21 Worst Network Marketing Mistakes I Made [So You Don’t Have To]

Network Marketing is an interesting industry. I’ve been in it long enough to see the good, the bad, and the ugly… along with the amazing. I’ve made some of the worst network marketing mistakes in the book.

I’ve learned that people go fast, slow, and everywhere in between. Many people don’t move at all though. Often it’s not because of a lack of desire, it’s because they’re making lethal mistakes.

Mistakes that could be avoided if only someone only told them. Sure you can learn all the tips and strategies for building a business, but if you’re shooting yourself in the foot by making these mistakes your growth will be non-existent.

I like to think of myself as someone with a growth mindset who is constantly learning and applying what I learn.

That being said, I know enough to know- I still have a lot to learn.

But there are some things I wish I knew when I first started in the network marketing industry. So here are the top mistakes I’ve made in my network marketing journey, laid out for the world to see.

I’m not proud and some of them make me feel silly and vulnerable to share, but maybe they can help you in your journey and save you some headaches.

Here are the rest of them, in no particular order.

Hopefully they will help you NOT make the same mistakes.

Network Marketing Mistakes
(Beginners Guide)

Mistake #1: Trying to Be Something I’m Not

This one had a bit to do with my age when I first started, a little to do with my confidence, and a lot to do with me assuming there was only one way to skin a cat.

I’m an introvert by nature.
I’m good at analyzing, systematizing, planning, and executing.
The art of small talk (the gift of gab), is not my strength.

Don’t get me wrong, I like people. It’s just that it takes me awhile to feel comfortable enough around somebody to really be myself.

Also, since I’m an introvert, this can drain my energy and when I get to zero, much like your phone, I won’t work anymore. At least not when it comes to interacting with others.

When I first entered this industry, the majority of the successful people in my upline were extroverted.

I have to work to get out of my shell in a crowd. They seemed to not have a shell to get out of.

So I started trying to act like them. I mean, I really, really tried. I wanted it bad.

I was young and impressionable, so I tried to be something I wasn’t.

The problem with that plan is that even though you can fake it for a little while and it can work to some degree, it’s extremely draining and it won’t work long term.

On top of those things, it not authentic and it’s not enjoyable.

Now that I’ve grown up a bit, matured, and learned lots of things along the way, I’ve realized it’s unnecessary.

Regardless of your personality type or background, you can build a successful multi-level marketing business.

Don’t do it by trying to be something you’re not though.

If you strive to be authentic and work in your areas of strength, you’ll have more fun and be more successful.

People build traditional businesses in all kinds of different ways. I’m not sure why there’s a stigma attached to people building a network marketing business in their own way, but there is.

So let me tell you what you’re upline probably won’t. There are a ton of different ways to effectively build this business.

Yes, a ton meaning… more than 1 way.

Choose a strategy and method that works for you and then commit to it and get to work.

At the end of the day it’s about customers, recruitment, and moving product.
It doesn’t matter how you do it as long as it’s ethical.

Mistake #2: Waiting for “Duplication”

Duplication is an elusive animal. It’s like a magical unicorn that everybody wants to get a glimpse of in their organization.

I had a problem with waiting for duplication in my organization. I would enroll a distributor and then stop my recruiting efforts. It was time to watch them explode my business.

The mentality was that I would put in a few people and then get rich off of them.

Part of the reason I struggled with this was because I came into the business with unrealistic expectations.

Now, in my defense, it wasn’t really my fault. I was sold on it. Enroll 2, they get 2, who also get 2, and so on and so forth.

BAM! A month from now you’re pulling in $20,000 a week. I was young. I bought it hook, line, and sinker.

You know that doesn’t happen, right?
Yes, theoretically… it could happen. But it doesn’t.

You could get lucky, but if you want a lottery ticket it’s cheaper to buy a power-ball ticket then to join a network marketing company. Your chances of winning are probably about the same, might be better with a lottery ticket since there’s a guaranteed winner.

You can’t wait for duplication. You make duplication happen.

But to make duplication happen, you have to understand what it is.

Duplication isn’t 2 who get 2 who get 2 (or 5 or 3 or however your comp plan is set up).

