Network marketing is a very cool strategy, and it can give you a residual income if only you know the right secrets in it. One of the reasons why people fail miserably in network marketing is because they are in the wrong company. One way in which you can know whether a person is in the right company or the wrong one is by looking at how enthusiastic they are. If he is not, then just know that he is in the wrong company. Also, a person who cannot explain why he finds the products he is selling so great, then he is sailing in the wrong boat. Such a person will always have products in his bag that have overstayed simply because he has not sold them. He will also get a minimal payment that cannot take him / her through half the month.
People in network marketing also fail because they do not strike a balance between recruiting and selling the product. You cannot purely do recruiting without selling because you may run out of leads and cause your network to stagnate. You cannot also sell your products without recruiting because there comes a time when the market for those products is just not at the peak season to enable you to rely on points made from sales only. Also, you need to put effort, because network marketing cannot be a ticket to over night richness. This get rich quick mentality is what makes most people in network marketing to fail.
Another mentality that makes people in network marketing to fail is the one where they do not see network marketing as a job simply because it is not set up in a proper office setting. Therefore, they end up doing it like a part time job or they place it at the same level as golfing, if this is their hobby, it cannot work like this. However, the funny thing is that when the end of the month comes, this person expects rewards that only a “real” job can give.
Also, you cannot do network marketing without short term, medium term and long term goals, because you will fail miserably. It cannot work if all you are living and dying for in your network marketing is this current month. All you care about is how much you will get. This is vey harmful to your network and it is the easiest way to kill it.
Mistakes You Should Be Wary about
You may realized that network marketing has been highly associated with the high number of companies that fail within their first few years of operation. This can be attributed to some very common mistakes that many network marketers make. To start with, most of them enter the market with the ‘get rich quickly’ mentality. As a result, they set their goals so high. It is good to aim for the stars, but be a little bit reasonable.
Do not go round setting goals that are way within your reach. Most people are attracted to this business by the millionaires in the sector. Little did it know that by the time such people were setting up their businesses, the market was not as flooded as it is today. Therefore, competition was not as stiff as it is. And on the other hand, it has taken centuries for them to reach the heights they are in today. Such individuals end up getting frustrated once they join the market due to the ‘harsh’ conditions that they did not expect. In the long run, they give up! Therefore, be wise when setting up your business and do not compare yourself with those that came before you; they have an upper hand.
Another common mistake that is still in relation to this is that most of them tend to think short-term. In whatever kind of investment they put into the business, they think that it will take a few days for one to see the results. The truth of the matter is that it will take at least six months for one to notice the slightest improvement in the business. In that case, it will take at least one year or two to fully establish the business. It tends to be demoralizing when ones expectations are not met within the expected time. It is only good if you tend to think long-term rather than go short-term. Think beyond your nose. This way, your plans will be easily fulfilled.
The type of company you choose to associate will also play a major role in building your company. This is where many people also make a mistake. Most distributors tend to go for the companies offering better commissions. Little do they know that the commissions might be good but the products have no market. There is no sense in this! To be on the safe side, go for a company that has a good track record in terms of service and goods that they offer. This way, you will get more returns.
Not All Network Marketing Companies Fail
While some network marketing companies are doing well in terms of output but there are some cases of low output in the sector. This is only in some of the network marketing companies. The main reason for this is poor marketing skills by the marketers. Inexperience can be attributed to this though there are other factors that have led to this poor performance by some of the marketers in the industry. Here are the basic ones.
To start with, marketers do not network as much as they are expected to. Human beings are complex beings in comparison to animals. We were created this way so that we could deal with a variety of things at a time. The same applies to network marketing. There are network marketers who rely on others to find connections. This is correct but over doing this is quit wrong.
A good network marketer should try his level best to initiate a business connection, of which not many marketers do. Due to this they do not produce to their level best hence the low output. Secondly, lack of fully comprehending marketing is a major problem. This is because ‘marketing’ is the main word that describes network marketing as a trade. In short, poor marketing skills are a vital factor in network marketing.
In some cases, network marketers tend to take the whole trade to be like a hobby. Therefore, lack of seriousness finds its way into the entire business. As you all know, no business can thrive without serious staff members. Lack of seriousness come as a whole package since it also results to a company without a vision. Visions and goals are vital in a business since they set the pace that the staff will work at. They are also a good way of assessing the progress of the business. In network marketing, this results into low output by the marketers.
Inexperience is the most common reason for failure in the network marketing industry. Especially with the rookies who expect the business to pick within a fortnight. If they understood the entire marketing process, then they would not give up within weeks of the business. This is the main reason that pulls back the development of the network marketing industry. Another reason for failure that is associated with inexperience is lack of some vital skills such as people and communication skills. These are vital especially in the marketing industry.
Network Marketing Require Commitment, Knowledge and Skills!
Financial freedom has become most people’s long term goal in life. There are various methods through which the ordinary person tries to achieve this vital item in life; the most common being network marketing. In the business sector, network marketing is one of the best trades of which one can get a high return. This is basically because it requires very low capital. On the other hand, with perfect training and mentorship the business will obviously grow at a very first rate. However, even with these components many still fail. Statistics show that 95% of small network marketing companies collapse within the first five years of operation. There are a couple of factors that can be attributed to this.
The most common one is lack of commitment. This applies to all kinds of businesses. Commitment goes hand in hand with commitment and without it, nothing can run the way it is supposed to. As a matter of fact, lack of commitment is the main reason why many people quit. If such people were really committed to the business, then they would struggle on and on until the business is finally stable instead of giving up that easily.
Another common reason why network marketing fails is lack of money or capital. As the name suggests, 70% of network marketing involves marketing. This basically includes moving around talking to potential clients and contacting them as well. As a result of all these activities, one tends to spend a lot of money in the process. On the contrary, if you do not have enough funds to perform all these activities then you are forced to limit your transactions with the clients. In the long run, you end up not marketing enough and even for the few clients you get; you provide them with services that are below par. This will completely ruin your business just like it has done for too many.
Finally, lack of knowledge and skills is another very common reason why many network marketing companies fail. Take for example some marketing techniques such as communication skills, this are very vital yet not taught in our schools. As a result of this, the business begins depriving gradually and within no time it is added onto the list of fallen companies. Look for mentors to guide you through the entire process and be willing to learn.