5 Main Reasons Network Marketers Fail

Human beings are complex creatures and so it is always a little risky to make general statements. Over time, however, a pattern emerges and we can get a very good idea why so many people start this business and then drop out.

1. Mishandling of rejection from close family members and their warm market.

When someone is first introduced to the concept of Network Marketing they become very motivated—mainly by the income possibilities—to start recruiting right away. Most companies will teach you to start with a list of your warm market and work from there. Even though this is a logical route, rejection from this group can be very discouraging and most people stop there. This means that the majority of recruits will give up after speaking with their spouses for example.

Only lately has Network Marketing become recognized as a viable and respected profession and many are still quick to cry, “Oh! You mean a pyramid scheme”. This comes because of the negative press that many famous companies have received and the general misunderstanding of the public.

2. False expectations for too early results with too little effort.

Depending on the way in which the business is presented, one can get the impression that there is not much effort involved. I mean, just get two who gets two and you can become rich. When early recruits realize that considerable networking and marketing is involved in Network Marketing, disappointment quickly sets in. There is work involved, and any business that presents a plan to you and says that you don’t have to do anything is peddling a lie. All successful network marketers worked for their success.

Many marketers do not factor into their planning the cost of advertising their business. This cost can eat up a good chunk of your investment especially when you are just launching. The idea here is that you have to regard this as a normal business and not just a trial run venture.

3. Lack of focus.

Network marketers have gained a reputation of jumping around and changing companies like they change clothing. At least this applies to those who flirt with success but never reach it.

As I mentioned before, those who survive the early years normally go on to do very well. However, there are many people who are looking for the ‘next big thing’ and keep jumping from opportunity to opportunity. This normally describes the behavior of those in search of the ever evasive ‘ground-floor opportunity’. The rule of thumb here is that you should establish yourself in one solid company before venturing off into other companies. And if you do work more than one opportunity, make them complementary to each other. A perfect example is working a leads company which you’ll need anyway to feed your primary Network Marketing company. In fact, if you find any tools that enhances your business, why not purchase from a company that has a compensation plan attached?

4. Failure to work an easy to duplicate recruiting plan.

With the advent of the Internet and all the new communication means that it affords, Network Marketing has come a long way from the home meetings and house to house presentations. Doing these presentations was very intimidating to many people and so the recruiting chain often broke along the way. The key here is that if the recruiting machine does not have a system that anyone can comfortably do, it will come to a screeching halt. Good trainers know that a simple system must be in place or the trainer’s efforts will not be properly duplicated. If the impression is given that a recruit must be turned into an instant public speaker, giving motivational speeches at the local Hilton, they can be easily scared off.

At the same time, you must take the time to learn the system and become familiar enough with the products that you can tell a friend about its benefit. As a user yourself, this should not be difficult. A caution here is to work the system that has been field tested, rather than trying to invent your own methods. This doesn’t mean that you shouldn’t be innovative, but there is no use to reinvent the wheel either, so be teachable.

5. Baby-sitting of down line members.

Teaching is surely a part of the game of building a strong team. Some marketers make the mistake of doing too much for their down line members thinking that if they didn’t their recruits will leave. This often backfires, however, because the down line members become comfortable and depend too heavily on their up line and never grow strong enough to build their own teams. There is only so much you can do for someone and no more. These spoiled over-dependent down line members can become a liability instead of an asset to your team. So avoid the temptation to micromanage your team; you’ll get burnt out. Teach your team members to fish instead of fishing for them.

What is advertising?

Is it something to be regarded as a work of beauty or art? Is it clever slogans or amusing prose? Is it workmanship to be judged for an award or recognition?

It’s none of the above.

Advertising is salesmanship multiplied.

Nothing more.

And advertising copy, or copywriting, is salesmanship in print.

The purpose of a copywriter’s job is to sell. Period.

The selling is accomplished by persuasion with the written word, much like a television commercial sells (if done properly) by persuading with visuals and audio.

As Claude Hopkins wrote in his timeless classic, Scientific Advertising:

“To properly understand advertising or to learn even its rudiments one must start with the right conception. Advertising is salesmanship. Its principles are the principles of salesmanship. Successes and failures in both lines are due to like causes. Thus every advertising question should be answered by the salesman's standards.

