Why Do People Quit MLM?
If you’ve been around the network marketing and MLM industry for any length of time, you will have noticed that most people quit in MLM. In fact, 97% of people quit their current MLM within 2 years. Have you ever wondered why? There are a lot of reasons why, and I too have “quit” my MLM ventures in the past to move onto another bigger and better deal. (that’s what the leaders say anyway) I want to address the biggest reasons why people quit their MLM businesses before they ever get started in this article in hopes that it helps you recognize a good MLM opportunity from a bad one.
There are many great MLM opportunities out there as you know, in many different categories. Whether it be in Health and Wellness, Technology, Travel, Skin Care/Beauty, or the recent Penny Auction craze like Zeek Rewards. (We all know how that turned out) there are thousands of MLM companies out there to choose from. What’s really tough to figure out however, is which one is good for you. Maybe more importantly, is choosing one that has mass appeal to your network of friends, family and connections.
The primary reason that I have started marketing, and stopped marketing (quit), my past MLM opportunities is because the products and services didn’t have mass appeal. I’ve only been involved in network marketing the last 3 years, and I was and still am determined to be successful in the industry. I made that decision 3 years ago to do something that I loved doing, and failure was not an option.
What is failure and what is success in MLM?
Only you can define that for yourself, but for some people success is making $500 a month and making a few great connections along the way. It could also be losing weight, or getting great skin from products they are using. Failure for most is the products aren’t as advertised, they are too expensive, or most people don’t want them or resonate with the masses. Failure is also realizing that the compensation plan is one where a few people have potential of making money, while others have virtually no chance of achieving true lasting income.
So the first step in being successful in MLM is to make that decision in your own mind that you will not fail in your business, give it your all, and follow the company system or a mentors system to recreate their success. However, it HAS to be in the right opportunity for YOU!
There are also the flash in the pan opportunities that come up that we see potential to make a quick buck, knowing the sustainability is not going to be there. It’s tempting and I’ve done it. (aka Zeek Rewards) Did we all fail at Zeek Rewards? I don’t think so. I think the company failed us, and it happens a lot more often than you think.
You need good energy within the company, great products or services, and solid leadership in order to ever get to the Momentum stage of growth. Failure for me in past ventures was realizing that I couldn’t help enough people make money that really tried to build the business. Sure I could sell, I have my whole career, but MLM is not a selling business. Without a lot of people making even a little money ($200-500 a month), your goal of ever making any substantial income is slim to none. I can guarantee it. So the compensation plan needs to be structured around a lot of people making a little CONSISTENTLY with a product that has MASS appeal, is affordable, and truly makes an impact on its consumers, or saves them money…Period.
An MLM Compensation plan structure is a big big deal. If it is focused on mass recruiting in order to have long term success, has breakaway components that encourage you leaving your team behind later, or if it is a binary without an INCREDIBLE product, I wouldn’t do it as a primary business. Sure I will buy the products, use the services, but these comp plans just don’t perform for many people. I’ll give you a list of companies I like at the end, but this is critical to long-term success in MLM.
Network marketing is about relationships, and having fun along the way sharing great products with people that truly enjoy them. If you purchase your product (or take autoship) primarily because your company requires you to, and not because you believe in their benefits, you’re probably not with the right company. If you feel this way while you’re making money, what will others think about paying for products they won’t use and they’re NOT making money?
Knowing what I know now, it literally makes me sick to see people chasing a dream with a company that has almost no chance of succeeding for them. They will travel the country, go to seminars, trainings, leave their families behind, and the company they are promoting has virtually no chance of long-term success for them. I’m guilty as charged too when I say this, because I’ve done it. It’s a painful lesson to your ego to have to admit you picked the wrong horse, and start over again. I’ve seen one lady, Rachel Jackson, work her butt off to make $3K a month, leave her company and make almost 20-30 times that a month within a year! It’s possible, but she chose to move onward and upward. So was it Rachel or her opportunity? Her previous company will say Rachel, but I bet Rachel has something to say about that as well.
It’s tough to go back to your friends and family and say “This one is the one” or they know you’ve moved on to something else. It’s nasty, and it sucks to be honest. We may have loved the products because we love technology, gadgets, or we’re simply more open-minded than most people, but truth is I personally had to learn the hard way about what I can and cannot do when it comes to building a successful MLM business.
