Success and Failure in Network Marketing

Network Marketing (NM) companies have a reputation problem. Among other things, there is this notion that Network Marketing companies (MLM companies) have an unusually high rate of failure and that frightens a lot of people off initially. Depending on who you listen to, NM failure rates can be a high as 97%! For example, this website makes the bizarre claim that your chances of being successful in MLM is less than hitting the jackpot in Las Vegas! There are two main problems with these arguments that Network Marketing has a high rate of failure.

Success not Definable

Most of the time when you look at statements that cite a high rate of failure in Network Marketing, you will see references to 'success' or 'being successful'. Yet this word is rarely if ever defined by the critics who cite such high failure rates. Success would of course be the flip side of failure. But what does it mean to be 'successful' in Network Marketing?

Therein lies the problem. One person's version of 'success' might be different than someone else's. Unless they can put a monetary value on that term for measurement purposes, it is meaningless when discussing failure. Even if they could place a monetary value on success, there are still problems. For example, making an extra $300 per month might not be considered 'successful' to one person, but to another person, that might be exactly what they were trying to achieve!

So there are problems with defining 'success' and therefore there are problems with defining its flip side 'failure' in Network Marketing.

Attrition rate not a reliable measure

Another thing that critics lean on when citing 'failure' is the high rate of attrition (people leaving the organization) in Network Marketing companies. The problem with attrition rates in Network Marketing companies is that they don't take into consideration the reason for the attrition. The truth is, many people bail from Network Marketing companies because they can't or don't want to perform the work needed to build the business. When that happens, who should take responsibility there?

Say for example John Smith was going to go on a diet program to lose 30 pounds in 30 days. The company promoting the diet gave him clear instructions on what he should and should not eat during this period of time. They also gave him instructions on what kind of exercise routines he should follow during the 30 day period. But John sat on the couch and ate pizza, burgers, and drank beer for 30 days. He watched TV and didn't exercise for the entire 30 days. Surprise! At the end of 30 day he didn't lose any weight. You could say the diet was a failure, but exactly who is to blame for that 'failure'?

This is why you can't pin failure on the Network Marketing companies. Arguably, some Network Marketing companies might shoulder some of the blame. These are the ones who produce those recruiting advertisements that show people lounging on the beach and driving expensive cars. They are the ones who fail to convey the fact that their Network Marketing opportunity will take lots of work, just like any business. People who join those opportunities thinking they will be on 'easy street' are soon disappointed and leave the company.

So when you hear about high rates of failure in Network Marketing, brush it off and consider these points. Determine what your version of 'success' is and be willing to work to build your network marketing business.