Top 10 Reasons Why People Fail in MLM Or Direct Sale Businesses

You have seen the TV clips or online ads where people proclaim “I made $37,000 last month alone and you can too”, “I followed this easy 3 step process and now I am retired”, or the multitude of other “catchy phrases” to grab your attention.  And while what these individuals say is true, why do 97% of the people who start a home based business fail?  Why do only a very small percentage of people succeed in network marketing and generate the residual income that all network marketers dream of?  There are many reasons for failure, but some are more common than others.  Here are the Top 10 reasons why people fail in their MLM or Direct Sale Business:

#10 – Promise things they cannot deliver

The lack of integrity will kill any business. You might get away for it for a while, but your lies and deceit will eventually catch up to you – look at Enron and Bernie Madoff. 

#9 – Looking and waiting for the magic bullet

People always look for the easy way out. They want to find the magic bullet that will solve all their problems. They fail to realize that network marketing is the gun and YOU are the magic bullet. YOU are the key to your success in network marketing and the sooner you realize that, the sooner you will be successful. 

#8 – Not setting goals or setting unrealistic goals

Every successful entrepreneur sets goals. It is a must and gives you a target to shoot for, something to aim towards. BUT make sure you are not setting unrealistic goals. Your goals should be challenging, but attainable. The sky is the limit but make sure you are not aiming for the sky on your very first shot.

#7 – Lack of proper training and mentoring

While everyone can join a network marketing opportunity, very few people have the skills right off the bat to succeed.  This is especially true when we start discussing how to use Web 2.0 techniques to market you and your opportunity. Additionally, you need several people you can talk to (mentors) who can guide you in the right direction and provide valuable feedback. Too many people join an opportunity and use their marketing system improperly and do not even realize it. Make sure you join a successful team with people who are willing to help you.  

#6 – Looking for instant money

A lot of people join a MLM or direct sales business looking for easy, instant money. It’s not going to happen and anything that promises you otherwise is either a scam or not being truthful to you (see #10). True residual income comes from YOUR effort.   Any successful venture you undertake will require YOU to put in some work. 

#5 – Try to convince/beg people to join their team..Not taking NO for an answer

I was guilty of this for a long time and believe me, it wasn’t pretty. People need to join your team because THEY want to, not because they felt sorry for you or felt pressured. If so, they will quit. So don’t pressure people. You give them the facts straight up, answer their questions, address their objections, and let them decide. Not everyone is going to say yes, so you might as well get used to it now.

#4 – Don’t further their education

Education is extremely important. The system you work with will provide you some education, and most of the time, it is very valuable. But you need educate yourself outside of the training system you are using. Ask your upline or mentors for suggestions.  You need to be known as an expert if you really want people to follow you. 

#3 – Not willing to go outside their comfort zone

There are many things you need to do to be successful in your network marketing business. Some will lie outside your comfort zone – example: calling leads. By performing tasks outside of your comfort zone, you actually get closer to putting those tasks inside your comfort zone. The more you put in your comfort zone, the more successful you will be.  

#2 – Not accepting of new technology

This goes with #3. Too many people are afraid of technology. I knew nothing of SEO, Google AdWords, Lenses, Hubpages, or any of the other Web 2.0 technology. It is here, and it will stay, but do you decide to take advantage of it or will you continue showing your business overview on a white board in someone’s home?

And the number one reason is:

#1 – Treat it like a hobby

People need to be consistent and persistent in their actions. Create a weekly to-do list, create a weekly schedule around that and stick to it. You go to your employer 40 hours every week with no excuses, so you NEED to take the same attitude with your OWN business. Too many people treat their MLM or Direct Sale business like a hobby yet don’t understand why they are not seeing any progress. 

There you have it – the top 10 reasons why people fail in their MLM or Direct Sale business. Be honest, how many of these reasons are causing your failure? And what will you do now to change that and become successful?

Is a Direct Marketing Opportunity For You?

What Does It Look LikeMore than ever before the direct marketing opportunity looks like one of the best choices for aspiring or seasoned entrepreneurs. New products and services keep popping up all over the world. The international market is available to buyers and sellers. Marketers are in demand and direct marketers are leading the charge.The companies that are doing the best are taking care of the self employed business owners who are moving their goods. Marketing and advertising has always been a necessary business expense. By using the direct marketing method more of that expense is landing in the hands of entrepreneurs.When direct marketing or network marketing is used, companies that produce or warehouse goods are done. They have no need for developing expensive advertising campaigns or building stores. Independent home business owners directly market and sell to the consumer.Trekking Through CyberspaceMy many mentors, friends, colleagues and business associates utilize the internet to run very successful businesses. They teach and train online, hold meetings online, buy, sell, track and communicate from desktops, laptops or cell phones while making money online.The world-wide-web not only opened international markets, but put the international market into the back pocket of any entrepreneur with a desire to generate true wealth. Day by day the tools keep getting better and the marketers more clever.An aspiring entrepreneur can have a new online business up and running in a matter of hours depending upon the company or product. Part time home business enthusiasts can build web sites or web stores to sell almost anything. Creative individuals with their own intellectual products can do the entire business from start to finish with nothing more than a computer and an internet connection.And They’ll Just Keep ComingNeighbors and friends will surely notice significant lifestyle changes taking place around them. The direct marketing opportunity isn’t going to be overlooked because whenever people see others getting something they’d like, they ask questions.’How did you do that?”Was it hard?”Where do I sign up?’And of course the obvious question, ‘Is that your new car?’The truth is that new cars aren’t even on the radar for direct marketers who seek financial freedom. They desire more than a lifestyle for themselves; they want this for their children. Financial independence is more accessible to the entrepreneur than any other class of people.As we prosper in life, family and friends notice. We become more self confident, more assured. We have more to offer and more often.Discovering The PotentialLearning about the direct marketing opportunity expands the capabilities of home business owners. The techniques and skills acquired have practical applications in many other endeavors including non-profit interests. The potential to make large sums of money teaches us how to raise funds for charities.When everyone benefits from a transaction, the direct approach seems natural. Societies thrive when everyone gets what they’ve worked for. Having a satisfactory outcome in personal and professional engagements is a rewarding experience; an outstanding outcome is awesome.

