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?