The # 1 Reason People Quit Network Marketing

People join the network marketing industry for a variety of different reasons.  Some of those reasons include tax incentives, financial freedom, residual income, to get rich quick, to leave their job, or to supplement their current income.

And while there are many reasons that people join our industry, there are also many reasons that distributors quit.  Some of the common reasons people quit their network marketing business include:

  • Lack of Vision
  • Employee Mindset
  • Lack of Discipline
  • Lottery Mentality
  • Lack of Entrepreneurial Experience
  • Unrealistic Expectations

However, the number one reason people quit network marketing is because they don’t have a positive cash flow in their business.

Most distributors lose money in their network marketing business each month.  They spend more money on auto-ship, samples, training, books, seminars and business tools than they get for an income with their bonus check.  Since most of these people were already broke when they joined the industry (and never owned a business before either), they aren’t willing to lose a little bit of money each month while they get their business up and running.

In fact, most people can only handle losing money for one to three months.  And that’s why most people quit their network marketing business within 90 days of joining.  That means it is up to you to show your downline distributors how to have a positive cash flow within their first three months in the business, or sooner. If you can do that, you will improve your retention rates significantly.

That doesn’t mean you need to show them how to make the big bucks, either. Even an extra few hundred dollars per month would make a big difference for most network marketers. And making that type of money is really easy to do in our industry.

In order to help your new distributors succeed, you need to help them find retail customers. You need to teach them how to sell the products via in-home parties and one-on-one sales presentations.  Have them focus on selling the products, rather than sponsoring distributors.  Help them find 10-20 retail customers before they even think about sponsoring their first distributor.  Help them build up a large customer base who order the products every month.  Do that and they will make money in their business and they definitely won’t quit!

Heck, you can make $500 to $1000 per month in profit in most network marketing companies, just by having 10 customers.

You see, if you don’t help your new team members make money right away, you will need to replace them with a new distributor within one to three months. That can be expensive and time-consuming. So do yourself a favor and invest some of your time, money and energy into teaching your downline how to retail the products.  That’s where the immediate profits are at in our business.  Once they have a solid customer base, then you can teach them how to build a team of distributors.

What are your thoughts?  What is the number one reason you think people quit network marketing?  Leave a comment and let us know. I look forward to hearing from you.

chuck holmes


Chuck Holmes
Network Marketing Professional (since 2002)
Author, Blogger, & Entrepreneur

Suggested Resources:
  • The # 1 Home Business for 2024 & Beyond! Weekly Pay. Free websites and marketing system. Free to join. 15 ways to earn. Turnkey online business.  Learn more.
  • Request 200 Free MLM Leads. I'm giving away 200 free MLM Leads and my secret texting scripts, for a limited time. Claim yours now.
  • Buy and Sell Advertising Online. Make money buying and selling ads. Get the details. 

2 thoughts on “The # 1 Reason People Quit Network Marketing”

  1. I am in total agreement here.

    Most people join because they are in financial trouble. They need to make money fast, not spend it. Over the years, I have tried several MLMs and it was for the very same reason. In almost every circumstance, the sponsor just didn’t help at all. Others it was very minimal. I soon quit, because I just didn’t have the money.

    This can be a lesson to those who are joining a MLM too. Don’t wait until you are at your final option. If you are financially stressed, it will show, and you will have a difficult time recruiting.

    Sponsors, don’t leave you recruits to the wolves, help them. Recruits, think before you act and put on a happy face.

Leave a Comment

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The # 1 MLM Company for 2024. Join for free. Secure your position in my power leg.