Less than 5% of people who start a network marketing business generate a significant income. On top of that, many people who are successful in other careers are not successful in MLM. Have you ever wondered why?

Let’s see what it takes to generate good income in network marketing. In this example, we will be looking to replace a full-time average income.

Here are some statistics to help you see the picture more clearly.

• The average network marketer sponsors only 2.5 distributors.
• It only takes 30-120 days for the average MLMer to exhaust their circle of friends and family (the remarkable warm market).
• Depending on the compensation plan, let’s say you need 1000 active users of the product to generate a good income. Assuming a 25% recruitment rate, you would need to speak to 4,000 prospects. Most people simply can’t recruit enough people to maintain these numbers. The burnout that occurs in all businesses further adds to this problem.
• However, about 16% of network marketers who start ‘the business’ will remain loyal users of the product. This fact benefits the parent company and that is probably why things have not changed much.

There are other issues that further limit Network Marketers’ chances of success.

• Outdated marketing strategies that encourage prospecting from one and all. This is the equivalent of a doctor walking door to door looking for new patients.
• Few companies teach network marketers actual marketing strategies or how to develop marketing plans. Most of what is taught is information about products and compensation plans.
• Today, there is mistrust and lack of understanding of the Multilevel Marketing model due to pyramid schemes and bad experiences. The Internet has made it easy to access a lot of information, both good and bad, true and false. This can also discredit the industry.
• Traditional advertising methods, such as classified, radio and television ads, can be very expensive, especially when you are not well trained in using them. Combine that with low income, marketing to your warm market becomes the only affordable alternative.
• Your warm market may not be the audience that wants or needs your product. You may have a product that everyone needs, but that doesn’t mean everyone will want to buy it or be able to afford it.
• Your commitments to your work, family and “real” friends limit your free time. This interferes with your ability to join more networking groups so you can grow your list of potential customers.

All of these things describe why it is so difficult to succeed in building an organization that supports a full-time income. The good news is that the Internet has leveled the playing field for Network Marketers who are willing to step out of their comfort zone and learn a multitude of no-cost or low-cost lead generation methods. Also, creating an internet presence will help you find your niche of potential prospects who are actually and actively looking to buy your product.

Some methods used by Internet Network Marketers include:

• Social marketing (Web 2.0) including video sharing, bookmarking, and blogging
• marketing article
• Low-cost website programs, including SiteBuildIt (SBI). These provide all the necessary tools to build a top-ranking website without the need to hire web designers and search engine optimization experts.

If you want to build an Internet presence and become a true entrepreneur, learning these methods is truly the equivalent of owning Internet real estate without the high price tag. Let’s face it, the internet is here to stay and those of us who learn to use it in our MLM businesses now before the masses will greatly improve our chances of success.