Why 25% of Network Marketers Fail, Not the 95% That Some Often Claim

Although network marketing companies avoid highlighting or even mentioning drop-out rates, often their top distributors exaggerate the rate to 95 or even 97%. They do so in their own personal branding in order to attract a greater number of prospects to themselves and away from those they may have themselves recruited. However, the more likely number of a 25% failure rate is easily explainable.The United States Federal Trade Commission (FTC) provided a "Notice of Proposed Rulemaking" for business opportunities in April of 2006 (1). A significant amount of study and public comment resulted. The causes and number of participants leaving or canceling their enrollments were discussed at length within written comments and public workshops.A very simple explanation of the misleading math was provide by Jon Cook, identified as a leader with the Distributors Rights Association, at a public workshop held June 1, 2009."They come out with claims... (that) 95 percent of the people lose money in MLM, but an admitted thing within the industry is 70 percent of the people drop out. They're free choice. It's America. They find out they didn't want to do the work or they had something interrupt in their life. They had a new baby, something on that. So if we adjusted that fraudulent static 15 consumer awareness makes, it goes down to 25 percent which is pretty normal..."A good Network Marketing Company refunds the cost if the business kits and/or products/services are returned within 90 days. Some of them up to a year. Legitimate companies strictly observe the 72 hour right of rescission as required by law. The author gladly facilitates refund requests. Only happy, productive team members will produce the results they themselves are seeking.The remaining 25% in the equation are often those who make little effort. Additionally, many of these get wrapped up in the product and compensation knowledge. They don't "network" and certainly do not "market.So why the exaggeration? Top leaders in network marketing companies understand the importance of marketing themselves first and the opportunity second. Attraction marketing is what they are employing here. As new distributors, they would have never used or even discussed a high number. As a leader, using headlines such as "95% Of Distributors Fail. As A Leader In My Company, I Can Make Sure You Are In The Top 5%". You likely understand the appeal from their standpoint, although improper.So do 95% of network marketers fail? Of course not, most of them opted out. They changed their minds.(1) # 243; 16 C.F.R. Part 437; Matter No.: R511993 - Federal Trade Commission