8 Reasons MLM Distributors Fail

There dozens of reasons why any one individual might not be successful with his/her network marketing business... or any other business for that matter.

Here are a few that I can think of right off the top of my head:


Network marketing or MLM is just another method of distribution of a product or service. It is a "business" in every sense of the word. Many new distributors do not realize that all the same skills and dedication to effort, that are required to be successful in any business, are needed in their MLM business.


Unfortunately, this industry has the reputation of making it sound too easy. Distributors, in their eagerness to build "any" type of organization, paint too rosy a picture to convince a prospective distributor to come aboard. This is a disservice to the industry, the recruiting distributor, and to the prospect. Experienced and successful distributors do a lot of "sifting & sorting" to find the right prospects for their organization. They require that the prospect jump through a lot of qualifying hoops to become part of the team.


If you cannot, or will not, take coaching and instruction then MLM is not for you. Surprisingly, those with strong professional selling skills are often the worst choice you can make for potential team member. They often think they must "re-invent the wheel" to conform with their selling experience. Your successful upline "knows" how to work your business. Follow their lead and duplicate the already successful system.


Your choice of your upline sponsor is critical to your success. Most new distributors give little or no attention to this important detail. If you sponsor is not a good trainer, or is not willing to implement the systems necessary to support YOU... then you have the wrong sponsor. Your sponsor, in the truest sense of the phrase, is your "partner in success". A bad one can stifle your success... a good one can skyrocket your profits and greatly shorten our learning and selling cycle.

If you have a sponsor who is not serving your needs then work upline until you find someone who will give you the support you need...and have every right to expect.


Always look at the product first. If you would not "willingly" buy the product and enjoy it's benefits... why do you think anyone else would? Marry the product with your own interests and needs. If you are interested in wellness, health & fitness, etc. then select a company who has a leadership position in these product lines. Don't try to sell something you can't get enthusiastic about... and which does not fill a proven need in the marketplace. Never mistake the "comp plan" for the opportunity... the opportunity is in the product. The most lucrative pay plan in the world will not pay you a dime if you cannot sell the product... and the customers do not willingly re-order.


Your success or failure with any MLM will be greatly determined by the "consumability" of the product. If the product is a "one-time" purchase the success of the MLM model is doubtful. Residual income depends on the consumability of the product.


No business becomes successful instantly. MLM is no different. You should become involved with any MLM only if you are willing and able to commit a minimum of one year of hard work to the building process.


Building any business requires a certain commitment of time and money to succeed. You must make available a minimum number of hours per week to "work" the business... and you must be willing to invest the money necessary for advertising, supplies, lead generation, etc. MLM is NOT a get-rich scheme, despite the wild claims made by some. Network marketing IS a business that requires the same level of dedication that getting to the top of any Fortune 500 company takes.

With MLM, however, YOU own the company and there is no arbitrary boss determining your worth.

© Copyright 2004-05 Thom Reece All Rights Reserved

Thom Reece is the CEO of On-Line Marketing Group, a direct response marketing creative agency in Hawaii. His primary websites, the On-Line Marketing Resource Center (http://www.e-comprofits.com) and MaxxMLM.com (http://www.maxxmlm.com), and Opportunity Universe (http://www.OpportunityUniverse.com) are visited daily by thousands of entrepreneurs seeking answers to marketing challenges. Thom can be reached by email at: [email protected]

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