There are several reasons why you shouldn't join a network marketing business. A home-based job often requires you to learn alone, work alone and does not necessarily give you opportunities to contact people. It can be a lonely business. Whilst network marketing or multi-level marketing (MLM) is one type that allows you to "meet people" either online or offline.
Because the concept of network marketing itself is not complicated or confusing, people who like "networking" with others often jump in this field without thinking.
Did You Know?
- Entry-Level Dropouts: Approximately 50-60% of beginners in network marketing leave within their first year, seeking other opportunities.
- Initial Investment Recovery: Around 70-80% of beginners struggle to recover their initial investment in network marketing ventures.
- Low Initial Earnings: About 90% of network marketing beginners earn less than $500 per month in their first year.
- Recruitment Challenges: Over 75% of new network marketers find it difficult to recruit even one new member.
- Sales Volume: Only 10-15% of beginners manage to achieve the minimum sales volume required to earn commissions in their first few months.
- Training and Support: Approximately 65% of beginners in network marketing feel they received inadequate training or support from their upline.
- Satisfaction Levels: Around 20-30% of network marketing beginners report satisfaction with their network marketing experience, often citing personal growth more than financial success.
What Is Network Marketing, Really?
Essentially the job is to reach out to as many people, spread the word, and get them to join the network. For someone to join the network, they'll have to buy a product. So every time you successfully persuade someone to join and buy a product, you'll receive a commission. And that person (i.e. your referral) can subsequently invite someone else to join and receive a commission.
Network marketers often prefer to reach out to people via Skype or Messenger because they feel that two-way communication makes it easier and quicker to persuade people. They're not afraid of spamming and hard-selling.
Unfortunately, a lot of network marketers don't even bother to learn the product inside out, but they solely focus on being persuasive instead. You should not be one of them, nor should you join them unless you're happy with the way the product is recommended to you.
Blinded By Commission Rates
Often people would join a network marketing or multi-level marketing purely by blinded by the commission rate that the network offers. For example;
- "You'll receive a whopping 75% of the sale price."
- "Every time your referral refers someone else, you will receive 10%."
- "By the end of month 3, you can potentially earn up to X amount." etc.
Invitations like that should never tempt you. You have to know the product that you'll be selling and make sure that it's feasible to sell. If someone approaches you and invites you into their network marketing business this way, you should not join.
CyberCash Worldwide says...
Absolutely. Yet many people randomly send invitations that say "This is a brilliant offer, 75% of the commission will be yours!", without even describing the product or telling how much is 75%.
Imagine someone's selling a large cardboard box of 'stuff' for $10. The box is sealed but the seller claims there are 200 avocados in it. That would be a bargain. But would you buy it?
You wouldn't waste your $10 for many reasons;
- You want to know why he's selling it so cheap.
- You want to see the actual avocados - they may be rotten, or there may be something else in the box instead.
- You're not interested in buying so many avocados in the first place.
Now imagine you have to sell the same box of avocados to others in exactly the same way. That's the way a lot of network marketing scammers sell!
CyberCash Wonderland
Fueling my networking skills with a minor coffee addiction. #LatteLeadership
Not Offering A Training Opportunity
Network marketing is essentially recruitment. Not only do you get others to buy a product, but you also advise them of the referral commission opportunity. Then they should also advise them what kind of training is available.
Unfortunately most of the network marketers randomly contact people who are a novice in this field, and simply say "If you invite someone else, you'll receive X percent commission."
This is a deceptive idea because such kind of network is a business. And getting someone to join (i.e. recruiting) means you should be offering them to develop their career with it. Whether your referral will want to have a passion for improving their work attitude and growing as a person by joining the network is all up to them. But if you try to invite someone, you should at least clearly mention that a training platform available within the network. Hardly any network marketers are aware of this.
CyberCash Worldwide says...
If someone's trying to get you in the network pestering you, perhaps you can demand to access the training videos in advance?
Did You Know?
- Full-time Commitment: Less than 5% of beginners transition to full-time status in network marketing within their first two years.
- Retention Rates: The average retention rate for beginners in network marketing is around 30-40% after the first year.
- Time Investment: Beginners in network marketing report spending 10-20 hours per week on their business, with varying degrees of success.
- Success Rates: Only about 1-5% of network marketing beginners go on to achieve significant levels of success, defined as reaching the top tiers of their company's compensation plan.
