When the concept of network marketing first started in the 1920s, we lived in a different world. We were more connected to our neighbors. We readily shared staples such as eggs or milk, and disciplined one another’s children if they were into mischief. Although many of our social norms have changed with the advancement of time and technology, there are still timeless principles that have made their way to modern times.
Network Marketing has become one of the fastest growing business models on the planet, with more than 100 million people involved in at least one company worldwide. Although a century has gone by since the first products were sold, some of the principles are universal and will always be around. Like everything else, network marketing is a two-sided coin. One shows success stories of people making a living with great lifestyles. The other, reflects pain, frustration, and disappointment with people losing big. If you analyze the incomes in the network marketing industry, you will come to find that only 1 out of 545 network marketers make a profit while 997 out of 1000 won’t ever get their investment back. Why is this? Why do so many network marketers fail so quickly while some are hitting it out of the park? In this article, we will get answers to some of these questions and begin to understand some important and timeless principles for success.
1.No Clear Purpose and Goals
The understanding of “Starting with Why” has always been the first thing leaders in network marketing start with. In fact, most companies teach this when bringing people on. Unfortunately, most network marketers skip over this crucial first step. In fact, this is one of the biggest reasons beginning network marketers fail so quickly. The new excited business owner who gets started without a clear purpose outside of making money focuses on the financial gain instead of what will drive their actions. I know that sounds a little funny because the whole goal of starting a network marketing business is to make money.
However, when you start to run into obstacles- as every business owner does- and the money has not started to materialize yet if the why is not solidly in place 9 times out of 10 you will quit. Most of those who quit blame it on the industry instead of ever understanding what went wrong. To elicit your “why”, ask yourself questions such as “Why are you doing this network marketing business?” (consider a better question here, such as – who do you want to help with the money you make, or what will you do once you are successful in this business) There is a saying that “if the why does not make you cry it is not good enough”. It is not only important for you, but also for your customers because people want to know who they are doing business with and the drive behind why you’re doing it before they become your customer. It is that connection and alignment your customer has with your business that increases your sales, which is not possible without a strong “Why”.
2. Not choosing the right target Market
Talk to most about how they started and they will tell you that they started doing private business receptions, one on ones at Starbucks or going to hotel meetings. Basically going after their warm market. The people in their cell phones. Although this might seem to be the easiest way to start it can be the most frustrating way as well. When you start to pitch your friends, family, and sometimes strangers on your opportunity most of the time they are not your target market. What does this mean? This would be like trying to sell your particular brand of beer to a person who doesn’t ever drink beer at all.
Imagine, as a matter of fact, that this person can’t even stand beer. First, you would have to convince them to start drinking beer. Then once you were successful at that (IF you were successful at that) you have to get them to choose your brand. As a result of this process, high levels of rejection come your way and disappointment starts to creep in. This is when most people quit. When you start a network marketing business, you should be clear about who your target market will be.
3. Indulging In Bad Habits
Another reason why most networking marketing businesses fail is that they indulge in bad habits. This may include but is not limited to habits such as procrastination, eating unhealthy food, not getting enough sleep and most importantly, not educating themselves. Get rid of all these bad habits before they burn your network marketing business to ashes. Instead of pursuing a long-term goal directly, it is better to divide your goal into smaller, more manageable bites, which will make your task easier.
While you certainly don’t need a Ph.D. degree to become successful network marketers, you definitely should be a lifetime learning. Read as much as you can to stay informed about industry changes. Make books, magazines, and online videos your best friend- they will teach you a lot of things that even schools and colleges cannot. Try to read daily even it is a few pages but reflect on it to extract meaningful information out of it. This will gradually make you more aware of the current business climate and help guide you in making the right business decisions which will take you to network marketing success.
4. Lack of Patience
If you are one of those network marketers who is dreaming about instant fame and success, then I have some bad news for you. You can not achieve overnight success with network marketing so, get this concept out of your mind as soon as possible. Be patient. Don’t be bogged down by initial failure and stay passionate and committed about your network marketing business and success will surely come your way.
Don’t let your passion and excitement dwindle after failure because “Quitters never win and winners never quit.” Make your business purpose and objective your resolve. Remember why you started your business in turbulent times. and it will give you the power to overcome them.
5. Test Test Test
Another big mistake most network marketers make is that they don’t test. What is testing? You should conduct in-depth testing of every element that your prospect views. Whether it is your sales pages, sales videos, email messages or squeeze pages, you should test them thoroughly to check which ones work and which one don’t. You can track numbers, but they won’t show you a clear picture until you either dig deeper or inspect every element carefully. In order to be successful in any form of marketing, you should know which medium is giving you more sales and which is not. Sticking with outdated strategies that don’t work is only a waste of resources and you cannot afford that in any type of business, not just network marketing business.
Let’s sum it all up. Start off by having a clear purpose and goal. Identify your target market and who your prospects are. Avoid bad habits such as procrastination and consuming an unhealthy diet. Always keep your learning cap on and be aware of what changes are happening in the industry. Lastly, test everything so you know which elements of your marketing campaign are striking a chord with your prospects and which are not. If you are familiar with any other reason why network marketing business fails quickly, feel free to share it with us in the comments section below.