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Top 5 Reasons Most Network Marketers Fail

By: Joel & Josiah

So, you got a call from some friends about coming over to their place for dinner and you cheerfully said Yes, but then when you got there you saw a great big whiteboard with someone drawing circles on it.

Sound familiar?

Or maybe you just finished watching a flashy Youtube video with a guy rolling up in his new ride talking about how he makes more money in 1 month than most people make in a whole year and all he has to do is convince people to sign up with his program and buy the company’s products through him.

Pretty simple, right?

I mean, if you can make that kind of money just by convincing people to buy products that they’re already buying, who couldn’t do that?

The main issue is that only 4 out of 10 people actually make enough money from Network Marketing to make a full-time income in order to replace their current 9-5, much less create true financial freedom for themselves.

So, why do the other 6 out of 10 people fail at Network Marketing?

Well, we’re going to go over the Top 5 Reasons Why Network Marketers Fail and then show you a business model that absolutely dwarfs Network Marketing when it comes to profit potential.

Let’s jump right in…

Why Listen To Us?

My name is Josiah, and this is my Dad, Joel.

Together, we make up the team here at Scamrisk.

If you’ll let me bother you for two minutes, I’d like to quickly explain why I’m even here writing this review.

In early 2020, I had just graduated from college & had no real career prospects.

I knew I was destined for something more, but I had no clue how I was going to make it happen.

I had this sinking feeling in my gut all the time… like the “big man upstairs” had accidentally given me the version of life where I’d be mediocre forever, instead of the one where I was, ya know – happy & fulfilled.


I had fiddled around with some different online businesses in college:

Some random MLMs, a bit of affiliate marketing, a (failed) dropshipping store or two, all the usual suspects.

Even my dad had been involved in MLMs back in the day… selling knives & other random nonsense people (probably) didn’t need.

All I really wanted was to find something that was going to actually work for me.

Maybe those things had worked for others, but for me it all turned up a fat “0” in the bank account department.

So I searched! And searched… and searched… and searched…

And eventually, I somehow stumbled upon a program that promised to help me build an income online (read about it here if you’re curious).

I didn’t really want to be “rich”.

The thought of making a reliable $5K per month & not having to worry about clocking in to a 9-to-5 ever again was all I needed.

Sure, there were people in the program doing high-6 and low-7 figures per year… but that wasn’t what I was out for.

I just wanted to provide freedom for myself, and if I was lucky, take my family along for the ride.

Fast forward a few days and a few phone calls & I was enrolled!

Here’s the first “money making website” I put up:

I built that site in 2020, and it still makes me $1,500 per month. It’s a basic 5 page website I built based on a template the program provides.

The best part to me? My dad and I get to do it all together!

So between the:

  1. Ease of reaching $5-$10K per month in income online
  2. Straightforward-ness of the system to do it
  3. Fact that I get to do it w/ my family

Is why I recommend local lead generation as my #1 business model for making money online.

Sure, it takes some work and dedication – but anyone that tells you that there’s a business out there that requires no work is selling you a lemon.

I’m not saying you need to sign up for the same program I did, but I would definitely recommend giving the business model a peek!


The Wrong Company and False Expectations

reasons why network marketers fail

Without a doubt, your success (or failure) in Network Marketing depends mostly on the products you decide to sell or the company you plan to join.  Network Marketing is a huge industry, nearly $200 Billion dollars a year to be exact, so there is certainly no shortage of companies for you to work with (almost 10,000)… but that begs the question, “Which company should I join?”

That’s the $64k question, isn’t it?

It’s all on you to do your homework, research companies online, read reviews, and talk with people who have either joined the company and have actually made money with it.

You don’t want to join some Pyramid Scheme based on all the bells and whistles, flashy cars and huge multi-story homes.

Unfortunately, too many people jump into Network Marketing with the idea that they are going to be a millionaire overnight (or at least in 30 days) and then they get all discouraged when it doesn’t turn out the way they had hoped.

Success takes time.

Although it is a quicker way to build wealth than others – like becoming a professional (ie, Doctor or Lawyer), or even starting up a traditional business… nothing happens overnight.  You need to study up on the product details, pick up on new skills and invest the hours necessary to reach that pinnacle of success.

Just Prospecting Friends and Family

reason why network marketers fail

When starting out in Network Marketing, it can be really tempting to just focus on your immediate inner circle (friends and family) when prospecting to build your organization.

Now, there are benefits to this, especially if your relative is in the target market or if your old buddy from college has a huge list of people that he knows… but in the end, the simple fact of the matter is that you will run out of people that you know personally, or worse you will really start to annoy them.

So, in order to avoid being known as that overbearing sales guy, you need to consider going beyond just your immediate list of contacts.

Prospecting is the life’s blood of the Network Marketing Industry, and if you can’t master the art of prospecting, you will be hard pressed to build a strong organization that makes you the type of money that you want.

