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:

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