Network marketing is probably the best business model the average person can use to achieve real success in their life.

But most people fail miserably. Why is that? Well, first of all, it's important to realize that most people fail in any type of business venture. Look at the facts:

-95% of small businesses are out of business within the first five years according to the Small Business Administration

-According to the Social Security Administration, by age 65 only 1% of Americans are wealthy, 4% are financially independent, 5 % are still working 36% are dead, and 54% are flat broke.

So only five percent of people succeed in life. Just five out of a hundred businesses make it, and just five in 100 people earn financial independence in their lifetimes.

So if the problem isn't really the industry as a whole, but simple human nature, are ninety five percent of us doomed to failure and there's nothing we can do about it? Of course not! As a matter of fact, often times the difference between the successful and the not-so-successful is very small.

So, assuming you have the qualities of success, and you want to succeed in Network Marketing, it's important to know why it is most people fail, and how you can avoid the pitfalls.

So here are the four main causes of failure:

1. Lack of money

This one is a deal breaker for a lot of people. They just don't have the money to market their business. Often times, they joined the business and didn't understand that it was a business! But it is, and businesses need to be marketed.

The good news is that you don't need very much money. And with the emergence of the internet, I'm proud to say that the amount you need is going down while the results are going up. As a matter of fact, my leads now pay me! Talk about a paradigm shift. I used to spend hundreds of dollars every month marketing my business, now my marketing budget is funded 100% through my marketing efforts. More on that later.

The first thing you need to realize about Network Marketing is that it's designed to be part-time. There are people that desperately need to make money, that just flat out shouldn't be in the business yet. The idea is to have a J-O-B (Just over broke!) that makes you enough money to live on, and spend $50-200 a month on marketing your network marketing business. Once your business gets going, make sure and invest a portion of your income back into your business. I invested 20% of my commissions into my business for the first nine months, and when my Network Marketing income exceeded $4,000 a month, I didn't have to spend near that much any more. But investing 20% was more than enough to get my business up to a full-time income.

2. Lack of Activity

This one will drive you nuts if you are a leader in your organization. You find somebody great, they have all the skills, they are willing to invest in their business, they look good, smell good, sound good, but they don't DO anything! And you spend your time coaxing, prodding, inviting, chauffering, paying for their convention ticket, but in the end it's all a waste of time. Remember the statistic: 95% fail in ANYTHING? Well, this is a major reason why. And you can't do much about this, all you can control is you. Here's the best advice I can give on this:

1. If you want your team to go into momentum, YOU have to go into momentum. 2. Work with the willing. Those that would rather watch the season finale of latest reality show, rather than work their business, just aren't going to the top with you. Don't waste your time. Keep looking!

Remember, "You can run with a thousand, but you can't carry three." -Jim Rohn

3. Lack of People to Talk To

Most new Network Marketers are told to make a list of their friends and family, and talk to them.

Your "Warm Market" is a list of people that already know you, like you, and trust you. Warm Market leads are great because they are free, the problem is that most people in Network Marketing never graduate past their list of friends and family. And very few people are ever going to be good at cold market prospecting.

Those that do make it past the "Warm Market" phase start buying leads. These leads are purchased from a "Lead Broker". Purchased leads are easy to get, there are a million lead brokers out there selling batches of leads, in varying quantities. But I recommend that as soon as possible you learn to generate your own leads.

Self generated leads are the third type of lead. My favorite method of generating leads is through a "Funded Proposal". This method is a lot of fun, because it not only generates good quality leads, but it makes you money! For example, here's how I do it. I found a book on- line that I really like. It cost me $27, and has full re- sale rights. What that means is that I can sell the book for whatever price I want, and keep all the money. The book I sell is called, "Net MLM Profits". The reason I like to sell it is because it has so much good content for network marketers, teaching all the latest on-line strategies and skills network marketers need to succeed in their business. To market my e-book I have a Capture Page and a Sales Page where people can buy the book.

Now, this is where it gets fun. Who would be interested in a book about succeeding in Network Marketing? That's right, Network Marketers. Who responds to my advertisements and goes to my sign up page? Is the light bulb coming on for you right now? I hope so. You see, every month I generate HUNDREDS of qualified network marketing leads. And enough of them buy the book that it pays for my web-site, my advertising, and even makes a profit! It's the best system I have found for generating leads.

4. Lack of Skills and Knowledge

In Network Marketing the buzzword for developing skills is "Personal Development". Every decent Network Marketing company that lasts long term has a culture of personal development. What is personal development? The best explanation I ever heard was this one:

1. Read at least 10 pages a day in a personal development book. 2. Listen for at least 20 minutes a day to a good audio. 3. Attend a live seminar at least quarterly.

These are three habits that anybody can work into their life. It doesn't take that much time to read ten pages, just give up one half hour date with the idiot box. And listening to 20 minutes of a good audio is easy for most people as well, because we spend that much time or more driving. And remember, personal development audios are available from the library if you are on a tight budget.

So those are the four main reasons people fail, and how to succeed in spite of them. It has been said that, "a problem defined is halfway solved." Hopefully just by identifying the four main causes of failure you can tackle your Network Marketing business with more confidence and enjoy the "Rock Star" income Network Marketing promises.