“Let us emphasize that point. The only purpose of advertising is to make sales. It is profitable or unprofitable according to its actual sales.

“It is not for general effect. It is not to keep your name before the people. It is not primarily to aid your other salesmen. Treat it as a salesman. Force it to justify itself. Compare it with other salesmen. Figure its cost and result. Accept no excuses which good salesmen do not make. Then you will not go far wrong.

“The difference is only in degree. Advertising is multiplied salesmanship. It may appeal to thousands while the salesman talks to one. It involves a corresponding cost. Some people spend $10 per word on an average advertisement. Therefore every ad should be a super-salesman.

“A salesman's mistake may cost little. An advertiser’s mistake may cost a thousand times that much. Be more cautious, more exacting, therefore. A mediocre salesman may affect a small part of your trade. Mediocre advertising affects all of your trade.”

These points are as true today as they were when they were written nearly one hundred years ago!

So the goal then becomes: how can we make our advertising as effective as possible.

The answer is to test. Test again. And then test some more.

If ad “A” receives a two percent response rate, and ad “B” receives three percent, then we can deduce that ad “B” will continue to outperform ad “A” on a larger scale.

Testing takes time, however, and can be expensive if not kept in check. Therefore, it’s ideal to start with some proven tested known ideas and work from there.

For example, if testing has shown for decades or more that targeted advertising significantly outperforms untargeted advertising (and it does), then we can start with that assumption and go from there.

If we know based on test results that crafting an ad that speaks directly to an individual performs better than addressing the masses (again, it does), then it makes little sense to start testing with the assumption that it does not. This is common sense.

So it stands to reason that knowing some basic rules or techniques about writing effective copy is in order. Test results will always trump everything, but it’s better to have a starting point before you test.

So this starting point is the essence of this book.

The ten tips expressed here have been generally time-tested and known to be effective.

But I can’t emphasize enough that when using these techniques, you should always test them before rolling out a large (and expensive) campaign.

Sometimes a little tweak here or there is all that is needed to increase response rates dramatically.

Taking a Mistake and Learning From It...

A friend I've made online, took some advice I gave him recently. He had been struggling with a website of his. Someone had convinced him to build a website in a real competitive market and drive business to it with Google Adwords.

His plan was to provide information for the visitor (which he did a good job with) and then send business via affiliate links to merchants. If you don't know what an affiliate program is, it's a way to make money online where you send a visitor to a merchant and if that visitor buys something you get a commission.

Well, he's now, based on my advice, decided to pursue a new website. This time related to one of his interests. It's a more of a niche and I know he'll do much better.

Here some of my comments to him about what he should do with this site:

I know that Adwords thing can be discouraging. Maybe it's just because of the market you were in.

When I first started out all I did was send people straight to the merchant. I went through site after site before I found profitable sites that converted. Download sites were good, dog training sites were good... but other industries I just wasted my money.

Some I would get 100s of clicks, but I was spending more than I was making...

It's still trial and error with landing pages. You never know whats going to convert.

One thing that's helped me is I make sure that the sites I'm sending people to are professional and reputable. Brand names help.

I also target affiliate programs that have high payouts. $25 or more a sale. That way I know I have a chance of making some money.

I then very rarely bid over 10 cents. Very rarely. Maybe 25 cents.

This is funny. I remember my first day doing Adwords I set the per click to like 5 or 10 dollars!!! Luckily my budget was only $25. I used up the budget in about a half hour! :o

It's a process. I wouldn't give up on it as a way to drive traffic. You just need a different market I think.

You know a lot of people would be happy with $25 per day. :)

Now I don't know what you are planning with this new site, but are you considering multiple income streams? Maybe write a fishing eBook to sell or give away (viral). Are you going to write ariticles. Use Adsense? Have a Newsletter?

If you could create a decent eBook and sell it for 25 bucks or something that might work... give 5 or 10 bonuses away with it. Then you can drive traffic to the eBook and if it's targeted, people will buy it and you'll make a decent profit.

Then you can go after the free traffic from the SEs as well. Submit to directories etc......

I think you're on the right track. It happens faster for some than others. Don't give up though. It'll be great someday to live by the net alone. :)

Take her easy!


Matt

There is a lot of potential online. The best way to insure your success is to make sure you create multiple streams of income.

Doing a combination of things can really help.