No Commitment

why network marketers fail

If you were to go out and purchase a franchise for $100,000 – do you think that you would be committed to making it a success.

Of course you would?

That’s a lot of money to invest just to turn around and throw it all away.

So why should a business opportunity that costs a measly couple hundred dollars be any different? 

The answer is that since you only have to invest a little bit of money, then your level of commitment isn’t as high as it needs to be.

Here’s what I mean…

That initial investment is just to get you in the front door.  The reason why most network marketers fail at this point is that they don’t invest any more money into themselves or into the business.  They also don’t invest the time that’s needed to actually BUILD their business.

In order for a business to grow at an exponential rate, it will need the undivided attention of the CEO (You).  Too many network marketers call it a day when things don’t pan out for them like they had hoped or if they’re just not making the type of money that they were sold on.

The truth of the matter is this…

Were they all in 100%?

Did they devote the necessary time?

Did they get the proper coaching?

Now that I mentioned it, coaching is critical to the success of any Network Marketer.  All too often, a new recruit is brought into the business by someone (the sponsor) who just recently came into the business themselves.

Unfortunately, the sponsor just doesn’t have all the knowledge necessary to help the new recruit.  Then, when the recruit looks for answers in their upline and gets the same advice, they get discouraged and give up.

Discouragement and Frustration
why network marketer fail

I can remember back to when I taught my 6 year old son how to ride a bike without his training wheels.  One day we went to a park down the street for his first lesson… which was really just a matter of giving him a good shove to send him on his way.

After about the first 10 feet so he falls over.

Did he give up and say that bike riding just isn’t his thing?

Hell No!

Dad spent quite a bit of money on this bike and he was going to learn how to ride if it was the last thing he did.  Plus, it was his favorite bike at the time and he really wanted to be a big boy.

So he got back on it and crashed again.

And again… and again.

But guess what…

After about the 4th or 5th time, he found his balance.

The same goes for Network Marketing.  When you first start out, you’re gonna crash a burn a couple times… maybe even a lot, but eventually you will find your balance.  The problem with most Network Marketers is that they never give themselves the chance to fail over and over again in order to learn to succeed.

Just remember, everyone goes through the same battles with failure and success.  This is the nature of the Network Marketing Industry… or any other type of business for that matter.

Do you think that Grant Cardone was a success with his first venture into Real Estate?

Think of all the famous music artists who had to play gigs that paid next to nothing when they first started out… did they complain about the pay?  Well, maybe… but they didn’t give up.

Elvis Presley drove a truck for a living until one day Sam Phillips recorded him playing “That’s All Right, Mama”… and the rest is history.

My point is to never let discouragement and frustration steal your dreams, you really never know just how close success is.

That Scary Little Word “NO!”

network marketers reason for failure

Think back to when you were a kid… how many times did your mom and dad tell you “No”?

Well, if you’re anything like me, you probably were told “No” so many times that you started to think it was your last name.

Billy, No… you can’t have another cookie!

Tommy, No… you can’t write on the walls with cray-ons!

Cindy, No… stop using mommy’s makeup!

If you think about it… “No” conjures up some of the worst feelings we can imagine and even as grown-ups, we still hate being told “No”.

But how many times have you heard that each “No” brings you that much closer to hearing “Yes”?

Just remember that when someone tells you “No”, they’re not really saying “No” to you… they’re saying “No” to the business opportunity.  Think of it this way… if the opportunity is right for them, and it’s the right time in their life, nothing will stop them from signing up.

More often than not… when someone says “No”, what they really mean is “Not right now” meaning that the timing just isn’t right.

Just Remember:

Some Will…

Some Won’t…

So What…

Who’s Next?


network marketers reasons for failure


Again, we didn’t want to rain on your parade, but we also didn’t want you to be misinformed and dig yourself into a hole.

And we didn’t even mention about just how much of a wet blanket

the COVID-19 issue has been on Network Marketing.

But we’ll save that one for another time.

Oh yeah, you’re probably wondering…

What’s this online business model that just absolutely destroys Network Marketing?

Digital Leasing

digital real estates

It’s pretty much exactly how it sounds. You make money by leveraging Digital Leasing.

Here’s how it works…

What if you could have 10 houses

or rental units that you could charge anywhere from $750-1000 per month?

That’s $7,500-10,000 per month in passive income!

What if you have 100 rental units?

But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.

You then get those websites ranked in the search engines for specific home-based services that customers are searching for.

Next, you find local business owners who are looking for customers and are willing to pay you for their information.

And Then…


You’ve just created Digital Leasing that is potentially earning you 4-5 figures in PASSIVE INCOME on a monthly basis without calling a single friend or family member.

With Network Marketing, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.

With Digital Leasing, the competition is virtually nothing and your profit margins are 85-90%.

Now, I could go on and on, but I’m sure you have tons of questions about how to create Digital Leasing assets and start building YOUR digital empire!

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