5 Reasons Why Multilevel Marketing Businesses Fail

Business Marketing

Multi-level marketing businesses are a dime a dozen, but few last longer than a year. Many do not make it beyond the first few weeks of business life. Knowledge is a powerful tool in business of any kind, so what does the prolific failure of multi-level marketing businesses teach us about how to make an MLM business succeed?

Many multi-level marketing businesses fail because of a few common problems. Being aware of these potential pitfalls before beginning an MLM business can help your business succeed where others have failed.


A new multi-level marketing business owner needs a great deal of support, guidance and encouragement during the first few months of business ownership. Good multi-level marketing business owners take a personal interest in the success of their new recruits and plan to spend extra time with these fledglings to help ensure their success.

If a new multi-level marketing business owner does not get prompt and adequate attention by a more experienced team member in the upline, they may change their mind or lose their desire to work towards a productive business profit.


Fresh opt-in leads are the lifeblood to any multi-level marketing business. A failure to generate leads means certain failure for your business. Most new recruits are hesitant to approach their friends and family about their newfound business opportunity. If they are unable to generate a list of acquaintances or approach strangers about their business, there will be no sales.


If a multi-level marketing business’ system of promoting products or services is not easy to duplicate, the business is not likely to thrive. Not every person can become skilled enough at wining friends and influencing people to generate enough sales to make the business succeed. The main concept of an MLM business is to sign up more business owners who will in turn create their own succession of thriving businesses. This requires an easy to duplicate system.


Many new recruits are still on the fence about the legitimacy of a multi-level marketing business. They also battle a lack of confidence in their business, communication, leadership and sales skills. This lack of trust and confidence is often conveyed to potential customers and new recruits during business interactions. Large doses of educational materials may help overcome these fears if they are available early enough. Once the excitement of owning an MLM business wears off, new recruits may become bewildered and hopeless unless they receive a fresh direction for their energies. Providing them with concrete skills that they can feel confident about will help overcome this obstacle to success.


Making any business successful takes time. Many new business owners become impatient and frustrated at a lack of progress or slow growth. Dedication, persistence and patience are necessary for the success of any business, multi-level marketing or traditional.

Safeguarding against failure is a wise step when setting up your multi-level marketing business. Proactive planning and education are great tools that can help ensure your business’ success.