MLM – If Its So Good, How Come The Majority Fail? – Here Is Why!
We have all tried it – been infected with other peoples enthusiasm and decided to join an MLM or Network Marketing business. Plenty of money changed hands (out of mine and into others) and I embarked on a crusade of bombarding my friends and family.
After a few months, I found that no-one left in my address book were returning my calls and the ones who had joined were not doing much. So, things petered out and after a year I could not even remember what the whole thing was about.
So, I put the experience down to one of the lessons in life – and the main lesson was ‘MLM does not work’. After a time my friends came back after they realised that the madness that had infected me had passed and I was now the normal Alan again.
This a story that will be familiar to many people, given that 96% of all MLM newbies have this type of disappointing experience.
Then, I became involved in a standard non MLM business and after some time of trying this – I had some success and though not metioric, I did learn some things. The most valuable lesson was, my perspective had changed. When I got a second opportunity to try MLM again, this time I found myself willing and able to think outside of the box and it is this that made the difference.
I sat down and analysed why so many people could fail when 4% of these people did ok and why only 1% made a serious fortune from MLM. So, I went to work finding out why this happened and the results I came up with were startling to say the least.
I asked myself the question about the type of approach with most MLM businesses when compared with a standard one.
I realised that a true business person approaches a business from a certain angle. They fully research their market, they invest in obtaining the correct information and then they invest further in marketing, staffing, premises etc and they pay for accountants, solicitors or lawyers and bookkeepers. One of the key areas here is marketing – or ‘how are they going to get a decent level of customers’.
I then looked at MLM newbies – who usually have an employees mindset – they have little knowledge of the above areas of business and so they invest in the wrong things. Some buy tons of product believing that their business is about selling as much of it as possible.
The next point I found is about the product or service itself. MLM newbies tend to concentrate on this area when this is the least area of concern in an MLM business. I can catagorically declare here that the actual business opportunity itself is of no real importance in the early stages. Of course you will need to know about your product or service to be able to sell it but this is not the most vital of skills to master – if it is so good then it will largely sell itself will it not?
Now at this point I was feeling a bit heady – I could tell that I was onto something now.
Here we have the MLM newbie who has worked their socks off contacting everyone they know and some have joined – others have not. Their downline is packed with individuals who have done exactly the same and while this will generate some funds, it does not generate sufficient to even keep them qualified themselves.
Therefore, urgent action is needed – and this is usually where the purchasing of leads is the next step. This increases the money out and does give some activity but after some hard work trying to get people in, a typical positive response rate is around 2%. I truth, these new people are no different than those in the Family and Friends that were initially recruited and several months down the line, it is realised that the money spent on the marketing effort has not been replaced and you realize that this is not the way to become financially successful.
When I studied how the top 1% work, I realised that they do it much differently. They invest into their business by obtaining the right information. Most of that data costs money because it is valuable and it has usually been produced by the millionaires who were in this 1%.
I therefore invested in myself and spent less than I would have done on lists to obtain the information services. I therefore invested in elements which were necessary for my success – at least in my opinion. I downloaded books, articles and watched online videos and I realized that I had hit the golden seam – this was definitely it.
After much study I began to understand that the best way to approach MLM was to recruit other good MLM people who were facing the same dilemma as me. These people were who I wanted to have in my own downline – but one problem – they already had an MLM opportunity of their own so how was I going to achieve this ? – I asked myself.
Thank goodness that I had accidentally stumbled upon a great information resource which was low cost and which contained the guidance that I was seeking. It became clear to me that leadership and direction was what I needed to offer to me team if I was going to copy the great MLM entrepreneurs. I begin to understand that the only way to get these existing MLM people to follow me was to lay down a clear path which would help them succeed themselves. I would stop being the Hunter and become the Hunted.
That is the basis of my new discovery in a nutshell, anyone who wants to become a successful MLM entrepreneur needs to think differently. If you think the way you always have, you will get the results you have always got, so you have to do something different. The person that I had chosen to be the subject of my study was one of the most successful MLM business person on the planet. This man had used the same new principles that I had just heard about to build one of the most successful MLM downlines in history.
I am now in the process of building a strong team in my opportunity. I do not concentrate on the opportunity itself until the rest has been put into place. When a new person contacts me – I actually vet them first. I do not want to waste my valuable time with someone who will not follow my system fully – I am just not interested in doing this any longer.
If you show to your own downline direction and leadership, they will follow you and others will be attracted to your downline – would you not join someone who had the answers to the question “where am I going to get top performing people from?”
Thank you very much for reading my article and I hope that it hsa helped you to realize what the secret recipe to be successful in MLM, whether your business is located in the USA, UK Europe or even Timbuktoo.
Alan Hill – MLM Business Champion
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