Duplication is when you go be a leader (enroll 20, 50, 0r 100+ people) and other leaders show up.

If you’re consistently sponsoring people, you’ll find people who will do the same. They will eventually find people as well.

This is extremely effective and it grounds your expectations in reality.

Over time, leaders will show up but only if you’re enrolling and sponsoring enough people.

Eric Worre and Ray Higdon are leading the charge on bringing professionalism to our industry by teaching network marketers how to show up differently. This is a key component to changing the masses perception of our industry.

People don’t like to feel like their pitching something that doesn’t work or feel like they’re lying.

When you’re talking like everybody will duplicate, you’re setting false expectations and that does two things.

  1. It makes you feel uncomfortable (at least it should) telling people it will happen
  2. It makes your new distributors quit faster because it’s harder than you led them to believe.

Trust me, the right people, the ones that can sponsor hundreds, (the people you want on your team), are not going to be scared of enrolling or sponsoring lots of people to find a few leaders.

But if they come into your organization thinking it will be easy and putting in 5-10 people will make them boatloads of cash… then they’ll quit too.

Not because it was too hard, but because it was not what they were expecting.

Mistake #3: Failing To Plant Enough Seed

If you’ve been in the network marketing industry for long, you’ve probably heard the classic Jim Rohn presentation called “Building Your Network Marketing Business”.

If you haven’t heard it or are new to this industry, it is absolutely one of the best presentations ever done.

It’s just audio, but here is a stream of it from youtube. I suggest bookmarking this page and listening a few times a year or once a month.

Repetition is the mother of learning.

In this speech, Jim Rohn discusses the importance of planting enough seed to reap a harvest. If you don’t have time to listen to the whole audio, just listen to the law of sowing and reaping (at the 24:50 time mark).

When I first got into network marketing, I didn’t plant enough seed. I didn’t talk to enough people. I focused on the “network” part (trying to be something I’m not) instead of the “marketing” part (more in line with my strengths).

When I did plant seeds and one sprouted, I would stop planting and wait for a harvest (duplication).

In all seriousness, I did soooo much wrong, it’s amazing I made any money at all.

If you’re serious about becoming successful inside of the network marketing industry, you have to consistently plant seeds and lots of them.

Mistake #4: Failing To Water the Seed (Follow Up)

Here’s the 2nd thing I did wrong in relation to seeds. I failed to water the seeds I did plant (follow up).

As a young network marketer with no leadership or sales experience, I didn’t realize how much time it takes for people to make mental shifts in thinking.

Shifts in the mind happen over time. If you're in #sales, you must plant seeds in the mind of your #prospect, then apply water (info) and time for those seeds to grow. Click To Tweet

I’m currently an administrator at a large high school. Over the years as an educational leader, one of the things I’ve learned is that change takes time.

Any time we decide to make major changes on our campus, we begin by starting a conversation. First we talk about it as an admin team. Then we talk about it with our school based leadership team and department chairs.

The more conversation and discussion around a change or idea, the more people will genuinely be on board. Even if they don’t agree with it, they’ll understand it better and be more apt to comply when nobody is looking.

Like it or not, everyone is selling everyone everyday.

Like it or not, everyone is #selling everyone everyday. Click To Tweet

If this is how mental shifts occur in the workplace (where everybody is getting paid), how much more important is it when you’re trying to get people to accept an idea they may have apprehensions about.

Let’s face it, network marketing has a bad reputation (right now). Most of it is our fault because of reps positioning it like a lottery ticket.

The fact remains though, if you want to get the right people on board, most of them will have to overcome some beliefs about the industry.

This takes time and is a process.

So you plant seeds and then you follow up and water those seeds.

Over time, if you’re being professional, they’ll see that this industry can be done in a professional manner and their thinking will start to shift.

Just like seeds in nature.
You Plant.
You Water.
You Wait.
You Harvest.

The Law of Sowing and Reaping is one of the main reasons I use a blog for my business.

With a Blog You can:

  • Scale your marketing efforts
  • Get exposure to people all over the world
  • Plant thousands and thousands of seeds every month
  • Water those seeds by educating people over time
  • Harvest those seeds when people decide they want to work with you

Mistake #5: Managing Instead of Leading

This is almost like waiting for duplication, except you aren’t just waiting.

