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MLM Problems And Why You Can't Succeed

Guest post by: Jamaal Abdul-Ali

Article Overview: Listed here are some of the fundamental reasons why 97% of people fail in this industry, small profit margins, lack of recruiting skills and a generally flawed system to name a few.

MLM Problems And Why You Can't Succeed

I know it is difficult to detach yourself from the emotional attachment of thinking your company is the key to your dreams, desires and financial freedom you seek, but, if you can get past the emotion and think logically you'll begin to see the flaws. The Multi Level Business model is destined to fail, it's a non sustainable effort primarily because it involves exchanging money for enrolling/recruiting people more so than offering a product or service. In many cases the product being offered has very little value to the market place on it's own aside from the business. So, recruiting becomes the order of the day, which poses the first problem. You see, in order to create the large number of team members needed to make significant income you have to be a recruiting machine, really, a master marketer, which is why only 1 in 5 ever go on to build a team of over 500 people. Most people, in fact 97% according to most studies will fall into this category, they just don't have the necessary skills to pull this off and more often than not neither does their up line. As a result the reps make very little money if any and usually throws in the towel in less than three months. So much for the dream. The fact that only 1 in 5 will ever build a team of over 500 is one of the major problems plaguing this industry. The majority of people coming into this industry are not marketers, and lets face it, this IS multi level MARKETING, network MARKETING we're talking about here. You have to know how to market at least learn , and based on the woeful number of failiures it's clear the so called industry leaders have done a terrible job training in this area. They all teach you to start by making a list of your friends and family, co-workers and associates, you know, your warm market which is'n't so warm any more because chances are this is not your first rodeo and quite frankly they want to run when they see you coming. Next, there is the hotel meetings held mid week that very few attend or even worst the parties you host at home. You can always hire a couple of the neighborhood kids to help yo put out your thousand fliers on parked cars, buildings, telephone poles, signs or generally anything that's not moving. Or how about the 3 foot rule, the elevator pitch, buying old recycled overused leads, cold calling, three way calling and on and on and on. Look, these methods didn't work very well for the 97%'s to begin with and i can assure that the 3%'s are not using these techniques. The other issue that causes failure is the tiny mickey mouse profits made on the retail sale of the products and services being offered.The majority of products being offered are in the $30 to $75 dollar range so there is not a lot of profit to begin with. For example, lets be generous and say your commission is 50% on a $75 product bringing us to $37.50, in order to generate $1000 per month you need 26 product sales, to make $5000 you need 133 sales an to make $10,000 montly uou need 266 sales. Based on this example these sales would have to be by you personally because anyone else involved in the transaction cuts into your commission meaning you now need more product sales to make the same money. Realistically speaking, you wont be at a 50% structure and your product will more than likely be at the $40 level. Now the numbers have gone way up in order to make the above monthly incomes. Here are a couple of real life scenarios. I have one friend whom i purchased a case on energy drinks from at $23.95, i have no idea what she pocketed from this transaction but i think it's fair to say not much. Another friend of mine sold $637 in travel and pocketed a cool $29 bucks. This is real world everyday happenings in MLM. I dont know about you but i dont like that rate of return. So, there you have it, to sum up a few of the issues with MLM we start with the business model itself, it's flawed and destined to fail from the beginning. Recruiting is the name of the game and the life blood of the business, which, quite frankly, most people suck at, and last but not least the tiny mickey mouse checks you receive, if you're lucky, are rather discouraging for the amout of time, effort and energy neccessary to create them. Simply put, it just does'nt work, at least for 97% of the people. I should point out here there are many more reasons why the failure rate is so high in this industry, i just wanted to touch on 3 i feel is somewhat the achilles heel for networkers. In all fairness to the companies out there wo are doing the right thing, who demonstrate integrity and display the utmost character, you are a shining beacon in a very dark cloud, i applaud you for standing tall and wish you continued success. However, the facts remain, even with these companies the same three issues will plague you and your success 97% of the time...

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Article Tags: business model, desires, dreams, emotion, emotional attachment, exchanging money, financial freedom, less than three months, master marketer, multi level business, nbsp nbsp nbsp nbsp nbsp, necessary skills, team members
Referred by: http://jaykubassek.com



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