multi level marketing statistics
"If it works, it works," as the saying goes. That is, unless of course does'nt. Network Marketing & MLM opportunities look good in paper. We've all seen the presentations, the climate through a video presentation online or on our kitchen table. We hear impressive terms like "matrix Forced "," hybrid network model "and" direct response network "so that we salivate over the potential for a rapid net profit and a long term residual income. A distributor is involved, spend time and money with the hope of overcoming the staggering odds against him. And, as with 99% of the entire network or multi-level marketing, a distributor. They lose money, motivation, and the inevitable abandonment of the program.
This raises the question: "Why For why people, knowing full well that, statistically, that they are going to fail, even participate in the first place? "They bought into the myth, or illusion MLM Success.
Do suggest that MLM and network marketing business models are scams? Of course not. In fact, there are legitimate opportunities out there that offer new and unique products or services to market. After all, on paper, the math works. However, in reality, the vast majority fail within the first three months, regardless of product or market appetite.
5 We now summarize the most common myths attributed to MLM & Network Marketing in the attempt to explain the massive failure rate networkers seem destined to endure.
Myth # 1: The Internet offers a better business opportunity any other conventional model to amass a fortune.
Reality: 99% each investing in MLM ends up losing money. That means that less than 1% of all representatives of MLM never make a profit. With approximately 13.3 MLM and network marketing distributors in the U.S. alone, only 130,000 ever make money. And the "gurus" sustainable income in this business are even a smaller percentage. The fact is that mathematics inevitably limit every MLM opportunity. The MLM business model is allowed only a small number of distributors of success. The continuous growth of an MLM company is, in fact, usually due to the constant amount of new affiliates, most drop out by the third month. It takes an army of failures to create a single distributor of success.
Myth # 2: Internet easy. Recruit friends and family to ensure the life time dealers and customers.
Fact: Capitalize on personal relationships, as friends and members family to build your organization can hinder and even destroy social position. In short, people do not like being pressured by friends or relatives to buy products or join a business. Naturally, people tend to avoid them and identify them as a seller, not a friend. This is the joke as "NFL" or "left the friends club circles in MLM and network marketing.
Myth # 3: Internet and network marketing can be done successfully in their spare time. A few hours of time invested each week can obtain significant additional income and grow exponentially, making it unnecessary effort.
Fact: own income in MLM and network marketing requires extraordinary time commitment. "A few hours a week," leads inevitably to dominate life of people. In MLM, because everyone with a heart rate is a possibility, each moment is a potential time for marketing and recruitment. The talent, dedication and salesmanship all require a key to tune and improve: time. This is one of the reasons why so many MLM res "leap of program a program, hoping to catch the next wave. They have spent so much time on the phone and catch up with changing guidelines of the company that actually has become his life.
Myth # 4: Internet and network marketing are the best option for owning your own business and achieving financial independence.
Truth: MLM distribution is not "business owner". Most MLM contracts have termination clauses in their distribution Terms & Conditions Agreement. This makes it easy and perfectly legal, to cancel its distribution contract at will, the commissions can be withheld and down lines can be removed arbitrarily. MLM distributors are not "business owners", but carpenters drive duplication system on the have virtually no control, and must adhere to.
Myth # 5: Network Marketing & MLM are most effective after the construction of a great income online, which leads to long-term residual.
Fact: Most assume that MLM success depends on selling the opportunity to register more distributors and the creation of a mass organization. As a matter of fact, the long-term residual income is in a loyal customer base, not the efforts of organizations. Translation: in the long run, you can get money from customers using your product, not that 99% failure rate we discussed earlier. Retail staff is where the potential for long-term revenue, not building great lines destined to failure. So, of course, the question arises, why even put more money or effort in recruiting distributors, when the real money is in the retail side?
Is there an alternative? Is there a business model that can turn a 99% failure in a success rate of 99%?
About the Author:
Why are some people making an absolute fortune online, while the vast majority are not? Learn How to turn a 99% Failure Rate into a 99% Success Rate! Ex-MLM Guru Richard Morris has done just that!
Click Here to Find Out
About the author: Ron P. Butterfield works full-time as a loss mitigation and forclosure prevention specialist from his home in Lodi, CA.
Article Source: ArticlesBase.com – MLM & Network Marketing Myths Debunked: We Expose 5 Common MLM & Network Marketing Myths
MultiLevel Marketing Businesses Statistics for November 2008