You’re trying to manage behavior and motivate. All too often it’s by telling people in your group what they ought to do instead of leading by example and showing them how it’s done.

You’re job (if you’re serious about this business) is to take ownership of the business.
Forget about your upline and start building AS IF you’re the one that owns the company.

I can tell you from many years in a traditional leadership role that performance numbers in the real world come out to about the same as network marketing (and probably any industry).

The majority will do very little. The minority (20% or less) will produce most of the results.
The top 2% will account for most of the results.

That means for every 100 people you put in the business, 1-2% will go out there and kill it or in the words of Gary Vaynerchuk, Crush It. (Affiliate Link)

Once you’re in ‘management mode’ it’s very difficult to get out of it. It becomes a habit.

On top of that, it’s ineffective and does more to erode your business than grow it.

You can lead a horse to water but you can’t make it drink. You can make it thirsty… by giving it crackers.

Wanna know how to make people thirsty for success?

Continue to build without them. That’s like giving them crackers. When they see you start to rise through the ranks, their desire has the best chance to grow.

If you’re in a binary compensation plan, they also see people and volume accumulate underneath them, which is the single best thing you can do to make them thirsty… to make them want it.

Mistake #6: Focusing On Attrition

This is a great thing to do if you plan to quit.
Just focus on everybody else that quits.
It won’t be long before you join the crowd.

Network marketing has a bad reputation because lazy or fearful people can get in for minimal investment. Then they treat it like a lottery ticket and wait (i.e. they don’t do anything).

Then, when they make no money, they whine and complain that it doesn’t work.

It WILL work IF you do. Stop focusing on all the quitters. As Jim Rohn says, that’s like asking why the sun rises in the East and sets in the West.

Don’t go down that road.
Don’t take that class.
Don’t sign up for that course.
Focus on the task in front of you.

The Bible says (among other things) “All hard work brings a profit, but mere talk leads only to poverty” – Proverbs 14:23

Attrition happens in every industry and it’s particularly high in sales organizations. Don’t worry about it. Build, rebuild, continue to build.

My first time around, I thought I could change it, stop it, or at least slow it down by focusing on it. Focusing on it only makes it worse. The only thing that helps it is to build until there’s a tipping point, until the momentum train shows up.

When there’s a fire below people and excitement because the organization is growing, it slows attrition naturally.

Some of you worry too much about it or about saying the right or wrong thing that will cause somebody to quit.

It’s commendable in the sense that you care. But it won’t change anything. To put it in perspective, the last person who called me to tell me they quit I looked at… paused for effect, and said “You can’t quit something you never started.”

You can't quit something you never started. #TRUTH Click To Tweet

I’m past the point of caring. Let ’em quit.

Mistake #7: Creating False Expectations (Hype)

For the love of all that’s Holy in this world, we MUST STOP doing this within our industry!

Excitement has a place and energy is contagious, but you better find a balance if you want success.

If there IS something you can do to slow down attrition, this would be it.

Don’t over-hype and don’t sell false expectations. Talking about the guy in your upline who went from nothing to THE GRAND PUBA level in 6 months and is now making $50,000 a week is NOT a wise way to close the deal with the secretary that make 15k a year.

That’s because she doesn’t know the whole story, you don’t know the whole story, and the chances of her getting those results is non-existent (especially if they’ve never been in this industry before).

It’s better to UNDER-promise and OVER-deliver.

I would rather sponsor 2 people who are serious and understand it’s gonna take hard work, time, and an investment to build a business, than 20 people who think it’s going to be a magical ride to riches.

Seriously. Even if I got a first order bonus off every single one of the twenty who sign up for the magic carpet ride.

False expectations lead people to quit because it doesn’t take them long to realize it’s not all sunshine and rainbows (like they were led to believe).

Over-hype and spammy language is also what gives this profession a bad reputation.

So stop!

Mistake #8: Not Using the Products

I was young in my first business. I was working on a budget and the company I was with specialized in a high quality consumable health product.

