The Real MLM Failure Rate

Share This Post

Statistics can be used to make the case for or against anything. It is all in how they are presented.

For example, the MLM failure rate has long been listed at 95%. If that was really the case, then the MLM success rate would only be 5%.

Does that even make sense?

Let’s Get Real

MLM is a business model for getting a product out into the marketplace via direct sales. This is a multi-billion dollar industry that is thriving right now thanks to the Internet.

How could an industry with a 95% failure rate survive and thrive?

The real MLM failure rate is not 95%! The real MLM success rate is much higher then 50%.


The direct sales industry reports that more than 50% of people in direct sales earn a profit after expenses.

Business For Home has a good article on the 95% MLM failure rate myth and how there are really people earning money in network marketing. There are some good statistics that refute the 95% MLM failure rate and offer hope for people who want to earn money if they work.

Jobs Fail Too

How many people do you think are not satisfied with the job they have? I have seen this presented at 90%.

Based on these jobs have a high failure rate as well, don’t they? The difference is when you are trading time for money you know what your paycheck will be.

In an MLM business you are not trading time for money. You are trading time with the hope you will build a business someday that earns you money.

You Gotta Work

The main problem I see with the MLM failure rate is the number of people who do not work. They do not get real customers buying their products and they do not recruit a sales team.

What do they do instead? They play the blame game.

Why Even Join an MLM Company?

Let’s face it, most people do not have much invested in their MLM business at first. For $100 you can start many MLM businesses and that is not enough money to stop someone from quitting.

Creating a Good Network Marketing System for Your MLM Business

Do you have a network marketing system for your MLM business? Your Company may have one, but you need to personalize it.

Sell Yourself

Direct sales is the business model for Network Marketing. Companies and distributors need to always remember this and sell first but do it in the right way.

In other words, you are not selling your family, friends and strangers but yourself. The product is secondary.

The MLM and home business industry really has changed since I first got involved. In my naive self I thought if I just did this and did that, I would be successful.

I even gave up on the industry but things you learn when you don’t listen to your body, the industry changes and the time has come where you must adapt.

You need to stop selling yourself to your friends and family. This is not an industry about sales. It’s not a numbers game. It’s about knowing your people.

You must be in the mindset where you are connecting with people every day. Where you go where they go, and you are meeting people every day.

People First

This industry is about people first and product second. It’s all about helping people build their business and offering your product. A true MLM business really is a people business.

In this business you really never want to have a big downline, but you want people that love helping people and that are helping them build their business.

People that do this and take the time to get to know their people and themselves become very successful in this business. They know what to do and they know how to do it. Understand what motivates their team members. They know their people.

You must show these people how to do things. Tell them what to do, how to do it, and how much it will mean to them.

If your team members don’t do what you tell them then you must figure out how to deal with this problem yourself. You must teach your team how to make money.

Be A Leader

You need to focus on your team and how to do your thing. If you want to be a leader, then show your team how to be a leader. Do you want to be an MLM leader?

Start doing what leaders do and share it with your team. Tell them how you get results and share that with them. Ask them how they can get results. Tell them how you do it.

In MLM you always want to do your thing. You can be the type of leader that shares with them what motivates you and the rest of the team and use that to help them build their business.

Remember to keep your word to yourself and with your team.

You will never be able to teach anyone else how to do what you do. Teach them how to do it. You can never be able to teach them how to do what you do.

Give Of Your Time

You must be able to take your time to help your team. Help them get their results and when they help themselves build their business.

They may help you out in turn. They may help you get your results. If you focus on your team and what they need to get their results you’re going to give them results and so they will help you out.

If your team see that you’re the type of leader that gets results, they will start giving you their last drop of energy and they will go to you for help, and you must make them understand that you’re the leader and if you get your results the team will follow you.

You can teach your team what you did but for you, you can never be able to teach anyone else how to be a leader. If you do not learn how to help your team out, you will lose them as soon as you.

There is a big difference in the types of leaders and self-starter and there a big difference between the two. You can focus on how you have to teach others that you have learnt from when you don’t do anything yourself.

It is like giving birth and giving birth and giving birth. You can’t concentrate when you’re just doing it.

What Is Your Network Marketing System?

In every MLM or network marketing business you need a system. Your system may be the same. A system must be able to teach you how to be a leader, by letting you know how to be a leader will allow you to focus on the people that need your help and not on the people that give you help.

The type of system you need depends on the people you’re working with and how far into the system they are. If you’re only working with newbies, then a system will be enough.

You only have to teach them the basics and then let them work on their own. But if you’re working with people that are already experienced in the business and have money to spend then you’ll have to have a good system.

Key Factors

One of the key factors to a good system is that it must be able to teach people that you want to work with, how to be a leader, how to attract people to them and how to get their results. A good system should teach your people the basics and then teach them the basics of how to be a leader.

It should let them know how to attract people to them and how to get their results. The network marketing system should be able to take away their efforts and put them back on the basics.

That’s important.

The system should be able to tell them, I’m not working with you today. I don’t have any more training for you today. You should be able to use the system and focus on your own work.

All these elements are important in a good system. If you don’t have any of these ingredients, you won’t have a good system.


What is the success rate of network marketing?

Network marketing is a business model in which companies distribute products or services through a network of independent contractors, or “Network Partners.” Network marketing is also sometimes referred to as direct selling, multilevel marketing, or MLM.

The success rate of network marketing depends on a number of factors, including the quality of the products or services being sold, the experience and training of the Network Partners, and the size and reach of the network. Generally speaking, however, most experts agree that the success rate of network marketing is relatively low.

According to a report by the Federal Trade Commission, only about one percent of people who get involved in network marketing make enough money to support themselves. And, while some people do become very successful with network marketing, most people eventually quit because they don’t make enough money to offset their expenses. So while it is possible to make a good living through network marketing, it is certainly not easy.

Multi-level marketing, or MLM, is a type of marketing in which companies recruit individuals to sell products on their behalf. Typically, these people are given a commission for every sale they make, and they also earn a percentage of sales made by people they recruit into the program. Because of this structure, MLM can be quite profitable for those who are able to successfully build a team of salespeople.

However, it’s important to note that not everyone who joins an MLM company will make money. In fact, many people end up losing money because they’re unable to find enough customers or recruit enough people into the program. For this reason, it’s important to do your research before joining any MLM company. There’s no guarantee that you’ll make money, but you can increase your chances by choosing a reputable company and working hard to build a successful team.

There are many reasons why MLM companies fail. One of the most common reasons is that they do not have a viable product or service to sell. Without a great product, it is very difficult to generate excitement and build a successful sales team.

Additionally, many MLM companies are built on false promises. They may promise high earning potential or quick and easy wealth, but in reality, most people who get involved in MLM end up losing money.

Finally, MLM companies often rely heavily on recruitment to grow their business. This can lead to aggressive recruiting tactics and a high turnover rate, which can be damaging to both the company’s reputation and its bottom line. When all of these factors come together, it’s no wonder that so many MLM companies fail.

Leave a Comment