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Jun 7
The 5 Fatal Flaws of Network Marketing Companies
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Most people would agree that the majority of Network Marketers lose money, however most people will also tell you that they have no idea why.

MLM Gurus will tell you that the reason people lose money is because they are unwilling to change or plug into a "proven" system.

However, what the gurus will not tell you is that in some cases, even if you "plug in" and  change you will still lose money.

Why do people fail in Network Marketing?

I believe that most of the time, people fail because they get involved with a company that  has one or more of the 5 fatal flaws in Network Marketing:

1. Product - The product must be remarkable. It should be unique and reasonable priced.

2. Corporate Leadership and Ownership - Many companies are run by former high level distributors, instead of seasoned corporate leaders and longterm strategists. The company must be well funded and preferably privately held.

3. Compensation - Most companies focus their pay structure in one of the three quadrants of Network Marketing compensation. It is important to find a company that, number one, understands the fact that there are three quadrants to Network Marketing compensation (most don't) and number two, they pay well in each quadrant.

4. Field Leadership - Who is going to help you build your business? Do they have experience? Do you have access to them or is there some type of goofy hierarchy that keeps you from connecting with the successful associates?

5. Timing - Two places you do not want to be involved with in a company's history. The ground floor and the ceiling. A company that is less than 5 years old is still a baby and they will go through growing pains (if they survive). Companies that hit the ceiling will be very difficult to build, not because their product is saturated, but because their behavior may be saturated.

5 Comments/Trackbacks




Good post. Very sensible.

My personal view is that most of the failure would vanish if particpants 'just wised-up'. Of course, another - perhaps quicker - option is to simply shoot those misguided fools who bumble/hare-around with an ignorance-of and disregard-for good commercial practice and thus achieve little else other than making a damn nuisance of themselves.

What do you mean by their behavior is saturated?

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» Saturation in Network Marketing from MultiLeveler
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