The problem was, the minimum autoship was only enough product for 1 person to use for a month. That left nothing to use for home meetings, one on ones, etc.

My solution was to not use the product. I thought if I didn’t use the product, I would keep my costs down and still have product for samples.

There are a few problems with this. 

  1. At the end of the day, I was being cheap. I didn’t understand that to build a business, you have to invest money.
  2. When people asked me how I liked it, they may not have figure out that I wasn’t using it consistently… but they could tell something wasn’t congruent.
  3. My subconscious knew something was in-congruent when I talked about the product as well… so my performance and posture went down.

At one point, I got sick at a bad time. So I flooded my body with the product and suddenly my body had what it needed to fight the sickness.

I was better so quick I was actually passionate about the product from then on.

So I started using it consistently and my results went up. Imagine that.

Mistake #9: Not Trusting Your Own Ideas

One of the unfortunate things about network marketing is how it stifles creativity.

Often, uplines are hyper-focused and worried about “the system”. Maybe you’ve heard the speech…

Use our “system” and you’ll get results.
Duplication will occur IF you follow our proven “system”.
Don’t reinvent the wheel, do exactly what we did.

This isn’t inherently bad advise. Especially for new people. But… many times those teaching this methodology are not taking into account individual strengths.

I agree, there’s no reason to reinvent the wheel… unless you can reinvent it faster, better, and stronger…

Kind of like other things in this world. Everything is great until somebody comes along and figures out how to make it better. Then the original wasn’t so great.

Need some examples?
– Model T (beginning)…. Tesla (current)
– Rotary Dial Phone (beginning)… Iphone (current)
– MLM Breakaway Compensation Plans (beginning)… Binary Compensation with Dynamic Compression (Current)

My point is, true leaders encourage people to learn and grow and find a way that works for them.

As a school based leader in a large high school I have seen phenomenal and not so phenomenal teachers of the years. Interestingly, the phenomenal ones all have their own way of doing things.

They’ve mastered the craft of teaching for themselves and are working in their strength zone.

Most of the time, even if other teachers tried to replicate (duplicate) what these master teachers are doing in class, they wouldn’t get the same results because it’s not customized to their strengths.

If you’re building a team or on a team, encourage your people to grow and work in their strengths.

A charismatic people person should go about building a business differently than a social media addict, who will build it differently than a videographer, who will build it differently than a writer.

But guess what?… That’s okay!

If your upline isn’t giving you nuts and bolts training, Ray Higdon is a great trainer to start with.

Mistake #10: Investing in The Wrong Distributors

This is mistake #10 on this random list. But if I was making a top 10 List of Network Marketing Mistakes… it would definitely make the top ten. Might be #1 on that list.

I know what you’re thinking already… Because I thought the same thing.

That’s harsh! Shouldn’t you invest in everybody?

The answer is yes AND no.

Don’t get me wrong, I want everybody to succeed and do well. But there are people in this world who talk a big game but don’t have the kahunas to back it up.

They’re all bark and no bite.

They are leeches and will suck time and energy out of your business that could be invested more wisely.

I spent a lot of time driving from home meeting to home meeting with distributors who never did anything and thought it was no big deal when I showed up and nobody was there.

It was like… “oops”. Most the time they weren’t even concerned that I drove 2 hours (or longer to be there).

They had no respect of my time.

It wasn’t their fault though, it was mine.

I didn’t set clear expectations. I didn’t usually verify they had people coming (I was going on a hope and a prayer).

I also didn’t require anything of them before I agreed to a meeting and I was naive enough to schedule another meeting for them to “try again”.

Not effective. If people aren’t performing, give them result based requirements such as “look, if you want me to have a home meeting for you, go out and enroll 2 people on autoship, then I’ll come do a meeting for you”.

OR…. schedule them to come to your house for a meeting with the requirement they bring a prospect.

Guess what, if they don’t have somebody, they won’t show up and then you can just keep Netflix rollin’.

Last but not least, when you set out clear expectations centered around results and make people earn your time, they will actually perform better.

They will grow faster (if they want it) and it positions you better. You don’t seem desperate.

So ‘yes’ you should work with everybody willing to do the work. But define willing on the basis of some sort of result. It can be 1 customer, 1 sign up… something. Make them do something to earn it.

