An Overview: What is MLM?
MLM Network marketing is the one greatest opportunity in the history of mankind for the average person without a lot of money to invest to become financially free. Network Marketing is the distribution of products and services through a network of independent representatives. Each representative is responsible to consume a small number of products. And recruit others to do the same. Sales volume is generated through a lot of people each month buying and selling a small number of products.
Commissions are paid based on training new distributors and the consumption of the products and services within the network. A company offering a product or service can eliminate the need for expensive advertising campaigns. By deploying a network of distributors and also get paid for sharing products they love with others through word of mouth. Network Marketing is getting paid over and over for working one time. Passive income and royalty income that comes in month after month.
Here are some of the reasons why people quit MLM
1. Early Expectation
Most of the time, the expectations for new Network Marketers are not set before they start building an MLM Network Marketing business. If you are working with someone that is brand new and has never built an MLM Network Marketing business it can be challenging. As a sponsor, expectations need to be set so that the new person coming in knows that it’s a process and that there is a learning curve that is associated with building an MLM Network Marketing business.
2. Lack of Purpose
As a brand new MLM Network Marketer, you have to figure out why you are doing the business, to begin with. If you answered for the money, and that is not a good enough reason why to do the business. If you are coming in and approaching this that it is the only reason you will quit and you will eventually fail, just like 90% of people out there that are trying to make money in this industry.
3. Poor Mentorship
Most of the time, a sponsor will be fulfilled in acquiring a new member and later on, forget about retaining and maintaining the relationship he established and must further with the newcomer. Often than not, stability is the bloodline of his or her’s organization and will lead to failure. When you team up with a sponsor who has success and experience, that in itself will increase the odds of succeeding in this business.
4. Lack of daily activities and goal setting
Most new network Marketers need to understand that in order to build a business, there needs to be an activity that needs to be met. If you are not going out there and promoting and exposing your business, your business will have a short life and will die in a matter of weeks or months. It’s important to have a daily method of operation, that you have set for yourself.
5. Zero Productivity their MLM Business
The lack of fulfillment can be caused by zero productivity. Indeed, you are working to earn something from it. You are responsible for the things you do and you need to be driven to go out and work to be able to achieve your goals. Just remember that how you do anything is how you do everything. Start small and do small daily tasks every single day that will lead you to more production. Always begin with the end in mind when you are out in the trenches while building an MLM Network Marketing business.
2 is a stone cold killer, an mlm killer at least lol…..because money is not good enough. Believe me I went down that path for years 😉
Tie your WHY to something bigger than you and an awesome thing happens; you become invincible, and you keep going as most others quit.
Thanks for sharing the spot on advice Nate!
Top Article Here!!! Very Impressive 🙂 The WHY has to be MASSIVE otherwise you will quite at the first sign of problems in the business 🙂
Well said Jay! Thank you for the comments!
Love the comments, Ryan! Love your feedback!
Great post. I agree with that most people do not do well in MLM and Network Marketing because they do not have the proper expectations when they first join. Thanks for sharing!
Thanks for the feedback!
Stopping from quitting is one big step towards success. I think the point about lack of daily goals is one of the biggest factors behind why people quit.
I agree lack of goals are one of the reasons why people quit and do not succeed in the business. Thanks for the comments!
Great blog Nate! I will also add lack of a good company system. I see a lot of people fail because there is no clear cut step by step system to get people going.
You’re absolutely right. Having a system is important to have success in any type of Internet Network Marketing business. Because in order to succeed a step-by-step action plan needs to be laid out. Thanks for stopping by! Hope to see you back here again soon!
MLM is a good concept but requires a person to be a good man manager. “Mentoring” as you put it so well is very definitely a big problem.
I agree, mentorship needs to be set in place for the new rep to succeed in this business.
Great post Nate … Another big reason I notice so many people quit, that is as important as mindset and activities, is that people don’t treat this as a real business. In a regular business if someone started with just a product and had very little business knowledge or training about the business they were getting into and had no marketing tools, they wouldn’t be given much of a chance for success, no matter how passionate or committed they were. Yet even in the Network Marketing industry today, many companies still throw their new people into this business with just the product and told that they can make money by making up their warm list and calling them. OK, maybe some on them have an online website to send their prospects to, but that is about it.
Thank goodness there are people like yourself that understand this and try to help as many network marketers get the right training and tools to at least have a fighting chance for success. Knowledge, Tools, Mindset and Activities … a great combination for success if I ever saw one!
So nice of you to stop by! I always love greeting new faces!
You’re right. Many people who come in, most will treat it like a hobby vs treating it like a real business. However they show up in life, is probably the same way how they show up in terms of their business.
It’s a combination of knowledge and from that you gain experience which cannot be taught, and you have tools, having the right mindset and doing the activities. Perfectly said Glenn!
Glad that you had a moment to stop by, I’ll be seeing you around!
I’ve really gain a lot of insight here tonight. Am also in the online marketing business and my sponsor is as new as me so most time its a struggle for me…thank u for your ideas.
I’m glad to hear that. Please do not hesitate to contact me if you need anything else. I’m here to help. 🙂
Said another way, network marketing allows ordinary people to earn an extraordinary income. Or as Eric Worre says “it’s a stone cold fact that we have a better way”.
But, because of the reasons you have shared in this article, most people who state in an mlm, either never realize a substantial income from it, or drop out after failing to achieve the results they expected.
Fault lies both on the prospect who expects it to “just happen”, and on the sponsor who leads the prospect to think that way, and/or is not there to help the new person “make it happen.”
It’s always exciting to see a new face. Welcome. 🙂
Exactly. Most people just see the glam and glitter from either listening to leaders on stage or the stories and testimonials. I believe that excitement is good, at the same time the person who is looking at the opportunity needs to look at it from a back-end perspective. Meaning, what will it take to get there. How am I going to earn that substantial income.
There is money to be made, but there will be work involved. I’m sure you can agree with me here that most people just come into Network Marketing with no expectations either they put on themselves or their upline has not laid out for them. They come in, take action on a few items, see that it’s not working the way they had “hoped” and then quit. Either that, or looking for a magical push button system that will lead them to the big bucks.
Again, thanks for stopping by Dennis, and hope to see you here again. You’re always welcome to stop by.
Thanks for some great tips here, Nate. Just found your blog on Linkedin.
Thanks Julie! Appreciate you stopping by. 🙂
I believe the main reason people quit MLMs is unreasonable expectations. They don’t realize that it takes time before you market your business and start seeing sales.
These are all legitimate reasons why people quit MLM. There’s no need to worry thought. Most people quit everything they do: from marriages, to New Year’s resolutions, to diets, and just about anything else. It’s human nature to give up when things don’t go exactly as anticipated. In addition, not everyone is cut out to be an entrepreneur, and that is perfectly fine. At the end of the day you only live once. Find something you are passionate about and do that.
Sometimes it takes several tries to find something anyone can be passionate about. Well said Chuck!