10 Reasons why 98% of Network Marketers fail (And Amazing things the Remaining 2% do to be Successful)

Updated: September 18, 2020
by CyberCash Worldwide

Network marketing can be frustrating. And you can relate if you’ve worked so hard with no results.

What happened to the “fat checks dream?” Of course, everything went bad. That’s why you’re here, right?

10 Reasons why 98% of Network Marketers fail

But you may say:

Didn’t the successful entrepreneur Robert Kiyosaki say, “network marketing is the fastest growing business model?”

Before you start scratching your head, let’s take a peep at this statistic.

Only about 1% of network marketers make a profit, according to the federal trade commission.

Now, that’s not good.

But what does that mean anyway?

There’s bad and good news.

The bad news:

Generally, most network marketers FAIL.

Why?

Simple. It’s hard for any networking business to succeed in a short time. And most people are always in for the “quick dollar.”

Disclaimer:

If you are here for that, please STOP reading. And go somewhere else where some con artist will ride on your greed.

But if not, check out the good news…

The good news is that you can change the narrative of “most marketers failing.”

How?

We’ll be showing you ten reasons why most network marketers fail. And the simple things you can do to become successful.

Let’s begin.

The 10 Reasons Why Network Marketers Fail and How to Avoid Them Like the Successful Ones

So, let’s kick off with the ten reasons in no particular order.

1. Kicking Off with Lack of Innovation and A Short Term Mindset

Lack of Innovation Network Marketing

In reality, network marketing is a lot of work. And for you to get bountiful rewards from it, you need to give it your time.

What if you have a full-time job? 

That’s awesome.

Since your job is paying your bills, you can plan your future by building your networking business part-time.

Must you use this method?

Well, you mustn’t. But, this method will help you to cover the overheads of your business and life. Plus, it gives you time to come up with fantastic strategies that will guarantee success.

Similar to affiliate marketing, you don’t gain success overnight in network marketing.

Most network marketers fail because they think they need to do four things. The four things are:

  • Walk up to people
  • Speak
  • Get lucky
  • Bag a full-time income

That’s a lottery ticket mentality that will leave you in the pool of failure.

You can have a headway like that.

Solution 1: DO what the successful ones are doing. Have a long-term plan for your networking business.

2. No Constant Learning Culture

Network marketing is a business. So, treat it like one.

As a business owner, what should you do to stay relevant in your field?

You need to feed your mind with courses, books, and experience.

It’s impossible to get a breakthrough by banging your head against the wall often.

If you take a close look at successful people, you’ll notice two things.

They read and practice meditation.

Reading is an excellent habit that opens your mind to possibilities. It also makes you wiser and smarter.

Meditation is the visual aspect. It helps you relax. It enables you to increase your attention span to focus on your goals.

You can start by reading an entire book or chapter a day. The aim is to educate yourself in areas that matter.

As a network marketer, you should read books on:

  • Consumer psychology
  • Persuasion
  • Self-improvement
  • Marketing
  • Creating good habits
  • Productivity
  • Building systems

Solution 2: In summary, always improve yourself. And stay consistent.

3. Embracing Bad Habits

When it comes to network marketing, you get to be disciplined—if you weren’t before.

Did you know that your success is more mental than technical?

What does that mean?

Settle the mental capacity, and you’re close to succeeding. The technical aspect is about 10%.

Now, to the big question: how can you develop a mentality of success?

Simple! 

By having good habits. And you can build good habits from the little tasks you do regularly.

Here’s an excellent way to start:

Pen down your daily habit. It doesn’t matter if they’re good or bad. When you finish, go through them. While you’re at it, ask yourself questions about your habit.

The questions should let you know if your habits are stopping or helping you achieve your goals.

Solution 3: Don’t hesitate to get rid of habits like:

  • Barely sleeping
  • Procrastinating
  • Showing less interest in educating yourself
  • Eating unhealthy

Now, you get the idea. You can make your life much easier by dividing your goals into daily activities.

4. Treating Your Network Marketing Business Without Process

If you want to drop 100 pounds in a quest to live healthily, what do you do?

Do you visit the gym in a week and achieve your goal immediately? Or do you stay consistent with the gym while doing the right exercise?

Of course, you have to be diligent with your gym visits and do the right exercise.

If you can take this approach in your network marketing business, you’ll do great. If you have products for sale, you can create a platform for your prospect.

You can even start a blog—to educate your readers about what you sell. If possible, you can learn a few things about social media marketing. That way, you can push your content to your target audience. Or grab a few tips on how to use SEO tools and techniques.