That’s how you grow leaders and how you ensure that the attrition you do have is the attrition of the right people. Quitters quit… but so do performers if they aren’t challenged.

Raise the bar and they will meet expectations or not, but you won’t be wasting your time, energy, and money.

Mistake #11: Not Running Your Business Like a Business

Once you sign on the dotted line and make an investment. You’re in business for yourself (but not by yourself).

If you want to make money, $500 per month, $5,000 per month, or $50,000 per month, then you’ve got to treat your business like a business and not like a hobby.

What does that mean? It means you should treat it like a job.

Set up some times you are going to “work” the business and then go to work during that time.

No excuses. No telling yourself you can skip it. Just do the work.

Now, that looks a lot different depending on what you want. If you want $250 a month your work schedule could look much different than the person who wants to make $25,000 a month.

However, I suggest setting it up in the beginning to work as many hours as you can. If you only want to make $250 a month, you’ll get there much faster if you’re working 20 hours a week than if you’re working 1 hour a week.

Once you get to your goal, you can consider changing your schedule.

My first experience in this industry I basically worked when I felt like it. But I went much slower than I needed to.

I also suggest working on your business every single day, at least 5 days a week. If you opened a traditional business you wouldn’t bat an eye at doing that.

You also wouldn’t expect success without it.

There’s a psychological difference between working 5 hours on one day and 1 hour every single day. I don’t know why, but something shifts mentally when you work on your business every single day.

Mistake #12: Ignoring the “Marketing” Part of the Business Model

It’s called Network… “Marketing”. So you should learn to market.

In this day and age, if you really want to scale, you need to master marketing. Sure, you can talk to people every single day and you should.

However, if you really want complete freedom, eventually your goal should be to systematize the entire process (or at least most of it).

As I’m writing this post, I just looked at my numbers for this blog. I’ve had 181 unique visitors from all over the world today land on one of my blog posts and the day isn’t even over. That’s 5,000+ visits per month.

I’m not running any ads or doing any paid marketing. That’s all organic traffic. People looking for information and then landing on this site.

That’s one way you scale in today’s world.

Here’s the thing. It took time to create this site and all the content. I work on it everyday.

But I can tell you with absolute certainty that I have NEVER prospected 181 people in one day…. not even close.

And, the same thing will happen tomorrow. With this site I expose more people to what I’m doing every day than I ever could by talking to individual people.

If somebody wants to work with me… they earn it.
They reach out, sign up, order product, or raise their hand in some way.

I’m generating leads almost every day.

How would that change your business?

That’s the power of building your business like a business.

My strength is writing.

I love helping writers who want to have their own blogs or social media experts who want to build with social media or video people who want to scale with YouTube or even charismatic people who want to do it the old fashioned belly to belly way.

Building a strong team requires people of every skill set.
The beauty of a binary compensation plan is that we all benefit and share a leg. But I digress…

The point is, make sure you’re not ignoring marketing. It should be a part of your business in some way, shape, or form if you want sustainable success.

Mistake #13: Not Retaining Retail Customers

Network marketing has gone through a shift in the last few years, especially with some of the FTC investigations and additional regulations.

One of those shifts is that you should have retail customers. In fact, if your compensation structure doesn’t require some retail customers to rise through the ranks, you should question whether it’s a legitimate mlm.

The last thing you want to do is build a solid business with hundreds or thousands (or dare I say… hundreds of thousands) of distributors only to have it shut down by the FTC.

There are a few really strong reasons why you should build a customer base.

First, those who love the products tend to stick around longer. That provides you with monthly recurring revenue. Plus, when your company releases new products it’s an easy way to increase your income.

Simply inform your current customers about the new products and let them know you’re there to serve them if they ever want to try them.

In addition, retail customers provide a perfect storm for eventual distributors.

Most people, at some point, are not happy with where their life is at.

If they’re already a customer you keep in contact with who loves your products and uses them consistently, then looking at your company’s business opportunity is a natural progression if they ever want to build a side hustle.

So don’t ignore the retail customer, they’re the life blood of any business, traditional or otherwise.

