While not all home based businesses are network marketing based, almost all network marketing (NM) opportunities are home based businesses. And often, these companies make it sound like they’re easy, simple, businesses to start and grow. If that is the case, why the high failure rate in network marketing? Statistics are difficult to come by, but it’s generally known that only a small percentage of the people who join NM companies, actually make sustainable incomes from them. For something that looks so easy, why it is so burdened with failure?
Part of the problem might due to the ‘direct selling’ basis these companies rely on. The idea that you are supposed to sell the product to your friends, family, and everyone on the street just doesn’t work for most people in this day and age. Yet many NM companies still cling to this mode of doing business. This simply isn’t how people buy things anymore. Expecting to retail products in this way, is .. well so 1980. Unless the NM company has leveraged the web and is able to share that with you, this mode of selling won’t carry you very far.
The type of questions you would ask before joining an NM company would be the same questions you would ask before starting any business. How will I differentiate my business? How will I market the product or service? How will I get leads or customers? If you can understand that ‘direct selling’ doesn’t mean selling the product on street corners then you might be able to make money in certain NM opportunities. But if you expect it to be easy and fall into your lap without any effort, then you will not be successful and will be just another network marketing failure statistic.