No doubt, when you apply the right action steps, your business will grow.

But, you can’t treat Networking marketing as a business if you don’t know your identity.

What do I mean?

You need to know what type of network marketer you are.

There are ten major types here. If you can identify yours, you’ve successfully eaten your frog.

The Ten Major Types of Network Marketers

Without further ado, I’ll be listing the ten types of network marketers.

Let’s go!

i. Social Club

There are social animals who join network marketing to meet new people. They know it’s a great way to make new friends. So, they take advantage of it. I don’t blame them. After all, it’s a fantastic way to travel to new places and have fun.

It’s easy to identify people like this on your team. They never stress to build a chain. But you’ll find them in every webinar, event, and on every call.

Another striking feature is: they order products every month.

Treat these people well if you have them in your group.

Why?

They stay in business long because they build fantastic friendships.

ii. Part-Timers

Part-timers are a great bunch! Most times, they make up 10 percent of your team. These people are hungry, teachable, and willing to go the mile. They have a career and probably a family.

But there’s one thing:

They CAN’T run the business full-time. Usually, they spend about 5 – 15 hours each week with NO excuses (Mostly weekends).

So, why are they, great team players?

They are persistent, consistent, and serious with the training. 

The best part is: these folks do everything you teach them well. So, they are great people to invest your money and time.

Eventually, part-timers become high earners and even leaders.

iii. The Con Man

Con men are present in every industry. You can even find them in religious gatherings. After all, bad people get attracted to every industry.

Luckily, these people DON’T last long in the network marketing business. These con men get fished out pretty fast.

So, how can you identify them?

They lie, mistreat, and deceive others. Plus, they are unethical people. They will go any mile to get a quick dollar.

These kinds of people have NO interest whatsoever to help others. They are selfish and are always out to make money off you.

So, tread carefully. And watch out for these con men. They may cross your path.

iv. Network Marketing Professionals

I’ll be straight with you.

These guys are hard to find!

They are NORMAL people who were once in the part-time category. And at some point, they went all in. 

Why?

They got their first profit. And they decided to take network marketing as their career.

These people have the best training. And they are always finding new ways to succeed. Plus, they invest in their growth.

They handle their business as seriously as a lawyer or Engineer.

Other great features of these guys are:

  • Skillfulness
  • Great Attitude
  • Confidence
  • Trustworthy

Having ONLY one of these kinds of people is a GREAT plus to your team. And they can help to raise your team’s income to six figures.

This position is the dream place of every network marketer.

v. Big Talkers, Non-Producers

Warning!

Avoid these people like the plague. Having this kind of person in your team is a big RED flag.

How do you identify these people?

They were once successful in the business over ten years ago. They probably were top earners at some point.

These guys tell people about past success. They plan to get people excited with their stories. But they do NOTHING when they join your team.

These folks will give you high hopes when you sign them up. After some time, you’d notice their unserious nature. As a result, you can get frustrated and probably tired.

So, before you sponsor a new person, observe. If you notice the person is a big talker, steer clear. The most successful people don’t talk much; they act.

vi. Go-Getters

Go-getters are the leaders.

These folks usually have prominent personalities. They are the high-achievers, leaders, and doers in the group.

But that’s not all.

Go-getters are the ones that catch the vision. And these people give 100% from day one.

These guys represent only one or two percent of a team. From day one, when they learn everything, they go all out. They don’t waste time having double thoughts. They are great ENTHUSIAST.

Hence, they are hungry, willing to run the mile, and are very teachable.

But that’s not all.

Go-getters do everything to retail and recruit new people every month. Consequently, they duplicate themselves. They don’t need you to build their business.

One fantastic thing about Go-getters is:

They have a current job. And they still make time, at least 30 -40 hours every week.

vii. The Hype Man

The Hype man has similarities with the con man. They both give network marketing a bad name!

They make promises of easy money they can’t give. A hype man tries to convince prospects that they can make BIG money from NOTHING.

How do you identify them?

Simple. Hype men try to compel you to sign up and buy the largest kit. Then, they promise to grow your team.

But it’s all a BIG lie.

A hype man has similarities to MLM junkies, And I’d be talking about them next. The only difference is the HYPE they use for prospects.

viii. MLM-Junkies

MLM-Junkies are the drug addicts of network marketing. They always want a quick fix. These folks don’t ever think of longevity.

They are the kind of people you shouldn’t have on your team.

You’ll find MLM junkies pretty excited in the first 10 – 60 days. After this period, their excitement fades away. And they gradually leave network marketing to look for the next fix.

