The Problems Of Network Marketing - By: Ruud Boer

Despite the success stories, MLM has had more than its fair share of problems and failures. Many people who have tried it, have actually lost money, or failed to make enough money to make it worth their while to continue their efforts. Here are the facts that so many MLM promoters fail to acknowledge or tell you.

One of the most exciting aspects of network marketing is how you can potentially gain a large network from sponsoring a few people personally, with them in turn doing the same thing, with the pattern repeating.

If it took 30 days for this pattern to duplicate (each person sponsoring 2 others in their first 30 days), then you will have gained a downline of over 8,000 men/women in just one year. It is this potential of geometric growth that gets people excited about Network Marketing. Just think, if you were making $2.00 per person, then in one year you would be making $16,000 per month ! Sounds great, doesn't it ? If this is the truth, why is not everybody doing this. The problem is............ It is too good to be true!

MLM has not been a succes story for everybody. Many people who have tried it, have actually lost money, or failed to make enough money to make it worth their while to continue their efforts. Here are the facts that so many MLM promoters fail to acknowledge or tell you:

Typically, 60% to 80% of the people who join, sponsor less than 2 men/women each, in their first 30 days. Therefore, the geometric progression never really occurs in this manner.

The other factor is that most of the people that join a MLM business quit and the majority of them do so within a few months after joining.

Why do people quit?

1. They aren't making any money because they are unable to sponsor enough people or gain enough customers to become profitable.
2. Because the products cost too much they aren't saving any money either.
3. It's too much of a hassle being involved, for the little money that they may be making.
4. Any of the above combined with the fact that they are actually losing money each month because of money spent on product quotas, marketing materials, motivational tapes, rallies, seminars and long distance functions requiring travel, meal, lodging and ticket costs.
5. They lose hope that they can ever have the benefit of the development of a big network.

So, what is the problem people do fail in network marketing? Can they be eliminated? Is it possible that the leverage created by Network Marketing could benefit everyone and not just a few?

Sorry, MLM will only benefit a few. The entire program must be different. It can't be based on a few hyped products or "get rich quick" claims. It may not have MLM markup. It must be based however on logic and common sense.

Some logic tips a program with common sense must have :

-The program must provide you with support and training to manage your business.
- The less it cost to join, the easier it is to sponsor new people.
- Being able to quickly gain a positive cash flow.
- The faster your network grows, the more motivated you are to refer new people. A program build on a team effort provides real support to get your network started and develop.
- Attractively priced goods to be sold.
- Once you see your income grow, you want to do more. There's no need to buy motivational tapes each week or go to an endless amount of weekend functions.
- The program must have a plan to let your network continue to grow.
- The program must enable you to develop a self sustaining income as your network develops.

About the Author

Ruud is a home business entrepreneur who connects retailers and consumers online. With the massive launch of free discount cards he gives the opportunity to people to make money online and gain financial freedom. Hundreds of visitors profit the free discounts or start their own internet business. Please also visit Online Geld Verdienen.

Article Directory Source: http://www.articlerich.com/profile/Ruud-Boer/31424

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