Attraction Marketing MLM Lead Generation

97% of the people who join a network marketing business never make a profit.

97% of the people never made more money than it costs them to stay active in the business. They never make enough money to cover their monthly auto-ship.

Why is that? Have you ever thought about that question?

Why do MOST people fail at network marketing?

The answer is critical to your success. Because until you know WHY most people fail, chances are…

• You will find yourself literally doing the same things that is causing the majority to fail, or
• You will find yourself NOT DOING what is necessary to ensure your success.

Either way, you lose. Which isn’t a good thing, so let’s talk about that.

7 Reasons Why MOST People Fail at MLM

Let’s talk about the 7 most common reasons why most honest, hardworking, sincere people never make any money in network marketing and what you need to do to stack the odds of success in your favor. Plus, when you know the reasons WHY most people will continue to struggle in this business, then you can easily brand yourself as the leader people are looking for because you can now show them exactly how and why they are having challenges. Make sense?

#1 Joined Network Marketing Opportunity for the Wrong Reasons

Most people never make any money in network marketing because they joined the wrong company for the wrong reasons. Meaning they didn’t approach the opportunity from the standpoint of making an informed BUSINESS DECISION.. Instead, they got caught up in the emotional aspects of the presentation or relationship involved and joined for emotional reasons.

• Get in now – ground floor opportunity!
• Only the people at the top make all the money!
• Get in now and get massive spillover from your upline.
• We’ll build the business for you!

(Which, if that WAS true, if a company… line of sponsorship… or turnkey system really COULD build a business for you… why would the need you? Right?!)

Another emotional reason might be because the company is endorsed by a well-known actor, doctor, or other famous people. But “who cares”? Just because Donald Trump or Winnie the Pooh endorses the company, products and comp plan doesn’t mean it will be easier to build a business than it would be without them. Are THEY going to market your business for you? Of course not!

Another emotional bait piece that is used quite often is the low cost of joining.

It’s only $29.95 to join and $10 per month to stay active. Everyone can afford to be in. You’ll get rich overnight. Can you see it? Oh my gosh… you better sign up right now!

Or perhaps most dangerous of all…

You sign up under a family member, friend or co-worker as a favor… or out of guilt… or because of the emotional need to reciprocate.

So instead of taking a good, hard, honest look at the business from the standpoint of building a profitable business – signing up for emotional reasons, regardless of the reason, is one of the biggest reasons the MAJORITY of people will never make a dime through MLM.

#2 Low Sale or Sign Up Commissions

The second reason the MAJOR of people do not have MLM success is because the compensation plan has no room for a marketing budget. Meaning the company does not pay enough upfront commissions to make advertising and marketing the business a viable solution. So  you are literally FORCED to use nothing but free marketing and advertising methods which, more often than not, either don’t work or don’t work well enough or fast enough to launch your business into momentum.

For example:

Let’s crunch the numbers.

Let’s say the business you are involved with costs only $149 to join and it pays a nice $50 sign up bonus when you personally sponsor a new person. Which seems reasonable so you decide to run a card-deck advertising campaign which costs about $1,200 to reach 25,000 people. The average card-deck response is about 1% but let’s TRIPLE that that just for fun – so you can expect 750 to respond to your ad for a cost of about $1.60 per lead which is really, really inexpensive.

The average lead-to-sale conversion rate is about 1.5% – on the high side – but let’s triple that that again just for fun. So you are looking at potentially sponsoring 22 people.

22 x $50 = $1100 in sign up bonuses – which is pretty good actually because you are only upside down a $100. You spent $1200 to earn $1100 – BUT if anyone actually duplicates on your team you’ll be smelling sweet.

But let’s keep it real here and realize we TOTALLY FUDGED the numbers. We were playing with a lead cost of only $1.60 per lead and, in the real world, you will be lucky to produce a good lead for under $4.

So take a close hard look at your compensation plan. Is there room for a marketing budget in the real world? If not, then you might be advised to find another business if you really want to make any real money. Tragic, but true.

#3 Lack MLM Attraction Marketing Skills

The third reason most people will never make money in network marketing is because they lack marketing skills.

In fact, the problem with network marketing in general is when you set out to sign up new people – you are asking these new people join a business that REQUIRES sales and marketing skills to make money (because if nothing sells, no one make money!) – and the majority of these people have ZERO marketing experience. ZERO… and then we wonder why our business isn’t growing.

Think about it.

You decide to approach your neighbor Jim about your opportunity because he seems like a sharp, capable, success-oriented guy. Jim’s been working for the phone company for the past 30 years but you think he just might be interested so you hit him up. And sure enough – he joins!

…and immediately asks you what he is supposed to do.

So what do you say? You parrot back exactly what you have taught – make a list Jim of everyone you know… family, friends and co-workers. Old teachers and kids from your childhood. Everyone. Call ’em up and sign em up.

