It is true that Multi Level Marketing (MLM) or network marketing is one of the most lucrative and interesting businesses available.

The Fortune magazine called it: "The best kept secret in the business world". If this is true why do people shy away from MLM? Why do 95% of network marketers fail?

Multi level marketing is about getting a large number of people (distributors) to do a few simple actions (recruit and develop leaders) over a consistent period of time, so that substantial wealth is created.

Since MLM is designed that for anyone to succeed in the business they have to recruit active team members, so you see people inviting relatives and friends to their business briefings which is actually a method of generating leads suggested to them at such briefings. When a new member is invited to an MLM business briefing, they are shown a video on the business opportunity and experiences of some who have succeeded in the business. This video has a strong convincing power that could even make the prospect start day dreaming of the possible money he could make upon signing up.

And with this excitement the person signs up without first taking out time to look deep into the company and ask relevant questions like how old is the company? Does it still have the potential for wealth creation or is the potential for wealth creation gone? What is their compensation plan like? Does it only favor the big guy in the business and allow the small guy to labor for peanuts? Can the profit from its products sustain the company and the distributors' earnings? Does it products have a place in the market? Do they have plans for future expansion? And how do they intend to finance it?

These are some of the relevant questions that could be asked and gotten answers to before partnering with any MLM company, because the network marketing company you partner with is the major factor that will determine whether or not you will succeed in the business. If the company is wrong for you, no matter the effort you put in, chances are that you will not succeed.

The first network marketing company I partnered with was one of the giants in the MLM industry when I joined I put in so much effort to see that I succeeded, visited different friends with the business opportunity even had to carry a very heavy massaging machine to a prospect once because he claimed he will buy one when he is sure it works.

Through all this struggle I tried to keep faith. At the end I realized what was wrong.

The major problem was that no matter my effort with the MLM Company it wasn't likely that I would succeed in it though the company hit and sustained momentum, the potential for wealth creation was gone, and you could say that it has saturated.

Whatever I did then was enjoyed by the big guys who got in early. I had to re-trace my step.

This is just to show you that if the MLM Company is wrong for you, even in just one of the listed areas above, it could affect your success in the business.

So what is the first reason why 95% fail in MLM? Because they get so excited and fail to do the necessary research on the network marketing company.

When you sign on to a multi level marketing business it is a step to building a big business and earnings that could be transferred from father to son in the event of death.

So MLM business is a very serious business, do not be so fast to join one, carry out your research on the company you intend to join and see that it meets with the requirement for choosing a network marketing company and all your questions are answered.

Lack of research is one of the reasons network marketers fail in MLM business.

My next infobarrel article will discuss why people shy away from network marketing.

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