MLM: Mistakes, fears and real advantages of network business

When newcomers are just starting out, they encounter problems that cause common mistakes and even fears. For example, a big fear is the fear of rejection. Mistakes are usually related to the fact that newcomers want to make money quickly rather than build a long-term strategy. All of this can become a major obstacle along the way.

The global MLM market was valued at $201 billion in 2022 and is projected to grow to $329 billion by 2030 at a CAGR of 6.5%. In Europe, direct sales in 2023 amounted to €36.15 billion (+8.6% from 2019), with more than 5.2 million people (78% women) involved in the industry.

The main fears are rejection (reported by 62% of newcomers) and unstable income (76% of participants); the main motivation remains additional income (62%) and a flexible schedule. Among technological trends, CRM systems (used by 85.7% of companies, reducing routine work by 40%)and digital marketing with a CAGR of 18.7% until 2031 are leading the way.

Expert Yevhen Kasyanenko and his BlooMLM team are ready to give you some useful tips and recommendations. This will help you avoid common mistakes and problems. With professional support, risks are minimized and fears in network marketing are overcome. The experts’ assistance is aimed at helping you realize the full potential of your network business. 

If you are wondering whether you should trust the BlooMLM team, we invite you to take a look at our case studies. They will show you how our experts have helped several companies achieve success.

Common mistakes in MLM

Mistakes in MLM usually slow down and sometimes even stop business development and growth. In fact, a single wrong decision at the start can lead to mlm failure, especially if no strategy or support system is in place. Therefore, to build a successful career in business, you need to understand and correct these mistakes at the very beginning. Any mistake can cost up to 90% of your initial capital.

Mistakes made by beginners in network marketing

Here are some problems that network marketers may encounter:

• Poorly prepared and chose the wrong company. Don’t choose the first company that comes your way. It is dangerous to work with someone without assessing their reputation, product, and terms of cooperation. This often leads to financial losses and complete disappointment (up to 60% of MLM startups turn out to be insolvent and hide the real terms of participation).
• Focusing on quick profits without a strategy or plan. It is important not to get carried away by promises of instant money. This prevents newcomers from developing a long-term strategy, which hinders business growth (70% of newcomers quit within the first year due to poor planning).
• Not learning and not working on your skills. When you don’t have enough knowledge about sales, leadership, and team building, you can miss important opportunities and significantly reduce the effectiveness of your organization.

When you use expert advice, you can avoid making mistakes. Yevhen Kasyanenko’s team is ready to help you build a sustainable and successful business. 

Problems experienced by experienced networkers

There are several problems that those with experience in network marketing usually face. These mistakes include:

• losing motivation or setting the wrong priorities. Yes, even experienced entrepreneurs are prone to burnout. It occurs when there are no new goals and planning is not effective. This reduces their activity and leads to a loss of income (45% of managers report a decrease in activity without updating their goals);
• they manage their team incorrectly or do not have sufficient leadership skills. To be successful in MLM, it is very important that the team works effectively. If there is no good leadership or partners do not provide sufficient support and motivation, the entire structure loses its effectiveness (structures with insufficient leadership lose up to 50% of their partners per year);
• Inappropriate use of new tools, such as digital platforms or CRM systems. Competitiveness is significantly reduced when entrepreneurs work with outdated methods and ignore the possibility of automating processes or better analyzing data (rejecting CRM and analytics reduces efficiency by 30% and lengthens the transaction cycle by 1.5 times).

To solve these problems, it is important to continuously learn and adapt to changing market conditions. To restore motivation, develop leadership qualities, and apply modern technologies, it is worth seeking advice from experts. Below, Yevhen Kasyanenko and his team share some interesting secrets.

Fears in network marketing: causes and solutions

A new field usually causes fear, especially when it comes to business. Even experienced distributors sometimes experience fears in network marketing. This can seriously hinder achieving real success. Often, these fears stem from entrepreneurs not being confident in their abilities, fearing rejection, or worrying about unstable income. When you recognize these fears and consciously work on them, you can build a successful career. 

• How does the fear of rejection and negative reactions from others affect you? Newbies have the impression that all their offers to collaborate will simply be rejected. They are afraid that their friends and relatives will not like their choice and will not support them. This reduces their activity and lowers their self-esteem. Newbies expect a negative reaction from 58% of their acquaintances. Cold calling and role-playing exercises reduce this fear by 40%.
• What about the fear of not having a stable income? This fear is common in MLM because many people are afraid of uncertainty. And it is especially common in the beginning. The average annual income of a networker is $2,400, while the top 1% earn $65,000 per year. Financial planning and diversification of sales sources help reduce volatility by 60%.
• How does a newcomer’s lack of confidence in their leadership qualities affect them? It calls into question their ability to build and manage a team. Doubts usually arise when there is not enough experience and knowledge. About 48% of distributors doubt their leadership skills. Regular coaching and mentoring increase partners’ confidence by 55% within six months.

Overcoming these fears is the key to unlocking your potential in MLM. Regular training and support from experienced professionals will help you achieve this.

Pros and cons of network marketing

The pros of network marketing are obvious. With this unique business model, entrepreneurs can grow and achieve their goals. Both newbies and experienced folks can get into this field. After all, it’s flexible, easy to get started, and offers the chance to build a steady income. But in order to take advantage of all the opportunities MLM has to offer and unlock its potential, you need to learn more about the pros and cons of MLM. 

