The Major Pitfall of the Network Marketing and MLM Industry
Trump, Kiyosaki, Gates, and Buffet all say that the direct sales or network marketing model is one that they would recommend for anyone starting out in business today.
But the sad truth is that 97% of those who enter this industry leave in defeat.
Why is that?
I believe, and this is an opinion shared by many industry leaders, that the biggest reason people fail in network marketing is that someone who knows nothing about business and marketing now owns a business and must do marketing to survive.
This is not necessarily a death sentence, as everyone must start from zero, with little or no knowledge and no experience. Learning how to build a business and how to market is a good thing and requires struggle along the way.
And the low risk associated with the direct sales and network marketing industry and many opportunities to make this an ideal place to learn these skills.
The fatal mistake is that within most companies there is little to no training on how to run a business or how to market. Anyone who has spent a couple days in the network marketing or MLM industry has probably heard some variation on the same spiel of making a list of friends and family and then pounding them to death until you're either disowned or they avoid you like the plague.
This is not marketing, and for sure is no way to build a solid business. And many times it's not your up line mentors fault that this is the information you're given. It's probably all they know. No one has ever taught them anything differently, and so this is what they pass on. This is what gets passed on from generation to generation of network marketers.
If you were to go out and start a business in any other industry – automotive, services, grocery – likely you r main method of marketing would not be to hound your closest friends and family.
So why do it with a network marketing business?
This is why 97% fail.
They don't treat it like a business and they don't market.
And if there is no system in place that will teach them step-by-step how to run a business and how to market, how to develop the skills that are necessary to be successful in this industry, then this is a sure recipe for disaster.