Why Do Most Network Marketers Fail To Make Money?

Studies have shown that 97% of all network marketers fail to succeed in their business. There are many reasons for this astounding failure rate, and many lessons to be learned.

As with any business, but particularly true for network marketing businesses, leads are the lifeblood of the enterprise. Without a steady stream of highly qualified leads every day, no business can hope to survive. Old school multi level marketing (MLM) business techniques, which most off line network marketing opportunities deploy, suggest a number of ways to generate these all important leads, few of which are effective.

The most basic approach is for the entrepreneur to simply buy a list of MLM leads. The problem with this tactic is that not only does it cost money, but most of the purchased leads are not qualified. They are merely names culled into a list from a number of sources. Another recommended option is for the entrepreneur to create a list of family, relatives, friends and associates who are solicited about buying products or joining the opportunity. Despite the personal relationship though few of these people-if any-are really interested in what's being offered. The network marketer in turn becomes desperate and begins adding both pressure and desperation to the process. What ultimately results are strained relationships at best, and both destroyed relationships and failed businesses at worst.

Old school network marketing ultimately breaks down when the entrepreneur runs out of money. By wasting precious cash on tactics that don't work and inventory that doesn't sell, fledgling entrepreneurs become disillusioned and broke. They give up their dream, writing it off as just another failed attempt at success.

The missing ingredient to success is a lead generating system, a marketing program so well honed and fine tuned that it literally draws the customers directly to the business. Before the advent of the internet, developing and deploying such a system was possible but very expensive. But the new generation of network marketers, online entrepreneurs, has harnessed the power of the internet to leverage time and resources into a powerful business tool.

Today's sophisticated system of lead generation and marketing is based on state-of-the-art Web 2.0 technologies, and casts a wide net for a network marketer to promote their personal brand, all over the internet, which is to say all over the world. With the right messages and the right tools in place, any network marketer can become the hunted and not the hunter, generating dozens of leads, every day of the week.

For network marketing success, a lead generating system is the key. And to put this kind of system into operation, there is no place like the internet.