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Why Network Marketing Business Fails in Nigeria

Concentrate on the positive to ease stress

What Is Network Marketing?

Network advertising and marketing is an enterprise version that relies upon character-to-character income through impartial representatives, regularly running from home. A community advertising and marketing enterprise might also require you to construct a community of enterprise companions or salespeople to help with lead technology and ultimate income.

There are many legit community advertising and marketing operations, but a few have been denounced as pyramid schemes.

The latter might also focus much less on income to purchasers than on the recruitment of salespeople who can be required to pay prematurely for high-priced starter kits.

Multilevel advertising and marketing (MLM), mobile advertising and marketing, affiliate advertising and marketing, consumer-direct advertising and marketing, referral advertising and marketing, and home-primarily based total enterprise franchising are all names for network advertising and marketing.

Multi level Network marketing

Companies that comply with the community advertising and marketing version regularly create ranges of salespeople—that is, salespeople are encouraged to recruit their personal networks of salespeople.

The creators of a brand new tier (or “upline”) earn a fee on their personal income and on income made by the humans within the tier they created (the “downline”). In time, a brand new tier can sprout from any other tier, which contributes more to the character within the pinnacle tier in addition to the center tier.

There is a little stigma connected to the networking advertising and marketing enterprise, mainly people with more than one range, which may be characterized as pyramid schemes—that is, the salespeople within the pinnacle tier could make outstanding quantities of cash on commissions from the ranges under them.

The humans in the lower ranges will earn a whole lot less. The agency makes cash through promoting high-priced starter kits to new recruits.

The enchantment of community advertising and marketing is that a man or woman with a number of electricity and excellent income abilities can create a worthwhile enterprise with a modest investment. an excellent rule of thumb, is that an operation that guarantees repayment that’s primarily based on real income to actual clients has a tendency to be more legit than multi-tier schemes, wherein people make cash primarily on the variety of vendors they recruit.

Multi level Network marketing

Anyone thinking about becoming a member of a network and marketing operation must do their studies before making a decision.

Consider these questions:

Was it pitched as a hazard to make cash through promoting merchandise or through recruiting others?

Are you, in my opinion, passionate about the merchandise? Are the humans you already know are passionate about merchandise?

Is the product being promoted correctly?

 Do you see a surprisingly quick path to income or a long period of treading water?

Is Network Marketing a Pyramid Scheme?

While community and multi-degree advertising and marketing applications have been accused of being pyramid schemes, there are a few essential differences. While people who are able to recruit more people into this system are frequently able to earn more residual commissions, community advertising and marketing is a legitimate and illegal business structure that provides actual services and products to customers.

Will I make money by joining a network marketing program?

It is simply possible, despite the fact that it is now no longer probable. Some humans do experience brilliant achievement in community advertising and marketing, in large part because of their capacity to recruit greater contributors to the community. There are two important sales sources: promoting merchandise and commissions from income made through crew contributors’ downline.

The more people who are downline from you, the more money you can make, and the larger the team you can recruit, the more money you can make.

Most folks who are a part of valid community advertising and marketing applications make very little cash. People may also genuinely lose money.Some might also additionally come to be worried about an unlawful pyramid scheme and now no longer comprehend that they have joined a fraudulent venture and might lose the entirety of their investment. Before you jump in, do your homework and ask around.

In multi-degree advertising and marketing, the repayment plan typically pays out to members from ability sales streams. The first is primarily based totally on an income fee from without delay promoting the product or service; the second one is paid out from commissions primarily based totally on the wholesale purchases made through different dealers whom the player has recruited to additionally promote the product.

In the organizational hierarchy of MLM companies, recruited members (in addition to the ones whom the recruit recruits) are known as one’s downline vendors. MLM salespeople are, therefore, expected to promote merchandise without delay to end-consumer retail purchasers by way of referrals and word of mouth advertising and marketing. However, more importantly, they’re incentivized to recruit others to sign up for the agency’s distribution chain as fellow salespeople in order that they can come to be downline vendors.

Here are a few reasons why community advertising and marketing fail in Nigeria:


The #1 problem networkers face is lead technology. It is critical to meet new people on a regular basis with whom you can discuss your business.Most people do not share their business with enough good people on a daily basis to get the outcomes they desire.

Following up is the hassle area:

When a business owner discloses his or her enterprise to the public, they frequently do not comply with it correctly.They either don’t comply with it at all, or they don’t comply with it frequently enough to get results.

Duplication and training:

Once the networker starts to sign up humans into his/her enterprise, the next hassle that comes is getting their new companions skilled correctly with the view to reproducing what they’ve performed and what others have performed to be successful. Training has a role to play in constructing a community advertising and marketing enterprise.

A robust distributor community is established when they get to know what they’re promoting and how to promote it. To become a very good distributor, one has to become a customer. They want to recognise the professionals and cons of the product they promote. To make sure they get the right schooling, they arrange conferences in public or workplace spaces. 

It is costly to set up such applications each time new contributors join them.To keep away from more expenses, they’ll keep away from the schooling part. Skipping the schooling consultation is neither beneficial to vendors nor to businesses.

Marketing and advertising:

Everyone wishes they had powerful advertising and marketing equipment to help them leverage their time through doing shows for them. In this day and age, an internet presence is essential. You want to have a limited amount of on-line advertising and marketing equipment at your disposal. The agency which you represent typically has an internet site or websites, but they’re generally very useless as advertising and marketing tools.


The very last hassle in dealing with community entrepreneurs is credibility. Most do not have any. Especially if you are new and have not yet earned any money,Most people end up chasing their opportunities in an attempt to get them to look at their business, whereas you actually need to have posture and feature opportunities, as well as involved opportunities, chasing you.


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