How Network Marketing Works

Figures show that approximately 97% of network marketing reps fail to make any money or even recover their initial investment. This makes network marketing seem like a risky prospect, but that is not the case at all.

The problem isn’t with the network marketing industry itself, but rather with the failure mentality of some of its operatives. What is a failure mentality? Think of it like this - if you fail at an exam can you blame your teacher or the books you read or even the weather? Not really. You can only blame yourself and perhaps wish you had studied harder.

There are four mindsets that will guarantee failure no matter which network marketing opportunity you are in:

Looking for an easy option to create wealth

Network marketing is not like a magic slot machine where you can pop in a coin and watch as the money pumps out. Nor is it a guaranteed investment scheme. You can’t invest your money and merely sit back and watch it grow. That’s what banks are for. There is no such thing as a free lunch. If you have this flawed mindset about network marketing you are setting yourself up to fail.

Thinking that if you join at a higher level you don’t have to work as hard

Some network marketing opportunities give you the option to buy in a higher level which entitles you to sell products at a lower rate and therefore be positioned for higher commissions. The problem is that just because people are ranked more highly in the company structure doesn’t mean they can work less than their lower entry counterparts. On the contrary, when you have invested more you will probably need to work twice as hard to recover your investment. Money can buy you a higher rank but it will can’t buy you a downline.

Simply waiting for profits to spill over from the upline

Another way to fail is to sit back and wait for those above you to place downlines in your group. This is quite common within binary structured plans. People don’t understand that if they rely on this it can become their downfall. Even if your uplines do park downlines in your network they must be seen as a bonus rather than a privilege. It is not up to your uplines to build your business for you. There will be a reason they are parking downlines in this way and it isn’t something you can rely on to build your own network indefinitely.

Not wanting to be a professional ‘networker’

It seems that being a ‘networker’ has negative connotations. This is a big problem. People who only want to make a half-hearted attempt at networking don’t realize that in network marketing you have to go all the way. You have to put yourself into it heart and soul. Every profession calls for 100% commitment and network marketing is no different. You can’t reap the rewards without giving it your all.

So don’t allow your failure mentality to ruin your chances of success in network marketing. Watch out for these pitfalls and go all the way.