Why do you think many people fail in Multi-Level Marketing?

Inexperience is probably the greatest reason why most persons will end up not making money in MLM. People usually join Network marketing but they may not know how to market their opporunity. People fail to resale which lead them to pile products and again discouraging them. That’s due to inexperience at work and a lack of marketing techniques. When MLM trainers and companies fail to teach their new distributors how to market effectively and profitably, they set them up for failure.

I think, people entering to a new MLM business thinks it as easy and finds opportunities in rolling money due to impatience, planning on their returns. They see high profits for their investment, but in practical they fails because their returns may lack a momentum. Once greed sets in with any of up line or down line this will ruin the infer structure and cause people to systematically drop from the opportunity.

When you begin the MLM, you are full of zest and there are probably $ signs in your eyes. lets be very factual to oursleves and admit that MLM sounds and looks very lucrative and hence those convinced want to make the most out of it asap.

The way forward is very clear once you have decided to aquire the products. It is all a matter of networking. Why people lose their way is when they fail to realise that what got you interested may not exactly sound salivating to the other especially if the other is a friend!! I mean that friends is where one begins. Would you prefer reference calling?? NO...

This is the reason why it fails. Networking and convincing are the two main issues. Once you have a string of negatives, you loose the freshness of making it big. You loose your commitment. Ask Insurance agents and you will know exactly what they do. They have a commitment that they adhere to - "INSURING YOUR LIFE FOR A BETTER FUTURE". In MLM its making money by putting in that little EXTRA!! Thats the difference!! Interesting debate :)

One should have strong interpersonal skills to communicate with a prospective customer and convinve them of the rewards of the MLM business which is invloved in a product. One should be aware of the product and thorough knowledge of the course of business which is followed thru so that one is confident of what they are going to convince the other

1. Most of the people who join a MLM Company,have the mindset of becoming richer quickly.For e.g If the Company offers a commission of Rs.500 for a matching pair below his down lines means, they were eager in gathering the people and matching the pair and not checking whether the company is registered in IDSA ,provides good quality products and services.
2. More over if a person approaches a neighbor/friend/third person with his company's products means they think that he is going to brainwash us and one day this MLM company will run away with our money.This mind set is because of the MLM history in India.

In my view, Under capitalization is an another cause. Sure people don’t need much money to get started in MLM, but do need SOME money in business to advertise both themselves and their products or business opportunity. Whether the business is mainly carried on online or offline, one may need advert campaign or the other to get you noticed. Additionally, for making monthly purchases or expenses, one may need money or has to wait till they earn back their investment that might take some time or months to recover.

I have seen many times that the leaders only could make money from the MLM and it is not going down in the downline. The leasers should address the fact and in case of their failure the promotors has to ensure it. The things are going on the sane way as the fund from the Indian Govt.

I think a person's success in MLM business would also depend on his/her aptitude in doing such business. Everyone is not cut out for such jobs. I can tell this from my own experience. There was a time when I considered doing MLM. After some time I found I was just not made for it. Telephoning people, asking them to attend meetings all the time was just not my cup of tea. So, I think one should have an aptitude for such jobs in order to be a success.

Hi, In short , following are the pratical resons to fail :

1) lack of patience.

2) low comunication skill.

3) not to target correct person for creating chain

4) person enter in MLM to see high return in short time (by paper calculation) and when u com in field he knows the reality that this job required top communication skill to impres other and strong network of friends to friendsss.

5) Main point is that , not take MLM seriously specialy house hold persons.

Indian consumer is discerning and so doesn't have much faith in MLM. Prefers to buy established brands from known suppliers. Places much stress on value for money. Most products sold through MLM are fancy products like cosmetics et al. that have reliable alternative sources of supply.

 there is simple formula to be successful in network marketing;

personal image x knolwedge x commitment x activity = result

if any of these 4 are 0, RESULT WILL be zero

The failure because of its multi-level, multi-tire complexity!