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Thursday, 1 August 2013

Why MLM Companies Fail

By Russell Howe


If you have previously attempted to make money online you will be familiar with MLM opportunities. Today we are going to be looking at why these companies tend to fail within their first year.

With the current financial climate, more and more people are turning to the internet in the hope of generating a secondary income. However, despite the claims of 'easy riches' you can see plastered everywhere on the worldwide web, most people don't make a dime.

It seems there are new opportunities appearing on a daily basis and it can be very confusing when trying to find the one which appeals most to you. There are two major factors which cause the majority of these companies to fail.

However, it is important to realize that not every program fails. So it's important to know how to spot a good opportunity from a poor one. []

Of course, occasionally you'll see a program which experiences the levels of success the likes of Empower Network or Mary Kay have enjoyed.

The two main reasons that most companies struggle to last long-term are shown below.

* Lackluster products and services.

* Ugly presentation which doesn't do it's job.

If you were to write a short list of the things you would need to put in place to create a successful business opportunity, it is highly likely that the two items on the list above would be among the first things you sorted out. But, oddly, these are problems which keep on happening in this particular niche.

If a company doesn't take the time to develop a good product then, quite frankly, it doesn't matter how financially productive the affiliate plan may be. If there is no long-term value in being a member other than the ability to build an income it will lead to failure.

Some of the programs which do not stand the test of time actually have fantastic affiliate programs attached to them but, as a result of not paying attention to their product range, they simply cannot stay in business long-term.

Furthermore, there is a common tendency for multi-level marketing companies to present themselves as instant solutions to financial problems. You can't become your own boss without hard work and determination, but you will find countless new online opportunities that will tell you otherwise. Usually MLM opportunities announce themselves with a pre-launch phase.

If a company puts itself into pre-launch it is basically trying to allow people to join for free before it goes live, allowing it to build a bigger email list in the process. Pre-launches are normally marketed with misleading slogans like 'Join before the masses' and they attract people who are looking to earn an income without putting in any effort of their own. As a result, when the company finally launches most people instantly drop out.

Many people only want to make money online if it is easy. However, until you are able to face up to the responsibilities of working for yourself you won't be able to take advantage of any opportunity. There is money to be made regardless of whether your prospective opportunity is MLM, affiliate marketing or network marketing, but in order to achieve it you need to drop any expectations of an easy life.




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