The failure rate in network marketing
Let’s talk about success!
I’m really getting tired of the gurus telling me that people who quit their company aren’t failing. Apparently, they are just quitting. The quit rate is, well, whatever the quit rate is.
Well, how about this, Mr. and Mrs. Guru? Let’s turn it around and see if you like this better.
What is the success rate of network marketing?
To me, I don’t care if someone quit or if they failed. If they didn’t succeed, it’s all the same to me.
If you look at the numbers that the network marketing companies are willing to share with the public, you’ll find that, on average, about .016% of people who are “active” at that particular point in time, have reached the top level of the company’s compensation plan. That’s what the companies are willing to admit. I don’t think that those numbers tell the real picture.
The numbers that the companies use are “cooked numbers.” You would expect the network marketing companies to make the numbers look as good as is humanly possible, right? Of course they would!
Most network marketing companies define “active” as anyone who receives a check. “Active” distributors doesn’t mean the distributors that are trying to make money, but aren’t. It doesn’t mean the distributors who have given up trying to make money. It doesn’t count all of the distributors who joined and quit over all the years that the company has been in business. If a company has 50,000 total distributors, what percentage of them are “active?” At any given time, it’s probably 50% or less.
How many distributors that have ever been in the company and never made money? It could be 100,000. It could be several million and all of those are never counted in their success rate numbers. You aren’t getting the real picture. You are getting a snapshot of how things are right now and as best as they can make them look.
If they gave a true representation of the total number of people who had signed up with their company over the years and never reached the top level of the pay plan, their numbers might look like .0001% reaching the top. Who knows what the real percentage is?
I hear you crying foul. You say that although only a few people reach the top level, there are people who reach other levels and they make money. I agree with you. There are people, in network marketing, who make money. In fact, with the cooked numbers the companies can make it look like a whopping 3% of the rest of the “active” distributors make $1.00 or more per year.
It’s amazing that anyone joins these businesses with success numbers like that!
They join in droves. They join to the tune of 50,000 new distributors every month.
Okay, Mr. and Mrs. Guru, do you feel better about things now that we’re calling the failure rate, in network marketing, the success rate? Now you can’t cloud the issue by calling it the quit rate.
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