I would say that there are 4 main reasons for failure in network marketing.

1. Getting involved in the wrong company

Most people who want to use the same marketing system that I am using to build my business first tell me about the company they are involved in and ask me if I think they made the right choice. They are completely right, because they know that choosing the wrong company will highly jeopardize their chances of success.

What’s a wrong company? There are different variables here, but the main ones are the products, the management, the compensation plan, how many years the company has been in business and its financial strength.

There are companies who have strong, effective products but whose management is poor and finances are bad. They have a higher chance to go out of business. Some companies have a good financial strength, a good management, but the products are not competitive or effective, or the compensation plan is lousy, and the distributors will then go through a lot of struggles and most probably leave the company within the first one to two years.

Then, if a company is less than 5 years old, statistically the company is still at great risk of going out of business. On the contrary, if the company is over 25 years old and financially strong, the company should stay around but the momentum phase may be so advanced that the opportunity is not as great as it once was.

2. Having the wrong upline

Even when distributors find a good company, it is nearly impossible for them to build a successful network marketing business without an upline offering weekly training and support. Without training and support, new distributors are left on their own and there is a 95% chance that they will fail.

3. Not having any system

Most people I talk to are very excited about getting started. They don’t always realize that they will not make it on their own, though. And in this industry, even very determined individuals will usually fail within their first year if they don’t have a system that will save them money and effort and help them leverage time.

4. Not developing persistence and being committed

A vast majority of the people who want to start a network marketing business are actually looking for some kind of get-rich-quick scheme, and want to take the easy road. It’s hard to find people with the determination and persistence necessary to build any business. And lack of persistence is the number one reason for failure in MLM. Quitters don’t succeed. And without a strong commitment, even the best company, upline, or system will not be able to help you.

If you are persistent and ready to do what it takes, if you can find a good company, with a strong marketing system and a personal mentor, you will dramatically increase your chances of success in the network marketing industry.