Tweamster's Blog

What To Look For – Part 1 | April 18, 2010

There are many reasons that the statistics are so bad in the network marketing industry in regards to people achieving their goals. According to the most commonly quoted statistic, around 90% of network marketers quit within their first year. Here’s one quote: “The fact (is) that about 90 percent of those who start Networking quit within a year…”  – John Milton Fogg; Network Marketing and the American Dream

Does this mean that you should give up? Or never start? OF COURSE NOT. Network marketing is one of the best sources of work from home jobs.

Leonard Clements in his book “Inside Network Marketing,” puts lack of knowledge as one of his top five reasons why people fail in network marketing.

So I want to give you here one of the first things you should know when you are looking at a business opportunities and thinking about whether to join them or not.

One of the primary reasons for failure is in the selection of a company to work with. From my experience, most people select a network marketing company based on almost anything but what they should be looking at.

Oftentimes, it’s the latest company to walk in their door (carried by someone who put them on their warm list). Or because of the “pizzazz “ factor, whether it’s something unheard of before, or the reinvention of vitamins, or something that’s never been done in network marketing before (not very likely, by the way). Or it’s an overhyped compensation plan that will make you rich in three hours a week.


The latest statistics from the Small Business Administration (SBA) show that “two-thirds of new employer establishments survive two years, and 44 percent survive four years.” Other sources can be found that say anywhere from 55% to 85% fail within the first four years.

This includes all small businesses; auto repair shops, quick marts, insurance agencies, and network marketing companies.

So, if you want to work with a company where you can develop a long term residual income, would you rather choose a brand new company where you only have a 44% chance of the company still being there in four years? Or would it be better to choose a company where they’ve already been around for longer than four years and have the financial strength and infrastructure to support you and your business for the next 10 – 20 years?

There is a reason why people looking for a franchise pay an enormous premium for something like McDonalds or Subway, versus a much cheaper buy-in for some unknown company. They’ve already proven that they have a successful marketing plan and a product that sells.

Lucky for us, the really good network marketing companies don’t charge 5, 10 or 20 times as much as the bad ones, as is common in franchising.


To look at this another way, if you are joining a company because it’s such a great deal to be getting in on the ground floor; what are you going to tell your prospects next year when the ground floor is missing? Is it still going to be a great deal or are you just tossing the dice because the potential payoff is so big?


Lack of knowledge is one of the killers of new reps in this industry, do yourself a favor and learn what you need to know before you attack your warm list.

I recommend a company that has been around for several years and is still growing.

For more great tips, go to, and sign up for the MLM-The Whole Truth newsletter.


I couldn’t decide which of these I liked more. Both are from a home business magazine.  Which one do you like?

1)  “Serious Business Minds Only”  So I don’t need a body?

2)  “Unemployed Dad Discovers The Power Of Cash”  Really, no kidding; go figure.



  1. Great information, Alan.
    Most people don’t do their due diligence before joining a company. That should be the first thing to do if you want a long term residual income.

    Also the ”instant gratification” factor plays a huge role in why so many people fail.

    I love the educational content on your blog.

    Comment by Daniela Riess — April 21, 2010 @ 7:40 am

  2. Nothing can keep me reading more than enjoying the sheer fun of it. I’ll keep reading…

    Comment by Carrie — May 8, 2010 @ 3:51 pm

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