Having a newsletter will allow him to capture visitors and down the road convert them to a sale. Not everyone buys on the first visit to your website.

Adsense is another good source of income. You have to have some good traffic to make a lot of money, but I was suprised when I started using it as a strategy throughout my websites. Hey, even if its another 30, 40 or 50 dollars a month, it can pay some of your expenses.

Submitting to directories is a great way to get the Search Engines to take notice. I do not recommend even submitting to Search Engines anymore. You can get crawled by the Search Engine Spider much quicker by getting some links coming to your website. Spiders follow links off of websites. So if a link to your website is on another site that gets spidered, you're all set!

Writing articles can get you a little traffic rolling as well. And it's a great way to establish yourself as an expert in your field. The inbound links also help with your position in the Search Engine Results Pages (SERPS).

Everyone can make a living online. It's takes a lot of hard work sometimes. Many people fail before they find good income, but it is possible for everyone.

Keep learning. I learn something new everyday. I hang out in forums, read articles, eBooks... I'm continually soaking up information. You have to to keep up with your competition.

Just go out there and do it; I'll see you at the top!

Network Marketer’s Survival Guide

In the Network Marketing industry attrition rate can run as high as over 70%. This means that the majority of people who try a Network Marketing company don’t survive the first few months! The upside of this is that 9 out of 10 of those who survive through ten years become very wealthy. This industry has produced more self-made millionaires than any other single industry in America. What a recommendation for Network Marketing!

So if this industry has produced so many self-made millionaires, how is it that more people aren’t staying for the long haul? First we would look at some of the major reasons for failure and then some tips to help you escape these traps.

Choosing a Network Marketing Company

According to a respected journalist, Richard Poe, in his book Wave4 – Network Marketing in the 21^st Century, Network Marketing is responsible for moving over a whopping **$100 billion** of goods and services yearly on the global front. It is therefore very likely that you have already come in contact with some type of Network Marketing product or service. The concept of moving goods through an army of independent distributors has earned its place in the marketing world despite the negative publicity suffered by the industry. Network Marketing is here to stay; the question that remains is, “How do I choose a company?”

Here are some very important pointers that would guide you in the right direction. Any company that you can find passing these criteria will be a great company to line up with.

1. A company that has been in business for at least 5 years and has great financial backing, excellent management and a ‘distributor first’ philosophy. The company should also have a long-term development goal and not just be out for the quick cash.

2. High quality (unique if possible), reasonably priced products or services that should be, ideally, consumable so users will have to buy over and over again.

3. A Compensation Plan that is fair to both fulltime and part-time distributors alike with leadership bonuses for those who build large and productive teams.

Network Marketing Reviewed

The field of Network Marketing or Multi-level Marketing (MLM) has also been instrumental over the past 60 years or so to make the recurring income concept very popular and attractive.

Here, you can build a network of distributors, referred to as your down line, and generate income outside of your own immediate effort. Working for Network Marketing company is one of the most feasible places where you can generate recurring wealth, and so we will now take a look at the secrets to being a successful network marketer.

Recurring Income Explained

Recurring Income is another term for residual income. In a nutshell, there are three (3) types of income streams that you may have coming into your business.

1. If you do a one-time job, sale or perform a contract, you get paid once and the income stops there.

2. If you do a normal 9 to 5 job, you will continue to get paid as long you continue to work for your employer—often called a linear income. This is the type of income that the majority of workers “enjoy.” Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.

3. The third type of income is the recurring income where you are paid even after you have stopped working. For example, you wrote a book and as long as your book continues to sell, you will continue to receive royalty income for a work done once.

Majority of rich and affluent people created wealth through a form of recurring income stream. Take singer Michael Jackson for example; he still continues to receive royalty from the sales of his records made decades ago. He can even repackage the same oldies and sell them to generate new income. He doesn’t have to spend time in the studio to record new songs in order to have the cash keep flowing in! This is the most ideal situation of the three. We would all like to work once and get paid over and over again. That is the power of recurring income!

The majority of professionals that enjoy this type of income belong to the creative fields such as actors, writers, singers, and inventors.

Unfortunately, not many of us are blessed with the talents Michael Jackson has, let alone the opportunities to be in the lucrative industries. However, there is one budding opportunity for any ordinary individual today to enjoy residual income today in the 21^st century.

You’ve guessed it: it’s none other than Network Marketing.