The Top 3 Reasons Network Marketers Fail

If you’ve been doing Network Marketing or MLM for any length of time – I’m sure you’ve had days where you’ve felt like quitting. I’m sure there’s been times where you wonder if it’s all worth it.

And even if you’ve been rock solid from Day 1 – no doubt you’ve had people come into your team with huge goals and energy, only for them to disappear off into the night.


So why do so many people quit? Why do people give up and leave the industry – before they’ve reached their financial goals. Over my years in the industry, I’ve seen it come down to 3 main mistakes. And if you can identify these in yourself and your team – you can prevent them from happening – so more of your people will enjoy more success.


1. Being Setup for Failure.

Now I know no one is intentionally setting the new team mates up for failure. But stop me if any of these sound familiar;

It’s so easy, anyone can do it.

It’s just like recommending a restaurant.

Everyone will want this.

The problem here is two-fold. Firstly, we’re ignoring the fact that we are a business and a profession. Professionals in any industry understand there are skills to learn. If you want to be a Network Marketing, you will need to develop skills. If you want to lead a team of professional Network Marketers and have a business, it will require skilled people. Telling people you don’t need any skills in this industry means they will come in and make mistakes, say the wrong thing to people, face rejection and negativity, lose friends and family – and eventually quit.

Secondly – telling people it’s easy only attracts lazy people, with short-term / lottery mindsets. People who are looking for the short-cut. You’ve said it’s easy, then wonder why they have no work ethic.

We need to be honest from the start. Is this simple – yes. Is this a brilliant business model for the 21st Century – yes. Can you do this from your phone while still working / raising a family – yes. But is this easy – no. It takes work. And nothing worth having is easy.


2. Over-Reliance on Systems.

‘It’s not what works, it’s what duplicates’. Another popular mantra.

Systems are great, they help people launch. But they also encourage dependence. They breed ‘followship’, not leadership.

As your team grows – eventually you want to step away and start enjoying your residual income. You want to start having more time and freedom. But if everyone in your team is a follower – then who is going to step up when you stop? Nobody.

The problem is – many people don’t discover that until it’s too late. They’re on a tropical island somewhere having a break, so the whole team stops too. So the pay cheques start stopping too.


Systems allow for leverage. And you can make a lot of money with leverage. It can be intoxicating. But they don’t breed leadership. And without leadership – there’s no residual. And without residual income, there’s no freedom.

When you’re team is reliant on you, following your every move – then you are at risk of burn out. And that energy drain takes a lot of people out of the game.


3. Focusing on Money not Wealth.

Making extra money is great. A leveraged / residual income stream is a great way to improve the number of dollars in your bank account. But there’s no financial freedom without financial education.

We sell ‘financial freedom’ a lot in this industry – but we rarely teach people who to actually achieve wealth and freedom. We show a great business model, we show the potential – but we have to teach people the second half of the equation. How to make money, and how to create wealth. They’re not the same thing.


This to me is the elephant in the room. If we want to help people achieve financial freedom we have to take them through the process of turning hustle into leverage, then into residual, then into passive wealth.

Without financial education – we see people blow themselves up. They buy expensive things too quickly. They leave their job too soon. They have lots of toys, big leveraged / residual incomes – but are still living week to week. And that’s not freedom.

Freedom is a measurement of time.


So if any of these sound familiar – identify the challenge and build a plan to get around it.

1 – Be honest with people when they come in, provide templates and scripts to help them share their story properly.

2 – Have systems to help people launch their business, but also provide the space for them to develop and grow their own leadership skills. It takes time to mentor people into independence, but it pays really well, and is residual.

3 – Improve your financial IQ – read good books about business and financial mindsets. Learn the skills, and teach your team as well – as it will truly separate you from the pack and take you to the top.


If you need help with any of these above, grab a copy of my book The Way Out here. It is my 7 Step System to starting your business, building a team, creating leaders and then turning that into wealth and freedom.


As always – to your success.

Andrew Logan


Andrew Logan is a Network Marketing Author, Coach and Mentor.
You can access more free training on his YouTube channel here and his Podcast here.
For your Free 7 Step Guide to Financial Freedom Through Network Marketing, click here.

The Way Out - 7 Steps to Financial Freedom Through Network Marketing

Your roadmap to building a Network Marketing business – even if you’ve never done this before.