14 Reasons Why People Fail in Network Marketing? (2025)

Success in Network Marketing is not an impossible task or a magic formula, but doing simple things consistently following a system. There are several reasons why a distributor or a Network Marketer fails in Multi-Level Marketing or a direct selling business. A few important reasons may be as follow:

1. Starting with Unrealistic Expectations:

This is the #1 reason why many people fail in a Network Marketing biz, as they jump into the program after seeing some financial rewards. Have you ever seen a prospect so excited and ready to join your team, immediately after you show your business presentation?

After seeing all the exotic tours, luxury cars, and financial freedom, they become super excited and started dreaming about earning $1 Million a month. Then the same person disappears after a 30-90 days time period when he finally realizes it’s not a quick-rich formula.

They never had a strong reason ‘Why’ they wanted to succeed and they took their decision from their head, not from the heart. Such Network Marketers will always fail as they fail to set realistic goals as they start the business.

It’s nothing wrong to dream big, however, you need to sit down and write what steps you need to take to achieve that bigger goal. You can’t jump from kindergarten to Ph.D. in one jump. It takes a lot of time, hard work, and consistency to achieve that milestone.

2. Not plugged into a system for success:

If you are a serious Network Marketer, you need to plug into a system set by your company or a group of successful people. This is a path of success you need to travel if you want results and most people fail to follow it.

A legitimate direct-selling company always has a success blueprint or a system to help their new distributors to get results. If you are a person who says ‘My Way’ and doesn’t like much to follow others, this business may not be for you.

Trusting your uplines or leaders and following their teaching doesn’t mean you work for them or you are inferior to them. No matter how smart you are, people who have already achieved success in the company might have a better experience than you have.

The systems may guide people to attend regular webinars, product training, prospecting, and weekly events. A wise Network Marketer will always trust a good leader and follow a success blueprint which makes them avoid several mistakes.

3. A Negative Attitude:

Before you go into a battle, you get to set your mind right and win the battle inside your mind before it even happens. Having a positive attitude is like having medicine that will strengthen your whole being to face anything that comes in front of you.

If you want a serious income as a Network Marketer, you need to have a strong positive mentality about your business and yourself. Many people after facing rejections and hardships, always come to the conclusion that the business is not for them and they can’t be successful.

Network Marketing has been around since 1959 and is working for many, so why not for you? The only thing that is stopping you from succeeding is your negativity toward yourself and thinking that you can’t do it. You are the author of success in your own life and there is no one who can stop you if you make the decision.

4. Employee or Middle-class Mentality:

Network Marketers who have this kind of mentality are always considered as people with a broke mentality and can’t be a leader. There is nothing wrong with doing a job and it’s the best option to provide for yourself until you become a business entrepreneur.

The problem is the ‘inside a box’ mentality which always limits yourself and your potential in life. You just work 9-5 without any passion, get your paycheck at the end of the month & keep repeating the same out of compulsion.

If you want to become a successful Network Marketer or an entrepreneur you need to switch that middle-class mentality to a leadership mentality. Life has a lot more to offer you if you dream big & have goals and passion to do something great that can influence other people more than yourself.

5. Not Teachable:

A person becomes a non-teachable person who is not ready to accept changes when he has a serious sickness called ‘EGO’. Your journey as a Network Marketer will be full of errors, hard work, and rejection, where you need to learn new things every day.

Nobody is perfect but you should always press hard toward perfection by learning from others who have done it. The willingness to learn and willingness to change is a great sign of a person who is hungry for success in life.

If you have these two qualities within you, no matter where you are today, your life is going to change for good. Remember, Network Marketing is not an easy game but you are going to make it because you are improving daily.

6. Low start-up cost & Zero Exits:

Most Network Marketing or direct selling business starts with a very less initial investment in the beginning. This is one of the major excuses why people quit so easily because they take things for granted.

Imagine you started a traditional business with an investment of $100,000, can you ever imagine yourself quitting anytime soon? I don’t think so, because you put your life’s savings into the business and you will keep hitting until you make your profit, right?

You started a direct selling business as a Network Marketer, with just a $50 or a $100 investment, and you have nothing to lose if you quit. Forget about Network Marketing, you spent that amount on a basketball match or that useless movie tickets.

When you are not serious about something, and you have not taken a decision emotionally chances are you will walk away sooner or later. So this is another story of people quitting so soon in a Multi-Level Marketing business – a low start-up cost and zero exits.

7. Lack of Skills:

Network Marketers are much like a professional-fisherman going to the sea to catch fish every single day. Don’t you think you need to improve your skills every single day to get more results as the things that work yesterday may not work tomorrow?

Learn how to examine yourself, based on how you are performing & use some recommended Network Marketing tools that can multiply your results. Check on how you are showing your presentations to people and learn what people like to hear.

