Elaine

I do not really believe that 95% of people actually fail in the industry of network marketing. What I really believe is that 95% of people who get involved with network marketing actually fail to make the amount of money that they set out to make. In fact many of these people will actually lose money and end up giving up on their network marketing company, which results in failure.

There are several reasons why most people who start network marketing will never make the amount of money they intend on. In my opinion there are two main important reasons why people fail in network marketing.

The first and ultimate main reason for such a high failure rate in the network marketing industry is the lack up proper training.

Lets face it; this industry is an industry that is pursued by armatures. What I mean by this is that in this industry of network marketing we have people from every other occupation and industry who come to the MLM industry because they want to work at home and leave their current job. These people will want to leave their occupation in which they have gone to university or college for several years where they were trained in, so they can join an MLM company, which they were not trained in, and work from home. The problem is most people think that they should automatically be a successful superstar from day one.

People do not understand that they are leaving a profession that they were trained in so they can go work in an industry that they were not trained in.

What is creating the 95% failure rate is that 95% of the people who do leave their current occupation to pursue network marketing will not believe they need to now get trained in their new business or career. Most people will just rely on just their upline in their company who is in their same position as well for the training. Then the 5% of people who do succeed are the ones who take training very seriously and get and pay for the proper training. They become students of network marketing.

The second most important reason for the 95% failure rate in network marketing is lack of money or capital for building the business.

Many people who join the network marking industry are looking to make money and do not want to have to spend the money to make the money. Believe it or not but many people will pursue this industry looking for a cheap little program that cost them $20 - $50 and then want to promote the business with only using free methods. If people do use some paid methods such as buying business opportunity leads or newspaper advertising etc. they will not make enough money to even cover their cost of advertising. Then they will eventually run out of money and have to quit what they are doing. These people are almost dead in the water before they even start by doing this.

People need to realize that when they join a network marketing company and want to build a business that they are going to need to spend some money.

If you do not have boat loads of money to just throw into your business for advertising then you are going to need a business that allows you to make lots of money fast.

You need to have a product and service that has a profit margin that allows you to make a worth while profit. Do you realize that the products and services in a traditional store has a huge mark up on price? This has a lot to do with giving a margin for getting customers in the door. The same needs to apply with your network marketing business. I am not talking about the company having a margin to allow paying out commissions to the distributors, I am talking about the distributor having the profit margin for allowing a good marketing budget.

So in conclusion I really believe that if you really want to be in 5% that really succeed, you will need proper training and a product and service that has good profit margin so you can make more money fast to pay for your advertising.

Colin Meunier is a Successful Home Business Coach and Mentor! To learn more on how to start or become more successful in your home business online Visit: http://www.WhoIsColinMeunier.com & http://www.colinmeunier.com/blog