Network Marketers know that as many as 97% of the people that join an MLM Company quickly fail or simply just quit.  Don’t let this happen to you.  Get the proper MLM Training first and set your course for success.  It only makes sense to find out what the other 3% are doing and use their map.  Knowing what NOT to do, is just as important as knowing what to do.

When you find good MLM Training and step back from the hype of a new found “miracle product” or the “rags to riches” story being told at an opportunity meeting, you can quickly see why most newbies often and unknowingly enter dangerous waters from the very start. Understanding what NOT to do can insure smooth sailing to success.

To better illustrate the 97% failure phenomenon, let’s look at what is commonly found in that scenario. 

Most people that are seeking a Home-Based Business or considering Network Marketing for the first time are usually in financial pain or trying to out run a money crisis.  Short on cash, growing credit card debt, fear of losing their job or even worrying about whether they can ever afford to retire are all real scenarios that motivate people to start a home-based business and lead them to discover MLM or Network Marketing.

Unfortunately, the need can be blinding and people jump in too fast.  The initial allure of the “work from home”, “make extra cash”, or “no prior experience needed,” seems to justify setting aside their fear and any red flags.  So they end up with a Starter Pack that includes product samples and maybe even a cookie-cutter marketing system offering limited MLM Training.

Quickly they find themselves with $500 less in the bank, an obligation to purchase a minimum auto-ship of $128.42 per month including tax and shipping, as well as a subscription to a marketing website at a cost of $19.95 per month.

The sad thing is, this is just the surface of the new obligations this new “entrepreneur-hopeful” has just taken on.  We are all amateurs when we first start and often so focused on our goals, dreams, and aspirations that we overlook basic business principles. Network Marketing is a business and like any other business it takes effort and an investment of time, money, and tools to run.

So let’s go back to our Newbie.  Now in business, he’s one of the most determined, upbeat and motivated new affiliates his up line has sponsored in a while.  He’s busy attending weekly training calls, exploring the company website and compensation plan, product features and ways to utilize all of the tools and systems included in his “marketing package” – all awhile telling every sole he knows all about this incredible opportunity he has for them.  Unfortunately, he doesn’t yet know or fully understand the main obstacles he will soon face. . .

1. Lack of quality prospects or leads.

2. Lack of “how to” network marketing training for himself, product and business.

3. Lack of duplication.  MLM is all about marketing and educating others – without these skills you are not able to duplicate yourself.

4. Lack of Capital.  Not realizing what is required to successfully start and run a Network Marketing Business.

Let me focus on the fourth point, as it is the biggest culprit in causing the 97% failure rate we spoke of before. 

Our newbie has jumped into the business and scraped up the initial $200 to $500 required to join.  We know that he got involved because he was short of cash and needing to make some extra income immediately. Unfortunately, he’s just at the start of a long process to get his business up and running not to mention the monthly financial obligation that is required to run and maintain his new business.  These costs can include:

Autoships are required purchases.  Mandatory autoships can range from $40 to $500 a month with the average being around $100, plus tax and shipping.

Gas is needed to get out and promote the business by attending meetings, joining local mixers and doing all that is suggested from his upline.  Gas is not cheap, now he’s spending $75-$150 monthly on fuel.

Weekly Events must be attended to be a good Networker.  He will be expected to attend all the company sponsored events, training workshops, and hotel opportunity meetings.  There is parking, meals, and even fees to help cover the cost of the meeting facility for affiliates that can cost $25 to $50 a month.

Travel may not be every month, but there are training courses and company regional and national conventions he will want to attend that require travel, hotels, rental cars, and meals. These costs can easily average out to $150-$400 a month.

Supplies are another cost required for promoting the product and business using business cards, flyers, post-card mailers and the like.

Inventory of product samples, brochures, and even CDs or DVDs as handouts is smart to keep on hand, but adds to the monthly financial obligations.

Leads are still needed to make all of this work and there’s only so much family and friends that our newbie can enlist. A reasonable lead source can easily cost $100-$200 a month to purchase.

So, now when we take a look at what is really happening, our newbie’s goal to create a new stream of income has resulted in a new bill every month!  He took a leap of faith and jumped in to what he thought was solving his financial dilemma when in fact he’s added another $600-$1,200 a month to his problem.  Soon he’s dipping into savings to cover business expenses and commissions are eaten up by monthly obligations which fuels his desperate need for immediate cash so he begins to cut corners and takes his eye off the important business principles that ignite a vicious cycle.  This is the common mistake of most beginners. 

The average Network Marketer QUITS within 63 days.  You can see why!

So now you have to ask the question, “How do I avoid making the same mistake?”

I’ll tell you.  Implementing good MLM Training and doing what the successful 3% of network marketers do can avoid this nightmare.

First, focus on lead generation or collecting prospects by attracting leads that may or may not ever join your opportunity, but who need MLM Training to learn the truth about Network Marketing and how they can generate their own leads.  

Then, funnel them through a support Affiliate funnel system that offers the education, tools, and systems they will need to run their own business.  By directing them to your affiliate funnel system this will monetize your lead base and generate cash for you while you are prospecting. 

The commissions you collect from your funnel system are used to further increase your marketing efforts and when you reach the point of break-even (where you are getting as many new leads as you could possibly use – all at no expense to you) or even start having extra cash at the end of the month – you are now ready to invest in your own home-based Network Marketing Business. 

The money you earn while generating leads now funds all your operating expenses, i.e. gas, auto-shipments, inventory, supplies, travel, etc.  This also places you in a no-pressure situation to conduct your Network Marketing opportunity with others better enabling you to work from a secure place of giving while you educate and inspire your business affiliates to succeed.  Plus, the fact that all of your leads for your new business are brought in through a marketing system instead of “a business opportunity meeting” you have now duplicated yourself and have a team of people that is aware of what it really takes to succeed and more equipped and trained to market themselves – therefore creating a situation where more of your affiliates will succeed resulting in a strong retention rate while strengthen your residual income.

Set yourself on a course for success.  The best mlm training along with a good strategy are the foundation to transforming you from an “amateur entrepreneur hopeful” to a secure and successful Network Marketing professional. The process begins by acquiring the skills and knowledge to generate quality leads without going broke in the process.  A well structured marketing platform that includes a revenue producing affiliate funnel system and network marketing training to teach you every step of the way – is key!