Why Most New MLM Distributors Struggle and Fail in Network Marketing

Today, I want to talk about why most new MLM Distributors struggle and fail in their network marketing business.  Personally, I think it has very little to do with the industry itself and everything to do with the person.

Without a doubt, the single biggest reason that new distributors fail in network marketing is that they have an employee mindset.  Most folks entering this great industry have never owned a business before.  And while they might not want to have a boss anymore, they have no idea how to be the boss!  They have no clue about how to start, manage and grow a successful and profitable business of ANY kind!

Entrepreneurs and employees think VERY differently.  That’s not a bad thing, unless you have your own business and still think like an employee!  It takes time to make the mental shift from being an employee to being a business owner.  It took me three to four years to really make the switch.  And during that time I really struggled in my businesses (traditional business AND network marketing business).

As a business owner, you are responsible for everything that happens or doesn’t happen in your business. If you don’t produce results you don’t get paid.  PERIOD.  You don’t trade hours for dollars and you don’t get paid to show up!  You have to produce results or you will go to bed hungry!

The second reason that most new network marketers struggle and fail in their business is that they have unrealistic expectations.  They have a lottery mentality toward their network marketing business and think they can get something for nothing.  Sometimes this stems from laziness and other times it stems from the hype or false promises that their sponsor or upline told them.

Many people who enter our industry have had a job for 10, 20 or 30 years and they are still broke, yet when they don’t make the BIG BUCKS in MLM in their first 90 days they quit and say they were scammed.  Yet, they keep going to work in their job, but never call that a scam! I just don’t get it.

In this industry, you get out what you put in.  If you do nothing, you make nothing.  If you focus on the wrong activities, you make nothing.  If you are putting in a part-time effort, it’s quite unrealistic to think you will be a six figure earner in a year or two.  Can it happen? Of course.  But, it is not normal.  Part-time work equals part-time income and full-time work equals full-time income.

When you sponsor people into the business you need to give them realistic expectations. Don’t tell them it’s easy.  Don’t tell them they can just spend 5-10 hours a week and build a big business within a year or two.  Also, make sure you explain to them which activities they get paid for (creating sales volume in their organization).

That takes us to the third reason that many new distributors struggle in their business: they do the busywork, but they don’t focus on the right activities.  The only activities that earn you money in MLM are: prospecting, showing the plan, following up, getting customers and training your team.  All other activities are BUSYWORK.  Most distributors do things like clean their office, sort their files, watch YouTube videos, and listen to training calls, yet wonder why their business isn’t growing.  At the end of the day, the ONLY thing that matters is how many people did you introduce your products or business opportunity to, today!

The fourth reason that many new distributors struggle or fail in MLM is that they don’t receive the right training.  They don’t “plug in” to their upline’s system. They don’t read the books, get the coaching, or attend the events.  In a few rare cases, the person might have a crappy upline, but in most cases, it’s the distributors fault for not investing in their business education.  To be honest with you, I don’t know of one successful entrepreneur who is NOT a student of their own business. Successful entrepreneurs learn everything they can about their company, their niche and their industry.  They are always reading and trying to learn new things that give them a competitive advantage.

The fifth and final reason that new MLM Distributors fail in the business is they don’t stick with it long enough.  Let me be perfectly clear and tell you it’s hard to build ANY kind of business that is profitable in its first year.  Of the hundreds of entrepreneurs I’ve met, less than 5% were profitable in their first year.  Yes, I’m talking about network marketers and traditional business owners.  What the successful entrepreneurs did was followed their vision and persisted until they succeeded.  After all, you wouldn’t invest $100k in a traditional business and quit in 90 days, would you?  The bottom line is you have to follow through with what you start UNTIL you succeed.  And good things take time.

Final Thoughts

Here’s the bottom line folks.  All entrepreneurs struggle when they first get started in a new business.  It’s perfectly normal.  What separates the people who succeed from the people who quit are the ones who make a lasting commitment to succeed and keep learning as they go.  To succeed in network marketing you need a game plan, you need to focus on the right activities, you need realistic expectations, you need training, and you need to stick with your business UNTIL you succeed.  Otherwise, you are just living a pipe dream.

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

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Chuck Holmes

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3 thoughts on “Why Most New MLM Distributors Struggle and Fail in Network Marketing

  1. Greg Boudonck

    I believe in my honest opinion that the biggest reason people fail in the network marketing business is just not sticking with it long enough. I believe that all other items can be overcome with the right methods, but if a person isn’t willing to just stick with it, failure is the only option.

    I do believe that training is a key. If sponsors are honest with their down line, and just work with them a little at at a time, many of them can be successful, but again, the key is sticking with it.

    This is a very upfront post that every network marketer should read. Hopefully, they will.

    Reply
  2. cliff k

    I have been inspired to venture into MLM in the near future and this is just one of the best reads I have encountered so far. I enjoy the frank tone the writing is packaged in. It sound more like brotherly guidance into the intricate of a delicate business than a cold dose of business talk. I agree completely on the employee mentality that many people adopt at the onset of the business. I admittedly, carry this trait as I have been in employment since I left college. MLM essentially needs a mind shift to business strategy and focusing on growing wealth rather than spending it. One of the reasons I have avoided network marketing is the rate at which hopeful entrants are soon disappointed. I once had a friend who made me believe he was on his way to a rich life, only to bail him out two months later. Hope is good but overstretched, makes the business look like a scam.I would also like to add that a lot of people fail in MLM because of depending entirely on it. MLM is a long-term opportunity that matures with age, as opposed to paying bills from day one. I am very keen to avoid all these loopholes, to make it big.Always a pleasure!

    Reply

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