From Network Marketing Legend...
It's all just a matter of common sense, really. If you look at the thousands of
network marketing companies out there and the millions of people who are signed up in one or more network marketing opportunities, you only see about 5% of the people involved making "real" money.

If network marketing worked as well as so many people advertised there would be a far higher percentage of people making great incomes.

What is the reason that so many people fail?

First, if you take a look at ANY business you basically see the same numbers. My brother is in the pool business, I once heard a real estate agent say that Pool Guys are a "Dime a Dozen". Yet my brother makes well over a quarter of a million a year. Not bad for one of those "Dime a Dozen" pool guys.

Network marketing, however does have it's special challenges. Honestly, it's just way too easy to get into. What I mean by that is that a person who spent $20K to start up a pressure washing business is going to put far more time and energy into it than somebody who just bought a $30.00 kit from an MLM company. Does this mean that the Pressure washer guy is going to make a ton of money? Probably not, but at least he'll put a decent enough effort into it to make an OK living out of it.

Usually, network marketing is a case of the blind leading the blind. In every industry there are a few right ways and many wrong ways to build your business.

Another BIG issue with most Network marketing companies is that MLM products are generally not something you would buy if you were not involved in the opportunity. This makes it hard for you to attract and retain regular customers who will provide you with ongoing income. Who's going to continue to pay 2 to 3X more for similar products you could buy at your local Whole Foods Grocer on an ongoing basis when they've already stopped doing the business portion of your MLM?

Due to the lack of proper training mentioned before, you don't know how to attract customers or business partners and when you do talk to someone you say the wrong things. To make matters worse, if you utilize some of the "High Pressure" techniques your upline told you to use, you alienate your friends and relatives.

Times are tough, and I can understand why you might be looking for an MLM 'Opportunity' or some sort of Network Marketing Solution.. It's precisely because of the fact that Network Marketing Opportunities are so inexpensive to get into that many people want to get involved. So what does a great Network Marketing Opportunity look like?

The first thing you want to look for is a company with a PROVEN track record. The vast majority of new business ventures fail, and doubly so for MLM's and Network Marketing Opportunities. Ask yourself these questions:
  • Is the company over 5 years old? (90% don't make it past this point)
  • Do they have a Proven Track Record of Growth?
  • Are they still growing? Are they declining?
  • Do they have a lot of debt?
The second thing the ideal network marketing solution would have is products that truly serve a genuine need. There are way too many MLM companies out there, where the MLM IS the product and where it would be completely useless without the attached opportunity. Remember most of the people that join a Network marketing company WON'T do the business part, so this means that the products have to stand up for themselves. If they don't or they can't, then move on. Ask yourself these questions:
  • Do you personally 'Love' the products?
  • Are the products as good or better than National Brands?
  • Are the products priced competitively against National Brands?
  • Is there something unique about the products that make them a better choice over National Brands?
If your answer is no to ANY of the above questions, It's best to save your money and move on. If you don't personally love the products, your prospects will know, trust me on this one. Obviously if the products are not at least as good as the National Brands, you're dead in the water, and if they're priced too high, the 90+ percent that are not doing the business part will simply leave once they realize the business portion isn't working out for them. Finally if the products are unique in some way, that will help with the retention of the every day customer, as long as the other 3 are true.

The Third and Final peice of the puzzle is your team. In a way this is the most important aspect of your Network Marketing Business. Let me tell you a liittle story. I remember when IBM came out with OS/2. Here was an operating system that came out at about the same time that Windows 3.0 Came out, yet is was comparible to Windows NT, which was years later in the making. It neveer caught on. Years later, when IBM came out with OS/2 Version2, it was comparible to Windows 2000, again at least 5 years or so before Windows 2000 actually came out. A superior product, but with inferior marketing. Your team must be versed in the new technolgois that are in use to day to grow a network and make you part of that system. If they can't, and are stuck in the old ways of doing business, then it's best to move on.
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