For someone like me who has been in MLM for over 5 years, I have seen many failures and successes. I myself have experienced many failures and have achieved many successes in my own business. I, however, find that there are far more failures than successes, especially for those who are new in this industry. From my own experiences and from what I've witnessed, I've come to the conclusion that there are 5 mistakes that most new network marketers make that usually lead them to failure:

Mistake 1: Selling To The Wrong Audience

There's an old adage that goes, if you have a product that appeals to everyone then you have a serious problem. If your product, however, appeals to one legged sailors who wear blue jeans then what you have here is a potential goldmine.

My point is that every product needs a niche. In MLM or network marketing, your upline will usually tell you to go out and talk to everyone you can find about your product. But by selling to everyone, you are making everyone your target market, which is no good. Most likely, if you take this approach, you will come across people who will not want your product or care for your service.

Therefore; before you go chasing after prospects you should first consider how your product can meet the requirements of your potential audience. By targeting people who have a specific need you will maximize your marketing efforts and avoid wasting time on people who don't care about your product or service.

Likewise; selling your opportunity to anyone who wants it isn't a wise idea. Not all prospects make great prospects after all. The guy who is broke and having to worry about money, in most instances, will not make a good prospect. If you take him in, he will not last in the long run.

Mistake 2: Spending Too Much Money Too Soon

You need to learn when to spend money and when not to spend money.

I have wasted most of my money on training events that were useless and in the end, ended up loosing money instead of making profit.

You, likewise, need to learn more about the tools, books or conferences that your upline recommends before you invest money in them. Once you have invested your money, remember to always track your results.

Mistake 3: Spending Too Little Money

While you should not be spending too much money at one point, you should not be too tight with your money as well. Sometimes you need to spend money to get things done and you should not be afraid to outsource any parts of your business to get it done.

If, for example, your business becomes too overwhelming for you to manage, you should not hesitate to outsource the more menial tasks of running your business while you concentrate on things that matter the most.

Leveraging the time of others will save yourself a lot of time in the long run and afford you the productivity you need to run your business effectively.

Mistake 4: Making Up Fake Claims

Don't exaggerate about your products or services. Make sure you only state what is true. Trying to cover up facts by giving misleading information is not the way to attract prospects. When you claim something you should be able to provide proof.

Always remember that you are in the business of helping people. People aren't stupid. Trying to lie to them will only backfire in the end. If you truly value your business you will never lie to your prospects.

That's common sense but it's amazing how often people make this very mistake daily.

Mistake 5: Counting your eggs before they hatch.

A quick word, don't assume anything just yet. When you assume something to happen your way, it might end up going the other way around.

Customers might cancel transactions and prospects might not even show up for follow ups.

People might back out from what they promised. Imagine when they lie to you and leave you no matter if they are your downline or upline. When you are prospecting, let your prospects or members prove to you that they are serious.

You must understand you are establishing relationships with your prospects and members. It is not merely a piece of paper that you can tear apart whenever you like. You need to focus more on the relationships and worry less about the paper.