Your first step is to identify your mistakes, then rectify them with the modifications needed and go out to take action. Become a master craftsman, who can even do amazing things with his hands even if he closes his eyes.

8. Sponsoring people who are not serious:

This is another big mistake done by most of the newly joined Network Marketers, which is sponsoring a bunch of people who are not serious about their life. Imagine you are so excited when you joined the business and then you decided to sponsor a bunch of family members and friends.

Remember, to be successful in a Multi-Level or direct-selling business it’s not about the quantity but the quality of the prospects you bring into your business. Those people who absolutely have no interest to change their life will eventually quit and by the time they leave, they will destroy your dreams too, with negative comments.

One of the best ways to build a Network Marketing business with quality prospects is to use the internet as a powerful tool. Learn to generate high-quality and super-targeted MLM leads using the internet and this is much more effective than the cold audience market.

You can build a high-quality landing page allowing interested people to request more information on earning extra income from home. These people have personally requested to learn more about a Network Marketing business. Hence the quality and the conversion rates are very high for these leads.

9. Short-term mentality:

When you hear the work on “how to get rich quick” or push this button, push that button and sit back, watch – you better run away from this scam artist. If you are a person who is interested in short-term results or overnight success Network Marketing is not for you.

Consider the reality of those Network marketers who work for 5-6 years, every single day to achieve the kind of success they have in life. If you think you can achieve that with a few days or months of work, you better change your business.

Imagine the mentality of a person who buys a lottery ticket, what is he expecting, and what will come true in reality? Be reasonable and always be willing to work hard & make sacrifices to achieve that worthy goal of your life.

10. Choosing the wrong company:

Another major reason why people fail in a Network Marketing business is joining the wrong company without proper research. Never join a company because your best friends or your colleagues referred it to you.

Before you make the decision, do a little homework and do proper research on the Network Marketing companies’ background. There are 1000s of direct selling Multi-Level marketing companies, so how do you identify a legit company?

There has to be a global presence of the company and has to have a track record for at least 2-3 decades. Do they have high-quality products that help consumers with their problems, needs, and daily life?

A legit company should always have a mentorship program or a system that trains its Network Marketers for success. The compensation program has to be legal, following FTC guidelines, and it should be volume-based.

11. Fear of Loss & Rejections:

Direct selling business will require you to invest your money, time, and effort. Imagine you started a traditional business with a $100,000 investment, don’t you think there is some kind of risk involved in that business?

Yes, there is, and anything rewarding in life always has a risk involved with it. Only those who are willing to take that risk and are ready to sacrifice what is needed will become successful. Many will reject you and that is going to happen for sure.

Only Network Marketers with thick skin and the courage to face anything that comes up will make it. The question is, are you willing to take those risks and move on no matter how many people reject you?

12. Selfish Motives:

The reason why the term ‘Network’ is mentioned is that it involves a lot of people and you are not a lone warrior here. This is a business built on the concept of a win/win situation for everyone.

The more people you are able to help in your group the more you will become successful in your MLM business. So if you think of yourself to be the #1 priority in this business it will not work for you and people will quit your group.

If you want to become a successful Network Marketer, learn to give more to others by sacrificing your time and effort to help them succeed. The more money they started making the more money they will earn too as a by-product.

13. They quit too soon:

Have you ever heard the story of the Chinese Bamboo Tree? You plant it the first year, harvest & water it; nothing comes out of the ground. Do the same in the second and third years, again you see nothing come out of the ground.

In the 4th, 5th, and 6th year, you harvest and water it, but still, nothing comes out of the ground. Then suddenly the 7th year, it shoots up 50 feet straight out of the ground. The moral of the story is if you keep hitting again and again you will get results.

So now you know that if you want to become a Network Marketer who is the top earner you should not have the option to quit. So burn the bridges, never turn back, and hit it hard until it comes down.

14. Lack Of Consistent Network Marketing Leads or Prospects:

Are you a marketer who always runs behind your friends and family who has no interest in what you have to offer? Many people have such high hopes that if someone from their friends joins them, they will make so much income. Stop making such mistakes and stop wasting your time with friends and family BS. If you want to be successful in your Network Marketing business, you need to show your business daily to at least 3-5 interested prospects. 

So, the question is how do you find Network Marketing Leads every day? Either you invest money on ads or marketing to generate leads or buy from a reputable MLM Lead vendor. You may try the following Leads company which has been in the industry for more than 20 Years.

Final Words Failure In Network Marketing:

Choosing the right company, the right mentor, and the right compensation plans are easy but the real question comes on how you take action. So now you know a bit about why people fail in an MLM or Network Marketing business, you need to make a decision. We live our life once, time is precious, and whether becoming a successful Network Marketer or entrepreneur is about a decision. So make that decision today and take action until you find success.