Mistake #14: Failure to Take Consistent Massive Action

Three words are important in this subtitle. Consistent, massive, and action.

Those are the 3 building blocks of any solid organization, whether in the network marketing world or a different arena.

Consistent means everyday.
Massive means lots of it.
Action means profit generating activity.

Let me be clear here. Planning, scrolling social media, taking courses, reading, listening to podcasts, and going to meetings (without a prospect) is not considered profit generating activity.

Prospecting and getting eyes on your presentation is what counts.
That’s it. The more people who see it, the more people will join. Period.

If you make this mistake, you’re dead in the water.

Mistake #15: Giving Away Your Personal Recruits

Oh, you’re so sweet. You gave a personal recruit away.

I struggled with this once upon a time. I really did.

I had no leadership experience, I hadn’t built a solid business yet, and I really didn’t understand human nature.

Naturally, I thought if I gave somebody to one of my recruits, it would motivate them.

I mean… let them get a bonus on the first order and they get paid for nothing.

That’ll get ’em fired up.
What could be more motivating?

What I was actually doing was solidifying the lottery mindset, creating an entitlement mentality, and lowering my expectations of people.

This doesn’t do you or your distributors any good. It creates all sorts of inaccurate thinking including cementing the idea that this business is a “something for nothing” business model.

IF you want to give somebody a distributor, do it as a reward for results.

If they feel like they earned it, it will make them feel appreciated and it will also motivate them to do it again. They may even ask what they have to do to get another free enrollment.

Set the bar high if they ask this and don’t be afraid to require performance for giving somebody away.

If you’re not in a binary and your compensation plan only pays a certain number of levels other than infinity, then I would never suggest giving anybody away because you can never know what a person will do.

Mistake #16: Not Investing In Lead Generation

If you’re not investing time and/or money in generating your own leads, you’re shooting yourself (and your network marketing business) in the foot.

Leads are your lifeblood. Without a solid lead generation mechanism in place, you’ll be working harder than you need to.

Yes, you can hit numbers by cold calling or using referrals, but they’re still not the same as warm leads.

Generating leads allows you to talk to people who are already interested in working with you. That’s the main purpose of this site.

Yes, I want to educate people, help people, and add value to people.

But this is also how I generate leads.

The beauty of a blog is that it allows somebody to get to know you a little. When they’re comfortable with you or decide they want to work with you, then they can call, text, or email.

Many times they’ll join your email list. Then you can follow up with all your leads with the click of a button.

Also, talking to leads you’ve generated on your own is much easier and comfortable (for both people) than talking to a cold prospect.

The purpose of this post is just to encourage you to be investing in generating leads. There are a number of ways to do that, for more information you can head over to our Ultimate Guide to Lead Generation.

Regardless of how you choose to do this, make sure you’re doing it.

Mistake #17: Using Email Incorrectly

This one’s a bit embarrassing for me. Partly because of how I used email in my first stint in this industry, but also because if I would have spent 10 minutes thinking about what I was doing, I would have figured out a better way.

So here’s the story.

In my first business, I signed up for Constant Contact. It’s an email service provider. Nothing against them, they were a great solution for managing lots of emails.

But I wasn’t generating leads. I was adding people who joined my team anywhere in my organization to my email list. Then I would follow up with company updates and “motivational” emails.

Essentially, I was trying to motivate them to do more, instead of setting an example as a leader. Remember the section about management mode?…

Yep. I was there in full force.

I wasted sooo much time crafting pretty emails and researching cool stories to put in them.
Keep in mind, these are people who ALREADY joined!

I thought an email would get them fired up or get them to a meeting to get fired up.

I never used the software to manage potential prospects or build a list of people who had some interest.

Truth be told, it never even crossed my mind.

I could have asked the people who said “no” if I could follow up with them every now and then with email.

Most people would have said yes to this because it gives them an out to signing up. But it also keeps you top of mind because you can communicate consistently with them.

It’s okay to use email to follow up with your team. I’m not discounting that. But have 2 email lists.

Those on your team and prospects. That way you can send info to both groups or only send information that pertains to them.

Then build the most massive, highly responsive email list of prospects you can build and follow up with them consistently.

