Today, I want to share what I believe is the one common mistake that hurts most network marketers. New network marketers make a lot of mistakes in their business, mostly because they don’t have any business experience.
Most people who get involved in MLM have NEVER owned a business before. So, they don’t naturally have the skill-set and mind-set it takes to succeed in business. They are clueless when it comes to sales, marketing, advertising, leadership, running and growing a business, cash flow management, and so forth.
Of course, this applies to every type of new business owner, not just network marketers (even though no one ever likes to mention that). Most new business owners (in every industry) have to go through a steep learning curve before they can become successful in their business.
What’s great is that network marketers (and business owners) can develop the right skills if they come up with a game plan, find a mentor, stay persistent, and work on their personal development. However, very few network marketers will ever stick around long enough to do that.
Now that we’ve got that out of the way, here’s the one common mistake that hurts most network marketers.
As I see it, the one common mistake that hurts most network marketers is jumping from business opportunity to business opportunity every three to twelve months.
Here’s what typically happens.
Allen joins a MLM for the first time. He is excited about the opportunity to work from home, earn residual income, become his own boss and eventually quit his job!
For the first 30 to 90 days he is enthusiastic about the business. He does everything this upline or sponsor tells him to do. If he’s persistent, he sponsors a few people and builds a small team of customers and distributors.
By the end of the his third month, he’s only making a $50 to $100 commission check (if that). So, Allen becomes frustrated and loses faith in his upline and company.
So, what does he do now?
He quits the business and chases the next shiny object that is presented to him.
He repeats the same things with his next business and gets the same results that he did with his first business.
Within a few more months he becomes jaded and quits his new business to look for the next greatest thing.
And if he’s like most distributors, he repeats this process for a period of YEARS, before he becomes totally disillusioned with the industry (and entrepreneurship).
After a few years, he has no friends left, he is broke and he feels that he was scammed! So, he goes out and creates a blog telling everyone how the MLM Industry is a scam!
Sadly, all of this could have been prevented. Had Allen followed some simple advice, he could have avoided this costly mistake, and the pain and frustration that goes with it.
Here’s is what Allen should have done (and what you should do).
First and foremost, Allen should have found a company with a product or service he was passionate about.
After all, it’s much easier to promote something that you love!
Next, Allen should have realized that all businesses take a year or two just to get profitable!
Furthermore, Allen should have made the decision to stick with ONE company for at least five years. Let’s face it, it takes most entrepreneurs (and network marketers) three to five years, just to build a $3k per month or higher income, especially if you are working a business part-time.
Next, Allen should have found a mentor so he could have (1) set realistic goals, (2) create a game-plan to succeed and (3) had someone to help coach and train him.
Had Allen had a mentor, he would have realized that the grass is not greener on the other side, it’s greener where you water it!
Finally, Allen should have realized that building a successful business is a different mindset that being an employee. With a business, you get paid based upon the results you produce, not the amount of hours you work.
Had Allen known these things up front, he could have avoided the one common mistake that hurts most network marketers: jumping around and giving up to soon.
So, if you are a new network marketer, or have new network marketers on your team, I hope you will apply these lessons in your business, and teach your team to do the same.
What are your thoughts on this subject? What do you think is the most common mistake that network marketers make? Leave a comment below and let us know.
Chuck Holmes
20+ Year Network Marketing Professional
Top Earner & Top Recruiter
Email: mrchuckholmes@gmail.com
P.S. Learn how to grow a successful network marketing business. Secret tips, training, and practical ideas. Free training delivered by email.
Hi Chuck,
I agree with the first comment, you nailed it sir! I believe an underlying cause could be the relatively low cost of entry into most direct sales companies. If the new entrepreneur had invested their life savings upfront in their business venture, they would take it far more seriously, and gain the skills needed to make their business successful.
Instead, as Eric Worre proclaims, many treat their MLM opportunity like an expensive lottery ticket, and “scratch off” their warm market with unprofessional tactics that could have been avoided. After joining the NFL club, they give up, and blame the company, their upline, and everyone but themselves for their failure.
Early in starting my newest primary company, I was fortunate enough to read these bits from a pro: Treat my business like I had 100K invested in it; Find duplicatable methods to get myself, then my new associates, to go from $0-1000 month as quickly as possible, and realize the value of this seemingly modest recurring, non-linear income. Show people how much money they would need in the bank to make the same amount of passive income.
Where else can we do this with so little cash invested, simply by working hard at gaining the needed skills, and growing ourselves personally?
Thanks for the comment, Tony.
Most people who enter our industry think like an employee, not like an entrepreneur. They have no clue as to running a successful business. Plus, many of them are in dire financial straights and are looking for a “magic pill” and therefore have a lottery mentality.
Anyone can succeed in this industry if they take the time to develop the right skills and right mind-set. Heck, most businesses take a year or more just to get profitable. Expecting overnight success in MLM will lead to nothing but heartache and frustration.
However, if you get started, work consistently and stick with it for a few years you can really change your life.
Chuck
Hi,
Great post! You certainly hit the nail on the head. You have given an excellent description of the MLM machine. It chews people up and spits them out. I’m sure that most of those people or statistics, as I like to call them, don’t even know why they didn’t make that promised $1,000,000. It’s really a shame. I’m sure that there are many disillusioned people out there, that would have made good network marketers if they had only known that they needed to learn certain skills.
I blame most of it on the deceptive people in our industry who promise people they will get rich quick without doing any work. Of course, a lot of people have the lottery mentality and are looking to get rich quick without doing anything, but I still believe that network marketers should be professional and give their prospects realistic expectations. Just my two cents.
I agree with that, but in this age of enlightenment, I think people should have smartened up by now. It is quite evident that you normally don’t get something for nothing. Even with things like the lottery you have to be diligent. I doubt many people have won the lottery on their first try. It takes investing time, money and more to succeed in network marketing, or for that matter, any business. People need to learn you just cannot get without giving.
You’re right. We don’t get something for nothing.