How Ideals Block Your Effectiveness in Direct Sales and Network Marketing

Have you ever pictured your ideal vacation? Perhaps at one time you have pictured the ideal holiday celebration or the ideal vacation. Surely you have a concept of the ideal direct sales or network marketing business. However, while you might have thought of the ideal sales presentation, the ideal recruit, or the ideal customer, you probably never considered how ideals might be getting in the way of you experiencing what you desire in your business.

Here is a definition to use as a reference point.

Ideal: Thought of as perfect or as a perfect model, exactly as one would wish.

Most likely that definition did not jump out and grab you because it is what you expected. But what I want you to notice is that from the standpoint of “IDEAL,” anything less than ideal is not only seen as something less than perfect, but also as something that is not good enough or not right!

This is where ideals get rather tricky because once you attempt to run your business from your ideals it is nearly impossible to experience your customers, your sales team, and even your company as ideal. In other words, your business will have a difficult time living up to your idea of “the perfect business.” There will always be something or someone in it to keep you upset and/or dissatisfied.

You are never going to be able to control every situation or person. You can do a brilliantly persuasive demonstration, and the person who ordered $300 of products may cancel his/her order if he/she loses his/her job the next day. You can be wonderfully supportive of a new recruit, and that individual may become overwhelmed and paralyzed by the personal responsibility required for a home business. You may be a stud at selling a line of products that your company decides to pull from the product line. Because all of those situations are less than ideal, it is easy to see how situations like that create upset in one’s perception of one’s business. Look at what can happen, however, when you let go of your ideals and you replace them with values.

The following is a definition that might also prove useful.

Value: That which is desirable or worthy of esteem for its own sake. A thing of quality, having intrinsic worth.

A few weeks ago I looked at replacing my ideals for values and I experienced a rather remarkable breakthrough. I could not help noticing that from the standpoint of my ideals, our house was less than adequate with its beat-up baseboards, its popcorn ceilings, and its cookie cutter outside appearance. However, by exchanging my ideals of “house” for my values of “home,” I realized that the things I value were clearly expressed – Mind, Self-Expression, Fun, and Joy.

The gorgeous musical instruments and the many bookcases in every room readily communicate our family’s passion for Mind. The artwork collected from our travels around the world and all of our families framed achievements highlight our appreciation of self-expression. The impressive number of board games and puzzles as well as apple computers clearly broadcasts, “Fun activities start here!”

By considering what I valued in a home as opposed to what constituted my ideal house I realized that my joy filled my home. Do I need to mention that becoming awake to your joy creates far more possibilities than paying attention to your limitations? When you focus on the specific details of ideals you lose sight of the unlimited possibilities available from values.

As you move full swing into the new year or any new day for that matter, I encourage you to take a moment right now to reflect on the values you wish to express in your business. When I looked at my work and business I knew immediately that I wanted to express Passion, Joy, Fun, and Gratitude. Certainly I do not expect my values to be the same as yours but let us pretend for a minute that they were.

If the person who ordered $300 of products calls to cancel his/her order the following day, your expression of gratitude that he/she called to tell you right away would most likely leave him/her with the impression that you are the quintessential professional. Let’s see, when customers start thinking of you as a model professional, can you see how they might tell more people about you?

If a new recruit ends up feeling overwhelmed and paralyzed by the personal responsibility required for a home business, your emphasis on fun and joy may be the magnet that pulls him/her to attend a monthly meeting, where he/she ultimately gets what he/she needs to overcome his/her initial resistance to personal growth.

If your company decides to pull your favorite product line from its collection, your commitment to passion for your business and customers could allow you to discover that you have the ability to get fascinated with your company’s other products.

Unfortunately, your ideals about the way all orders should transpire, your ideals about “good recruits” and what they look like and what they achieve in their first 30 days, and your ideals about your company’s policies and activities all get in the way of you creating and running a direct sales business that leaves you energized and ready to take on the world!

Take a few minutes today to notice some of the ideals you have in your business in the areas of your customers, your sponsor, your recruits, and your company. Reflect on the times you felt frustrated in any of those areas and how your ideals got in the way by making situations or people wrong because they failed to meet your ideals. Then ponder the values that would most inspire you in your business and commit to operating your direct sales business with those values as your foundation.

Author, Speaker, and Sales Trainer, Tammy Stanley shows network marketers how to experience prospecting victory with powerful marketing, selling, and leadership strategies.