Michael S Hutchins

The 3 Fastest Ways To Lose Money In Your Network Marketing Business

It is a sad fact that many individuals who get involved with network marketing lose money and quit before their business ever takes off. This article will reveal the 3 biggest pitfalls beginning networkers fall in to.

If you are a newbie, expect there to be a sharp learning curve when you first launch your network marketing business. Unfortunately, their is TONS of bad information about the steps one should take to succeed. This article will reduce your learning curve by helping you avoid 3 wallet draining mlm strategies.

Bogus strategy#1- Buying network marketing leads

Hands down, buying leads from a lead company will melt down your credit card the quickest! Most lead companies come perilously close to fraud with the leads they provide. Typically, the leads have been sold to several people, regardless of how they are advertised. It is not unusual to reach a lead on the phone, only to find out that they have been called by several other people the very same day!!

Leads can be expensive, too. Expect to pay from 3.00-11.00 a lead! The more expensive the lead, the more "qualified" the prospect. Or so you are led to believe. Many individuals who are called "leads", simply provided contact information in exchange for some kind of free offer. They frequently have no interest in a network marketing business.

Bogus strategy#2- Joining an "Aussie 2 up" network marketing company

"Aussie 2-up" companies require individuals to pass up their 1st two sales to their sponsors. Many of these companies provide relatively costly products or services. The commissions can be quite attractive, which is the "siren's song"presented to potential distributors. Common sense tells you that as the price tag of an opportunity increases, the number of qualified buyers decreases. Additionally, more advanced selling skills are required to close prospects being presented a higher priced opportunity. Many unsuspecting folks get involved with these companies, and simply lack the skill sets required for success. Another draw back to many of these companies, is that after a sponsor recieves the 2 required sales from a new recruit, their is little incentive to continue training the person. In fact, they become the competition!

Bogus Strategy#3- Placing classified ads in newspapers
Once upon a time, classified ads for network marketing opportunities were quite common. With the popularity of the Internet, and the social networks, you see network marketing opportunities advertised in the newspaper classifeds far less frequently. Classifed ads are more expensive than ever, and one can spend a signifficant amount of cash before finding even one qualified prospect! Most newspapers lack a "network marketing" category for classifed ads. Typically, the most appropriate available category is "business opportunities, or "home based business." Unfortunately, many individuals reading ads in these categories are NOT interested in network

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