settingsLogin | Registersettings
Show Menu

Wy is the failure rate so high in on-line, direct sales, work from home industry?

9 like 1 dislike
Is it really possible to earn a 6 figure income or more working from home?

I say YES, it certainly is, if you stop following the 98% that are failing.
asked Nov 2, 2016 in Business Opportunity by ToddTreharne IBO Specialist (55,910 points)
Because everyone wants to accumulate huge profits without following the policy of the honesty in this industry.
So is there a policy of honesty in the industry? Seems outside looking in, this industry has little to no integrity. That is why there is a HUGE need for better leadership.

8 Answers

8 like 1 dislike
It is so high because people give up when they don't see results right away. It's best to have faith and believe without seeing knowing someday you will achieve your success.
answered Nov 2, 2016 by PartnerWithSilas IBO Master (5,950 points)
So wouldn't that be a lack of leadership from the sponsor? What I see in the area of your answer is almost always a false promise that feeds the misconception...
Todd, in the end it is your business to run not your sponsor's business. If you were starting a non franchise business offline you would not have a sponsor or trainer working with you and even in a franchise they are usually only with you for 30 to 60 days. Eventually you have to stop looking for hand holding and pull yourself up.
I am not talking hand holding. It is about false claims and promises. Then when the inevitable failure  due to lack of knowledge and awareness happens, they are told to pull themselves up. 97% failure rate makes building a business harder for everyone.Best way to pull your self up is to help others, lacking in this field!
I see your point Todd. That being a fact, a marketer can make use of that commonly over-used bit of hype. See, one principle of good sales copy is: 'Creating Believability'. Sometimes, tapping down the standard get-rich comment by saying something like: 'You Can Earn $300 Extra Every Month".  Compared to: 'You Can Earn $10,000 Every Month - Starting Today!".
I think you are on it Terry! I have trainings that are all about how to do this. See so many people are conditioned to say they want way more than they really need, and readily settle for so much less than they can really have.
7 like 1 dislike
People come into this industry and think they are going to get rich quick.  They have not educated themselves on what it takes to build.  Technical and also personal development.  Then they give up too soon before taking the time to understand what it takes.
answered Nov 2, 2016 by Chris Shouse IBO Specialist (43,930 points)
So a lack of leadership? Not having a responsible sponsor and or mentor? I do see this all too often Chris!
If it is an MLM company sure lack of leadership would play a big role and if you are going to sponsor people damn it stand up and be a leader.  If it is non-MLM (affiliate etc) you have to take responsibility for yourself.  That means learning what it don't know?  Find someone who is doing what you want to do and follow them.
Question: Why does being an MLM make personal responsibility less valuable? I have never met a successful person who was not at least 70% leader and 90% self trained. They have peers not leaders and think on the level they aspire to be at. Don't get me wrong, we need to all be good sponsors but part of that is getting the eaglets to fly on their own.
You are right there is a level of responsibility in MLM also and of course the goal is to be able to handle things on their own.  Duplication is imperative to be able to grow.  When you first come into a company you need to learn everything you can and that is where good leadership from your sponsor comes in. (If your sponsor is also new hopefully they have a strong upline that can answer everyones question.)
That's always my concern when people worry about their sponsor this their sponsor that. The sponsor may have joined 30 minutes before they did and know less about marketing and the business than they do because so many join, look for their affiliate link and start promoting while knowing nothing about their business. To me it is best to have the education about the business easy to access and a motivational statement about taking on the personal responsibility for their own business growth leading things off.
Maybe sponsor is the wrong term, but leadership. True about the sponsor thing, they may be far less skilled or prepared as you. Though the leaders in the company should step up and be just that.
4 like 5 dislike
I'm sure it's possible, but to be honest I have no desire to accomplish that goal. It's too much fun watching everyone else try, while I sit back and enjoy the crumbs that fall off the trucks.
answered Nov 2, 2016 by oldbuddy IBO Guru (4,030 points)
Well I subscribe to a different mindset.The question wasn't about your own goals old buddy
8 like 0 dislike
The failure rate is so high because people quit too soon.  It took me 3 years in my first network marketing company to make any money, then I went on to be top 3% in that same company.  If I had quit, I would of never succeeded.  People become distracted and follow the shiny objects.  You need to get "in it to win it".  If you believe in what you are doing, you will do whatever it takes to be successful.
answered Nov 2, 2016 by marketwithkris IBO Specialist (44,330 points)
Such truth Kris! Though did you have to just plain grind it out for 3 years or did you have a mentor, some leadership, and training?
I had a great team to work with that provided support.  Mentor - not really.  Training - yes I attended all training events on Saturdays and all live training events held weekly - that's why I always say that training is critical to your success :)   What I had was belief in myself that I could succeed.
So in a way, the ones providing the training were leading and mentoring?
Yes, I guess you could say that.  I see people that are willing to give their team training are already leaders and mentors.
I would say you are a positive shining example of that Kris! I am grateful for that! Shine ON
Some times, for some people, there is no need for the mindset-shift change; they've already achieved it. But, that is not most of us who enter the mlm industry. So many of us make that mindset shift over a long period of time with a great deal of effort. Most never make it through that mine field. It's not about the sponsor at all, in my opinion, today because there are so many great platforms that take one by the hand to train the mindset. With consistent, focused effort (yes, I said effort) anyone hungry enough can navigate the mine field of mindset to the lifestyle of the entrepreneur; anyone. Hungry?
Agreed Kris. Most people aren't really failing - they're quitting!  But in a way, it's not anyone's fault, as their expectations are set from all the excessive hype you see in advertisements.
   It's funny, that most of the successful people I've followed had the same story (Basically it's): "I struggled; lost tons of money; I broke down and cried, then I went looking for answers."
   Since that's the common path, then it 'IS' true: It's more about the person than the opportunity.
Excellent points!
5 like 1 dislike

It's less about who you follow than who you are.

