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Why you failed in Network Marketing.

Network marketing is probably the most controversial business model in Nigeria and the world at large. Most people either don”t understand it or have nasty things to say about their experiences with it. Some even call it a pyramid scheme. I truly can understand all the aggression towards Network Marketing. I once felt that way towards the business and hated those who introduced me to it. I once felt duped and even left the business for a while until I finally understood why I failed in Network Marketing.

Any time I meet people who”ve failed in Network Marketing, I often ask them one question, ” WHY DID YOU FAIL in Network Marketing?”. Instead stating why they failed, they give me the REASON WHY THEY QUIT Network marketing. They tell me they couldnt sell the products or they just weren”t able to make any money so they quit ( which isn”t such a bad decision). So they blame Network Marketing for their failure. But what if neither they or Network Marketing were responsible for their failure. What if it was their understanding and approach to Network Marketing that was wrong from the start. What if what they were led to believe was misleading. Would it be any surprise if they failed to suceed?

For the most part, I realise that most people who fail in this business, really cant say why they failed. If they don”t know for sure why they failed then how can they confidently place the blame on Network marketing. It”s my hope that maybe I can help you understand why you failed or are failing, and possibly rekindle a dying passion and help you find your path back to success in this business.

So why do some people (Nigerians) fail in Network Marketing? For several reasons:

1. They joined the wrong company: What constitutes the wrong company. It”s different for everybodyI”ll list them;
(a) The company”s registration fee was too expensive for people they knew. If that”s the case then how will you get new recruits to grow your business.One needs to get involved in a business that does not require an entry fee which is beyond the income level of most people in one”s circle of daily interaction.
(b) The company sold products that they were not passionate about. Passion sells! If you don”t like the products how will you be motivated to market them. Customers are always listening for conviction in your voice. If you didn”t have the passion/conviction, they wouldnt buy.
(c) The company sold products that were not affordable. Network Marketing products are expensive.But when they are so expensive that you couldn”t find one person who considered the cost worth the investment then it”s most likely you were in the wrong business.
(d) Orders take forever to arrive. If the company still has logistics problems like consistent order delays, then of course it will ruin your business and make you lose customers which will eventually frustrate you.
(e) The company gives impossible targets as criteria for earning commissions.
(f) There is no real demand for the product. A few friends of mine tried to sell products that Nigerians didn”t really care about. Some people got into businesses that sold foreign discount hotel and flight bookings in Nigeria. It was just a waste of time because the target market is largely for foreigners and besides most Nigerians who can afford to travel abroad don”t need your discounts ( except for a few who can”t sustain your business).

2. It was a Pyramid scheme. Maybe the Network Marketing company was no Network Marketing company at all.
It may have been a pyramid scheme disguised as a legitimate Network Marketing company. I once interviewed a lady who was aggrieved and she claimed the company didn”t sell anything; that people were supposed to make money from registering people. That is fraud! People get arrested for that type of business in the U.S. .Sensible people wont respond to that type of offer.Is it any wonder she failed.

3. There was no “Why” . The term “Why” is a very popular terminology in MLM. It simply means a compelling reason to do the business. If you joined the business because someone pressured you into it or because you were promised instant riches, its most likely your motivation will fizzle out in a short time and you”ll quit.I am not saying wanting riches is bad , but if you had an overwhelming purpose beyond just making money, it would have given you staying power to maintain your motivation till you get the results you expected. The “Why” is the source of all motivation, whether its weathering a stormy marriage, searching for a job, enduring a difficult task or engaging in a challenging business.

4. They were brought into the business for the wrong reasons: Let”s face it. A lot of Nigerians are opportunists. Most of what we do is just for our own selfish benefit alone. Most of us don”t believe in mutually beneficial relationships. We often believe that in order to succeed others have to exploited. But that”s not true. I”ve watched Network marketers register new recruits for just one purpose – to meet their monthly targets or the criteria for the overseas trip. They had no intention of helping that downline grow. The uplines/sponsors had an ulterior motive for signing them up. So the new recruits couldn”t find their way around because they got abondoned immediately after their registration.And as a result, they quit.

6. They never took the time to study Network Marketing or attend trainings.

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Network Marketing , or MLM as it”s sometimes called, is a unique business model. It has some deviations from the average business model and if one approaches it like every other business, then there”s bound to be failures. There is a system and methodology that succcessful network marketers use to grow their business, e.g. regular home meetings, prospecting, lead-generation, maximizing the marketing plan, sales strategy, leadership and sponsoring skills, reward programs, etc. These things optimally improve the business of Network Marketing and one doesn”t get them by osmosis. You get them by reading MLM books, getting trainings and your experience on the field. Without them there”ll be no meaningful progress.

7. They never learned how to sell. This was my initial challenge. I belong to a Network Marketing company that has one of the best health supplements in the market.But I had just one problem. I didn”t know how to sell the products. Because i couldn”t sell, I couldn”t teach my downlines to sell( so they stopped buying), couldn”t make profits from sales, couldn”t meet my monthly criteria for earning commissions. I was stuck. It was so frustrating until I learned the skills of attracting customers who needed the products, and effectively communicating the benefits of my products to my potential consumers. My sales have increased and I am now more motivated than I ever was.

