Why 95% of People Fail in Network Marketing

Network marketing is an industry that has been around for years, and will stay around for years to come. There are many people who start a home based business with the intentions of being successful and achieving their financial dreams. Unfortunately, most people find themselves discouraged and frustrated with not being as successful as they hoped they would.

What's the problem?

The problem isn't the industry of Network Marketing. There are many reputable companies with quality products and/or services that can be a benefit to customers. Many of the companies have competitive compensation plans that can change peoples lives with a residual income. Others, offer great support and training for their distributors to "position them for success". This forces us to ask the question, "Why do so many people fail, if the opportunity is real?" Are we running around a track chasing a carrot that we will never catch?

I had the pleasure of spending time with a very successful entrepreneur, Peter Daniels, who shared some invaluable information with me concerning network marketing. He said there are 3 things you need to be successful in the industry: 1.) a quality product, 2.) a great compensation plan, and 3.) charismatic leadership.

When he shared this with me, a light turned on as to why most people fail to make money. It's because there isn't enough leadership to lead, motivate, and inspire people to achieve a level of success that they could not with out the passion of that leader. After reading many books on leadership, you understand that there are different types of leaders. And the fact of the matter is that most people struggle to just motivate themselves, let alone motivate others around them.

This is why there is a 90 - 95% fall-out rate in the industry. People struggle to stick with their decision to start their business, and they tend to treat their business like a hobby. And if you treat your business like a hobby, it will cost you money like a hobby. If I can't motivate myself to work to achieve the goals that I set for myself., then how can I possibly lead someone else? How many diets have we thought about doing? How many work out routines have we stopped because we did not feel like working out anymore? How many books are still on the book self, or in the store? This does not mean that you can not be successful, but it does shed some light on why the goals still have yet to be achieved.

I understand that my success is not dependant upon others, and I have taken the responsibility to make my business a priority. This brings me to another major issue. Even though you must motivate yourself to do the things necessary to achieve your goals, you still have to develop a relationship with those around you who know that you truly care about their success, just as much as your own. Calling people only when they need to come to a meeting, or make an order so you can get paid, gets old and causes people to not want to answer your call.

You should not have to motivate people to do a business that they believe in! If you have people that you work with that believe in the product or service, then they should be actively seeking others that will benefit from the product you offer, not just the opportunity to make money. Because the fact of the matter is that 90 - 95% of the people that start the business, end up dropping out. Not because the product changed, or the compensation plan changed (in most cases), but because they did not make money. And if you start your pitch with money, then they will drop out of the business when they don't see it.

Don't be a part of the 95%. Motivate yourself to achieve your goal, by leading yourself, and develop real relationships with those around you that also believe in your product and believe in you.