Whether you're looking to join the network marketing industry, or you're already involved in the network marketing industry, you must learn these fundamental concepts to even have a shot of success…
The Network Marketing Industry Facts
Most people fail in the network marketing industry. These are the network marketing industry facts. Actually, I think I'm taking it a little high, it's more like only a 5% success rate. The network marketing industry statistics show that 95% of people fail, i.e. they don't make enough money to cover their autoship. These are useful statistics but there are different ways to interpret them.
Don't look at it to say you have a 5% chance of success. Network marketing is based on performance, not chance. You can only use statistics of chance when there is no performance involved, like winning the lottery. The correct way to interpret these network marketing industry statistics is “what did the 5% do to achieve success that the 95% didn't.
Just because there is a high failure rate, that's nothing new. Most people fail at everything, whether it be playing a musical instrument, or becoming a doctor.
More on that from Tim Sales here:
The reality is that what 95% of people do is what is being taught by every network marketing company out there. They only tell you to make a list of people you know, contact friends and family, and meet people in your day to day activities and share the opportunity with them. Now this is a great start, and it does work for some people, but there are a few flaws in this strategy that doesn't make it sustainable long term growth for most people.
- Your list of friends and family is finite. Some people have large circles and some have small circles, especially those living in small towns. You will eventually run out of people to talk to. I chased friends and family for years and all it got me was a mountain of debt. Don't make the same mistakes I did.
- Most of your friends, family and people you come into contact with on a daily basis are not entrepreneurial minded. You can still work with these people, in my experience, they are far more likely to quit when the going gets tough than someone who is an entrepreneur at heart and understands that building a business is long term.
- There is very little leverage. When you build this way, you are limited by the hours you can prospect. You are still trading time for money at this point, as you would at a job.
Most companies in the network marketing industry teach these methods. Some try to be more progressive and teach reps to market online, but again they do this the wrong way. Saying things like “product testers wanted,” “join my team” or posting pictures of your company product simply don't work. If you've done any of these things you'll know what I mean. You may sign up a few people this way but it will not build you a team in the long run.
The reason is because you've given no value in these statements. You've given no reason for someone to join your team, you've made it all about you and not about them. It just comes across like you want to recruit people and that is what most people want. As you become a professional in this industry you will become choosy about the people you work with.
I've had to tell people before that they can't work with me.
How to Succeed in the Network Marketing Industry
How would it change your business if you became the hunted instead of the hunter?
How would it change your business if people sought you out, asked to see what it is you do and then get in contact wanting to join you? Major change from the first scenario of chasing your friends and family.
Although we are in the network marketing industry, we are still business owners. Can you imagine if a company like Sony went around begging friends and family to try their Playstation… I didn't think so!
They put out advertisements to bring people to them. Now you don't have to put out paid advertisements if you don't have the budget for it but the principle is the same. Put out something of value to get people to want to want to buy from you or join you.
Give people content of real value. Answer their questions or concerns and create content around it. Not only will they love you because you're giving them free advice, you're not just someone looking to make a quick buck. This is what people look for and when you do this, they will join you. This content is also visible 24 hours a day, working for you while you sleep – that's leverage!
This is what the 5% of successful network marketers do. Just look around. These are the network marketing industry facts again.
Google any top leader in your network marketing company, they all put out content to bring people to them.