It is estimated that 1,000,000 people a day are looking to find a home based business and people are joining businesses of all kinds in staggering numbers, yet the failure rate is still 96%. MLM’s and network marketing companies are popping up everywhere, too many to even keep track of. The business model of many works in a big way, and based on experience, the earnings can be substantial.

No matter what I do, it just isn’t working, some gurus are succeeding like crazy, or so they say, is it all a scam and should I just cut my losses and quit?

With all of the information on home based businesses available, why are so many still failing? Is it that the business model only works for the companies themselves. Is the information and training just that bad? Are people just lazy or think just because they signed up, money will just begin to flow in?

One of the main reasons people fail in MLM’s and network marketing companies, even if the business they join is a solid company with a good commission structure is this: They really have no proper education in the art and science of marketing or how to actually run a business. Individuals join based on a desire to make money and a way out of their present situation, to better themselves, nothing wrong with that, in fact I applaud it, as I took the same path. I myself however after several years of hard work and dedication had dismal results.

One thing I began to notice in watching and listening to the experts, big names, gurus etc., was that there seemed to be a common theme to their success, that common theme was education. They all talked about it, Perry Marshall who many know about, the Google guy, talked about it a lot. He said his Amazon bill alone was usually $300.00 a month. In the back of my mind I knew he was right. I began to read and study everything I could get my hands on and little by little things began to improve. I knew the business model of MLM and network marketing was valid, after reading things by people like Donald Trump, Robert Kiosaki, and Bill Gates, all stating that if they had it to do over, they would have chosen the MLM or network marketing business model to raise cash flow for their business ventures.

Another valuable thing I learned was that for all MLM’s and Network marketing companies, they all worked on the same principle, they know that the average distributor will ring in 2.5 reps, continue to use the product for 3-6 months and quit, and they are good with that. It’s a business model that works for them.

Let me guess, you joined your new home based business or MLM and your up line tried to do some or all of the following:

Make a list of family and friends

Buy a bunch of training materials, CD’s, brochures, DVD’s etc

Host home parties

Do 3 way calls with your up line

Drive all over town to meetings

Buy duplicatable corporate websites

Post ads on all the free Internet sites you can

Find and join traffic exchanges

Find and jon safelists

It just isn’t really working is it? The reason that the few successful home based business owners and network marketers are successful is that that they take the time and often times the expense necessary to educate themselves in the art and science of marketing. Many of these effective principles have been around for a long time, some of the best marketing books, and ads for that matter were written back in the 1940’s and 1950’s.

A person has to understand the psychology of the basic marketing process and the elements within the marketing process , things like intro, offer, value, benefit(s), close. You also need to understand how to effectively communicate with people. If you’re working on the Internet, you need to learn to write effective ad copy, or hire a copywriter and properly construct either a data capture page and/or website, and then learn to drive traffic to that site.

A lot of this has to do with positioning yourself as the expert, not your up line. People want to deal with someone who knows what they are doing. Running a successful business of any kind requires a skill set is the bottom line. It also requires, commitment and organization. Proper mindset is also a key factor along with realistic goals and expectations. Knowing what I know now, I would have sought out the education first, then looked for a business to join.

Do yourself a big favor, if you are considering starting a home based business, or joining an MLM or network marketing company, know what you are getting into. If you determine this is what you want to do, educate yourself by developing a proper skill set, an ongoing process by the way, and be sure you are willing to follow through with commitment. The last piece of advice I can offer, and this is another big one, choose a product or service you are passionate about yourself, it will help you through some of the tough times.




By: Dave Knop