If you really think it out before you get started, you can set up automated sequences so that when they join the list, they automagically get a series of emails.

If the fortune is in the follow up, then every person on your email list is like a diamond waiting to be mined. Click To Tweet

I’ve gotten my best results using SUMO, (affiliate) which is free until you reach a certain point.

If you need to know how to grow a list, here’s the best person I know to teach you.

Mistake #18: Wasting Your Profits

Profitability is paramount in any business. The problem with network marketing is that once you start to become profitable it’s so easy to waste your profits.

Trust me, my first time around in this business I spent money like water. It’s easy to do if you’re not careful.

After all, regardless of how big your business gets, your operational costs are pretty much fixed.
That’s the beauty of the business model.

However, if you get in the habit of using those profits like a slush fund, you won’t change your life. Sure, you’ll have cool stuff, but true financial freedom will elude you. You can always buy toys later.

In the beginning, you should use the money to do one of three things.

  1. Pay off debt.
  2. Invest in growing your business, preferably through marketing (provided you know how)
  3. Use for scaling into other investments.

I suggest doing it that order. However, if you’re business is picking up speed, it may be wise to invest in some marketing to capitalize on the momentum.

It just depends on how effective you are at marketing. If you’re not a great marketer, I would earmark some of it for marketing and the rest to pay off debt.

Marketing can eat up all your profits quickly if you don’t know what you’re doing.

One of the best books on how to allocate your business profits is Profit First by Mike Michalowics (affiliate link).

This book helped me understand how profits and earnings should be immediately chopped up and distributed into different buckets (accounts) if you want to keep your business running smoothly and profitably.

Mistake #19: Errors in Branding and Marketing

If you’re in network marketing, you’re in business for yourself but you also represent a company. It can be confusing sometimes as to what to use for marketing & branding.

The company wants you to use their tools and branded items, but are they actually effective for building your team or are they just another revenue stream for your company?

I find it interesting that companies don’t usually attach volume points to merchandise. It seems that would be one of the best things they could do for average distributors.

Then there are top leaders in your company.

They usually have a training system as well and are merchandising to their team. So where should the average network marketing distributor and aspiring leader invest their marketing and branding dollars?

I firmly believe you should use your funds on something you can track the ROI & effectiveness on. If you’re spending money on car decals, stickers, branded merchandise, etc., then you should be branding your own website, blog, or lead capture page.

It makes more sense to spend $50 on testing a Facebook ad or a decal with your personal landing page on it, than to just plaster your company logo on your vehicle and drive traffic into an unknown abyss.

I’ve been that guy. I spent too much money on merchandise, tools, and other non-measurable marketing material that could have been much more effective if used on other marketing channels.

Mistake #20: Learning From Books Instead of Experience

Personal development and learning is absolutely one of the foundational principles of the network marketing profession. Unlike any other profession, you won’t have sustainable success unless you develop yourself in many areas.

The problem is, amateur network marketers get trapped in the Land of the Learning.

They read, they listen to podcasts, they watch youtube videos, etc.

The list is endless. I’m not against learning. This entire site is about learning, adapting, and getting better so you can change your life.

However, too much learning and not enough implementing is a common and tragic problem.

Learn something? Great. Now go implement it. Put learning on hold and use it to build your business. At least test it.

You should also understand that anything you hear or read is just theory until you apply it.

The purpose of learning methods, tactics, and strategies is to improve the results of activity… Not just to get it in your head!

Anything you hear or read is just theory until you apply it. The purpose of #PersonalDevelopment is to improve the results of #action... Not JUST to learn! Click To Tweet

Those great objection responses and opening lines you hear at your company events or on a podcast don’t do you any good until you use them over and over, tweak them, and see what works for you.

If you want to go fast, take massive action and be willing to fail (and learn) faster. You’ll zip right by the thousands of distributors on this planet who know everything there is to know about their company and this industry… but have no results.

So after finishing this post, don’t do another google search.
Go apply something and test it for yourself.
Take some action!

Mistake #21: Worrying About Quitters Quitting

#Haters Hate and Quitters Quit... Bye Felicia. Click To Tweet

There’s too much press given to quitting and those who give up in the network marketing profession. I think it’s because the numbers are in your face and you can’t ignore them.

