Why Do 94% Of MLM Distributors Earn Less Than $300 Per Month?

Posted on Posted in Network Marketing MLM General

network-marketing-failure-rateIt’s common knowledge that all the stats peg the network marketing failure rate at 97%. That means that 97% of the people who choose to start a home based network marketing business “fail” at it. Nobody actually defines the word “failure” and I’m not really sure how you quantify it because one person’s definition of failure (as it pertains to MLM anyway) could be another’s definition of success.

Anyway, there’s a very popular blogging platform company out there in the network marketing niche that I believe has over 150,000 reps. This company seems to do everything by the book and publishes their “Income Disclosure Statement” on their website. I took a look at it today just out of curiosity and this is what I found…

94% of the members make less than $300 per month. In fairness this number takes into account inactive distributors in addition to active ones so the numbers for active distributors would be higher BUT…

This really hit home for me nonetheless…and got me thinking. Why is the income so low? And, I’m sure this number is pretty static throughout the MLM industry although I did not research it. On a more positive note, the TOP 1% average $18k per month 🙂

Now, let me just say that I believe that the reason that most people don’t make much money in MLM is because they choose not to do the most important task in building their business…WORK! I don’t think you have this issue in the franchise industry where you have people investing $50,000 and much more to start a business. You better believe those people are going to work to make their dreams come true.

network-marketing-failure-rate

But, network marketing is different. You can start for a very low cost that in some cases amounts to throw-away money and after people start their MLM business they make a choice (conscious or not) to forget about it and go start another one or just quit the industry all together. I think it’s kind of a weird dynamic but I’ve seen it happen over and over for the past 4 years so I assume that’s the way it’s always been.

I do know that the majority of people who get started in a home business are doing so because they want to earn extra income and most say they would love to work from home full time if they could. The thing is they can but something prevents them from doing whatever it takes to make the dream come true.

Too Much Recruiting Required!

Some of the reason that more people aren’t seeing MUCH MORE success in their home business I feel is they start businesses that require a ton of recruiting. Mostly low-cost businesses that pay $1-$5 per person in their downline. You do the math! WHAT IF…

You could make just 1 sale and make at least $500? Wouldn’t that be better? When I was introduced to the top tier business model in the beginning of 2010 that’s exactly what I thought! I could make 1 sale and make $500 OR I could build a downline of at least 100 people to make $500. I saw the BIG PICTURE and understood that it was easier to make less sales than it is to make more sales. It just is!

And what if you could make just 1 sale per month and make $3500? That would put you in the top 3% of all network marketers. It is possible and actually it’s probable. The thing is many people are fearful of spending more than $100 to “start their business”. This mindset needs to be changed and more people would experience success in my opinion.

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One thought on “Why Do 94% Of MLM Distributors Earn Less Than $300 Per Month?

  1. Pingback: Do 94% Of MLM Distributors Really Make Less Than $300 Per Month? : Home Business Blogs

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