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How To Lose A Lot Of Money At MLM

Jul 1, 2008
Every network marketer has an opinion on how to make money at mlm. So, I decided do an article about losing money.

Having financial problems as a network marketer is quite common. In fact the failure rate in the mlm industry is 97%. This means that out of 1000 network marketers only about 30 will have extra time and money.

Do not get me wrong, I believe that network marketing works. Thath is why I too am a multi level marketer.

So do you want to be successful at it? I am sure you do.

And do you think that some information on which strategies to avoid would be useful? Well, that is what this article is all about.

I will share some of the common mistakes we network marketers make. Plus stories from my own experience.

Okay. Let us begin with the following statement.

Everyone Is A Target. This business is so simple that anyone can do it.

I am sure you heard this before. In fact I thought this was true. So, this is what I used to do.

I would spend money purchasing business cards. Then I took a taxi to the mall so I can prospect employees until I had a list of 10 to 12 mlm leads.

On Sunday afternoon I would call my prospects. This usually results in approximately 4 to 6 of them agreeing to see the plan.

About an hour or two before the open meeting, I called again to make sure that the interested persons were still coming. As usual 2 or 3 would not be able to make it which leaves me with 1 or 2 guests.

After paying money to go into the hotel room and see a presenter show the plan I usually had only one person still interested. Then there was the follow up which also costs money. And at this point I would know if my prospect was serious or not.

I was spending too much money by talking to many prospects to get downlines. It did not make much business sense.

We are spending money on persons who will never join our downlines. This is one reason why people loose more than they gain in network marketing. So why do network marketers continue to do this?

I stopped believing everyone was a potential mlm lead. This theory was too expensive for me to put into practice.

Here is another way too lose money at mlm. I got burnt pretty bad with this one.

We Are Not Selling. We Are Sharing The Products

When I started network marketing my upline told me that once I share the products with my family they will appreciate the high quality and will want more. So I did it.

I shared over $300 worth of products and Sure enough, everyone experienced improvements in their health, beauty and wellness. But, did they come back for more?

No. $300 in products lost without a penny earned because I shared them.

I know what you are thinking. This was one of my most embarrassing moments as a network marketer. I vowed that it would never happen to me again.

The truth is the life of a business (whether it is mlm or a traditional business) depends on sales. Without it the business will die and the owner will lose his investments.

The truth is this, a wealthy multi level marketer is one who sells. An unsuccessful IBO is one who shares.

I wish my upline had told me that instead. But the following point is the most crucial and also controversial aspect of network marketing that I wish I had known before I spent so much money.

Tis point is about The Proven System. This system is based on duplication and works perfectly in theory. Downlines duplicating their uplines success thereby maintaining the system.

But in reality it is almost impossible. A human being cannot imitate another human each day, week or month.

Every network marketer starts his or her business at different points in life. For example a person who is high up the corporate ladder is more likely to experience mlm success than a college student. Why is this so?

Because a person who is high up the corporate ladder tends to be more respectable than a college student. Thus the corporate person will have access to a circle of friends of a higher income bracket. It will be almost impossible for the college student to duplicate his corporate upline.

This was a problem I had while at university. My upline was an upper level accountant manager and also a highly respected multi level marketer.

But I have found ways to level the playing field. I have employed new techniques in my mlm business so I am no longer at a disadvantage.

I have learnt that if we continue to do the same things over and over the results will not change. We will continue to lose more money than we are making and eventually become frustrated with little or no results to show. Have a look at the Quixtar Scam on youtube and you will see what I mean.

Stop focusing on activities that cause you to lose money and put more effort into strategies that will cause you to gain. Even if you must disobey your upline.
About the Author
Crystian Coldeira is a professional network marketer who specializes in teaching others how to be successful with network marketing. If you want to get in touch with Crystian or learn more about network marketing success please visit:

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