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Myth Buster: Does MLM Really Work?

In the world of network marketing, there's a common and persistent question: "Does MLM really work?"

One answer to this question is heard from skeptics and from those who have tried their hand at this business model only to leave disappointed. But what’s behind the question? Why, after so many years as an effective business model, do people still ask "Does MLM really work?"

When folks say “it doesn’t work” they usually mean the "it" to be the business model itself. I’ll address that claim next week.

But today I’d like to suggest that the “it” that doesn’t work is usually the distributor him/herself.

The High Failure Rate Explained

It's true that not everyone succeeds in network marketing. Statistics often highlight a high dropout rate. In fact, of all the people who start/ join a Network Marketing business, 50% to 95% of them have either dropped out or are just using the products within the first year. They never built a business.

Lots of those folks, if asked "Does MLM really work?", would say it doesn't, blaming the industry for their lack of success.

But if the model is at fault, why do other people, who joined at the same time, do well? What makes the difference?

The truth is that most people who join an MLM company give up and most people fail. People enter the industry with varied expectations, and when these expectations aren't met, or aren't met quickly, they add to the myth.

In understanding why so many people don't find the success they hoped to find in network marketing, we need to dig into the reasons behind the high failure rate. It's not so much about does MLM really work. It's been proven to work successfully for a vast number of people over the years.  What we need to look at, I think, is more about the approach and mindset of the distributors.

Key Factors of MLM Success

man at desk wondering does MLM really work

Firstly, commitment is key in this industry. Many enter network marketing viewing it as a little side gig or a quick way to make money. However, like any business, it requires a level of dedication that goes beyond casual participation. Those who treat it as a serious business endeavor are the ones who tend to see real results.

Secondly, expectations play a massive role. Some new distributors might have been sold on the dream of easy success and fast money. When these inflated expectations crash against the reality of hard work and patience required,

disappointment kicks in, leading to early dropouts. These folks will often claim that MLM doesn't really work, even though they dropped out quickly.

Then there's the aspect of persistence. Network marketing, at its core, is a marathon, not a sprint. Building a sustainable business takes time and continuous effort. The early stages can be particularly challenging, with more effort going in than rewards coming out. It's this period that tests a distributor's resolve, and unfortunately, it's also where many decide to throw in the towel.

The 3 Core Activities

The primary reason for failure boils down, I think, to a lack of vision/ belief.

I mean, the work itself isn’t especially difficult or challenging.

At its core, we only do 3 things:

1. We find a product we love. Something that we are a raving fan of.
2. We recommend that product to other people.
3. We invite people to “take a look” at the opportunity.

That’s about it.

So somewhere along the line, the people who drop out decided that the goal they had isn’t worth doing the work they need to do. I suspect the most common cause of this is that they don’t have a big enough vision for what they want their “income-for-life” to be.

The Importance of Vision and Belief

Network marketing doesn’t pay a lot in the beginning. It takes time to build a big enough team to begin earning a full-time income. Most people are programmed to focus on what they’re earning today rather than focusing on the results that come after some geometric growth starts to kick in.

If someone’s goal is $500 per month, that may not be enough incentive for them to keep at it during the time you’re doing more work than you get paid for. If someone believed they’d end up with an income of $5000 per month for life, a lot more people would stick it out through the slow times. If they believed they would end up with $20,000 per month for life, most people would do it.

So it comes down to what they visualize and believe.

Visualization and belief were always big hurdles for me, too. It’s really only been the past few years where I’ve started to move into a genuine belief of the inevitability of generating an income of $25,000 per month or more. And the more I believe, the more work I put in and the closer I get to that goal.

Funny how that happens.

It's About the Distributor, Not the Model

In the end, it isn’t a question of does MLM really work. It's that most of the people who join don’t do the work.

Or they don’t believe the work is worth the outcome they believe they can create.

Network marketing is a field where the same opportunity is available to everyone who joins, but the outcomes vary widely based on personal effort and belief in the potential for success.

The real challenge lies in maintaining the drive and vision during the early stages of building your network, where the work can outweigh immediate rewards. Those who visualize a significant "income-for-life" and genuinely believe in this possibility are the ones who persist, adapt, and eventually thrive. You and only you get to decide if you are one of “the ones” who will do it.


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Steve Norris
Steve Norris

Looking for the comma that's missing from your retirement accounts? So was I. Together, let's fix that. We'll build cash flow through a side-business, use that money to invest and create wealth and build a legacy for our families.