If you change programs every 6 months or less. If you sit on the fence looking from the inside but without commitment. If you make excuses like I don't know how, or I am not a salesman instead of learning to be everything you need to be for success. If you are in a free program because it was free to join and not because the products are ones you are passionate about and don't want to pay for advertising or memberships to support it's growth then you are the reason you are part of the 97% who fail in business.

Those who succeed are humble, ready to learn, learn every day, they believe in themselves, they believe in their company, they are ready to invest, they embrace the uncertain and never sit on the fence. They are fearless and committed.

Andy Zeus Anderson

answered Nov 4, 2016 by YumaBloggers IBO Specialist (12,400 points)
I have seen many in 97% that display all the character traits you have listed as those who succeed. I agree, these are found in all successful as well, and no doubt that the ones you describe make the failure rate high, though at 97%, quality leadership has no where to go but improving on 3% success. IMHO
4 like 0 dislike
Most of that 98% mention that are failing simply due to the reason that they are all about the quick buck that a given programme can provide. If the programme benefits are not seen early in them joining the programme, they tend to bail out and blame the programme and not themselves for not simply being persistent enough to follow through with the programme. Some also do not know that success with any given business does not just come over night but on the other had may take some time to achieve.
answered Nov 10, 2016 by garywelsh IBO Specialist (72,640 points)
And so there are those that pander and are predatory to that...yes? How does this ultimately impact the industry Gary?
3 like 0 dislike
Most failure rate is because of the lack of experience that exist among new marketers that are just joining the online marketing business.
answered Nov 10, 2016 by babyface IBO Master (6,720 points)
I think that is more about a learning curve. Other industries have the same attrition rate at first as well, yet much higher success rate as you go.
5 like 0 dislike

My first initial answer of "because people give up too soon" is not earth shattering...that's pretty well common sense, but I'd like to add a few things.

1) Far too many people view making extra money online or offline type programs as some type of scam or scheme...something that's borderline legit or doable. They fail to educate themselves on legit businesses and MLM type programs. They assume they won't make a dime even if they DO join one then lose interest quickly. 

2) People fail to MASTER the game, the strategic game of getting more website traffic. They buy 1,000 guaranteed visitors from some site and get nothing in return. Little do they know they probably just bought "bots" and not real visitors. This means you need to learn proper sourcing to find legit sellers.

3) People never learn the fine art of listbuilding (which is crucial to ANY online business, PERIOD) If you can't build or have someone build a converting squeeze page then write action producing follow up letters for auto responders then no money will ever change hands.

4) People fail to learn proper blogging skills! Having a blog should be top priority in my opinion, because this is your home base where you will center your marketing efforts from. From here you can write good blog posts that can get indexed into the search engines thus bringing you lots of free traffic. 

Providing you can write good SEO copy that is... Get a blog if you don't have one, learn about plugins, learn about all things blogging. You NEVER want to send your traffic to a stale outdated or cheesy looking company replicated website. You don't own this property so it's not always guaranteed to be there, plus you can't perform SEO or list build with it.

5) People never learn how to make marketing videos which are GOLD in terms or getting more leads

6) People never learn how to really communicate with others... they don't like to answer objections or deal with rejection. They feel icky by asking for the sale... and many other reasons.

7) They have a LOW tolerance for risk.. they don't want to spend money, because the lack the confidence that they'll see it back plus a profit. Business is risky, the owner of your company you work for took a risk or you wouldn't have that job. Learn to risk then move on if things don't work out.

8) PROPER training! People that come out of the corporate cubicle world or off the factory floor and go into a somewhat "alien" industry where not much makes sense to them. They pay a fee to join something ,get a link as it's called lol then told to talk to everyone they know. That's a recipe for failure right there.

These people need to be taught the basics of selling, telling, sifting and sorting... sometimes it can take years before some people find their groove.

I could go on, but I'll stop here- but my LAST point would be is that too many people believe the hype that's written in 1,000's of salesletters. ALL letters are written to sound great, but many are LOOSE with the truth.... BE TRUTHFUL when talking to leads! Getting them excited with lies is not right and won't be productive.

My 3 cents +

answered Nov 11, 2016 by ecommercepro (830 points)
Well said. To add to that: Someone asked about 'Fiverr' services before. Some of those are shotty, but one of the good services, for only five bucks is: Having a professional looking Capture Page made for you (you'll have to host it though - not hard to do).
Due diligence. Fiver can really be awesome!
Beautifully articulated ecommercepro! I think this will help many! thanks!

Related questions

7 like 1 dislike
1 answer 59 views
5 like 0 dislike
0 answers 44 views
8 like 4 dislike
7 answers 94 views
19 like 2 dislike
11 answers 216 views