Big MLM Tip of the Day: The Top 3 Reasons for MLM Failure #3

Reason #3: Lack of Company Integrity

This is the worst of the reasons for failure in MLM because it is often intentionally done. 

Many people have built large organizations just to see it all disappear almost overnight. With a single clause in the distributor contract, the company can terminate you for any or no reason. 

That is bad enough, but there are other ways companies do shady deals. One what I like to refer to as the "no company" scam. A supposed new company with a much hyped pre-launch will offer incentives to join before the launch date. These people never intend to actually run a company; they only want the list of people who signed up so they can sell it to a leads company. 

There is big money to be made from this. If you have read my post on why buying leads is a scam, I talked about this in more detail. 

Suffice it to say, if your company has an ethics issue, it could seriously impact your business.If a company has to tell you they have integrity, then they likely do not.

I've said it before, and will many times again. Do your HOMEWORK and investigate any company you are considering prior to joining.

Big MLM Tip of the Day: Timing is Everything

Timing will make a big difference. Beware of new start ups and the much hyped "prelaunch" promotions.

Roughly 98%, including network marketing companies, are gone within 4 years. 

Some of the prelaunch programs you see will never be a program. They have no intention of actually having a company. They will use special incentives to get tons of people to sign up and then promote the site to get others to sign up.

Just before the launch date, they simply disappear. Now they have a very large list of all the people who have signed up and they can sell these as “targeted leads". 

This is one of the reasons why buying leads is always a rip off, but that is a tip for another day. 

On the other hand, a company that has been around 20 or more years runs the risk of flat lining, meaning that they experience very little growth. 

The biggest growth in a network marketing company is usually between years 4 and 10, but growth can remain fairly good for several more years depending on the company structure and products available. 

Do your homework on any company you are thinking of joining.

Big MLM Tip of the Day Do Your Homework

You should research any company before you consider joining. Most MLM failure can be tracked back to a poorly run company.

Do a Google search on the company and put the word "scam" after the company name. 

Do searches on the company owners and the person trying to recruit you. If the website does not list an owner's name or some sort of contact info, RUN. See what kind of experience these people have. 

From there you can make a more informed decision.

If you would like to know more about how to select a company, I suggest downloading the following MP3 file and giving it a listen. 

5 Pillars to Success