Network marketing is no different to any other business when it comes to getting your business off its feet. The 4 main reasons attributed to 97% of people failing in network marketing include the lack of quality home business leads to build a sizable MLM lead list, lack of MLM marketing systems and training, lack of duplication and lack of working capital.
Let’s focus on the last point. Most people who join the industry are amateur entrepreneurs. They don’t fully understand what it takes to achieve success in business. Apart from persistence, commitment and the right mindset, you need working capital to fund your expenses and home business lead generation activities whilst getting it off its feet.
Most new comers only consider the initial start up costs and forget about the monthly costs e.g. auto-ship, travel, events, marketing, business supplies and inventory.
In a traditional business, one typically funds the business with a bank loan. In network marketing, its usually funded by borrowing from yourself (maxed out credit card or savings). As a result, you get into a desperate state which leads to product-selling rather than solution-offering to grow your MLM lead list. The little commission you begin to earn goes to paying back your loan and you don’t feel like you are progressing. Because of this most network marketers quit within 63 days.
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