How do you identify them?

If you see someone telling you he joined and left many MLM businesses, it’s a RED flag.

ix. The Amateur

Eight percent of the people in the industry fall in this category.

Amateurs are people that don’t have the following:

  • Work ethics
  • Skills
  • Right mindset
  • Skills

These people aren’t serious about the business. They ONLY dabble. Amateurs try different things out without any skill or experience. To them, it’s like a hobby. So, it’s not a surprise that they don’t make money.

But you should know one thing:

Almost everybody in the business today started from this stage. Later, the amateur grows to other stages. In some cases, the amateurs don’t grow. So, they leave the business—accepting failure.

x. Product Enthusiasts

Product Enthusiasts are the ones that are head over heels with your company’s products.

They will do anything for your company’s products. Why? Folks like this, breathe, sleep, and eat your company’s products.

Getting people like this on your team is an excellent idea. They will always buy company products and earn you points.

But there’s a snag.

They may register little or no one to the group.

Nevertheless, you can rest assured that they will make a lot of product orders.

So, if you have such people in your group, handle them well. And don’t try to compel them to do more.

Instead, enjoy the residual income and repeat orders they bring to you.

So, what kind of marketer are you?

5. Paying Little or No Attention to Your Prospects

Focusing on your prospects is vital in the network marketing business. It doesn’t matter if they are a warm or cold market.

Focusing on them means discovering their pain points. That way, it’s easier to invite them effectively. You can also ask probing questions.

With this method, you’ll learn a lot of vital information. And it will give you a chance to share your network marketing business.

Important things to note are:

Solution 5: Your questions should be deep enough—to reveal your prospect’s needs.

Use an excellent phrase to transition to business like “If I, would you?”

For instance, you meet a mum that’s craving to spend more time with her kids at home. But it seems far-fetched because she has to work.

While you discuss, ask questions like:

  • Are you tired of your job?
  • Do you want a way to plan for retirement?

When you get answers from the discussion, transition to business, you can say, “if I let you in on a way you can spend quality time with your kids, will you check it out?”

With this, you can invite the person effectively to your business.

6. Being Discouraged and Frustrated

Being Discouraged and Frustrated

A child learning to walk is a gradual process.

The child will fall several times until she can find balance standing and taking bold steps. The baby will cry through those falls.

The moral of the story?

Don’t be discouraged by your failures—they make you stronger. And with the time, you’ll get the hang of things.

The same thing applies to network marketing. You won’t succeed immediately. You’ll get a lot of “NO.” And a few yes in the beginning.

Solution 6: But, practice regularly, and it will become a natural skill.

In reality, network marketing comes with a lot of frustrations. So, deal with them, and hit your goals.

If it helps, see the NOs as part of your learning curve.

7. Approaching Network Marketing with a Salesman Syndrome

What’s a salesman syndrome? A salesman’s syndrome is to make sales. Then, get a commission on each sale. And proceed to the next sale. Network marketing is a different ball game. It involves sales and commission. But there’s more. A network marketer should be able to duplicate himself. That way, customers will learn how to get sales. Solution 7: It goes beyond signing up a lot of people that have no clue going forward. Besides, when your business grows, it gets difficult to do everything yourself. So, it’s best to leverage your time and effort. 8. Trying Too Hard to Switch things up in the Business Network marketing gained popularity amongst a massive crowd for decades. Thus, a business that has existed for this long has a system that works effectively. I know you may want to switch things up a bit. It’s a good thing. But, DON’T be too creative. Solution 8: The safest way to go in network marketing is replication. It plays a significant role in succeeding in the business. A lot of network marketers fail because they can’t copy the system. If you’re guilty of this, remind yourself of one thing. A lot of people have benefitted from the system. And any modification will affect your team’s performance. So, it’s best to flow with the system. You can use social media platforms like Facebook to build your team. 9. The Focus Is More On the Money Than Prospects What’s the main reason why most people hop on network marketing? Of course, it’s to cash out big. After all, why won’t anyone join the business when it guarantees financial freedom. No doubt, financial freedom rings out loud in this business. But, when you focus more on the income than the business itself, there’s a problem. If you’re too income-driven, impatience will show up. And you’ll want to make good money in a short time. What of the prospects? You’ll see them more as walking money than potential team members. Solution 9: The truth is—you can’t succeed without helping others. So, focus on two things: Building a business Assisting others to build a business Then, the money will come 10. No Training When you want to become a doctor, where do you go? You’ll head to medical school. Well, network marketing isn’t different. When you get a new job, you train for a couple of weeks. With network marketing, you need to train. And get familiar with the rules. Most people fail because they ignore this part. Solution 10: So, what do you do? Get trained. You can train by attending events. And even read network marketing books. You can step things up by watching video training. Or take training courses. In summary, there’s a lot of resources you can use. Make the most of the resources. Final Words There are over a million, and one reason why a lot of network marketers fail. We only highlighted ten in this article. By now, you should know that you need three things: Good knowledge of the business Confidence to introduce your business to people. Passion for helping your recruit So, there’s no reason to fail in network marketing. As long as you don’t make the mistakes listed in this post. Stay focused, committed, and never quit. Which of the reasons are you guilty of? What do you think about our list? Did we miss out on something? We’d love to hear your thoughts in the comments section.

