- Written by lamar.schoell
I want to clear the air right now. I just want to let you know that I am a big advocate for the industry. I’ll be the first to admit that it’s far from perfect. in fact, there are a few things that still drive me crazy with it.
Today, in this blog I want to help you navigate through each and every one of them.
#1: Top 7 Challenges With Network Marketing — No Screening Process In Place
There’s no screening process in place. It all starts right here. Because of its low barrier cost entry, anyone can join. this is a blessing and a curse at the same time. It’s a wonderful thing that we can start new businesses at a very low cost compared to a traditional business.
With a traditional business normally you go through a background check or even a credit check. There’s some sort of application or interview process. This type of process allows you to see if that person is fit for the company.
Because network marketing does not have a screening process, anyone can get involved even people who aren’t qualified and shouldn’t join in the first place.
As a sponsor or enroller, it’s your job to prequalify people.
And no it’s not your job to judge people.
💡 With that being said you do need some type of filtering or screening process by asking questions. You want to find out if your prospects are a good fit for your business. You want to make sure they understand what is expected of them and you.
People who join this industry are either a customer or a business builder. This is something important for you to understand. As a customer, they may not have the drive, skills, experience, coachability, or mindset to want to build a successful business of any kind.
A great way to vet your new prospects is through a series of questions. The tool that I use is called Jotform. You can also look at the Jotform data and see what your prospects are entering. I use the data from Jotform to actually improve my questions. This has been a huge help getting the right people onboarded into my business.
#2: Top 7 Challenges With Network Marketing — Avoid High Turnover
One of the major problems with network marketing is the high attrition rate. This is even true for the best network marketing companies that have the best products around. You can lose as much as 50% of your team year after year. This means you’ve created a revolving door with your business and hope that you can keep replacing people.
Even with a great company and products, attrition is something you will always be fighting. If you want to stabilize your income it’s up to you to understand why people are quitting. People will quit for many different reasons but the most common reason for people quitting is an unrealistic expectation and inadequate self-discipline. There are certainly more reasons. These two are at the top of the high turnover list.
💡 One of the best things you can do to fight a high attrition rate. You want to find people who love the products rather than just looking at the business side of things. People who love the product will keep ordering month after month whether they build a business or not.
You can also minimize attrition by building a solid relationship with your team. One of the best ways to do this is by having a solid training program in place. This training will build their confidence. When this happens they are going to be willing to put themselves out there and sell more products.
#3: Top 7 Challenges With Network Marketing – Products That Are Overpriced
Network marketing companies tend to sell products that are way overpriced. When you can go on Amazon or another online retailer and get the same product for a lot less.
It makes it very difficult to acquire customers when those products cost 200 times or more than a similar non MLM product. If your company products are not unique this makes it even tougher to sell them because they will just go find a cheaper price.
💡 A very simple solution to this problem is to find a company that has unique products and also in high demand. If the companies products are sold for a fair price. You will have tons of customers. Not only that. These products will be a piece of cake for you to sell.
#4: Top 7 Challenges With Network Marketing — No Systems In Place To Help You
Having a system is an absolute must for any successful business. You need to have as many systems in place whether that’s automated or not to run any business. These systems include sales, training, marketing, and lead generation.
Most uplines in companies do not have effective or even efficient systems to help grow your team. Your team members have left to figure it out for themselves. The usual outcome here is they just get frustrated and quit.
Worse yet, they are taught to make a list of everyone they know and go out there and sell to them. This is a recipe for failure in any business.
Whenever you decide to join a network marketing company you need to ask your sponsor these five questions:
1 — How do you get leads to your business?
2 — How do you go about selling the products?
3 — How do you sponsor someone?
4 — Is there training for your team?
5 — How do you go about launching new wraps?
#5: Top 7 Challenges With Network Marketing — Personal Relationships
This doesn’t necessarily have to do with network marketing, but it has everything to do with the way people are taught to build their network marketing business.
We go out and try the brute force method by bugging and pressuring our friends and family to join. Heck, you’re going after people that aren’t even interested in the business or maybe even the product. Period.
The last thing you ever want is to be known as “that guy” or “that gal” that causes people to run in the other direction when they see you approaching. The only thing that’s going to happen is you’re going to get the cold shoulder. Everyone’s going to avoid you like the plague at the next holiday party or they just stop answering your calls.
💡 You need to learn how to work with your Market the right way. be professional at all times. Stop using the outdated pressure and hype to push your product on people.
Think of your job as being a connector. You’re connecting a person with your products for business. Your job is to notify people of what you’re doing. You never want to give the person A Hard Sell or have to be in the position where you need to convince them.
#6: Top 7 Challenges With Network Marketing — Bad Reputation
It’s a well-known fact. Out on the internet, the word MLM has a bad stigma about it A lot of people cringe and run for the hills as quickly as they can.
Even if you have a great product and a great company this is a tough issue to overcome. It’s unfortunate that right from the get-go we have this uphill battle to climb.
💡 The best thing for you to do is be professional at all times. Don’t act like the typical network marketers that are already out there. Educate yourself on the product and company and as long as you love the products you shouldn’t have any problem at all with closing.
#7: Top 7 Challenges With Network Marketing — Getting Leads To Their Business
I saved the biggest one for last. This is the number one challenge Network marketers are faced with.
They say every business goes bust for two reasons. You run out of money or you run out of leads.
You need to find new people on a consistent basis every month and introduce them to your business. This is extremely crucial for your success. Most people don’t expose their business enough to get the quality of people on a daily basis to get the results they need to be successful.
Top 7 Challenges With Network Marketing — Final Thoughts
Just to wrap things up these are the top 7 problems with network marketing as I see it. this is definitely an industry that if you do it right you can definitely become successful with it.
Discover how you can avoid the seven challenges we talked about in this article. Even if you’re a beginner. This is a great way to get started using all the systems that are in place to help you
If you have any thoughts at all let me know. What is your biggest struggle with network marketing? Let me know if you agree or disagree with everything that I have mentioned. Leave a comment below to share your thoughts I look forward to hearing from you.