It’s been said that 95% of all companies fail in the first 3 to 5 years. Most Network Marketing companies typically fail in this category for one of two reasons.
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Does your Network Marketing company have a Lead generation program? Without a doubt, one of the top problems in the network marketing industry is finding hot, qualified prospects who are truly interested in starting and building a home-based business.
The majority of new distributors are reluctant to contact their family or friends regarding their program. Those that do, without proper help and guidance from their sponsor or upline leader, typically get shot down quickly by the uneducated friend or family member by saying something like, “that’s one of those pyramid things.” After that happens once or twice the new distributor typically quits and goes back to realizing the fact that he will never make any money in Network Marketing. What’s worse is he too becomes one of the, “that’s one of those pyramid things,” naysayers who walk around saying Network Marketing does not work.
Make sure the company you join has a good lead generation program in place. If the company does not have one, then at the very least, make sure the distributor you are considering joining with has a way for you to get access to prospects who are interested in starting a home-based business.
Is there a large enough market for the product or service you will be offering or is the market already oversaturated?
You can have the greatest product or service in the world, however, if there is little or no market or interest for your product or service, then you may end up spinning your wheels and not make any money.
Now I might step on a toe or two here, however, it seems like every month there is a new “super juice” that comes on the market claiming to have the highest ORAC score, or some type of other amazing health claim. The problem with many of these juice products is that you can purchase most of the individual ingredients from your local health food store for a fraction of the cost. I also get approached by numerous juice distributors who make outlandish claims regarding the miraculous healing properties and the diseases their juice will cure.
While their intentions are good, the FDA will have these companies shut down faster than you can say “Seasilver.” I’m not picking on companies that sell juices, however, I just personally don’t recommend these types of companies as there is just too much competition in the marketplace and most distributors end up quitting soon after their garage start to fill up with $40 bottles of juice they can’t sell.
Is the timing right?
Timing always plays a critical role in deciding what Network Marketing company you are going to align yourself with. This category somewhat aligns itself with the previous category in that early on there were only one or two companies selling high end juice products.
There was a lot of great opportunity and numerous distributors made a lot of money – and some still are. However, now days, with numerous juice companies all clamoring for the same customer, the competition is extremely fierce in the marketplace.
I remember my wife and I we were with a brand new company several years ago that had an alleged one of a kind product they claimed nobody could copy because of their patents. This was a product that helped women in a certain area, and all I can say is that it worked extremely well. Being one of the first in the market I was doing pay per click advertising for various key words as low as .05 to .10 cents per keyword.
Within a few months it was climbing to the high double digits, and within 6 months people were bidding a couple dollars for the same key words I used to pay pennies for. In addition, several Network Marketing companies, along with traditional retail and online companies, came out with competing products. After about a year it became too competitive to make a decent profit and the company focused on developing and selling other products. So a year into the business the timing was no longer right for a lot of people.
Do your due diligence and look for a product or service that serves a large group of people who can really benefit from your product or service, yet has very little competition. Competition is good because it proves there is a market for your product or service - you just don’t want a lot of it.
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