The MLM industry also known as, Multi Level Marketing, doesn't possess a favorable reputation for new members of consultants to achieve the success they desire. Most are even referred to as scams or at the least thinly failed money schemes. The failure rate for traditional MLM companies has been proven over time to be around ninety seven percent. This means that there is only a three percent chance that, you, as a new consultant will ever find any kind of permanent financial success.

So what's the problem with most MLM companies?

The number one problem is that the main marketing method taught by traditional MLM companies is for a new member to create a list of at least two hundred people that they know and then try to get them to join the opportunity.

This method usually makes the people you know want to run and hide when they see you coming. Make this note, nobody likes to be pitched and sold to, no matter what your selling.

There is also another part to this less then spectacular plan possessed by traditional MLM companies and that is what is known as the three foot rule. The three foot rule is that if anyone comes to within three feet of you, pitch your business to them. I imagine this method has worked in the past but today it seems like it might be a good way to get arrested.

So what is the answer to this problem that has plagued MLM companies?

Failure comes in business from not having a sound plan in place for the accumulation of money. MLM companies are a great place to build wealth because they not only leverage the work of others but they offer a strong backend residual income. Residual is income that you do not have to work for.

So if the business plan is sound the success/failure rate lies in the marketing plan. Look for MLM companies that have a marketing plan that brings people to you that are looking for what you have to offer. This method will make your life a lot easier and you won't have to make new friends.



Author Bio

Steve Kimball is an entrepreneur who is coaching others in developing a sound marketing plan for their network marketing companies. He has teamed up with a group of elete marketers who have developed a business marketing system that is producing millionaires in the network marketing industry. For information on this proven system go to http://Thehomewealthbuilder.com and here from a top producer.