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posted on: 7/5/2012 12:28:41 PM EST
Some causes why "newbie's" fail to make money
newbie, making money, scam programs

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Estimates indicate 95-98% of the people starting their home business to make money fail. This is an extremely high percentage which is not found in any other sector in the real “brick-and-mortar” world.

Any attempt to try to improve this need to be based on a thorough analysis of the causes. In this blog post I will highlight some but in no way am attempting to be complete or scientifically correct. Very few, if any (?), studies have been made about this issue. So the issues I will mention are based on my personal experiences.

1 The background of the “newbie’s”;
From our experiences people who are starting their home business are from a wide, almost universal, background. This ranges from professionals to (almost) illiterates persons; from a large variety of professional offices; till people who never ever worked before; of all ages, races and religions. It probably is correct to state that most have no previous experience with setting up and managing a business, let alone a home business. The general idea that setting up a home business is easy which requires (almost) no money is widespread and at the same time mistaken.

2 The Get-Rich-Quick programs which abound on the internet.
So many programs on the Internet promise “heaven on earth”, “become a millionaire in just 3 months (or less…), earn a “six figure income for life” and many others that people easily fall prey to. While the Internet is generally speaking not so much “scientifically based”, one issue has been well studied which is HOW TO persuade people to buy what I am selling. Based on a thorough psychological knowledge of how people think, feel, perceive and take decisions, many promo campaigns are using exactly the results of this. My feeling is that the SCAM programs are really experts in this!

3 The “You Don’t Have To Do Anything” programs.
This is another phenomenon which abounds and, more often than not, directly related with the “get-rich-quick” programs mentioned before. They are very attractive to people who don’t know well how the internet works and appeal directly to the most widely spread human feeling of “greed”. Every “newbie” should be aware that those programs do NOT work. Just ask yourself a very simple question: If you don’t have to do any work, why in the first place do they need you? You think there is some person behind the program who just wants you to make a huge amount of money without any work? My grandmother used to say: “Only the sun rises every day for free!”. Combine this wisdom with the general accepted statement that if something seems to be too good to be true, it usually is exactly that!

4 Lack of Focus which leads to program “hopping”.
Especially people who have little knowledge about running a home business start joining a program they like (many of them from the categories 2 and 3 above) but don’t know how to effectively promote them. As a result income is very low or even they loose money and join another program.




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Wim van der Donk   340 day(s) ago
Thanks Ilicia, Ron and Rick for your comments! These kind of positive comments are what keeps people going!
 
Rick Hema   340 day(s) ago
Hi Wim,some lessons are learned the hard way...but with info like yours it can teach the not-so-savvy..to learn "Here",thanks for the share.
 
Ron Bagley   340 day(s) ago
This is a good blog Thanks
 
Ilicia Gordon   340 day(s) ago
Awesome Blog..
 
Wim van der Donk   340 day(s) ago
Thank you for the share Lonnie! If the going gets (too) rough, a small rest may do wonders! Best of luck!
 
Lonnie E. Shipe, M.A.    340 day(s) ago
I'm having a rough go too so thanks for this blog
 
Wim van der Donk   347 day(s) ago
Thank you Don for commenting and sharing my blog!
 
Don Merrill   347 day(s) ago
I agree with all 4 points you state here. Great points to ponder for people who are not making money on the internet. Sharing this.
 
Wim van der Donk   347 day(s) ago
Thanks Don for your comment and compliment! I appreciate this! Yes Nathan, I totally agree with you, IBO is a perfect place for newbies to orient themselves. You think it would be an idea to have a separate section for newbies on IBO specifically to help them get started? Hi Jonathan, I also don´t know how exact the 95% figure is? Anybody has some more data about this?
 
Jonathon Ross    348 day(s) ago
"Lies, damned lies, and statistics" - Mark Twain. I've always been curious about the source of that 95% figure and its validity. Failure is a subjective debate but points 2&3 need to be avoided for success. IBO gives ample 'hopping' opportunities so point 4 is also relevant.
 
Nathan Gurley   348 day(s) ago
Thank you Wim, your assessment is right on the money. I know all too well from personal experience! Places like IBO help educated people and your article certainly contributes.
 
Don Sabelhaus    348 day(s) ago
Thanks for a great article Wim, an excellent analysis of why those new to the game do not make any money and end up quitting. TB&L my friend
 
Wim van der Donk   348 day(s) ago
As the space for comments is limited just a few words: Thanks Jack and Rob for your comments and share! Great Marnee that you never gave up and finally managed it! Good point and tip for "newbies" you have there Len! Completely agree with you Michael! The problem is that most "scam" programs are "experts" in what you and I (and many others!) would consider "unethical"!
 
Len LaChapelle   348 day(s) ago
Great blog Wim, You mentioned that most "newbies" don't have the skill set to succeed and therefore are duped by all the scams out there. That's why I believe, that if you're new to network/online marketing, join a program that has a system to follow that give you the tools and teaches you how to use them, in order to succeed. I'm gonig to tweet and share your blog. All the best, Len
 
Marnee Masales   348 day(s) ago
Excellent blog Wim. A lot of excellent points. I know I fell under your 2 and 3 issues. Difference was I did not quit.
 
Rob Cenname   348 day(s) ago
Great post Wim, thanks for sharing it! Have a great night!
 
michael adamonis   348 day(s) ago
I am not a fan of any kind of "marketing" that tries to convince people that what you are selling them is what they want. Present your offer, tell the truth, and then leave it up to the customer. We need to learn to have some respect for others. True wealth...
 
Jack Albright    348 day(s) ago
Great blog post Wim. You really hit it out of the park with this one my friend. Thanks for sharing, I hope all the people expecting overnight riches read this one.
 
Wim van der Donk   348 day(s) ago
Thank you Silvia. Indeed it may take several years. Although I recently read another IBO blog which stresses the importance of being a good sponsor! If you encounter some good ones, "several years can be greatly reduced".
 
Sylvia Buetow   348 day(s) ago
Your blog is true. I think it takes years of diligence to succeed.
 
Wim van der Donk   348 day(s) ago
Thank you Kimberly, Sigurd, Ralf and Annemarie for your comments. I think the issue is very important, not only for those who fail but also for those who succeed! Just Imagine if we could reduce the failure rate to say 80%. This only increases the number of successful people 4 times! Which benefits all of us!
 
Annemarie Berukoff   348 day(s) ago
Excellent blog, Wim. I think you've hit the nail on the head several times. Due diligence is so important and heavy-duty training must be minimized to increase more success. Thanks for sharing these important points.
 
ralf dooley   348 day(s) ago
Great blogpost. Very good reasons why newbies fail. Thanks for sharing
 
Sigurd Skeie   348 day(s) ago
Very good written, this is one to read totally. Success Sig
 
Kimberly Booker   348 day(s) ago
Great blog Wim, thanks for sharing!
 


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