So Jim does that (probably not, but let’s pretend) – so Jim calls everyone he know and signs up his buddy Fred. So tomorrow Jim comes knocking on your door. Okay, I did that. I contacted everyone I know and signed up Fred.

NOW WHAT DO I DO? Now what do I do to take my business to the next level?

And you are going to tell him what? What would be your answer to the “now what” question?

[bctt tweet=”Once you have exhausted your warm market, now what?” username=”mlm_leads”]

And because MOST people have no clue – which is all about sales and marketing – that’s it. Their network marketing career stalls out and they quit.

So if YOU are really serious about taking your business to the next level – to make a profit and live a lifestyle most people only dream about – understand that you MUST MASTER the art and science of sales and marketing. Plain and simple.

[bctt tweet=”If you are serious about taking business to the next level – master marketing.” username=”mlm_leads”]

#4 Lack of Cash Flow

Another big reason why most people will not ever build a profitable network marketing business is because they have no cash flow.

Meaning you don’t a steady stream of income coming in to cover your expenses and to FUND your marketing efforts. Because the reality is, unless you get very lucky early on in your career and sponsor a heavy hitter, it will take a good 3-5 years or longer to build a nice executive residual income. 3-5 years… and without cash flow to cover the cost of doing business, most people don’t have the extra resources to cover them for the long run.

And we’ll be talking a lot more about this in the modules ahead and, as you’ll discover, there really is a way to create multiple streams of income NOW – so you can stay in the game long enough to create a quiet fortune.

#5 High Attrition Rates Prohibit MLM Success

The 5th reason that prevents most people from making money in MLM is high attrition rates – which is the number of people who quit – which, on average, is 80-90% per year.

This means if you go out and sign up 100 people today… on average, 365 days from now, you will have 20 of these people still active on your team.

To make any kind of real money in MLM requires you build your business large enough to overcome the attrition rate – which means you have to build very big, very fast to get enough FUEL to keep the fire burning. In other words, you make need to personally sponsor 100 people or more per year… for 2-3 years… to find enough other leaders who are as serious about building their businesses as you are.

Now the cause of attrition (why do people quit?) is usually having a product or service you have to buy on autoship in order to stay active – that most people would not buy – at that price and from that company – if they were not getting paid to do so.

Meaning, think of it this way…

If it costs you $100 per month to stay active in your MLM and you get a 30 day supply of vitamins for that $100… ask yourself this question. If you did not have the promise of getting paid, would you spend $100 per month for vitamins from this company? If not… your business will see a high attrition rate because, again, MOST… the MAJORITY of people will not every make any money in network marketing because of all the reasons we’ve discussed. And if they are not making any money – and they wouldn’t pay for those products, at that price, from that company under normal circumstances – they will quit their autoship 80-90% of the time.

It tragic, but true.

So if you are currently in a company where you would not buy that product, at that price in the normal market – again, you might want to seriously reconsider trying to build a profitable business with that company, because you could be looking at a very steep uphill battle with the odds definitely stacked against you.

#6 Lack of MLM Leads

Lack of leads is another big reason why most people do not enjoy MLM success because when you really break it down to the money-making activities in network marketing – there are only three things you really need to do to make a fortune.

You need to expose your products, service and business opportunity to new people on a regular basis, guide them into a simply presentation – follow up and enroll them.

That’s it. Simple as 1, 2, 3. Connect, direct and enroll. So the million dollar question is:

Where are you going to get mlm leads?

How will you find new people to present your opportunity to on a consist basis over an extended period of time?

[bctt tweet=”Lead prosperity LEADS to prosperity…” username=”mlm_leads”]

Lead prosperity LEADS to prosperity… but the opposite is also true. A lack of leads results in a lack of results.

#7 Lack of a MLM Lead Generation System

The final reason why most people will never make money in network marketing is they do not have a marketing system or a MLM lead generation system in place. A tried and true, proven system that is designed to generate leads on a consistent basis… sift and sort through those leads by qualifying for interest, desire and financial ability… present, close and train.

Because think about it – most of us already have full-time lives.

We have a full-time job or career, full-time kids, full-time chores and full-time responsibilities. Yet we somehow need to create full-time income working part-time in our spare-time. Which is literally IMPOSSIBLE unless you learn how to leverage your time and resources by utilizing a proven system. Right?

So there you go. The 7 biggest reasons why most people fail to build a profitable network marketing business.

The good news is by simply learning what we have learned here today – you have now greatly increased your odds for success.

And now that we know what NOT to do… it’s time to find out what we should be doing.

Because success leaves clues.

Great big, giant footprints in the snow.

So tomorrow, day two, module two – we’ll dig a little deeper in to “how to guarantee success when failure is no longer an option.”

See you tomorrow.

PS – Click Here to discover one of the best MLM attraction marketing, lead generation systems available. I joined this program back in August 2010 and have gone on to generate over 37,000 network marketing leads, sponsor over 2,700 new reps, earn millions is affiliate commissions and rank #13 top income earner in one network marketing company with a team of over 7,000 active distributors worldwide.