I can’t do meetings. I have 6 kids, I care about them, and its hard enough to stay in balance or connect with them when I’m working a lot. How can I do that from another city? It’s a priority for me, and product companies are built through meetings in most cases. I can’t do them, no…I won’t do them. Occasionally sure, but not to leave my family to focus on money solely. The travel model of building an MLM, at least in this season of my life, is not an option. Look at your company and your leaders, determine what income you really need to make, and try to determine whether or not you can mimic their efforts to get there.
Digital products or technology have always worked for me because of that. I don’t have to touch, smell, or feel a cellphone to know what it is. Everyone knows what a cellphone does, how much they pay, etc, so the technology industry is a good fit for me for example. Affiliate products are the same way. Software can be explained with video, or by a tutorial, so marketing software products is an added component of what I do. In short, it works for me, but you have to determine what works for you.
I have to be able to build online. I decided 3 years ago after reading the “4 Hour Work Week” that I would build a successful virtual business. No inventory, limited employees, and be able to work from anywhere, with anyone. I have figured out how to do that. If you’re willing to use video, be consistent with a blog or social media, you can truly attract people to you online.
You CAN monetize a blog. Tell your upline to kiss your @S!S@ if they tell you that you can’t. A blog doesn’t have to be built just for an MLM product (read Crush It by Gary Vaynerchuk) Affiliate programs can be very profitable, so some MLM leaders are really naive for saying the internet doesn’t work. Are you freakin kidding me? Most of their sales come from Facebook, Twitter, or Social Media. That’s a shallow statement…However, interaction and relationships are key to your success in MLM. I will agree with their philosophy there.
We can’t just build a blog, have people join us (they don’t join Companies), and never speak to them again. Sponsoring means Coaching people, leading them, plugging them into the company system and this helps get duplication. Duplication is key. Without it we will most certainly fail.
So let’s wrap and turn our focus on what truly makes a good MLM company:
- Mass Appeal – Without Mass Appeal, the masses won’t make money. This is crucial! Just because you love it is not enough. Weight loss, Travel, Skin Care, utilities (energy, cellphones, TV) are just a few examples of mass appeal industries or products.
- Affordable AMAZING Products – Without great benefits, the product won’t sell long-term no matter how much money you make. Without being affordable, they won’t last in this economy either. A rule of thumb is to ask whether Walmart could afford to sell this product for the price you’re asking. (think about it)
- A Compensation Plan that Allows a LOT of People to make a little – How easy is it to get to $200 a month? Sounds simple enough, but without a lot of people making a little, they will definitely quit. The avg MLM rep will recruit 2.7 people. Does your comp plan give you much chance to succeed without recruiting 20, 30, or even 40 people? I’ve seen these plans, and it ain’t pretty. I “get” the whole recruiting thing, but if everyone is selling who is actually buying which leads me to my next component…
- Company profits are tied to PRODUCT CONSUMPTION – Most companies push recruit, recruit, recruit. If your company is built on recruiting or distributor profits primarily, it probably won’t last. Juice Plus has 80% customer s and $50 to join, Visalus has high customer numbers, World Ventures has a great service that is affordable, Nerium has a great product that gets results and encourages sampling, and Solavei just launched a new cellular service that saves people money on a utility without high distributor costs ($49 to join). These are all top companies that should hold up over time because there is an actual unique product being consumed and/or the service is saving money in a down economy.
Take a long hard look at where you are today. What benefit does your MLM company offer to the marketplace? If it’s just about making money, focused on recruiting, or too expensive to be sold at a price most can afford, do you really think you can build the business long term?
Does Ultimate Cash Profits sound long-term to you? How many $50 bottles of juice have you seen at Kroger or Publix? Monavie retention is 6% last time I heard. (not good) Here are some companies that I like for various reasons, but they are worth taking a look at if you’re looking for long-term income.
Solavei, Visalus, World Ventures, Nerium, Juice Plus, Gano Excel, Organo Gold, Rodan and Fields, Vemma are just a few, and please leave a comment about why yours should be on anyones short list. I’m looking for honest feedback, and if you’ve ever experienced anything like I’m describing. It’s a tough pill to swallow when you’re not with a great company, but better to move on from a weak opportunity than chase a dream that may never happen. Often times its not you that fails, the odds can be stacked against you from the beginning. I wish you all the best!