5 Reasons Why Network Marketers Fail - Gloria MacDonald

5 Reasons Why Network Marketers Fail

According to a study done by the AARP, (American Association of Retired Persons), about one in thirteen adults (18+) in the US have participated in at least one in multi-level marketing opportunity.

Jon M. Taylor, Ph.D., founder of the Consumer Awareness Institute, conducted comprehensive research and analysis of the compensation plans of more than 400 MLM companies.

Taylor’s research showed that

  • A minimum of 50% of network marketers drop out in the first year.
  • A minimum of 90% of leave within five years.
  • By year 10, only those at or near the top have not dropped out—which means at least 95% of representatives have dropped out.

Let’s compare success rates in the network marketing industry compared to other small businesses.

About 20% of small businesses don't make it past a year, about 50% of them last five years or longer, and about a third make it past 10 years, according to the U.S. Small Business Administration.

Approximately 5% of network marketers make it past 10 years, while 33% of small business owners make it past 10 years.

Read on and watch the video below.

Why the Failure?

I recently watched a video by a big-name network marketer.  He was talking about the 7 reasons why networkers fail. 

He said things like…

  • “If it is to be it’s up to me.”
  • “You’ve got to be in it to win it.”
  • “You’ve got to have a why that makes you cry.”


We’ve all heard that stuff.  If hearing that helped, wouldn’t every network marketer be successful?

Let’s talk about the REAL reasons why Networkers fail.

REASON #1:  Lack of Awareness

I hold the industry in general responsible for this.  Let’s be honest, when people are recruited they’re usually totally misled into believing they can build a 6-figure business “fitting it in the nooks and crannies”… working just 10 hours a week.

Right off the bat, we’re starting people off on shaky ground, with false expectations of what it’s going to take to be successful.

It makes sense then, that when a new recruit doesn’t quickly get to 6-figures working extremely part-time they get frustrated, discouraged and quit.  It stems from a lack of awareness of what it really takes to build any 6-figure business.

Recently a client told me that she once heard the definition of network marketing as…

Network Marketing is:

Work, work, work, work, work, work.

Work, work, work, work, work.

Work, work, work, work.

Work, work, work.

Work, work.


I think that’s a pretty accurate definition.

REASON #2:  Unrealistic Expectations

You’ve probably heard the old… “It’s not selling, it’s just sharing” line.

That’s another fallacy.  And gives networkers the unrealistic expectation that building this business is going to be easy.  It doesn’t prepare them for the rejection that’s part of the business.

To build any business requires skills.  Closing the sale is a skill that needs to be learned.  It’s not something you were just born with.

The best place to start is with Magic Conversations That Close Rejection-Free.  

I personally have learned so much from this program.  It dramatically changed the way I approach the sales conversation.

REASON #3:  Need for a Paradigm Shift

I’m on a mission to help network marketers change the way they think.

It’s time for a paradigm shift.  If you’re going to build a successful network marketing business today, and if you’re going to do it with any kind of speed you need to build online.

And I’m not just talking about messaging people in Facebook and putting up pictures on Instagram.

I’m talking about becoming a true online marketer.

It’s time for Network Marketers to start thinking of themselves as Online Marketers.

Now you’re an Online Marketer whose products, services and opportunity happen to be in the network marketing space.

What does being an Online Marketer mean?

For most people means learning and implementing all new skillsets.

To be an online marketer you need to not only learn how to effectively use social media, but also either learn how to do a variety of things, pay someone to do these things for you, or have a pre-built system that does some or all of these things for you.


  • Building an email list
  • Learning copywriting
  • Creating lead magnets, free guides
  • Building landing pages/opt-in pages
  • Having your own search engine optimized website to sell your company products and/or recruit team members
  • Doing webinars/master classes

The beauty of becoming an Online Marketer is that it dramatically reduces your timeline to success.  It enables you to communicate and build relationships one-to-many vs. one-to-one.

It’s time to up the game on professionalism in the industry.

Now, if that all sounds totally overwhelming and you want to run for the hills and hide.  I get it!

If you had told me that’s what I needed to do I probably would have run screaming in the other direction. 

But I’ve got you covered! 

You take it step-by-step and start with this.

When you grab my 60 Minute Power Recruiting Program for LinkedIn, you get a totally “Done-For-You” Funnel Lead Generating Machine.

REASON #4:  Doing “What it Takes”

Unfortunately, the majority of networkers just aren’t willing to do “what it takes”.

This is partly caused by the initial problem of having been given unrealistic expectations of how much work is involved in building a business.  And this is perpetuated by many leaders and companies.

What does it take?

If you want to build a 6+ figure business it takes…

  • A willingness to look deep within yourself and decide if you’re committed enough to work endless hours 7 days a week.  I’m talking about 10 to 14 hour days.  Working 60 – 80 hours a week.  Not forever, but for 3 to 5 years.
  • A commitment that is so strong that even when the going gets really, really tough… and it will… you’re not going to give up.
  • Enough humility and awareness to know you need help and to seek it when you need it.
  • A willingness to do what other people won’t do.  That means doing live video even though it initially scares you to death.  That means be willing to learn, learn, learn, learn, learn and share, share, share, share, share, share.  For free.  That means sitting down to write the email to your list even when you don’t feel like it.  That means showing up on zoom calls and bringing your very best even when you’re tired and worn out.
  • When you’re feeling overwhelmed, which is normal, to take a moment, sit back, breathe deeply, shift your energy, and go back to taking just one step at a time.
  • Being flexible, adaptable, ready to change, shift and reset, because what works today, might not work next week, especially in the world of social media and the internet.
  • And it means being willing to give up the need for perfection, be willing to make mistakes, have failures, and understand that not everything you do is going to be a wild success,

I see a lot of people who think they want what I have, or what someone else has.  And they’re not willing to truly invest in themselves and do what I’ve done, or what someone else has done.

REASON #5:  Consistency & Patience

Through your entire journey from wherever you are right now, over the gap to where you want to, it takes rock solid consistency and patience.

Is Network Marketing and entrepreneurship tough?  YES!

Is it hard work?  Yes, and no. I prefer to think of it as constantly learning to work smarter, not harder.

Does it take time?  YES!

Is this a path to a 6+ figure business for everyone?  NO!

Is it worth it?  ABSOLUTELY YES!!!!!!

When you commit to this path and start to see the success there’s nothing more rewarding and fulfilling than to see how you’ve helped so many people, and how you’ve changed lives.

Do I recommend this path?  ABSOLUTELY!  If you’re committed to doing the things I talked about in these 5 areas it’s totally worth every minute of the journey.

If you’re ready to up your game and you’re interested in learning how to have highly qualified prospects, people who are looking for what you have to offer, buying your products and services 24/7 check out this FREE Ignite Your Business Master Class. 

Celebrating Your Success!


Gloria MacDonald

Teaching Network Marketers & Entrepreneurs How To UNLEASH The Power Of LinkedIn To Build Your Business & Grow Your Team