5 Reasons Why Multi-Level Marketing Businesses Fail
Multi-level marketing businesses are a dime a dozen, but few last longer than a year. Many do not make it beyond the first few weeks of business life. Knowledge is a powerful tool in business of any kind, so what does the prolific failure of multi-level marketing businesses teach us about how to make an MLM business succeed?
Many multi-level marketing businesses fail because of a few common problems. Being aware of these potential pitfalls before beginning an MLM business can help your business succeed where others have failed.
LACK OF SUPPORT
A new multi-level marketing business owner needs a great deal of support, guidance and encouragement during the first few months of business ownership. Good multi-level marketing business owners take a personal interest in the success of their new recruits and plan to spend extra time with these fledglings to help ensure their success.
If a new multi-level marketing business owner does not get prompt and adequate attention by a more experienced team member in the upline, they may change their mind or lose their desire to work towards a productive business profit.
FAILURE TO GENERATE LEADS
Fresh opt-in leads are the lifeblood to any multi-level marketing business. A failure to generate leads means certain failure for your business. Most new recruits are hesitant to approach their friends and family about their newfound business opportunity. If they are unable to generate a list of acquaintances or approach strangers about their business, there will be no sales.
DIFFICULT TO DUPLICATE
If a multi-level marketing business’ system of promoting products or services is not easy to duplicate, the business is not likely to thrive. Not every person can become skilled enough at wining friends and influencing people to generate enough sales to make the business succeed. The main concept of an MLM business is to sign up more business owners who will in turn create their own succession of thriving businesses. This requires an easy to duplicate system.
LACK OF CONFIDENCE AND TRUST
Many new recruits are still on the fence about the legitimacy of a multi-level marketing business. They also battle a lack of confidence in their business, communication, leadership and sales skills. This lack of trust and confidence is often conveyed to potential customers and new recruits during business interactions. Large doses of educational materials may help overcome these fears if they are available early enough. Once the excitement of owning an MLM business wears off, new recruits may become bewildered and hopeless unless they receive a fresh direction for their energies. Providing them with concrete skills that they can feel confident about will help overcome this obstacle to success.
IMPATIENCE
Making any business successful takes time. Many new business owners become impatient and frustrated at a lack of progress or slow growth. Dedication, persistence and patience are necessary for the success of any business, multi-level marketing or traditional.
Safeguarding against failure is a wise step when setting up your multi-level marketing business. Proactive planning and education are great tools that can help ensure your business’ success.
Mike has been online since 2004. He can show you 3 simple steps to turn your Internet Marketing Business profitable.
http://www.profit-unlimited.com/info/l/pips_one
Mike also publishes “Profit-Unlimited Home Business Weekly”. Take a look, click below
mailto:profit_unlimited@getresponse.com
Network Marketing Leads-The Downside to Using Them
It was funny how I came to this revelation, if you want to call it that, about buying network marketing leads.
I’ve been in the network marketing industry for about three years. Not a very long time by some peoples standard, but a long time considering that most people try their hand at it and then fail-vowing never to try it again.
So, I could say that I have enough experience to know the ins and outs of this industry. I also know most new people choose to build their business with network marketing leads.
If you’ve been in this industry any length of time, I’m sure you’ve been told that the only way to build a business is through your warm market and/or through buying network marketing leads.
It’s true that you can build a business via leads. It’s also true that most newcomers into this industry don’t have enough experience to convert those leads into distributors or consumers in their business opportunity.
Very few people will be good enough at the beginning to make a profit at recruiting from network marketing leads. It takes time to get good. The problem, however, is that some people can’t afford the time it takes to get good. Are you in this category?
In the meantime, while you are trying to get better at prospecting with these leads, and buying more and more of them, at the same time you are trying to keep up with the other expenses of running your business i.e. autoship, business brochures, CDs websites etc.; your expenses start quickly mounting up higher than your profits!
To make matters worse, some people, (do I dare so most?), market their business only one way. If they are buying leads, then they usually build their business solely on that-but they’re not good at it and they don’t make any money. Does that sound like you?
Let’s take this a step further. Not only are your expenses mounting up, and profits are practically nonexistent, but you continue to buy the most expensive network marketing leads because your upline says you should; never mind the fact that you didn’t call the last expensive batch of leads!
As you go on, the expenses keep adding up, and you can’t get enough people into your business to justify buying the most expensive leads, but you continue to do so hoping things will change-but they don’t and you get so frustrated that you quit your business altogether. Is that you?
Then the blame game starts. You blame the leads, you blame the business opportunity, and you blame your upline. You eventually get around to laying blame to where it really belongs-you.
Buying network marketing leads can add up over time, almost to the tune of hundreds to thousands of dollars-before you ever get good enough to recruit from purchased leads and make a profit.
You must have a big enough budget to sustain you as you build your business this way. You should also be marketing your business other ways besides buying leads and cold calling them. Remember this is the downfall of many entrepreneurs. You shouldn’t market solely one way at all.
If you’re getting sick of buying network marketing leads, it could be because you are relying to heavily on that one form of marketing to build your business or it could mean you just plum-outright don’t like cold calling strangers.
Either which way you must decide what other marketing techniques you can use in place of or in addition to your lead calling. Quitting should not be an option because you don’t like the marketing methods that were taught to you. You must discover the many other ways you can build your network marketing business. A well-rounded approach is the best approach to building your business.