It’s NOT because there’s a larger number of people who quit this profession than any other.

If you compare this to any other entrepreneurial endeavor, I would say it ranks about the same. What I mean by this entrepreneurial endeavor is anything that doesn’t carry an automatic paycheck for showing up and anything that requires some risk.

The difference is, since all the data is visible (your downline), it can feel like the numbers dwarf numbers in other industries.

However, it’s common knowledge in the professional development arena that most people who buy a book don’t read it. Most people who buy a course don’t implement it or do anything with it. Most don’t even go through it.

Think about gyms. How many people who have gym memberships actually go consistently or get results?

The answer is… very few.

Quitters quit. Deal with it.
The question is, which category are you?
Are you a starter or a finisher?
Decide and take massive consistent action.
Period. End of discussion.

Quitters Quit. Deal with it. The question is, which category are you? Are you a starter or a finisher? Decide and take #massive #consistent #action. Period. #workfromhome Click To Tweet

Critical Error [bonus]: Drinking ALL the Kool-Aid

What?

I know, I know… stick with me though and it should all make sense in the end.

When you first join the network marketing industry it’s easy to be in awe at the kind of money people are making… the lifestyle, the cars, toys, bonuses, trips, etc.

I get it. I understand. I was there.

Such a simple business model, yet so life changing.

There they are. Every company has them.

Seemingly everyday people on stage, talking about how their life changed dramatically from this industry. Spewing out big numbers, bubbling with excitement, sometimes shedding tears.

It’s the American Dream.

So you lean forward in your chair at the event, get out your notepad, and find out exactly what you’ve got to do to get there.

What you get (usually), is a charismatic leader who is fantastic at motivating… but maybe not so great at teaching.

They’re confident and bold.
They tell you to go do what they did.
Use the 3-foot rule.
Talk to everybody and people will get in.
Then those people will do the same thing.
Duplication occurs and ahhhh…. everything is heavenly.
You’re rich in 90 days.

Um… it could happen.
Probably won’t though… just be prepared.

Chances go up dramatically if you already have a large network of people who know, like, AND TRUST you.

People who see you as a leader and will follow you to the front lines of anywhere.

That description doesn’t fit most people though.

Yes, it’s good to believe in your product, your company, your upline, and your compensation plan.

But just because somebody charismatic says something… doesn’t make it magically happen.

Those stories are meant to inspire, encourage, and motivate because most people in this business (and in life) are not action takers. They like to believe they are, but most aren’t.

They need to be motivated. So the best thing to do is light a fire under them.

Often called ignorance on fire, it can get some momentum going because it can get people moving and taking action.

At some point though, you have to have a strategy other than blind ambition and hope.

Unfortunately, many company events don’t teach the nuts and bolts of how to build a business.

Usually, this is because the person teaching is just sharing what they did (minus the headaches, heartbreaks, and difficulties… unless it adds drama to the story).

It’s good to allow yourself to be motivated by these speeches, but don’t ever expect easy success.
That thinking just sets you up for failure and discouragement.

Easy success is a fairy-tell. When you think you’re seeing it, you’re only seeing the person at the top of the mountain, you’re not seeing the struggle and the climb.

They may share part of it, but it’s impossible to share it all.

This is your journey, enjoy the process and don’t drink all the Kool-Aid.

Just drink enough to get you going and then make your own juice.

Step back.
Look at your goals.
Make a Plan.
Take action and execute on the plan.
That’s what adults do.

That’s the secret to success in network marketing.

Do The Work.

Children drink Kool-aid, eat S’mores and sing Kumbaya around the bonfire.

Adults do the work.
Adults make a plan and stick to it, regardless of how they feel.
Are you a child or adult?

You get to decide, but it’s a decision you have to wake up and make again every single day.

If you’re happy in your network marketing company, fantastic. Go out and crush it!

If you’re looking for a new home, have a strong work ethic, and like to have fun on the journey…
you may be a fit for our team.

Click here to find out. 

Until next time, God Bless and I hope you’re building the life of your dreams.

Jason & Daniele

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