You need to be aware (and I cannot reiterate this enough) that you are starting a potential multi-million Dollar business. This is not some corner mom-and-pop shop. An average network has 30,000 members with average sales of $180M per annum. Building a business like this requires capital and a team to make it happen. Underfunding from the start is, in my opinion, the number one reason that network marketing businesses fail.
2. Incomplete growth strategy
There are numerous moving parts that need to be in place before you launch. Each aspect needs to be thought through, systemized and implemented before you start trading. Launching with ill-formed or non-existent systems for order fulfillment, compensation, recognition, incentives, and social features will result in slow growth at best. Once your S curve turns that corner of exponential growth, you won’t have time to scramble and put a system together – believe me!
3. No MLM or network marketing experience
I have consulted to dozens of small network marketing businesses over the years. Somewhere along the line the business owner, probably manufacturing some or other lotion or potion, has done a calculation… 2x2 = 4x2 = 8x2 = 67108864 and now he or she decides to start a network marketing company. I mean... what could possibly go wrong? How difficult can it be?
The truth is that building a network requires specialized skill. It’s like no other business you have ever run before. It’s a people business and needs a people-oriented management team to carry this through every facet of your business. If you’re an A-type personality, you’re highly unlikely to succeed on your own. If you have not grown a network with an existing company, then you had better find someone who has and who can be the ‘face’ of your business and a core part of your team. Experience is critical to your success.
4. Little or no training
Training your new recruits is a key factor in any network. You’re giving your network members the opportunity to build their own hugely successful businesses, and it’s entirely in your own interest to ensure that they have the people and entrepreneurial tools to make this happen. If you look at all the successful networks you will find that their training is well developed and comprehensive. It covers everything from the product to the people skills needed to succeed. I can’t stress the importance of this enough.
5. Small thinking
As I have already mentioned, and I will probably mention it another dozen times before the end of this eBook, you are starting a $180M per annum business! You can’t do that with a $10 mentality. You need to think big to achieve big. And this goes from goal setting, strategy, systems, all the way through to fulfillment processing.
6. Launching too early
Starting a business is exciting. Everybody is pumped up and can’t wait for that first recruit or sale to happen. Believe me, I get it… it’s very tempting to start trading before you are ready. Key people start talking about the business to prospects, they get them excited, and they may even sign them up prematurely. But by the time it comes to actually launching, the people who you are depending on to grow your network have lost that initial fire and you have an uphill battle on your hands.
In our experience the hard fact is that your networker has a shelf life of 6—8 weeks before they lose interest and move on to the next new thing. If you come off half-baked in this period, you will lose them and never get them back.
With network marketing, you only get one shot at the trophy. If you mess it up, you will probably never recover and your business will not recover. Launching too early is a sure-fire way of destroying your chances of success. Keep your business a secret until you are ready to launch and then go all out.
7. Launching too slowly
Many of our clients over the years have had the philosophy that they can grow the business slowly and organically. This is a myth - it seldom works and it can be soul destroying. Network marketing is all about momentum. Imagine you ask me to push-start your car. I tell you that I am going to put a small amount of effort in and see how things go. If the car starts, I will push harder. Well, that attitude is highly unlikely to result in success. Once you are ready to launch, it is pedal to the metal and full steam ahead.
8. Poor launch strategy
Growing a network, like push-starting a car, is all about momentum. You have to put in a great deal of effort to get the car to roll fast enough to start. But, once the engine has started, you require very little effort to drive 500 miles. A network marketing business is exactly the same. Getting the engine started, what we call “achieving critical mass”, is what it is all about.