Why MLM Companies Fail

If you have previously attempted to make money online you will be familiar with MLM opportunities. Today we are going to be looking at why these companies tend to fail within their first year.

Due to the recent recession, around five in ten people with internet access have looked into ways to become their own boss online. However, while it is very easy to find companies which will promise you the ability to generate an easy income from home, the reality is far different.

More and more online businesses are being created each month, despite the fact that over 85% of them fail within the first twelve months. There are a couple of important reasons which contribute to this widespread failure.

Of course, not every company disappears into oblivion.

Of course, occasionally you’ll see a program which experiences the levels of success the likes of Empower Network or Mary Kay have enjoyed.

The 2 main reasons behind this common failure are detailed below for you.

* Undesirable products which don’t represent value for money.

* The presentation often talks far too much about the affiliate plan and too little about the service itself.

As you can see above, the two points are the first two things you would look to sort out if you were starting your own company. But for some reason, those developing home business opportunities often neglect these basic facts altogether.

Among first things a company needs to do in order to build a solid long-term foundation is to develop a good product. Most MLM opportunities provide overpriced, unappealing products purely as a means to keep their business legal.

Some of the programs which do not stand the test of time actually have fantastic affiliate programs attached to them but, as a result of not paying attention to their product range, they simply cannot stay in business long-term.

Furthermore, there is a common tendency for multi-level marketing companies to present themselves as instant solutions to financial problems. You can’t become your own boss without hard work and determination, but you will find countless new online opportunities that will tell you otherwise. Usually MLM opportunities announce themselves with a pre-launch phase.

That phase allows people to join for free and usually sets the entire program up for failure, because anything is easy to build when it is free and presented as a method of earning a secondary income without any effort. Of course, when launch day arrives everybody who was just looking for an easy financial solution suddenly quits, while everybody who was genuinely serious about becoming their own boss loses interest as their entire list of pre-launch referrals quit from underneath them, too.

The bottom line is you cannot make money online with any company that isn’t as serious as you are. If you are just getting involved in the home based business industry and are trying to build a secondary income, take some time to watch out for the two signs we have taught you today and you will be able to separate a good opportunity from a bad one.

About the author: World leading mentor Russ Howe created a great income online with programs such as empower network. His new video on how to make money online will help you to grow your business.