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Why Do Most People Fail In MLM?

MLM Success and FailureAre You Another Failed MLM Business Owner?

Why DO people fail in MLM? The numbers vary slightly, but I’ve seen it reported that anywhere from 80% to 90% of people struggle (or fail) in their business. Without a doubt, most MLM reps don’t every make the kind of income they envision when they first open the doors on their home business.

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Here are five reasons why I think MLM Reps don’t succeed (in no particular order):

  1. They have unrealistic expectations.
  2. It’s harder than they ever imagined.
  3. They lack training and support.
  4. They run out of money.
  5. They run out of leads.

Let’s discuss each one of these in detail.

They have unrealistic expectations. Too many reps assume that if they enroll a couple of people, all of their problems will be over. They also grossly misunderestimate how many “nos” they have to be subjected to before they begin to get just one “yes”. You’re going to need to personally sponsor 50 or 100 people to really make big money in this industry.

It’s harder than they imagined. This one doesn’t take much explaining. Rejection is a very powerful emotion. Most people simply can’t handle the humiliation of having dozens of people reject their sales pitch. This is why there is such a high turnover in the telemarketing industry.

Lack of MLM training and support. Chances are, your upline/coach is in the same boat you’re in. No wonder he’s not able to help you get a handle on what it really takes to succeed in this industry.

Lack of money. It takes a while to get your pipeline full, so it stands to reason that your company is going to lose money for months, if not years before you begin to earn  profit. Advertising and marketing can’t be done for free, it’s either going to take time commitment or a money commitment.

They run out of leads. Too many reps simply don’t have enough qualified prospects to talk to. Once they hit the “warm market” wall, even those who have early success will begin to falter.

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