In the USANA brouhaha – the records published showed that 85% of the reps weren’t making enough to cover their minimum monthly product orders of $US 116. Excel Communications numbers were similar, as shown in the bankruptcy filings reported in the media.
But calling all these people failures at network marketing is probably a big mistake. Here’s why:
to fail is “to fall short of success or achievement in something expected, attempted, desired, or approved.” Dictionary.com. June 2007
There are are at least five kinds of people who come into network marketing, and not all come in to make money. Therefore, how can they be “failing” – i.e. falling short of a goal they never had? Here’s the first group.
1. The belongers
Two summers ago I ran weekly study halls with hundreds of reps from a top 10 company. Each week, people would report on what they were doing, how many contacts they’d made, any product sales, reps found, etc.
Many of these gals were buying $400+ per month in products, some $1200/mo. Each week, when it was their turn to report, many would tell why they hadn’t gotten around to making the calls or contacts, whatever they said they were going to do. In one class, the first 6 or 7 people who spoke all said they’d had things come up, and hadn’t done anything. After the seventh person, I asked,
“OK ladies, is it fair to say that it doesn’t matter if you make money or not? I mean it’s not causing you any hardship not to be selling products or getting new reps, is it?”
I was surprised and enlightened by their answers. Many said they just loved the class, loved to listen in, socialize, get ideas, and said they used the company events for the same reasons. Plus they liked hearing about new products. They never came into the business because they needed income. Nice, yes, but not the main event.
Some upline didn’t know this about people in their group and came to me frustrated about their “tree-hugging, do-nothing downline” – who placed regular personal orders but didn’t recruit a soul.
As an industry observer, you might say these ladies are ‘failing’ because they’re spending more than they’re making. Losing money, because they spend more on products than they earn.
Given the dictionary definition of failure, however, these ladies are NOT failures.
They are NOT “falling short of” their own expectations. They never set out seriously to make income. They love the products and love going to events and talking to others who love the products. It’s a social thing, like an extended family. It’s not a financial thing.
They’re belongers.
What percent of people in networking do you think are belongers?
Next: The bargain hunters
We network marketers are champions at rationalizing. Everyone in my organization who quit (which is just about everyone) reported when I interviewed them that the reason they left is because they were losing money. They didn’t want to speak up and say that before they left because they knew they’d get hit with a version of “Learn to work smarter not harder” and my all-time favorite, “Just plug into our educational system which has a proven track record of success.”
The vast majority of people in this industry lose money, whether they do the work or are plugged in. Pretending otherwise is what has this industry be, generally, stuck.
When I start over using Kim’s product sales approach as a base, and become profitable and then learn to teach a few people how to do the same, before they invest in all the stuff I used to believe they should invest them, then I believe I’ll have something to offer them which is authentically good for their financial health. If we’re leading people into an industry where 9 out of 10 (at least) are losing significant money every month, there is no way that anyone other than a few super-charasmatic people will win.
You asked, “What percent of people in networking do you think are belongers?”
My best guess is about 95-97%
I have a rather large network of distributors and am amazed by how many buy the product as a “distributor” and do not “work the business”. Unlike most other Diamonds in my company, I am delighted by these “hanger-onners”. They are the life blood of my business. And why do they continue to stick around? Well, first and foremost, the product does work (scientifically validated), but more importantly, the COMMUNITY connection gives them a sense of belonging. That is one of the five “needs” described by Abraham Maslow, and I think many of the network marketing companies undersand this intrinsically. Some companies use this knowledge to their unethical gain. Others just recognize how important the relationship really is.
I agree with the comments above. Networking is NOT just about Money. It’s about filling the SOUL! Loving the product, helping others suceed for whatever their personal goals are. I truly believe that when you really HELP others, your soul is filled and comes back to you, whether it’s finacially or whatever the product does for you. So why does the majority NOT make money?? Besides not going to work—-they have other reasons for being in the company, i.e.: having fun, love the products, love meeting new people they can bond with, etc. etc. etc. Have a GREAT day! Leslie W.
I would like all the investigators to use a different yardstick.
If they looked only at distributors who are actually doing a certain amount of work,
then what would the numbers be?
Too many companies’ books make no distinction between a happy regular customer and an active business builder.
I agree the number of ‘Belongers’ is high,very high. Our entire culture screems out to ‘Belong’ to something. In high school we had our clique of friends as adults we join groups and clubs. Networker marketing is just another form of a club. What better way to fit in than a group of likeminded people selling a product or service they are mad about?
Nancy Carlson
perfectmombusiness.com
If one does not try, one does not fail.
Fear of failure is why mainstream marketing and the good ‘ol J-O-B is the societal standard for income. The security of a regular paycheck for mediocre performance as long as we show up on time is an opium we are addicted to.
I say your “Belongers” are addicts of tradition that fantasize about being network marketers.
A point about assessing fail/success:
As long as they are seeing personal benefit from the product it isn’t a business expense. For example: If I bought index cards, even though it is to my benefit, I use them to file my prospects and distributors. They are a business exspense. If I buy consumables that I replace meals with that is of personal benefit.
Since my qualification level is only 100 of volume and I met that by my 2nd month in commission, I seem to have it pretty easy compared to what I’ve been hearing.
Still, it all just depends on risk/reward and what the individual percieves as risk and what the individual accepts as reward.
I have a sign in my office that says “Failure is only failure when it causes you to quiy.” Since I don’t plan on quitting than I guess I am not a failure. I love what I do. Thankfully, I do not have to depend on my business financially. I, like others at NMC, got in becuase I love the products, I also love helping others.
I have been told that those are not strong enough “WHY’s” for doing the business. I am happy to say that I now have a WHY – I am going to use my income from my business to support a local nonprofit. Now that excites me!
The vast majority of people in networking are ‘belongers’. They stay for various reasons…
…Because they love the products. Because they feel a sense of community. (People like to belong somewhere.) They stay because of the friendships they have created, the training they get for their business and life in general, etc., etc.
Some stay, because they are afraid of change. They feel comfortable where they are and they keep hoping that things will change.
In my experience, there are a few “belongers” but the majority of my reps who don’t do the work fall more in the category of “bargain hunters”. Nothing wrong with that! Since my product is all about helping people improve their health, I have met some reps I would describe as “philanthropists”. They do the NM part-time while barely scraping by on their full-time job. They believe so much in the product’s ability to help sick people get better that they buy it FOR other people. They can’t bring themselves to sell it to them. Not a great way to make a profit but it sure makes them feel good!
Michele
I was surprised at the number of people in network marketing that are belongers.
On the other hand, there are many that do not need to feel part of a “community or group”. They are there to simply build a business and help others do the same.
From the people I have met, I would say it has been about half and half.
Many people I meet are very interested in calls,meetings, and gatherings for the social benefits as well as training.
The other half are involved in the same events for the express purpose of great training and to develop business relationships.
I think it is great either way! Whatever works best for each person.
Brenda Bunney
http://MLMSuccessBunney.com
brendab@brightok.net