Monday, April 16, 2007

The Herd Mentality
The Number 6 Reason Why So Many Fail In Home Businesses

John earns $20,000 a month from his home business. Peter hears about John's earnings and immediately becomes an independent representative for the company John is working with.

Sally hears about John's success and also joins the company. So does Mary, Phillip, Lewis, Hernandez, Earline and a host of others. However, unlike John, none of them succeeded.

Joe Guru, just published his latest "Secrets To Online Wealth". He offers an affiliate program for distributors. Within weeks, 10,000 people are marketing Joe's ebook.

They all purchased an email list, loaded up their auto mailers, programmed their auto responders and started blasting email addresses, sometimes sending 20 emails an hour to the same address. What each of them failed to realize is that 9,999 other people were doing exactly the same thing and blasting to the same list they were using. As a result, none of them earned any money.

Harry is earning $15,000 a month from his traffic exchange. Angel and Bill hear about Harry's success and open their own online traffic exchange. Paul learns of Harry's success and also decides to enter the traffic exchange market. So does Annette, Craig, Morgan and about 1,000 others.

After a year, Harry is now earning over $15,000 a month. Angel and Bill have closed their exchange. Paul has filed for bankruptcy and is bitter and disillusioned and the rest are marginally successful, failing or have already failed.

All these illustrations depict the "Herd Mentality" that is so prevalent today online and off. This mentality is the number 6 reason why so many fail in home businesses. In our first example, neither Peter nor any of the others took the time to learn how and why John was earning $20,000 a month. John may have had a lot of factors already in place that led to his success. Factors, none of the others possessed.

In our second example, none of the distributors bothered to investigate or develop an alternative strategy or concept to market Joe's ebook. Even those that bought Joe's "Secrets To Online Wealth" weren't earning any money with his secrets. The reasons: Rapid burn out and incompatibility.

Because of the speed at which the Internet exposes millions to ideas and concepts, burn out and market saturation happens 10 times faster than it does with a traditional off line business idea or concept. Secondly, what worked for Joe, may not work for you. The factors and circumstances that allowed Joe to succeed may not be present in your situation.

In addition, when Joe discovered and developed his method, he probably had the market largely to himself. By the time he became successful with his concept, competitors had already emerged that were selling a similar concept or idea. Joe's strategy to continue his earnings is to sell his method to you and thousands like you.

Think about this for a minute. If you discovered a concept that was earning you $1,000,000 a year, how much would you sell it for? You're so right. Not at any price because whatever you could sell it for, you can always earn 10 times that. However, if this concept stopped earning you a $1,000,000 a year, how much would you sell it for then? You're right again. Whatever you can get.

In our final example, Harry was earning $15,000 a month because he had his traffic exchange long before the market became saturated with them. All the members that were paying Harry for his services were not paying any one else, even though they became members in other exchanges. Plus, at the rate traffic exchanges proliferated, members could not surf all the exchanges they joined even if they wanted to. There are only 24 hours in a day.

There are plenty of lessons here. As an Associate, you can easily determine what they are. Next - "Your Personality" - the number 7 reason why so many fail in home businesses. (Also see - "Why Affiliates Fail In Home Business")