop at the “what”-that they failed-but never dig deeply enough to examine why they failed, missing a fabulous opportunity for growth. That old saying “If at first you don’t succeed, try, try, try again” holds profound wisdom for anyone starting out in MLM. How many greats, in any field, can you Google and discover that they were successful on the first try? Even Abe Lincoln failed many times before being elected to the office he is best known for. A key point here is persistence-persistence in learning and persistence in doing. The habits of top earners in this article are great food for thought for anyone struggling right now. Take a look at your habits-where are they taking you? Is it on the road for success, or do you need to revisit your map and pick a different route?

    Reply
    1. chuckholmes Post author

      Asking “why” you failed is so important. And it’s also important to clarify the difference between failing and quitting. Most people don’t really fail in the MLM Industry. Most people simply never get started. It’s as if they are only fooling themselves.

      I’ve studied hundreds of successful people inside and outside of the MLM Industry and they all followed a similar path. They failed for years while they were developing the skills and mind-set they needed to eventually succeed. They realized they were paying their dues and they persisted. They adjusted fire as necessary, made the required changes and kept pressing forward.

      They didn’t try something for 90 days and quit. They sold out to the idea and said “I will succeed no matter what.” There is a key lesson there for network marketers and for people in any other industry. Success is never easy. You have to sell out to “your game-plan”, take massive action, learn from your temporary failures and by all means, persist.

      Chuck

      Reply
  24. Barry

    There is no such thing as failure in the MLM Industry. You can either stick around and build a business for yourself or you can quit. I’ve never met anyone who stuck around for a few years, and did the work, who didn’t get good results in their MLM business.

    Reply
  25. Diamond Grant

    Some people do tend to think that studying the failures of others is a good strategy to help them succeed. For some people that may very well be the case. However, I have found that for myself personally studying the successes of others is a much better strategy. It is a lot easier to follow what others did right than to focus on what others did wrong and try to avoid it. But whatever works for each individual person is all that really matters. If you’ve found a strategy that you are comfortable with and that works for you then that is still a functional plan.

    Reply
    1. chuckholmes Post author

      I think people should study failures and successful people. When you study both groups you will definitely find themes. Successful people do things a certain way and unsuccessful people do things a certain way. If you do the same thing successful people do you will get the same results. And if you do the same thing unsuccessful people do you will get the same results.

      Chuck

      Reply
  26. Emmanuel

    I don’t think the failure rate in the MLM Industry is as bad as people make it out to be. Lots of folks earn $300 to $5000 per month. And many others earn enough to get their products for free. And a select few earn six or seven figures. Everyone has a different definition of success. I’d also like to chime in and tell you that most people don’t fail, they quit. Most of the people I’ve ever worked with did NOTHING to build their business. Heck, they didn’t even sign up for auto-ship or sponsor anyone. To call them failures would be lying. Instead, I call them quitters. I think one of the best things people could do is learn the difference between failing and quitting.

    Emmanuel

    Reply
    1. chuckholmes Post author

      Good points, Emmanuel. I’m not sure if I could have said it better myself. I am so sick of people misleading others outside of our industry about the so called failure rate within the MLM Industry.

      Chuck

      Reply
  27. Daniel

    I spent two years building my MLM Business, but could never get it off the ground. I did everything my upline taught me, but just couldn’t get it to work. I blame some of it on the opportunity and some of it on myself. You see, I was involved in the MLM Industry more than 10 years ago. At that time I knew nothing about sales, marketing or recruiting. I was simply working my warm market. If I had to do it all over today, I’m sure I could get much better results.

    Daniel

    Reply
    1. chuckholmes Post author

      Good points, Daniel. I believe that ultimately, we are responsible for our own success or failure. Most people do not accept individual accountability for anything in life. They blame their weight problems on the food makers, their economic problems on the government and their marriage problems on their spouse. Until people can learn to take personal responsibility for everything that happens, or fails to happen in their life, they will do nothing but make excuses. I personally don’t think anyone fails in the MLM Industry. Instead, I think they quit! Or, they don’t do the work to begin with. We know the concept works, because some people earn six and seven figures. My best recommendation is to study successful distributors in the MLM Industry and then go out and do what they did.

      Chuck

      Reply
  28. Ericka

    I failed in MLM with three different companies: Amway, ACN and Herbalife.

    I did everything my upline taught me, but still couldn’t get things to work.

    I gave up on the MLM Industry and decided to open a traditional business instead: a thrift store.

    That has been far from easy. I’ve had my own store four years now, and I just turned my first profitable year.

    I’ve come to realize that any business is hard work!

    Had I stuck around with my MLM Companies longer, I might have done even better.

    Ericka

    Reply
  29. Beth

    Looking at the failure rate in my own downline, I can tell you this.

    For every 100 distributors who join my team, here’s what I find:

    5 to 10 are pretty serious. Those folks typically earn $500 or more per month, some much more than that.
    40-70 do nothing. They might place one product order, but they don’t sponsor anyone or build a team.
    10-20 are wholesale buyers who buy the products at discount, might have a couple customers, but don’t do anything with the business.

    Here’s something else I think you should know. Of the 90 to 95 people out of 100 who join my team and don’t do nothing, NONE OF THEM are failures. They simply don’t do anything with the business.

    I’ve yet to sponsor someone who was serious and did the work, that didn’t at least make $1000 per month.

    Just my thoughts on the matter.

    Beth

    Reply
  30. James B

    An important part of MLM marketing is coming up with viable genealogy lists. Buying bad or even illegal lists gets many young MLM companies into trouble, sometimes so much they simply crumble under the weight of impending litigation. It might seem like an easy way to increase your sales but buying and using these old lists in your campaigns could kill your MLM company, land you in prison or both.

    Reply
    1. chuckholmes Post author

      This applies to distributors too. Buying genealogy lists is a complete waste of time. It’s much better and much more effective to take the time and learn how to generate your own leads. When you have your own leads, and know how to generate your own leads, you are in complete control of your business. When you buy leads, you never really know what you are getting.

      Reply
  31. Jeffrey Chew

    Hi there,

    That quite a good blog post you got there. To sum up, if one is not producing result in their network marketing company, they should see inside themselves instead of changing companies.

    Keep the post coming.

    -Jeffrey

    Reply
    1. chuckholmes Post author

      Thanks, Jeffrey.

      You are spot on. Most people look at their MLM Company as being the answer to their problems. And when they don’t get the results they want, they jump ship. What they need to realize is that they are the answer to their problems. They simply need to develop the right skill set and right mind set. That takes time, money and discipline to do.

      Great comment.

      Chuck

      Reply
    2. chuckholmes Post author

      I agree. We are the cause of our own problems and the solution to our own problems. We have to man up or woman up and take responsibility for our own actions.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *