Why people fail in MLM?

MLM is a business and like in all businesses, it does take time to grow and the time for growth for most people may take 3 to 6 months or 6 months to a year or longer. And to earn a good part-time income of $3,000 or more a month, usually it takes 6 months to a year. The first 3 to 6 months are very challenging.

MLM is a business and there are business skills you need to learn and for those who have been employees for many years, there is the process of learning and for most people in 3 to 6 months, they may not make much or $300 to $1,000 or more and that may not be attractive for them when they are used to making $2,000 or more a month.

It is not advisable to leave a job to do full-time in MLM unless you have a lot of cash reserves or savings because in your first 3 to 6 months, you may be earning about $300 to $1,000 or more a month which will not be enough to pay your bills. Of course there are exceptional cases in MLM where people can make $3,000 to $10,000 or more a month in their first 3 to 6 months, usually these people come with lots of MLM experience or already have a group of followers from their previous MLM company who are willing to join him in his new MLM company.

Most people in MLM quit in the first 3 to 6 months because they were sold on the idea that they can make a lot of money in a very short time in their MLM business. They were not given the right expectations or training to achieve the income they want.

Your first 3 to 6 months in MLM, you must work very hard because it is similar to a jet plane taking off from the runway. The jet plan has to go on full throttle, maximum thrust for the plane to take off from the runway.

Many people are not willing to go full throttle or do whatever it takes ethically to drive their business to the stage where it will take off. Why so many people in MLM know what it takes to be successful and still do not take action? There are many factors, comfort zone, couldn’t take rejections, excuses, distractions, mixing with the wrong people who do not support what they are doing, spouses objections and lack of support from family – it can be very challenging to build a business when you have brothers, sisters, mother, wife or husband discouraging you, lack of beliefs, not having the burning desire, etc… That is why you must have a burning desire to achieve your dream.

There are just too many MLM companies with compensation plans that makes it tough for the beginners and part-timers to make a decent part-time income and that is why it is critical to your success to be able to identify a good MLM company with great management and a simple and generous compensation plan.

When you join the wrong MLM company it is like swimming upstream, the current is against you! Many MLM companies change their compensation plan to the disadvantage of the old members which basically is a subtle way of cutting their income and that is why when that happens, thousands of members will stop doing the business or felt cheated and left the company and will never want to do MLM again and because of their bad experiences will speak negatively about MLM and warn their friends not to join MLM.

The MLM industry has been hurt by malpractises of some MLM companies and leaders plus bad publicity from the media due to misrepresentation, miscommunication and plain ignorance of how MLM works. Thousands who didn’t make it or had bad experiences with MLM companies will tell their friends about it, there is a saying: “Good news travel fast, bad news travel faster!”

Because there are practically no minimum qualifications to join an MLM company, it is open to everyone and because of that the attrition rate is very high because people may just be testing it and the start up capital is very low, most of them quit the business in their first 3 to 6 months. If they have invested $100,000 instead of $500, don’t you think very few will quit in their first 3 to 6 months? Most likely they will work very hard to recover their start-up capital of $100,000, isn’t it? It all boils down to commitment.

Can you imagine the high attrition rate a company will experience if it allows thousands of people with very low requirements to join them and they can leave at anytime they want, that is what an MLM company is experiencing when it offers its home-based business.

The MLM system is very flexible, it is not structured like in a job where the job descriptions are made very clear and the KPI (Key Perfomance Index) are clearly spelt out for them to achieve to get the results they want. There are very successful MLM groups who apply this strategy into their organization and achieve very good results because the MLM members have the right expectations and are given clear instructions on what they need to do to achieve the results that they want.

AT&T has identified it long ago: “The solution is in the system.” It is true that in many cases the people did not fail in MLM, the system failed them. Of course when you have the right system you must have the right people who are willing to do the right things – it takes two to tango!