Don’t Be An MLM Failure! (written June, 2007)
Thousands if not millions of people join MLM’s every year. Since home-based businesses are so easy to get off the ground, there’s bound to be even more in the future. Many full-time employees even have off-hours small businesses that don’t compete with their employer. That seems to be the fad of the new millennium – to have some type of business entity to call your own. A lot of these after hours ones are MLM’s with the main goal to make additional income. It’s so easy to start your own MLM business, but just like getting married, it’s not always easy to get out of and it can be very expensive.
Everyone wants to start small, get lots of orders, make lots of money, and eventually sell out for millions. But more often than not, there are many bumps along the road to success. It’s how we maneuver those bumps that determine our income. If you want a successful MLM business that stays in business, you must pay attention along the way.
Usually, when a business fails, it’s a combination of things that build up over a period of time. Rarely does a problem occur and the doors are closed in 30 days. You’ll notice in the following list that tough competition is not among the major reasons. Every business has its competitors – that’s the American way – Competition. So don’t think you can blame your problems on them. It’s a cop-out that won’t work. Here are some things that cause MLM failures, so if you see one that you can change in your business, I suggest you do it today:
- Poor Customer Care – also known as customer service. This is probably the biggest fault that unsuccessful MLM businesses have. Customer care is no longer a benefit. It’s expected! And if it’s not received in a pleasant and professional manner, customers will spend their money where they’re treated better. A different MLM. Make sure your MLM Company has pleasant reasonable customer service.
- Insufficient Marketing – just saying you are in MLM is not enough. You must advertise, promote and sell your MLM to your potential prospects. You may have the best MLM on the planet, but how can you make money if no one knows about it? You should promote your MLM in some form or another every day of your life!
- Poor Attitude – A personable polite, never say die mentality and attitude are essential to success in MLM. Without this attitude or this business mentality, business will get ruined very quickly.
- Poor Training – Just recruiting people into your MLM is not enough. Under trained people can frustrate potential prospects as well as themselves. If people are not duplicating you & your professional behavior, you are killing your MLM slowly but surely!
- Excessive Spending – You don’t need the latest model of everything when many times used equipment will do the job just as well. Lavish business trips and first class hotels are not for a growing business. Save them for your vacation. Try to spend more than 80% of your investment into promotion – that’s where you get sales from!
- Owner Neglect – Not attending to your MLM often and regularly is asking for problems. Training new MLM downliners and promotion make you money. When you neglect these two sales producers, then you are on your way down!
- Lack of Business Knowledge – When you join an MLM, you’re on your own. You NEED to learn about business basics. You NEED to learn to train people. Read books, take courses, or get professional help because operating any business is more than just sales.
- MLM Obsolete – If you’re relying on the same MLM that you had when you started the business, think again. All MLM companies must stay on the cutting edge of what people will buy. How many people are still playing Pong, using 8 track tapes or wearing men’s leisure suits? Stay with an MLM that is constantly developing new products or services!
- Lack of Cash Reserve – When times are going great, it’s time to store some resources for the slow times. Invest unnecessary capital in a money market or mutual fund. It will be there for your needs when cash flow can’t pay the bills and is available in a couple of days rather than a month.
- Inadequate Product Mix – Are your MLM products what the customer is looking for? Do they compliment each other and wow the customer? Do they offer items not easily found or is it time for them to upgrade their merchandising techniques?
- Pricing out of Line – Is your MLM trying to make a fortune on a few unsuspecting patrons by charging outrageous prices? Customers will soon wise up and disappear. Make sure your MLM is fairly pricing their products or services.
If you are making any of these mistakes, I suggest you correct them immediately. If you are not, then give yourself a cookie!
The author of this article is Larry Costello, President of All-American Print & Mail, 2200 Wilson Blvd #102-57, Arlington, VA 22201.