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Why Network Marketing Doesn’t Seem to Be Working for You

The network marketing industry is a booming industry.  In 2018, the top three revenue generating companies in the industry were Amway $8.6B in annual sales, followed by Avon ($5.7B in annual sales) and Herbalife ($4.4B in annual sales).  These are very familiar brands whether you like them or not.  And these brands are making some serious annual revenue.  So we know that the network marketing industry is valid, but why does it not work for most people?  Spending several years in the industry and currently engaged in the industry, here is what I have seen as the biggest hurdles to people experiencing success in the industry.

The first hurdle is expectation.  This could be from desperation of the newly recruited member— needing money quickly or the way the new recruit was pitched.  The biggest mistake most people make is that they are going to come out the gate and crush it in the network marketing business.  If they don’t come out the gate as quickly as they thought, they lose interest and badmouth the business and the industry.  Temper the expectations of the new recruit—remember, this is a business—treat it as such.

The second hurdle is that people aren’t always coachable.  There is always one in the bunch who has a “better way” of doing things or “knows how to do it!”  People who aren’t able to be coached don’t have good results in this industry.  Someone in your upline has to have knowledge of the industry and be willing to coach you to help you gain success.  The new recruit must be able to be coached, if not he or she can become a cancer in your organization.

The third hurdle is that people are shady.  Do you find it hard to recruit your family and friends?  If so, could it be that you acted shady towards them when they were starting their businesses?   It is an undeniable fact that what goes around tends to come back around.  New recruits are asked to tap their warm market first but if they haven’t developed authentic relationships, their warm market could be blown.  This can cause the new recruit to be discouraged and want to leave the industry.

The fourth hurdle is pressure.  One thing I appreciate the most about the network marketing companies that I have worked with is that you get real “failure” stories from the successful people.  Anyone can get up on a stage and say, “This is a great company! I made $300K last year within eight months in the business.”  That is awesome, but in most cases, that amount of success is not realistic for most people.

Give me the story of “Hey I screwed up when I came into the business, I purchased too many things too fast to impress others and I owed the company $50K in charges, but I followed the system, took my lumps and today I earn $300k annually!”  That story is more authentic and gives the audience hope that they, too, can turn things around no matter what level they are currently at in the business.

The fifth and final hurdle is understanding.  Far too many times in network marketing I have heard up line members state to new recruits that they are in business to make their upline rich.  The truth of the matter is, the new recruit is in business for themselves and to change the financial landscape of their families.  The upline should assist them to reach their financial goals while still building their own business.  As a network marketing, new recruits are independent associates of a particular company and a part of a team that will help push them to their financial goals.  That should be everyone’s understanding upfront.

I could go on for days with more hurdles to network marketing success, but these are my top five.  Are there any that you would add to this list?



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About Frederick Towles

Frederick Towles is an entrepreneur, author and professional coach on personal finance, recognizing, seizing and leveraging opportunities of all kinds. Frederick founded The Towles Group Inc. to address issues that relate to small businesses and individuals – accounting, taxation, asset protection, financial compliance, wealth creation, debt management and business management. He also founded Unlimited Expectations Inc. which provides tools for individuals to assist them in the areas of opportunity recognition, leadership and personal finance. Through the tools and services offered by these companies people are positioned to operate their lives and their businesses at optimal capacity.

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