- Peer Support: More than 50% of beginners value peer support and community more than the potential financial gains from network marketing.
- Digital Marketing Utilization: Approximately 40% of network marketing beginners leverage social media and other digital marketing tools effectively to grow their business.
- Customer Retention: The average customer retention rate for products sold by beginners in network marketing is about 60-70%.
Lack of Ability to Prioritize Work
Some people know the idea of prioritizing the work, but they don’t know how to prioritize the right job. They do not know what their priorities are. The priority should be aligned with your goals and object lives. You cannot randomly select tasks and think that they would be necessary for you. Such people don’t take the right action, and then they justify the habit of theirs. People who don’t have the priorities right are usually not the ideal sort of people for network marketing.
CyberCash Worldwide says...
We often get invited to currency investment (Crypto, foreign, etc.) affiliate opportunities. They would tell you out of the blue how "amazing" the investment opportunity that they're offering is.
They approach you out of the blue - they should first ask how you are, at least, out of courtesy. Then they should explain how their business works.
Related Post: Make Money by Writing a Blog
Lacking Problem Solving Mindset
Another set of people who should not go for multi-level marketing or network marketing are those who lack a problem-solving mindset. They are so focusing on hard-selling the product, they don't even try to find out what kind of problem the product can solve.
When you invite someone to join the network, you should clearly advise them how the product you're promoting can help them make their life easier. And if they ask you questions, you should be able to provide a constructive answer. If you cannot do this then you should stay clear from network marketing.
Did You Know?
- Personal Use: Over 80% of beginners in network marketing primarily sell products to themselves or close family and friends.
- Expectation vs. Reality: Around 70% of beginners enter network marketing with high financial expectations, only to adjust their expectations after the first year.
- Market Saturation: About 60% of beginners find it challenging to sell because of market saturation or competition within the same network marketing brand.
- Long-Term Commitment: Only 10% of beginners remain committed to their network marketing business for more than 3 years.
- Financial Literacy: Approximately 30% of beginners improve their financial literacy and business skills as a result of joining network marketing.
- Cross-Recruiting: About 20% of beginners experience or witness cross-recruiting attempts, which can undermine team cohesion and trust.
Lack of Understanding Products
Network marketing requires some level of "attention to detail" ability. If you are not that kind of personality, it will be difficult for you to explain the product you're trying to promote logically, and at the same time, it will be difficult to understand how it meets the needs of people.
If you are planning to become a network marketer, you need to make sure that you open up your mind and horizons to what makes sense and what doesn't. More specifically, figure out the pros (advantages) and cons (disadvantages) of the product and be able to explain them in words.
"This cream is a 24-hour formula, and you only have to apply it on your skin twice a day!"
"If it's effective for 24 hours, why do you have to use it twice a day?"
"Just in case. For more effectiveness."
"It doesn't make sense. You just said you ONLY have to apply it twice a day. If it works for 24 hours, you only need it once a day?"
"I just told you, if you apply it twice a day it's more effective."
"And I just told you, you're not making sense. Don't patronize me, love!"
Lack of Passion For The Product
Like any other business, having a passion for the product as well as your working style is important.
To sell something is to convince people. If you’re not passionate about the product you're selling and don't believe in it, you'll likely to fail. Therefore, when you are invited to buy a product and join the network, it is crucial to make sure that you love the product and you will be confident to sell it to others. By doing something half-heartedly "just for the money," you will be wasting the precious time of your life. And you won't be able to continue to work in it for the long term.
Read This Post: How To Earn Commissions Online [Affiliate Marketing]
CyberCash Wonderland
Networking vs. Networth-king"
The true battle of the modern age: Building connections vs. Building wealth. Why not both?"
It Is Not Easy or Quick Money
Don't ever look for ways to make quick and easy money. Internet marketing is not the way to do it, anyway, and network marketing is no exception. It's supposed to be a business model where you should be patient, and give it some time before you can start earning a substantial amount of income.
So many instant marketers randomly contact others and manage to get them into their network, which creates more instant marketers who do the same; randomly reach people and keep pestering them without learning about how the network system works, how the product works, the technique, how to build trust. There is no quality in the whole system, and this can be deceitful.
Network marketing requires a lot of hard work, patience, and dedication. You cannot just work for a few weeks and expect to make a lot of money. If this is the only mindset that you have, you will not make it very far in the sector. To be a successful network marketer, you will need to create a network that you can be proud of, and always remember to treat people with care and respect.