8. Innability to identify one”s potential customers and downlines. I learned this one the hard way. I once marketed my products to mechanics and some traders. Guess what? They never bought anything. They were never potential customers. They never valued themselves enough to spend N3,000 to N4,000 on a food supplement. Most of them they saw the local chemist as a better option. Then I tried to register some people who could barely afford a meal. I don”t need to tell you how that went. I should have gone to the working class and entrepreneurs who earned at least N50,000 and above per month. They were the ones who were most likely to afford and value my products.

9. Some people don”t adapt the business to their own unique circumstance. The general rule applies; get out there and go market to different groups of people. But what if you working at a job that keeps you at a counter or a table for 8 to 12 hours all day, all week? Does that mean that you can”t succeed in the business. Not necessarily. That”s a unique circumstance and in this case, the exception to the rule should apply. Unfortunately some people don”t know that they can work within their limitations so they quit. I once spoke to a lady in a courier company about the business potential and she said she couldn”t do it because she worked long hours and wouldn”t have the time to go out and sell the products and opportunity to people. I asked her why she thought she needed to go out and she said “it”s the only way I can meet people”. So I said , “but you meet hundreds of new customers at your office every month and you”ve established a rapport with them over the years. Why pursue strangers all over town when you have a steady influx of potential customers and prospects coming to your desk everyday”. That shifted her focus and she suddenly began to see the opportunity that she had been overlooking.

10. Most think that success is about being able to convince people; they don”t understand that success is a numbers game. I”ve heard people say I quit because I wasn”t able to convince anyone. But truth be told, you have no power to convince anybody. I can”t convince a carpenter to buy tools if he doesn”t want them, no matter my persuasive powers. So how will I know the carpenter that wants new tools? By simply offering my tools to as many carpenters as possible till I find one that wants the tools. It”s a game of numbers. The more people you present your business and products to, the greater your chances of getting a positive response as opposed to quitting because you spoke to just a few friends and relatives who later turned you down.

11.They felt unworthy of the success they claimed to pursue. Now this is deep. I”ve been here so I know the territory very well. Most people will be too embarrassed to admit they didnt see themselves as the kind of person who deserved to earn N100,0000 , N300,000 ,N1Millon , etc. If you feel unworthy of the goals you set then you are bound to fail because you won”t be motivated to make the necessary investment to achieve them. The best advice is to set smaller goals and raise them as your confidence level increases.

12. They never held home meetings. This is the fastest way to grow your business. All successful Network Marketers use this method. It allows you tap into the power of leverage. Instead of following up people all over town ( which is too demanding and ineffecient), instead you assemble them every week at a venue for trainings and sharing ideas and watch the attendance grow steadily. Churches employ this method to grow their congregation. A lot of Network Marketers don”t realise that this is a major reason they are frustrated.

13. People allowed themselves get distracted from their main goal and go chasing shadows. You hear people saying things like, “my goal is to reach the Manager level”. Then they get to manager level and realise that it doesn”t guarantee significant earnings, which is the main reason they got involved in the first place. This frustrates them and they quit because they didn”t realise they should have concentrated on building a sales team that would have raked in a huge turnover from which to earn commissions when they rise to manager status. So their focus was wrong. Some even got lured into other Networks because they were told it was the reigning business, and abandoned all the fruits of their hardwork in the previous company.

14. They didn”t understand the company”s marketing/compensation plan. Most people don”t know where to put in most of their effort for optimal returns so they waste their energy on low-value activities. The marketing /compensation plan helps you apply the 80/20 RULE which states that only 20% of your activities yield 80% of the result. So to make significant progress you must focus on the 20% high-value activites that yield the 80% optimal results. People try to recruit the whole world instead of recruiting a few, and focusing on training these few to duplicate theselves into a large organization, that eventually rakes in huge turnovers. So people quit because they achieve very little in spite of their hardwork. They should have sat down with the company brochure and identified the activites with the highest commissions.

15. Some didn”t know how to motivate their downlines. They didn”t help their downlines discover their “Why”. If you didn”t take the time to really know your downlines and discover what interests them, it would have been impossible to motivate them. The only way to motivate downlines is to offer the business as an avenue to express what”s most important to them or to aid them in achieving their most cherished goals. That”s the only way to carry people along with you because everyone wants to know what”s in it for them.
The inability to motivate downlines is a major reason why people were frustrated out of the business.

I hope I have been able to help some of you identify where you failed or are failing in your business. Learn the principles and succeed with your Network Marketing business. Good luck!

For more information on Network marketing books or on a profitable Network Marketing business, call : 08060778264 , 08023467737 or visit: http://www.freewebs.com/natureandhealth/extraincome.htm

  1. November 6, 2012 at 3:04 am

    Thank you, I’ve just been looking for information approximately this subject for ages and yours is the best I’ve came upon so far.
    But, what concerning the conclusion? Are you positive in regards
    to the supply?

    • November 6, 2012 at 2:37 pm

      I don’t understand what you mean by supply.

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