Know the secret to making money in network marketing? You can find out by visiting: http://www.MyNetworkMarketingTips.com
Corrisa Malone is a home-based business entrepreneur.
The Simple Way to Close More Sales Effectively
The first step toward closing more prospects on a YES decision is not in the close when you ask the closing question. Rather, the first step toward closing begins with your first point of contact with your prospect, when you begin your conversation with your prospect. It is in the rapport building part of the sales process, the place where you open communication.
Chances are you are not closing as much business as you would like. And you most likely do NOT need more leads. What you need is to close the prospects you already have.
As marketers we are often in a prospecting and selling mode, which has us focused on trying to make first contact or even just trying to generate a lead through our marketing efforts. But even with having a steady flow of leads (often an overabundance of leads), we all too often think what we need are more prospects. And we often get trapped in a prospecting mode and focus too much on lead generation.
Now don’t take this wrong, as lead flow is important – extremely important. However, most marketers get stuck in that part of the process to the point where they begin to think what they need are even more prospects and a ton of leads.
Let’s face the facts! Rarely do we need more leads. What we need is to become more efficient and more effective in closing the prospects we have already made contact with. This means mastering our closing skills and mastering those skills to where we are closing in a work smart way.
Keep in mind, as you begin to build your business, whether you are retailing products or services, or recruiting distributors, getting to a YES decision is in your hands. The great news is closing is simple and easier to do than most people think that it can be done.
One lesson that served critical to my success was I learned early on the secret to closing is directly tied to understanding what closing is and is not. The secret simple way to close more sales effectively is to make sure you understand closing. This means that as you begin your skill enhancement on your ability to close, make sure you fully understand what closing is. Simply defined, closing is getting the prospect to make a decision. This means to buy something (a product or service), to get more information, or not to buy. It is making a decision.
Most marketers have trouble with understanding closing. Most never close their prospects on a decision. They have great conversations but never get the prospect to that important decision.
Keep in mind, if you open the prospect (by prospecting and starting the conversation), where they begin looking at what you offer, it is YOUR responsibility to help that prospect make a decision. This means closing the prospect on a decision.
Closing is an important and critical part of the sales process. So, don’t leave your prospect hanging in an area of indecision. Get the prospect to a decision. It is your responsibility to not only learn and master the proper closing techniques but it is also your responsibility to help the prospect get to a decision.
TIP – Without using proper closing techniques, very few prospects will make a decision.
Do not fear closing, rather embrace closing. Know you will be a more effectively aggressive as a closer if you do the prior steps that lead up to the close. This means approaching and involving your prospect through the sales process, overcoming objections, and most importantly, understanding what your prospect wants and offer a solution best fit to those wants.
As a final note, effective closing is not just about your ability to close but it also ties into other related skills such as approach and involvement, overcoming objections, qualifying, and many other skills areas, all of which affect your ability to close effectively.
Jeff Zalewski is a Certified Training Consultant & CEO of Direct Selling Academy, Inc., your training & performance improvement resource, where he intertwines his knowledge & in-the-field experience. Subscribe FREE to his Direct Selling Pro eNewsletter at http://www.directsellingacademy.com
The 7 Great Lies Of Network Marketing – Is It A Scam?
When author Ann Sieg released her report “The 7 Great Lies Of Network Marketing” it literally sent shock waves through the industry.
Many established and old time network marketers reacted angrily to the report and with very good reason. Sieg was bold enough to tell it like it is and confirmed for many struggling distributors that maybe they have been lied too all these years.
So what was written to cause such an angry response? Basically, Sieg exploded several myths in “The 7 Great Lies” such as:
- the “3 foot rule”
- your upline will build your business for you
- you don’t need to have any sales skills and
- and anyone can do this
In essence, Ann Sieg literally attacked the old outdated methods of building an MLM business suggesting it’s the reason why 90% of people will “toss in the towel” in the first 90 days.
Is she right? Well, statistics don’t lie and there has to be a reason why there is such a huge attrition rate in the industry. Maybe she went a little overboard in suggesting MLM’ers have been lied too but sooner or later, someone was going to take a stand and question publicly the merits of offline recruitment strategies.
One of the most profound statements ever made is “if you do something over and over again and expect to get a different result then you’ll just keep spinning your wheels” is probably the best way to describe the message within “The 7 Great Lies Of Network Marketing.”
We now live in a communication age dominated by the internet. What happens when you join an MLM company and are told to make a list of everyone you know from family to friends to casual aquaintances? You are going to exhaust that list pretty quickly and worse still, you’ll more than likely alienate yourself with some people who will see you as someone pushing the latest “pyramid scheme” onto them.
So what’s the answer when the list becomes redundant? Where do you source your prospects from? This is the “brick wall” most distributors are confronted with. They are told time and time again to attend meetings and have faith in the system but let’s be honest, that’s all well and good but without prospects in MLM you are “dead in the water.”
This is the point in a distributor’s life when the only alternative is to get out because monthly autoship payments alone can become insurmountable financial obstacles which they simply cannot sustain.
The answer is to create cashflow in your business from day one even if you don’t sign anyone into your business. Is that possible? Sure, and “The 7 Great Lies Of Network Marketing” is the platform to achieving this exact system.
Want to know what The 7 Great Lies Of Network Marketing are and how they
are crippling your MLM success? Read Ann Sieg’s controversial report for free at:http://breakthrough.the7greatliesofnetworkmarketing.com