97.5 percent of people quit Network Marketing within one year of joining. Is this industry too easy to quit or too hard to succeed?
As a general rule, Network marketing is relatively inexpensive to join. However, in comparison to purchasing a business or a franchise, mlm businesses are incredibly inexpensive. Could this be a leading factor why 97.5 percent quit? It is definitely a contributing factor. It is almost impossible to walk away from a franchise that you purchased for $250,000. But after working a network marketing business for six months and investing $1,000, it is not so hard to walk away.
However, because it is relatively inexpensive to join, it is amazing to me why the industry has not yet taken over as a major means of distribution compared to retail. Are people scared to get involved with network marketing? Are there an abundance of individuals that think network marketing is some kind of scam? Are there people that think all home based businesses are scams? Well, if there is, these people need to get over it.
Network marketing will undoubtedly become a major distribution channel of goods and services over the next ten years. And one day, it will rival the major retailers for market share. Manufacturers are tired of dealing with retailers that demand annual price reductions, better and more service, and longer payment terms. More and more companies each year are introducing their products through network marketing channels. As this occurs, more people will get involved in network marketing and the costs to join will most likely increase over time. However, so will the success rate if individuals learn to properly advertise their business using modern methods.
The biggest factor in the 97.5 percent failure rate is that network marketers are told to recruit their family and friends. The target market for network marketers is the abundance of people out there wanting to join, but cannot find the right company with the right products with the right compensation plan with the proper training.
A major reason why network marketing has a bad reputation is the high failure rate. However, in life, 2% of the individuals in the world own more than 50% of the world's wealth. Most things in life follow the 80/20 rule, and network marketing is no different.
In order to increase their success rate, network marketers need to diversify. What do I mean? Network marketers should join more than one company, especially if the products in the second company are training and tools to help the first one grow. And, if these tools can be taught and utilized by other network marketers, then you will substantially increase your chances of survival. Then, quitting will not be an easy option.
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