It is no secret that the mlm success rate is extremely low. The odds of anyone achieving mlm success is actually astronomical. The odds are against you without question; on average only three out of every one hundred people, will experience mlm success.
MLM Success
MLM Success
Now there are naysayers out there that would use those numbers to imply that network marketing or MLM is a joke, a scam or the well-known reference of those that have no clue a pyramid scheme. The odds of achieving mlm success does not mean for one second that the industry is a scam or a pyramid scheme. Are their scams in network marketing? Absolutely! Are there people that pull off a pyramid scheme most certainly? However, here is a question for the naysayers. Are there scammers in the real estate industry? How about a pyramid scheme in the financial arena? I think you get the point you can find scams anywhere you choose to look almost but just because you can find a scam or pyramid scheme does not mean that industry as a whole is a scam or a pyramid scheme or if you like a ponzi scheme. Sorry to disappoint!
Why Do People Just Settle
Let’s examine this shall we. Why do you think the majority of people just settle for a J.O.B.(just over broke) instead of being an entrepreneur or a business owner? I think the reason at least to some degree is because they think it is just easier to settle instead of swimming upstream and fighting for what they really want.
Another factor is the majority of people do not think as they go through life that it is all that important to stay in touch with people they come in contact with. They move through life meeting different people, burning bridges and not looking back. Why? Because at the time their mindset is not about the future but just that moment in time. Most people are not thinking that someday it might be important to have access to a huge network of people that they have talked with, shared with and done things with. So they loose touch with them. There are people though that do take all that into consideration while it is happening and because of it have developed a large network of people. In terms of mlm or network marketing that means they have a large warm market of people.
Comparison Of MLM Success And Franchises Success.
Let’s look at the comparison rate of mlm success and franchises success.
The International Franchise Association states that after 5 years, 92% of franchises are still in business. Look at that number again 92% are still operating after 5 years. Those are pretty good odds. Let’s compare that to network marketing as a whole, the mlm success rate is 3%, huge difference.
There are a lot of different factors when it comes to the cost of a franchise but let’s just use McDonald’s as an example, to own a McDonald’s will take and investment somewhere between $1 million to $1.8 million.For other franchises the investment can be $30,000 to $250,000 and up. The vast majority of network marketing companies offer their business opportunities for an investment of anywhere between $200 to $2000, some lower and some higher. Considering the lower investment of a network marketing business, is it any wonder why scores join and then walk away as they have far less to lose than in a normal franchise scenario or in a traditional business, for that matter?
Most that join network marketing do not treat their business as a real business but in my opinion, that is a very small factor to why they do not experience mlm success.
What Have We Learned About MLM Success?
Let’s tie this all together if we can. What have we learned? We have learned that people that invest in a franchise have a success rate of 92% even after five years. We have also learned that the rate of mlm success is just 3%. The difference of cost between a franchise and a network marketing opportunity are significantly different. What we are going to discover in the second part of this post on mlm success is what the difference maker is between the two types of businesses.
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