Information and Resources for Solopreneurs

Network Marketing – Why So Many Fail

Written By: SiteSell in Network Marketing | November 10, 2010

Network Marketing

It’s been interesting watching the Network Marketing industry try to figure out the Net. You’d think that if any industry could figure out the networking power of the Net fast, it would be this one.

Yes, most Network Marketing companies and their associates do recognize the potential offered by the Net (initially, many predicted it would serve as the ultimate recruitment tool). But they have, in large part, been unsuccessful in generating results of any kind — either as sales, or as leads.

What’s Going Wrong?

Network Marketing corporations are not providing their reps with the correct tools and strategies to attract and win new leads and/or sales on the Net. For example…

  • They may provide "cookie cutter" Web sites — each one identical to a million others. Big deal, there’s nothing special about each one and the Search Engines ignore them all, compressing identical content out of existence.

  • They may provide online stores in their name. Great idea, but if it ends there, is it much better than just filling in a form and faxing it?

  • Some even provide a small number of trained Webmasters who will build a site and maintain it for thousands of dollars per year. What’s the natural instinct of the high-rollers who can afford it? Duplicate the site and give it to their downline. Result? Instant death as the engines kick you out for spamming them with identical content.

  • There are hundreds of scammy lead-selling companies that sell the same lists of a million leads "for your downline." Hello? Think about that one. These don’t even deserve a second thought, yet they prey on the weak with remarkable success — but only the lead-selling companies make money.

  • And finally, there are also government issues for Network Marketers to worry about… what you can say and what you can’t say.

In the end, Network Marketers/Reps/Distributors are on their own when it comes to driving traffic to their Web sites, and if they do, little comes from it. Most of these sites are little more than a blatant sales pitch — a page that sells the opportunity and the products, and a page that asks for a name, an address, and a phone number.

Unfortunately, there’s nothing online that annoys surfers more than a blatant sales pitch, especially if it turns out to be an "MLM opportunity." There is a widespread bias against this distribution model, so the approach needs to be a patient, quality, build-a-pipeline one… not a get-rick-quick one.

So, what is the right way to success in Network Marketing?

Find out how SBI! can help you succeed with Network Marketing.

Save 33% On Your Online Business!
SiteSell
SiteSell is a privately held Canadian-based company that helps everyday people start profitable online businesses.
  • Bill Lawrence

    Ken, I agree. I joined a NWM company over two years ago and had been in one for 7 years in the 80’s. I had some success and made a full time income for three years. The problem was running out of leads.
    When I rejoined, I decided to do it a different way on the internet. Ann Seig pointed me to SBI. I have just started to have success with 14 new reps in the past few weeks sign up from all over the US and one in your country. Thanks SBI!

  • Many MLM companies limit their reps and don’t even allow them to have their own website. Each rep is basically a sales rep for the company with no benefits and lots of restrictions while being sold on the idea they they are independent business owners.
    Many Uplines say that the internet does not work for MLM because they tried it and it failed miserably. They did exactly what was said above.
    Others say it does work but what they were doing offline (harrassing people) they are now doing online. They harrass and spam people in email, chats, forums, etc.
    I know this because it happens to me. I get signed up for opportunities that I have never heard of by people I have never met or talked to. I just get emails saying I was sponsored by so and so.
    Since I have a site that I created for my MLM company and products which has my telephone number on it, companies take that number and add it to their MLM phone list database. I get people and auto dialers calling me all the time.
    So much for that list of leads people keep buying.

  • I believe that too many people lose focus on what pays us – hardly anyone focuses on the income producing activities (these are only 2 things…Retailing and Recruiting).
    Anything else you do won’t make you money and should be outsourced or dropped…also buying courses and products from ‘Internet Goo-Roos’ will only deplete your bank account.
    All I currently do to build my business is connect with people using social networking. It’s simple, quick, free and most important duplicatable – an Internet dummy could sponsor 1-2 reps a week using it if they ask the right questions and qualify people correctly.

Join The Solo Build It! Community

Get the latest in best-practices and advice for your online business. Let each new article be delivered to your Inbox for free.