Why people fail in MLM

Most of us have heard some good and bad things about direct selling or network marketing, but a question arises why people fail in MLM or why people don’t get success in network marketing. Do you know only 3% of people become highly successful in Network Marketing?

When you ask this question from failures, some will say this is a tough job, some will say this is a nonsense job, some will say income is very low and many more. But when you ask the same question to a successful person the response will be completely different.

Have you ever heard an honest answer from a failure? Ask a failed student why you failed? He will always come up with an excuse like question paper was too tough or I was unable to cheat. He will never say I haven’t studied so I failed and I deserve this.

Here I will give some honest reasons why people fail in network marketing or direct selling.

Before getting started, you should know that network marketing is not easy it is simple, you just have to honestly recommend the products to people, which we are doing in our day to day life. And still, people fail to do so? Because there’s a lot of difference between easy task and simple like doing 15 mins work out daily is simple still most of us are unable to do this because it is not easy.

Some major reasons why people fail in MLM :

1. Misunderstanding the Business Model :

The most basic problem that arises in network marketing which leads you to failure is the misunderstanding of the business model. Most of the people fail to understand the basic business model. According to most people, the basic model of a company they understand is :

  • Join the business
  • Show the plan to your friends/relatives/contacts.
  • Make them join the business
  • Earn money

We think network marketing is all about these 4 steps, but actually, network marketing is much more than that, these are just the parts of network marketing business.

The actual process is :

  1. Know and understand the truth of the business –
    You should know all the things related to the company like – time multiplication concept, year founded, successful persons of your company and the extent of their success, business model, company culture and many more.

  2. The extent of commitment –
    Decide if you are committed to working for at least 3 years. It increases your conversion rate and your confidence. The strong commitment will make you stay for a long time in network marketing which will increase your success rate.

  3. Join the business –
    After knowing the truth, understanding the business and giving the commitment. It’s time to join the business. It’s time to make your first step towards success.
  4. Learning is earning –
    Learn the process of invitation, planning, closing from the upline or any successful networker. Spend more time with your seniors to learn skills in network marketing. Learn as much as you can and improve your skills daily.
  5. Show the plan to your friends.

It’s time to show your skills to your known. It may be friends, family members, strangers etc.

  1. Make them join the business.
  2. Earn money
  3. Lack of accountability:

The major mistake that failed networkers makes a lot is the lack of accountability. First, let me make you clear this term “accountability”.

Accountability is the process of tracking the work in a systematic way. You should keep tracking the plans given, people joined, not joined, and the conversion ratio.

If you are not doing it then, you are not working in an effective way. Effective work will give you effective results. (Jaise karma waise phal). Self-evaluation is most important in this business.

2. Time :

There are two ways of spending time in your business:

  • Major time – the time you spend with a prospect is major time, and network marketing is all about meeting more and more people.
  • Minor time – the time you spend on yourself by self-evaluation, personal development through books, audios, videos, seminars, and training programs. Learning and developing yourself is the minor time you spend for your successful business.

If you will not spend your time in these two ways, then it is obvious that it will lead you a failure.

3. Monkey Leaders :

These are those people who need a different platform every month. They are always in search of the perfect platform that is the platform without any fault. They tend to find mistakes or faults in every platform and whenever they found it they switch the company or platform.

If you are too busy finding the cons of anything, you will be left alone.

4. Lack of learning :

The biggest mistake which people make in direct selling business is that people don’t take this business seriously. You cannot take the business casually which can give you ₹10 million. That why people fail in MLM.

The reason for not taking the business seriously is the lack of knowledge, that’s why learning is very important which people avoid the most.

Suppose, you read 1 book/month, do you have any idea how much more knowledgeable you will become in the next few years. Your personality will change dynamically.

According to me, Income will far not exceed personal development. Due to the lack of learning and personal development, most of the people in network marketing see the failure.

There are 4 stages that you will cross in the path of a successful networker, also called 4S rule.

  1. Survival stage – The initial and most crucial stage in the path of a successful networker. You will have to work really hard on yourself, which is why most of the people quit at this stage. The major mistake you will make is you will start focussing on money instead of learning. This stage exists nearly 1-1.5 years.
  2. Safe Stage – If you have crossed the survival stage then you would have become a leader of your team and reached a safe stage. At this stage, you will start earning continuously from the business. The major mistake people make after reaching this stage is they stop working on themselves.
    According to me, achieving is one thing and maintaining achievement is another. In this stage, if you will stop working at this stage then, this mistake will shove you down to survival stage.

     3. Success stage – Congratulations, now you count in those 3% population who became successful in MLM. At this stage, duplication, and learning can only retain your achievement.

    4. Significance stageThis stage is the most valuable and crucial stage among all of them. Valuable, because there are no chances of degradation, and moreover, you have become the leader and role model for millions of people working with you. They want to be like you, so you have to focus on other associates, distributing your knowledge to other people. This stage is crucial because even if you don’t focus on learning and personal development there is no chance you will degrade, you might lose all your work just in a flip. So focus on character building.

5. Work cycle :

One of the major factors that lead to failure in network marketing is to understand the work cycle.


Above work-cycle explains the relation of potential, action, result, and belief. The type of potential leads to the type of action, this action leads to the respective result and beliefs are set by the results came and these beliefs set leads to the potential for next time, and the cycle goes on. After understanding the work cycle you will get your answer to why people fail in MLM.

For instance, if you take business casually, then in spite of having unlimited potential it will lead to undesired actions which will cause bad result and bad result leads to bad belief and bad belief leads to less potential and this way this cycle continues. This makes your bad experiences in network marketing, hence you quit.

6. Education system :

As we all know, there is no institute or university is present in India for MLM and, this is the major reason why people fail in MLM.

This problem follows a 4E’s pattern:

  • Education
  • Examination
  • Experience
  • Ethics

Every course has its duration, and cycles rotate from education to examination until he gets a certified degree.

Without becoming professional in MLM when you start giving the plan to everyone and people start running from you, not picking your phone, starts ignoring you etc.

This is the story of network marketing, people are not picking your phone and you don’t understand the problem behind it.

You think the problem is inexperience, lack of experience, but the problem is in the upper segment education and examination, you didn’t take any education about it and never given the exam.

You start gaining experience without taking knowledge.

So to become a professional networker, you have to follow this 4Es formula.

When you become a professional networker, you don’t have to run behind people the people will run behind you.


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Why people fail in Network Marketing !
Sonu Sharma

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