Thousands of
people use network marketing to build a home business. Unfortunately, it
is well known that the failure rate in this business is over 90%.
There
are many reasons for this, but the key one is that many network
marketing companies do not have business models that support you as a
distributor. As a result, the cards are stacked against you from the
start.
Here are some compelling reasons why failing in network marketing is NOT your fault.
You
know the story: you have done the training, did three-ways calls with
prospects, purchased leads, attended the "rah rah" company events, etc.
We could go on and on. The bottom line is that you STILL failed! You
wonder, "What in the world is wrong with me? Why can't I make it?"
The
bottom line is you are failing because your network marketing company
is not taking good care of you. It does not have a strong foundational
model of integrity. None of this your fault!
Here is another
point to consider. Have you ever noticed that some companies have huge
multi-million home offices? You see this on many of the companies'
websites.
Have you ever thought about where the money comes from?
In network marketing, money comes from the compensation plan. Companies
don't have multiple streams of income; they just have the compensation
plan. Unfortunately, in spite of multi-million dollar home offices, the
money does not come back to you in the compensation plan.
If this
sounds bad, things go down hill even further. If a network marketing
company has a huge home office, doesn't it make sense that some sort of
maintenance would be required? You know, things like a cleaning staff,
upkeep for the grounds, electric bills, water bills, etc. How about
workmen's compensation, 401(k) s, vacation, sick, and family leaves?
What about those bonuses and cost of living salaries? A company has to
have this in place for its employees. Now, where is the money to fund
all of this coming from? The compensation plan!
The sad truth is
that you and other distributors will never use your network marketing
company's multi-million dollar building, BUT you still have to pay for
it and the upkeep. That's hardly fair at all.
Let's give this
further thought. With a company model such as we are discussing here,
where do you think their model will go in the future? Will they have
more or fewer expenses? If you yelled to yourself, "More Expenses!" you
got it.
Here's another thought. Have you ever wondered where your
network marketing company's warehouse is located? I'd dare say that
most people haven't even thought about this. Usually, most cities have
places called warehouse districts with low costs and low rents. So, it
makes good business sense to house company stock in these districts,
right?
In reality, many times this does not happen. A number of
companies have their warehouses right next to their home offices. Other
than looking pretty impressive, it really is a total waste of money.
Now, some companies have their businesses in warehouse districts, but
many do not.
Are you beginning to see why you are failing in MLM,
and how your network marketing company's business model is the problem
here? With huge overhead costs, which are funded by the compensation
plan, there is little to pass on to you and other distributors. Now,
there are some great network marketing companies out there that have
very strong business models that support the distributor, but you have
to really search them out.
So, here are some compelling reasons why you are not having success with your network marketing home business.
About the Author:
Kevin
Sinclair is the publisher and editor of Net MLM Profits, a blog
dedicated to providing information and tips for network marketers to
succeed online. Net-MLM-Profits.com