After a year of struggling with my network marketing venture I began to look for advice and ideas that I could implement into my failing business. My search took me on a journey that spanned subjects like, buying leads, generating leads, hard selling, affiliate marketing and many more ideas that I was blissfully unaware of.
Like any new business owner the first year is always the toughest and as a result the failure rate is enormous. Network marketing is no different, in fact you might argue that the MLM industry has a much greater failure rate. It is estimated that the network marketing industry has a 97% failure rate! This is an unbelievable statistic. Why does this industry, one that is promoted as being a business that anyone can become successful in have such a high attrition rate? What is broken about this industry? Lets face it what other business would tolerate an 97% failure rate? I think the answers to these questions are quite simple.
1) People are led to believe that you can start a new business with very little start up costs and no experience in running their own business and become successful almost overnight. This I’m afraid is a fallacy.
2) New distributors are led to believe that the entire business is built through personal recommendation and word of mouth advertising. This again is another lie that is deep rooted within this industry.
Let me talk about example 1. In the MLM business model we are all taught very early on that we should speak to anyone and everyone, it is one of the most appealing aspects to the new distributor, the fact that if they simply go out and talk to people their business will one day reach a point where it takes on a life of its own and bring them ever closer to that much sought after residual income. Unfortunately most if the time this never happens, you see this business is not for anyone and everyone. Prior knowledge of business is definitely something I look for in a new recruit. An understanding of sales and the processes involved are also something that can really help.
If one person gains financially from a recommendation they lose the stance of simply recommending, in the eyes of the consumer you are telling them that the product is good for your own gains. So you can no longer consider your self to be simply recommending products. New distributors have to learn very quickly how to “sell.” Now for anyone already involved in network marketing when is the last time your up-line did a training on sales? My guess is probably never. What happens next is new distributors get left to their own devices, they spam Facebook pages and talk to people as though they are possessed. This immediately turns people off and makes the whole sales process frightful.
Direct selling which is how all network marketing companies distribute their products can be quite different to retail sales, you see as a retail sales person people are coming to you, they visit the shop you are presiding in, therefore they are already halfway towards purchasing. Now in direct sales, people quite often take the direct method of approaching people and fail miserably. What is very important when dealing with direct sales is how you talk to people, listening to what their needs are and learning how to solve the problems that the customer has.This can be the best lesson you ever learn.
People do not like being sold things, but they love to buy. This concept once mastered can transform you business forever. If you can learn to shut your mouth and open your ears, the whole sales process can become one that is very enjoyable. You become known as an expert or consultant rather than a pushy salesperson. Learn how to open up conversations with people rather than being a walking talking advert. Follow these simple rules and you will find your business both more profitable and more enjoyable. Good luck in your future endeavours and remember that the most successful people in the world are the ones who have also failed the most!