Why Does Network Marketing Suck at Making Real Money?
Because it’s set up to be just another J-O-B.
You know that phrase – it means “just over broke.”
But the promise of MLM is that it will give you extra money from part time work. And that’s true -if you know what you are doing.
Most people (and their uplines) don’t really know these two things well:
1. How to set up and run a business.
2. How to market anything.
So your primary opportunity is set up with that same problem – they have a bunch of people who are excited about making money getting going, but actually clueless about what they need to do to get started.
This means MLM’s have to “dumb down” the instructions they get. And these usually become “make a list of 100 people and invite them to your opportunity.” Another one is “become a walking example of how great [insert opportunity name] products – and tell everyone within 3 feet about them.”
Now if you are really successful at this, by the time you’ve talked to everyone on that list and the people who you usually get within 3 feet of – you’ll then start helping your own downline with their people. And so on, down the line. That is if these actually work for you and your downline sponsors.
But unfortunately, the chaser-chasing rule applies here. Most people don’t want to get into an opportunity – so the harder you chase, the more they run away.
A good percentage of closes from sales pitches is 2-3%. For professionally trained sales people. So out of those 100 people, a pro will get maybe 3 to sign up. And the rest, if you are lucky, might become customers.
However, most people don’t want to alienate their family and friends, so the whole cycle is dead-ended.
The second breakdown also occurs at that 97 percentile mark: Out of every 100 people who sign up, only about 35 of those will actually become successful at it – meaning they break-even most months. This is 2 in 1,000 who make it.
So that’s 1,000 people you will have to talk to about your opportunity in order to build a downline of 30, and only 2 of those will be making any decent money.
You then see why the industry average is about 70-80% turnover in the first year.
Now, the persistent ones will keep going – maybe not with that particular MLM opportunity. They’ll keep studying and learning and getting mentored until they do figure out these 2 things:
- - They’ll know how to run an MLM opportunity as a business
- - They’ll have learned how to effectively market any product or service.
And that is the point where they actually start making a huge success of this.
The statistics of this are 1 in 10,000.
Our smart move, if we are considering how to turn a part time working J-O-B into a full-time fortune-making enterprise would be simply to learn those 2 things above.
This is why I recommend people get started with MLM Rockstars with their free training line-up. You will get started with Mike Dillard’s Magnetic Sponsoring and learn all about the Funded Proposal. This is a way you can learn to market to people who are already looking for what you have to offer. And as you continue with this program, you’ll also be learning the basics of starting and running a business.
Then you can turn your network marketing opportunity into a real income production machine (instead of just another J-O-B.)
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