Accurate figure or simply a scare tactic?

[Jon Tees]

They say 97% of people fail to make any substantial money online. But usually its in the context of trying to sell you something to “correct this problem.” or convince you to join some MLM program that “actually works.” So is there really any truth to the huge failure rate or is it simply a combination of hype and scare tactics?

[sharpturn]

That doesn't sound like good news for us newbies. I'm curious of the answer myself.

[Saosin]

This is very true.

Making money online is all about consistency leading to confidence.

Many people "fail" b/c their time is spent at the forums worrying about the next big thing only to realize that they could be making consistent money at a J.O.B.

For those that do make a certain amount online, it's usually a one-time thing or their idea or product becomes obsolete.

There are many ways one can make a consistent online living but I think the majority of the 97% mentioned in your post are the types of people that don't stick with one thing. Rather, they pursue every other opportunity and end up with a lack of focus.

I know because I learned this the hard way.

I only come to the forums when I'm in 'thinking' mode.

Don't let it scare you though. Facts are just facts.

[Scott Ames]

95% of all stats are made up.

[Dan C. Rinnert]

My guess is that it is probably estimated, and may be based on the similar notion that ninety-some percent of businesses fail.

There was an article a few weeks back that covered that. Basically, the figures may not be as high. For example, if a business may have been "closed" because they merged or were bought out by another company. That doesn't necessarily constitute a failure, especially if the owner made out well on the deal. But, since that business no longer exists, it would be tossed into the statistics as a failure because it was no longer around.

Additionally, the stats on business failures don't consider the reasons behind the failure. Some owners may have closed up shop because of a better offer and not necessarily a true failure. Imagine you're running a business and earning $25k per year and someone else comes along and offers you $50k to run their business. Some people would jump at that offer. So, they may close their business, but it's not necessarily a failure; it's just that they took a better offer.

Likewise, someone may have a decent home business and get a better paying job and decide they'd rather spend their free time with their family than with their home business. So, they close it up. Again, that's not necessarily a failure, but it would be considered a closed business and thus get thrown into those stats that 9 out of 10 businesses fail.

On the other hand, with making money online, there could be better estimates. For example, affiliate management networks, like ClickBank, could release data that says they have x number of affiliates and y% of those never earn more than a single commission. So, some figures could be accurate, at least so far as particular networks are concerned, if they release that information.

So, that 97% statistic could come from one of those networks, or it could come from surveys and such. Who knows, really? I would guess that it is probably not far off the mark, but that is based only on looking around and estimating what percentage of people are making money online.

[dlm]

Depends what you mean by "substantial money"

But generally, most people fail at internet marketing. Most people try and copy other people instead of developing their own systems and strategies.

[Paul Myers]

95% of all stats are made up.

Cite, please?


Paul

[Dan C. Rinnert]

Originally Posted by Paul Myers

Cite, please?


Paul

If at first you don't succeed, survey a different group of people.

[Alexa Smith]

Originally Posted by Scott Ames

95% of all stats are made up.

I hear that 94% of all stats are made up "on the spot". I mean, these statements could both be true, in theory, but are we seriously to believe that only 1% are made up elsewhere and then brought over to try to persuade people?

[Scott Ames]

Originally Posted by Paul Myers

Cite, please?


Paul

I kinda made that one up

[Dan C. Rinnert]

Originally Posted by Alexa Smith

I hear that 94% of all stats are made up "on the spot". I mean, these statements could both be true, in theory, but are we seriously to believe that only 1% are made up elsewhere and then brought over to try to persuade people?

Spot is pretty popular. Even still it's amazing that 94% of stats are made up on Spot. The other 1% are made up on Rover. But, that's with rounding. Actually, .64% of stats are made up on Rover, .16% on Fluffy, .15% on Buster and .05% on assorted cats.

[Scott Ames]

Originally Posted by Dan C. Rinnert

Spot is pretty popular. Even still it's amazing that 94% of stats are made up on Spot. The other 1% are made up on Rover. But, that's with rounding. Actually, .64% of stats are made up on Rover, .16% on Fluffy, .15% on Buster and .05% on assorted cats.

LOL!! got me laughing here.

[Slin]

Yeah I used to hear that stat as 99%

Don't trust it, a lot of people don't succeed, but it is much less then 99%!

Keep at it you will begin to find out this is a little bit easier then many people make it out to seem. But at the same time it's not some sit back and walk in the park either!

[Louise Green]

I'd say just look around the Warrior Forum to get a good idea of how many people are successful.

Those who ain't making money yet are certainly in the minority.

I think all who consider giving up, or not even trying, should look around them

Originally Posted by Alexa Smith

I hear that 94% of all stats are made up "on the spot". I mean, these statements could both be true, in theory, but are we seriously to believe that only 1% are made up elsewhere and then brought over to try to persuade people?

