The other day I attended a seminar and heard something interesting. The speaker was making a point that MLM business is a better business opportunity than internet marketing, and mentioned in passing that more than 95% of internet marketing business failed.

Sitting among the audience, the immediate thought that came to my mind was: Isn’t this the same comment people said of MLM!

It is amazing how biased people’s view can be when they look from their own perspective.

In the market, it is also commonly sited that MLM has more than 95% failure rate, if not more.

Is It True That MLM Has Over 95% Failure Rate

It is interesting to note, that people in MLM don’t think that internet marketing is a viable business, while people in internet marketing feel the same towards MLM.

So, who’s right and who’s wrong?

The fact is: They are all right!

Henry Ford said: “Whether you think you can or think you can’t, you’re right.”

John Lilly said: “In the province of the mind, what one believes to be true either is true or becomes true.”

There are lots of highly controversial comments on the viability of MLM business. It is not possible or necessary to ascertain whether they are true or false. The reason being that they all come from personal experiences and opinions.

All opinions are true in the man’s own perspective, but may not be in others. If you want to have the same experience as the man, follow his opinions.

Looking At MLM Failure Rate In Perspective

Despite how much people like Robert Kiyosaki, Donald Trumps, Warren Buffets and Stephen Covey have endorsed MLM business in one way or another, it is still a subject that evokes much cynical emotions.

Very often, claims that include statistical proof, eg: “Over 95% Failure Rate”, often bring high emotional impact on those who are less capable of critical-thinking.

Claims like that can easily create an impression that the business is not viable. While the claim may be true, it is a false representation of the subject business relative to other businesses.

Why?

The fact is: This same claim is true for most businesses!

Do you know the failure rate of career in insurance agent, real estate agent, or any other small business start-ups?

It is important to view this claim in perspective.

How Do You Interpret Such Claim When Assessing A Business Opportunity

There are 4 things to remember when you research on business opportunity:

1. Recognize that opinions are diverse when it comes to viability of different business model.
2. In almost all legitimate businesses, the number of failure is much higher than success.
3. Failure evokes a much stronger emotion that needs an outlet more than success.
4. For the reasons in point 2 and 3, you will hear more negative comments from people who have failed, than positive comments from people who have succeeded.

When assessing a business opportunity, look at the industry growth figures, the overall sales trend, the number of players in the market, and its growth trend.

Read everything you can find on the business, from the internet, books or magazines. And form an independent view of the business viability.

The single most important advise is: Listen to people who have succeeded if you want to succeed like them.