What Are the Odds of You Succeeding in the Network Marketing Industry?
A MLM (legit ones anyway) is a business. And before you invest in any business, you should find out your odds for success. So let’s examine that really quick…
What percentage of network marketers actually achieve a certain level of success?
“Success” means different things to different people, for the sake of this discussion, lets’ just say success is at the very least breaking even – that you end up collecting paychecks from the MLM company that balances what you end up having to spend every month directly in the business.
Notice here we are not taking into account the time, effort, energy, and other intangible investments you have to make. And notice how I didn’t define success as the lucrative lump of cash most MLMers want you to believe is waiting at the end of the road for you on this journey – enough to allow you to quit your job, to pay off your mortgage, to buy your Ferrari, bluh bluh bluh.
Now, I don’t have all the stats but from my personal experience, I’ll say this, you are looking at a success rate of 5~10%, and that’s being fairly optimistic.
Sad isn’t it?
The Cover Up
Yet, when you ask your typical multi level marketer what are your odds of success is (along with other mlm info), they’ll look at you straight in the eyes and say, “Very very good… you’d be an idiot if you fail.”
Then they go on relating MLM to the franchise business. To them, MLM IS a franchise business – you buy into a “proven” model where the infrastructure is all setup for you. You don’t have to manufacture anything – all you have to do is service those customers that come your way and the “franchise” will take care of the rest.
Oh, and the best part is? “To buy into a MLM business opportunity costs a FRACTION of what a franchise does!”
Then they go on quoting you how franchises have 95% success rate and as such, your MLM business will naturally have a 95% success rate as well. Easy-peasy right?
Once you get to understand the MLM products, their payout plan, their LACK of marketing plan, their LACK of duplication… a blind six year old can shoot holes in that stupid analogy all day long.
Truth of the matter is, to compare the network marketing model to a franchise model is like comparing a boat to a submarine. Sure they both are meant for the water but they don’t exactly do the same thing now do they?
Beyond the Simple Answer
Now, before you scoff at the 5~10% “success rate”, let me put it another way for you.
What is the success rate of someone doing exactly what you are doing right now (outside of the MLM industry)? What are the odds of you ever reaching your dreams doing what you are doing right now (outside the MLM industry)?
Slim to none right?
When you are stuck on the second floor of a burning building, with no way down but jumping out the windows, you jump anyway – because while your odds of surviving a two story fall isn’t great, it’s better than certain death inside a burning building.
Oh, and let me say one more thing, you also have to look at that 95% failure rate statistics… most of those folks who fail probably:
- Shouldn’t have started a MLM business (or any business for that matter) in the first place
- Joined a horrible MLM company
- Have no idea how to market and actually BUILD a network marketing business
So yes, the success rate of MLM is extremely low, but this is probably higher than what most would otherwise can say about their chances at success.
Bottom line is, success is hard to come by, but not impossible. Make sure you do your due diligence in picking a right company with the right products with the right compensation plan, a team with the right leader for you to follow, and know absolutely how to successfully market and build your MLM business.