What is the meaning of failure? If a distributor only makes a few hundred dollars a month, does that mean they have “failed?” What would that make the distributor who doesn’t make any money from network marketing at all? Or the one who loses money?
It’s difficult, in a sense, to lose money as a network marketing distributor in today’s world. This is due to the policy changes in direct selling companies. Most network marketing companies offer a full refund (or at least a 90% refund) to distributors who have changed their minds and want to return their starter kits.
In addition to policy changes within the company, the majority of leading MLM companies offer earnings disclosures on their websites which disclose the level of earnings and average earnings of all active distributors. Some consultants join a direct selling company to simply become discount buyers of the company’s products. These sorts of independent business owners don’t actually make money with their distributorship since they aren’t pursuing the opportunity to begin with.
The vast majority of active distributors (who make money with the company) earn only a few hundred dollars per month. There is a common saying in the industry, “95% of distributors fail.” This isn’t a fair statement unless you view the company’s products/services purchased by consultants as worthless. Unless you’re working for a pyramid scheme, this simply isn’t the case. Most MLM companies who build a direct selling business model do so because of the unique opportunity to offer their high-quality products and exclusive services through person-to-person selling.
So, how many distributors fail in network marketing? The answer depends on how you define failure. And if you view the products and services offered by your MLM company as special, then you’ve succeeded in making yourself happy and happiness alone is a measurement of success.
Would you like some tips on how to become a successful network marketing distributor? Watch the video by expert MLM Attorney, Jeff Babener:
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