What’s a salesman syndrome?

A salesman’s syndrome is to make sales. Then, get a commission on each sale. And proceed to the next sale.

Network marketing is a different ball game. It involves sales and commission. But there’s more.

A network marketer should be able to duplicate himself. That way, customers will learn how to get sales.

Solution 7: It goes beyond signing up a lot of people that have no clue going forward. Besides, when your business grows, it gets difficult to do everything yourself. So, it’s best to leverage your time and effort.

8. Trying Too Hard to Switch things up in the Business

Network marketing gained popularity amongst a massive crowd for decades. Thus, a business that has existed for this long has a system that works effectively.

I know you may want to switch things up a bit. It’s a good thing. But, DON’T be too creative.

Solution 8: The safest way to go in network marketing is replication. It plays a significant role in succeeding in the business.

A lot of network marketers fail because they can’t copy the system. If you’re guilty of this, remind yourself of one thing. A lot of people have benefitted from the system.

And any modification will affect your team’s performance. So, it’s best to flow with the system. You can use social media platforms like Facebook to build your team.

9. The Focus Is More On the Money Than Prospects

What’s the main reason why most people hop on network marketing?

Of course, it’s to cash out big.

After all, why won’t anyone join the business when it guarantees financial freedom.

No doubt, financial freedom rings out loud in this business. But, when you focus more on the income than the business itself, there’s a problem.

If you’re too income-driven, impatience will show up. And you’ll want to make good money in a short time.

What of the prospects? You’ll see them more as walking money than potential team members.

Solution 9: The truth is—you can’t succeed without helping others. So, focus on two things:

  • Building a business
  • Assisting others to build a business

Then, the money will come.

10. No Training

When you want to become a doctor, where do you go?

You’ll head to medical school.

Well, network marketing isn’t different. When you get a new job, you train for a couple of weeks.

With network marketing, you need to train. And get familiar with the rules. Most people fail because they ignore this part.

Solution 10: So, what do you do? Get trained. You can train by attending events. And even read network marketing books.

You can step things up by watching video training. Or take training courses. In summary, there’s a lot of resources you can use. Make the most of the resources.

Final Words

There are over a million, and one reason why a lot of network marketers fail. We only highlighted ten in this article.

By now, you should know that you need three things:

  1. Good knowledge of the business
  2. Confidence to introduce your business to people.
  3. Passion for helping your recruit

So, there’s no reason to fail in network marketing. As long as you don’t make the mistakes listed in this post. Stay focused, committed, and never quit.

Which of the reasons are you guilty of? What do you think about our list? Did we miss out on something? We’d love to hear your thoughts in the comments section.

Tim Guga

Author Bio:  Tim Guga


Tim Guga is the funder of Capiston.com. When he is not working, he is dancing salsa or reading a book.

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  1. Great post. Network marketing is not easy. Millions of new marketers try each year and fail due to the lack of understanding the business and relationships with prospects, team and others. There are tricky parts in every aspect and this post points out everything. Educational post that everyone should read before joining any scheme.

    1. I couldn't agree more with you Glenn.

      On my main business where I sell email traffic to other email marketers, network marketing offers are quite common.

      95% of them give it a quick try and then give up.

      However, the remaining few who insist, make a killing each month (according to their posts on various FB groups)

  2. Thank god I found this post on social media. I appreciate all your explanations and I think at least I understand the essence of network marketing. But don’t try to persuade me to join your marketing scheme. I’ve lost so much money on networking sites and right now am sick & tired of trusting anybody anymore. Gimme a few months and I’ll think about it again.

      1. Interesting article. I agree with most of what you say. Network marketing is difficult to follow if you don’t know ins and outs especially for beginners. I’m happy to say I am making good money every month so if you want to be successful like me and become the top 2%, here’s the link to my advice.

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