Why is the MLM Failure Rate So High?
It’s generally accepted that approximately 97% of all MLM home business owners will spend more money than they make. This results in nothing more than a fairly expensive hobby, and ultimately results in MLM failure.
Why?
I posed this question to several of my colleagues in the home business industry and, to my surprise, there was an overwhelming similarity to their responses.
The NUMBER ONE reason that most experts gave for the high MLM failure rate?
UNREALISTIC EXPECTATIONS. People getting into the business for the wrong reasons, and expecting unrealistic results.
Who is to blame for these unrealistic expectations. I believe the fault lies with both the new business owner and the network marketing industry.
Many people start a home business NOT to build a long term source of income but to make money quickly. They need money to pay bills, to pay off debt, or for some unforeseen emergency.
They read the HYPE on the internet, or get caught up in the excitement of a presentation, and sign on the dotted line.
Next thing they know, they find out they have to spend more money to purchase more products or to get higher into the compensation plan to make the kind of income they need.
They soon find out that there are a whole set of skills they need to be truly successful, including sales, copywriting, and marketing skills that take most people years to acquire.
And they get frustrated.
What they really want is quick money, a lot of money is as little time as possible.
They did not sign up for the long term plan.
But that is what a home business really is. It’s NOT a get rich scheme, it’s a get rich slow scenario.
And we in the Network Marketing and MLM industry are also to blame. Because of the HYPE.
We set people up for their unrealistic expectations based on our “hypey” ads, our misleading sales pages, and our broken promises of full and complete training.
That’s the bad news.
The good news? There ARE companies out there that deliver what they promise in terms of training and support. There ARE companies that cut the learning curve down dramatically with their systems.
But even so, it still is going to take the inexperienced marketer some TIME to acquire the necessary skills to succeed in their home business.
That is why I make sure that all of my prospects UNDERSTAND UP FRONT that they will need to work at their business, to treat it like a business and not like a hobby, and to learn skills they may not have at the moment.
I make sure my prospects understand, REALLY UNDERSTAND our company compensation plan, so that they are not blindsided by any additional funds needed to get their business off the ground.
Do less people sign up with me because of this. UNDOUBTEDLY.
Does it bother me? NOT A BIT.
Why? Because the ones who don’t sign up are the ones who would drop out within 6 months anyway. They are not really looking for a home business. They are looking for extra cash. And most times they don’t really want to work all that hard to get it.
What am I left with? A team of serious entrepreneurs who understand that it takes time to attain success and that sometimes money has to be spent in order to generate more significant earnings later on.
And these people are HARD WORKERS. They are not looking for a free lunch.
They are my kind of people!
To Your Success!
Dr. Bob Clarke
September 30, 2008; Cresskill, NJ
Free MLM Home Business Opportunities?
My parents always told me that nothing is for free. Nothing comes without a price.
How right they were, especially when talking about MLM home business opportunties.
This blog is about TRUTHS, so here’s one for you:
THERE’S NO SUCH THING AS A FREE LUNCH!
How does this relate to Network Marketing and MLM? Plenty.
I hear from those “interested” in starting a home business all the time….
When will I start making money. I need to make XX dollars in a month right away. Oh, and by the way, I have no money to start and advertise.
Well, here’s what I have to say to that — PLAY THE LOTTERY OR SELL A KIDNEY.
Nothing is for free in Network Marketing.
What people don’t understand is that in just about every opportunity I have ever researched, there is a baseline entry price, the lowest price you can pay to get into the business, but to make the REAL money, you need to “buy up”.
In other words, you need to put down more money to get to a higher compensation level so that you can get the higher payouts when you make a sale.
This is how the BIG MONEY is made in MLM and direct sales.
So, sure you can start your business with as little as $100 in some companies, but you won’t make much money at that level. What they don’t tell you is that you need to shell out another $1000-2000 to get to the next compensation level.
And that’s fair — but people act surprised.
It takes money to make money. Or something as valuable as money.
Take the case of free leads in advertising. Is there such a thing?
Well, it’s true you can get free leads by putting up videos on YouTube, writing Squidoo lenses or HubPages, or authoring articles. But unless you know what you’re doing, you won’t get many leads.
Why? Because you need to have the training to do these things well. How do you get the proper training?
Not the training you get on YouTube. I’m talking about learning from people who have had real success using these Web 2.0 marketing methods.
You get that kind of training with money. Nothing free about that.
Rosemary and I learned how to generate our own FREE LEADS by training with the brilliant Dennis Karganilla and Jimmy Davis of MLM Goldmine. I mean, these guys could make your head spin with their knowledge of Web 2.0.
We payed out money gladly, because we knew that it would pay for itself several times over. And it will.
But the point I’m making is that it costs money to get the training we wanted to become really proficient at generating our own free leads.
Nothing is for free.
