Of all of the different industries I have ever owned a business in (and I’ve been in a few), people in the network marketing industry were the least serious and least committed. I believe that 95% or more of the people in the MLM Industry have false expectations about what it takes to build a successful business (of any kind).
I want to give you an example to put things in perspective.
The Reality of Starting a Traditional Business
When someone starts a traditional business (i.e. a restaurant, grocery store, dry cleaner), they typically invest several hundred thousand dollars (if not more) buying a building, equipment, inventory, getting their required licenses, insurance, etc.
They spend that money BEFORE they even open their business, with no guarantee of success.
Even after investing this much money in their business they don’t expect to make a profit in their first year or two. Most entrepreneurs hope that after three or five years they can recoup their initial investment (or most of it) and start making a decent profit.
They realize that there is no guarantee of success, and even if they do succeed, it will take several years to build a successful business.
They don’t expect to get rich quick. They know they will have to roll up their sleeves and work harder than they have ever worked before.
More importantly, they quit their job and go full time in their new business, even though they won’t make much money right away. They burn their bridges and commit to their new business venture as if their life depends on it!
They know there is no guarantee of success.
They know they will have to work hard for a few years with little to show for it.
They know all of these things, yet they still persist.
Now, let’s stop and think about network marketing for a minute.
What Network Marketers Do
People join a network marketing company for $300 or less (in most cases).
They get immediate access to free training and support. They even get a free mentor.
They don’t need to take out a loan to start their business. They don’t need a building. They don’t need an inventory. They don’t need to hire employees. Heck, they don’t even have to give up their day job.
They can start their business part-time, while they still have their job security.
Yet, what happens?
Approximately 50% or more of all new reps quit within their first 90 days, and about 75 to 80 percent of all new reps quit by the end of their first year. I do not have the statistical data from a third party source to verify that number, so I am speaking from personal experience.
The Problem with Network Marketers
Why does this happen?
I think it happens because people in our industry have false expectations about what it takes to succeed in the MLM Industry!
Most network marketers have never owned a business before, nor are they really qualified to be a business owner. They are clueless about what it takes to build a successful business of any kind. They know very little about sales, marketing and owning a business.
They think they can find two serious people, then sit back and do nothing.
They think they can make a check for several thousand dollars, even if they invest less than an hour per month in their business.
This mindset creates lots of problems, including high attrition.
A Funny Story
I had a guy call me the other day. He works in a manufacturing plant. He’s been there almost 20 years and makes $20 per hour, which is about $800 per week or about $3,200 per month. He works 40 hours per week.
I asked him how much he would like to make in his new business his first month. He said $5k. I asked him how many hours he would be willing to work to get that. He said 10 hours per week.
After I dropped my phone to the floor and laughed at him (in my mind), I got back on the phone and said “SERIOUSLY?” You work 160 hours per month in your job to make $3,200, doing something you’ve been doing for 20 years, but you think you can work 40 hours your first month in your new business and make $5k?
Why is it people think they can make so much money, so quickly in our industry, without doing much work?
I just scratch my head and wonder about people’s common sense sometimes.
What Successful Distributors Do
On the other hand, when you study the successful people in the network marketing industry, you will notice some common trends.
They treat their MLM Business like they have one million dollars invested in it.
They work their business consistently, every day and every week.
They make time for their business and do not let life get in the way.
They have a vision for their business and see their success in their mind before it manifests into reality.
They take the time to develop the right skill set and mindset.
They persist, even when times are tough.
They have the “I can, I will, I shall” mentality.
They work their business consistently for five to ten years, working part-time, to build up a full-time income.
At the end of the day, achieving success in ANY type of business is hard to do. Don’t believe me? Just ask one of your entrepreneurial friends.
If you want to succeed in MLM, and make the big bucks, you need to have realistic expectations and you need to treat your network marketing business like a real business.
Only then will you have a shot at success.
Thinking you can get rich quick or get something for nothing will only lead to frustration and failure.
Just remember the following things and you will be good to go:
- Network marketing is a viable business if you treat it like one
- Network marketing has all the benefits of a traditional business without most of the headaches or risk
- No one builds a successful, sustainable business in less then a few years
- Your business is a business, not the lottery
- You have to sow before you can reap
- You need goals and a game plan to succeed
- It’s going to take you some time to develop the right mindset and right skill-set
In review, most people in our industry have false or unrealistic expectations about what it takes to build a successful business of any kind. Our job as sponsors and mentors is to ensure each new distributor has REALISTIC expectations about what it really takes to succeed.
What are your thoughts on this subject? Do you think most people in our industry have false expectations? Leave a comment below and let me know what you think. I look forward to hearing from you.