10 advantages of the network marketing industry

Let’s take a closer look at the 10 advantages of the network marketing industry. Here they are:

1. Flexibility – you can combine work with other activities. After all, you choose your own work schedule. Therefore, this option will be interesting for students and mothers on maternity leave. It offers many opportunities for those who need additional income. 
2. No large investments in the business are required. MLM has a low entry threshold, so you will not need to make any serious financial investments. This means that virtually anyone who wants to can take advantage of this opportunity to work. 
3. The opportunity to earn passive income and grow professionally. When a partner builds a successful team, they can earn a stable income from how their structure works (10–35% of sales from 2–4 levels).
4. You can develop and improve your communication, sales, and team management skills. In MLM, you develop your communication and leadership skills, which are useful in other areas of your life and work. 
5. High-quality products and useful services are available. Many companies offer exclusive products or services. You won’t usually find these kinds of offers in a regular store. 
6. The company supports you and provides training programs. Developed MLM companies offer webinars, seminars, and training sessions. All of this helps you develop your professional skills. 
7. You can develop your network of contacts and partners. When you work in network marketing, you expand your circle of contacts, which allows you to find useful business contacts for future work. 
8. You can work online using digital platforms. Thanks to new technologies and social networks, it is now possible to work from home in any country. This allows you to reach a larger audience.
9. Modern MLM companies with a proven reputation are ready to offer completely transparent terms of cooperation. For many companies, it is now important to have completely transparent operations. Therefore, you will be offered fair terms and your interests will be protected if necessary.
10. Receive bonuses for motivation and partner participation in programs. By actively developing your network and fulfilling your sales plan, you can receive bonuses, gifts, and sometimes even trips.

The main disadvantages of network marketing

What are the disadvantages of MLM? Let’s take a look at some of them:

• If you choose the wrong company, it can lead to financial losses. This happens when a company does not have a transparent business model and has hidden conditions. Then partners sometimes lose their investments and face disappointment. 
• High level of competition (6.2 million active participants in the US). You need to constantly develop. This is true. To be successful in MLM, it is important to undergo regular training, learn about the products, and develop marketing strategies. You need to be able to stand out from other entrepreneurs. 
• Fear of becoming part of a pyramid scheme and suffering losses. This may be because the partner cannot distinguish a legitimate company from a fraudulent one. Then you can lose money and even your reputation. 
• It may seem difficult to build and manage a team to be effective. It is true that leadership skills are necessary to develop a reliable network that will be productive. You also need to constantly motivate your partners and be able to resolve internal conflicts. 
• Some people have a negative perception of network marketing. Some associate this type of business with aggressive sales and deception. Because of this, some people have a biased attitude, which can make it difficult to attract new customers and partners. 

How BlooMLM helps you avoid mistakes in MLM

BlooMLM is a team with a comprehensive approach. It solves MLM problems professionally. With expert advice and support, every entrepreneur can avoid common mistakes, minimize risks, and confidently build a successful business. It is important for our team to verify the reliability of the company you choose. We also use effective tools to automate processes and manage them more quickly. 

Technological trends in MLM:

• CRM and automation: 85.7% of companies use CRM, reducing routine tasks by 40%.
• AI analytics: 52% have implemented AI solutions for demand forecasting, increasing accuracy by 30%.
• Digital marketing: the volume of digital tools is growing at a CAGR of 18.7% until 2031.
• Social media: 89% of leaders use Instagram and Facebook, which increases conversion by 22%.

Here are some recommendations from BlooMLM experts:

• It is important to analyze the company’s reputation and check the terms of cooperation with it. To do this, experts study each company, assess its transparency, reputation, and financial stability. All this will help you avoid starting cooperation with a dubious organization. 
• You need to develop a strategy to build a successful business. With the help of Yevhen Kasyanenko, you will be able to develop specific goals and an action plan. All this is necessary for the network to develop steadily and for you to have a stable income (development of goals and steps with KPIs that allow you to break even in 3–6 months and increase turnover by 30–50% per year).
• Receive support at every stage. BlooMLM is ready to assist you, from selecting the right company to managing your network. You will receive professional advice and help in overcoming any difficulties that arise (individual consultations, webinars, and training courses that increase partner efficiency by 40%).

Achievements and awards BlooMLM’s achievements are a testament to the fact that you can trust us. They are listed below.

BlooMLM services and support

Here are the services and support we provide to our partners:

1. We provide personal consultations. These are available to both beginners and experienced networkers. Each client has the opportunity to receive specific practical recommendations based on the partner’s experience and business goals.
2. Application of new technologies to automate processes. The BlooMLM team uses modern digital tools, including CRM systems. This significantly increases work efficiency and facilitates network management. 
3. Help overcome fears and mistakes. BlooMLM experts offer mentoring and training. This will allow you to avoid doubts and not encounter typical mistakes that hinder success.

Frequently asked questions about the pros and cons of MLM

Everyone, whether experienced or not, may have questions about network marketing. Let’s find out the answers to the most frequently asked questions. This will help you determine the advantages of MLM and the risks involved in this business.

Conclusion: Advantages of MLM Business

MLM is a unique business model. It has many advantages, such as flexibility, low entry threshold, and the opportunity to build passive income. But to be successful in this business, a conscious approach is important. It is necessary to be aware of the potential risks, cope with fears, and avoid frequent mistakes. 

Want to get the most out of MLM? Then we suggest contacting the BlooMLM team and its leader, Yevhen Kasyanenko. We are ready to help you choose a reliable company, develop a reliable development strategy, and build a successful business. With us, you will feel confident in your abilities. You can start your successful journey in MLM today by simply filling out a consultation request.