Did you know that 90% of the people in the network marketing industry never reach a full-time income. And of those that do, only 7% of them earn over $35,000 per year and out of that group only 3% ever go on to earn six figures.

Why are most network marketers failing? The answer is simple. They don't earn enough income.

As a matter of fact, most people in network marketing spend more money than they earn because they buy more product than they sell and they never recruit enough people to leverage their efforts and income.

So here's the truth behind it all. Every new business owner MUST invest in their business, whether it's network marketing or something else. The initial investment is always more than the return.

Statistics show that it takes the average business owner 3 to 5 years to turn a healthy profit from a new business. So, why would network marketers believe their experience will be any different?

Here's a fact: Most network marketers enter the industry with no business experience at all. They don't understand that building a successful network marketing business takes time and money and they quit before they ever really get started.

Most people in the industry earn on average $300 per month. But no one ever tells them what to do with that money.

A good 3-step success strategy for someone entering into network marketing is to:

1. Keep your full-time job.

2. Take the income you do earn and save 50% of it and re-invest the other 50%.

3. Set yourself up to earn additional streams of income by tapping into your passions and resources available to you.

Why is it that most network marketing sponsors don't tell anyone this? Well, I would guess it's simply because they don't know.

The average person who enters the field quickly becomes disenfranchised because they don't make enough and they spend most of what they earn investing in products, business tools, sales conferences, buying leads and training.

Let's be clear, I am not saying that this is the wrong thing to do, because it is absolutely - THE RIGHT thing to do. These investments are necessary for success, which is why when you start in the field you may use some of your income for your job to sustain your business, and once you build your income, you will use your income for your network marketing business to supplement your income and eventually it should exceed your income from your job.

So what's the solution to the problem?

Network Marketers can put a plug in the hole in their leaking buckets by creating a way to generate upfront cash on their prospecting process, meaning that they need to create and/or participate in some type of funded proposal.

A funded proposal is create a product like an e-book that provides a solution to a problem and then you charge people for it and on the backend of them reading your e-book, you will promote your network marketing opportunity. Doing it this way allows you to get upfront income regardless of whether or not someone joins your business. This upfront cash can then be used to fund your advertising, business tools, sales conferences, and other costs associated with your business.

Branded online marketing systems like MLM Lead System Pro and Mike Dillard's Magnetic Sponsoring offers network marketers the same kind of opportunities for network marketers to have their own funded proposal without the hassle of creating their own. Both of these programs are highly recommended but unfortunately most network marketers do not take advantage of these types of programs, with most citing costs as the reason and then wonder why they never have success.

A funded proposal is the answer for most network marketers if they would only keep an open mind about it.