Don’t expect it, and you won’t be disappointed.
This is the truth.
Until next time,
Dr. Bob Clarke
September 25, 2008; Cresskill, NJ
Yankee Stadium – Saying Goodbye to an Old Friend
Tonight I said goodbye to an old friend.
I grew up with Yankee Stadium. My mom and dad took me to my first game there around 1965, and I can remember the vastness, the history, and the ambience, even though the Yankees were in last place at the time. It didn’t matter.
The history, the memories…. to think I was looking at the same field where The Babe played right, Gehrig stood telling us how lucky he was as he was dying from ALS, where Mickey patrolled center field and where Thurman defended home plate. I was just in awe every time I went into the place.
That continued into my adult years, where I watched the championship teams of the late 90’s and 2000, when making it to the playoffs and the World Series was almost a given. In stark contrast to my childhood when the Yankees finished last or almost last every year, this was heaven. This was how it was supposed to be. I finally got a sense of what winning a Championship was like at Yankee Stadium.
And now, tonight, it’s time to say goodbye. The last game, the final time. I am enveloped with a sadness that surprises me. It’s tough to say goodbye to an old friend for the last time.
But across the street, a new Stadium has arisen, promising to be the biggest and best cathedral in sports, much like its older counterpart. I am excited to go, to watch a game with the feel and look of the old stadium (prior to the renovation in the 70’s), and I’m sure that it, too will provide it’s share of memorable moments.
But it won’t be without a touch of melancholy and sadness, looking over to the place where home plate once stood, the hallowed ground.
It’s time to say goodbye, but not forget.
Good bye, old friend.
September 20, 2008, Cresskill, NJ
Looking to Start a Home Based Business? Watch the Hype!
Enough is enough.
The HYPE in the network marketing industry is OUT OF CONTROL. The unsubstantiated income claims, the guarantees that can’t be met, the promises that can’t be kept. Enough already!
My wife Rosemary and I are network marketers, and up until recently pretty proud of this fact. But we are embarassed by the current state of online marketing. It seems that:
HYPE IS IN, INTEGRITY IS OUT.
Just today, I clicked on a website link for a friend of mine, one who I respect quite a bit. And up at the top of her site, I see these words…
“I guarantee that you’ll make $5000 your first week, or I’ll give you a free Flip camera!!!”
First of all, the claim is ridiculous. Unless you are an experienced network marketer with tons of marketing experience, or you are bringing a huge downline into a business opportunity with you, there is no way this will happen.
So what if it doesn’t and you call her on her promise? So she spends $125 bucks, gets you your FLIP camera, and pockets the remaining commission money she received when you signed on.
I call these types of claims misleading at best, unethical at worst. AND THEY ARE EVERYWHERE.
So what to do?
Well, I was lucky. I joined my current business opportunity on the advice of a very good business associate, someone who I trust and respect. And it turned out his advice was 100% correct.
But for the people who go into this blind, who have to place their trust in people making outrageous claims on the internet, I feel sorry for you.
How the hell are you supposed to trust people you don’t know?
It’s no wonder there is an atmosphere of mistrust, skepticism, and cynicism on the Internet these days.
It’s well placed and justified.
My wife Rosemary and I are doing well enough in our businesses that we don’t have to rely on hype.
We don’t need to exaggerate and we don’t need to mislead people to join us.
We market with integrity and we believe that we have to EARN people’s trust before they will join us.
It’s the way that resonates most with us, even if it takes us longer to make our millions than others.
At least we can sleep at night.
To your success!
Bob
Cresskill, NJ; September 15, 2008
Partner with a top direct sales network marketing company…..
QUESTION: What would make a health care professional making a yearly 6 figure income, partner with….. a top direct sales network marketing company?
Two words: Burnout and Freedom.
I found myself 45 years old, divorced, working 60-70 hr weeks and little life outside of work.
I was 50 pounds overweight with high blood pressure, high cholesterol, and various other health issues.
I needed something to change. The stress and pressure was literally killing me.
Flash forward 5 years. I’ve lost those 50 lbs, am taking very little medication, met and married the woman of my dreams, and am living the life of my dreams.
I’m working less, and only because I enjoy it (and have 2 kids approaching college!). I have learned network marketing from the bottom up, learning as I go.
It’s been an amazing journey, going from a marketing novice who hardly knew what Google was (not to mention Google Adwords) to a person that many consider an up and coming leader in the industry.
I offer this blog to those in the industry, or those considering starting a Network Marketing company, as a place to find cutting edge information, resources, and marketing techniques without a constant sales pitch.
As the name of my blog indicates, I will offer you “The Truth”, even when it hurts.
There is so much HYPE out there…..
People need a place to come in and get out of the rain, a place they can trust as being truthful and direct.
A place where they can find the information that they need.
To people out there who are sick of all the HYPE, I say “Welcome Home.”
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