Hi; In the Open for questions thread, Johnny made a comment about MLM, stating that he doesn't like MLM simply because 5% of people make money and 95% don't. I wanted to pull that out, because there's a very important point I want to show you.. ======================================== 5% make money in the industry... (MLM) ======================================== I've read that, too. But, that's not all I've read. I follow a lot of statistics. -- 95% of people don't make money in MLM ventures. 5% do. -- 98% of affiliates don't make money - 2% of affiliates make 98% of the sales -- 40% (or less) of small businesses last. Over 60% close their doors in the first two years -- 90% of websites aren't making enough profit. 5% are scraping by and 5% are making their wildest dreams come true Two questions... 1) What does this tell you? 2) Do you know the #1 reason that fail rates are so high? It's not "lack of money" although that's part of it.... Take a guess?

I can think of several reasons for failure rates being high. A few are: Lack of a business plan Not enough information, research of the endeavor Guessing instead of learning snd consulting with others who are successsful Not seeking or accepting help Disorganization Treating the business as a hobby Negative thinking Allowing the negative input and feedback from others to have an influence on attitude Lack of promotion and marketing skills and/or services Poor relational skills I'll stop there for now... In general- the small or tiny percentage of winners are positive, willing to learn, do due diligence and do not give up! Larry

I would say that most people don't know how to advertise. They think that just building a website is enough. Too many people are looking for a passive income. All of my Christmas sales of gift baskets have come from local marketing. This tells me that I still have a lot to learn about marketing online. However the site isn't even 2 months old yet so maybe I am expecting too much. Lack of a plan is another biggy. As a web host I see people building sites and paying monthly for the web space. Most of these people drop out after 2 or 3 months of little or no sales. I don't think they planned that when they started. I think their idea of a plan is " I will build this site, I will promote it, I will get rich!"

Hi Linda The main reason, I believe is unreal expectations. People hear that you can make a great income on the net, they get involved with some overblown hype machine, have no plan, but believe the "magic formula" will work for them and sit back and wait for something to happen. My experience says that most people are looking for a quick buck - they don't have the desire, knowledge or mindset to actually BUILD A BUSINESS, they are therefore prepared to fork out $50 -$100 (maybe more in some cases) in the hope that they'll never have to work again. They never research, plan or understand what they're getting in to and guess what? a month later they get frustrated because their $50- $100 has dissappeared and they haven't seen any return. They throw their hands up in the air and say "My home business failed" when, in fact they never had one in the first place - this I believe, makes the fail rate so high. Their is no real reason why the fail rate shouldn't be any different to bricks and mortar business' which is still way too high and in large part can be attributed to lake of proper planning/research and under capitalisation. I hope this doesn't sound bitter and twisted - it's not meant to be. Cheers Mark

================================= 1) What does this tell you? ================================= While a lot of people want the desired results from owning a business, they do not know how to build one. ================================== Do you know the #1 reason that fail rates are so high? It's not "lack of money" although that's part of it.... Take a guess? ================================== They do not take the time to learn how to build a business. They want results "yesterday"! They are looking for the quick fix, which doesn't exist.