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It has been estimated the as much as 8000 internet businesses are started each year, unfortunately many will be out of business within 5 years. Financial Security usually is one of the top reasons why people want to start their own business but many people may not look at or even want to see the answers that arise in why a business fails.

Heres a list of some of the reasons why an online network marketing business fails:

1. Lack of Experience and Knowledge

Many people go with the idea that their experience and knowledge is all they require from their own previous brick and mortar businesses and use that knowledge completely for an online business. Having previous business experience is valuable but not knowing their competition in a global marketplace or understanding internet marketing as it applies can affect their online business negatively.

2. Lack of training on how to start an online business

Finding a company with a good compensation plan may be an important but if it does not have good training or support for how to start a business with them, many people quickly run into trouble. Sponsor or Upline support for starting an online business is equally important because how will you be able to train and consult new members to start an online business if you have no support from others who are doing the business?

3. Lured towards get rich quick schemes

All too often, people are easily duped into the get rich quick type of business only to find out that it is not as easy as the companys advertising claims to be. The claims of making thousands per month without effort are highly exaggerated and usually only after they take their money, does a person realize what is involved.

4. Not being consistent or quitting the business too early

Quitting and not being consistent with a new online business is an early killer when the business does not grow as it is expected. Getting rich quick scenarios all too often cause a new person in the business to give up early before it has a chance to grow. Stop thinking about immediate Riches and start thinking about what the business consistently requires to allow it to grow. Remember consistency = growth.

5. Dealing with companies that are not credible

Fly by night companies have been seen too often on the internet. To protect yourself, do some investigation on some of the search engines to see the companies reputation, history and complaints, if any. Another area is online forums to get further information from people who are doing business with the company.

6. Lack of motivated team members

The purpose of an online network marketing business is to have people on your team working and encouraging others to be part of your business. It starts at the top and if you are not motivated, your members below you will lose focus in working with you in your business.

7. Treat the business like a hobby and not as a business

We all have other family life responsibilities and activities, but if your business is treated like a when ever business, it surely will be a maybe never type business doomed to fail.

8. Improper use of time dedicated towards the business

Dedicating your time for only one day a week or going 14 hours straight on one day of the week is not good time management. For an online business to be successful, dividing the time evenly through out the week is better than dedicating only one day per week to it. This can apply even if you can spare only 5 to 10 hours a week.

9. Lack of organization

This is an obvious one but often overlooked. If papers, receipts, and information from members or prospects is all over the place, surely your work and business will suffer. Ideally, important documents should be placed in separate folders and kept in a safe place.

10. Lack of the latest information

The internet is always changing and it is important to keep up to date with the latest information when it comes to getting potential leads or prospects for your business. This does not mean that you have to hunt for all the information yourself. A Good Sponsor or Upline support should help because they may already be applying the new information to get prospects and people that want to be part of the business.

This is not to scare people from starting an online network marketing business, but to help set a better plan of action. So if your ready to overcome any challenges, then go get-em!

Brad Jacobsen is a Web Developer and Internet Marketer.