What surprises me is that someone would actually question those "experts" that claim 97% of the people fail... People fail mostly due to no action but as far as a %, there is no possible way to tell this without some major case studies and I do mean major.

People should worry less about who fails and who does not fail and worry more about running their own business and making their own business a success. The fact is nobody determines success or failure but "YOU" ... Success or failure is based upon what "YOU" determine it to be and it is that simple.

I could have a business making $2,000 a day each and every day. Some may consider that a success while I may not. Fact is I am the only one that can measure my success.

I could have a business that only has 20 members. Some may consider that a failure while I may consider it a learning process and thus not a failure. Fact is I am the only one that can determine my failure.

James

[Kay King]

They say

Who are they? Do I know them? Do YOU know them?

And why are they picking on Spot?

kay

[Sansfaim]

Originally Posted by Scott Ames

95% of all stats are made up.

Statistically that is incorrect.

It's actually 93.2%

Cheers

Sandy

[Scott Ames]

Originally Posted by Sansfaim

Statistically that is incorrect.

It's actually 93.2%

Cheers

Sandy

LOL!! I love British humor.

[Jon Tees]

What baffles me is some people think investing $29.99 a month for something that will benefit their business in ways they can’t imagine, is entirely too much money. They expect to invest a minimal amount of time and little to no money and achieve the same kind of success as people who do put in the time and invest the money. This is truly a business that involves work. To some its equal to running a traditional brick and mortar business only with the ability to set your own schedule.

[Alexa Smith]

Originally Posted by Jon Tees

This is truly a business that involves work.

Correct. But some people will invest that $29.99 per month naively imagining that it's going to be a complete substitute for work, and then complain about it when it turns out not to be. It's also true that sometimes the whatever-they-buy that costs $29.99 once, or $29.99 per month, is sold with blatant misrepresentations that it'll be more or less a substitute for work when it really won't, of course. (And, sadly, perhaps that comment applies even to the occasional WSO.)

[timpears]

The only way to fail at internet marketing is to quit. There are multiple ways to do this without spending any money, that if you really want to do this business, you can do it without spending any money. So if you want to do it, then all you have to do is put in some time.

Out of the businesses that start up each year, of all kinds, most will not last five years. I don't know the percentage, but I believe it is about 90% fail or run out of money. It is probably higher for home based type business and internet marketing, which many of us start at home. Because it is easy to start and easy to lose motivation when we don't get rich fast. So we quit, we don't really fail. And as most people are really lazy, as soon as it gets a little hard or the going gets tough, we find other things to do.

[drwhogoesthere]

Dont be afraid of the figures. With offline businessess, more than half fail in the first 5 years, and in the second five years half of the remaining fail.

One of the main problems with IM is that there is so much information and we keep looking for the next thing that will make a lives easier. The hype out there is that this is easy. I have no idea who started that lie.

You need to undertake 2-3 training courses, look at what they all have in common and then get working and stay focused. Set up one program and run that untill it can almost run by itself, then start another and so on.

The idea of quick easy money gets a lot of people fooled into IM. Dont be fooled by the hype.

[christftw]

Originally Posted by Scott Ames

95% of all stats are made up.

I was just itching to say that -- but I figured I best check to make sure no one else did.

But I would bet a majority never do make any substantial money, only because they end up quitting or never actually take action.

[jamawebinc]

I think that goes for all business, not just online.

However, haven't we all seen businesses we just knew were going to fail but the owner had no clue what to do to make it better, but you did?

I remember a business in my local area that was a coffee shop with a computer in it and people wanted to come in and use it to go online. They offered to pay for the use of the computer.

The owner said no, it's only to go on "our own" website.

So, people who offered to give them money walked right out the door and took their money with them.

The business owner couldn't adapt. It was very easy to do.

The customers were literally telling them what they wanted to give them money for. But they were going to make it work "their way".

Do you think they are still in business?

Nope.

[7_8_shortcuts]

Originally Posted by Jon Tees

They say 97% of people fail to make any substantial money online. But usually its in the context of trying to sell you something to “correct this problem.” or convince you to join some MLM program that “actually works.” So is there really any truth to the huge failure rate or is it simply a combination of hype and scare tactics?

Depends a bit what "fail" means.

Yes, the people who make a reliable, dependable and large full-time income online are not that great.

Still a lot make a good second income. Depends what you are looking for. IM is like any other business... Consistency, strategy, moving where the money is... etc.

[Rohit Shah]

You can be the one by saying it yourself.

[Jon Tees]

What I meant by substantial is money that supplements or replaces a salary from a traditional job. For example, a few hundred to several thousands of dollars a month on a recurring basis. So not really a case where someone makes $50 or less/more occasionally.

[Rod Cortez]

Originally Posted by Jon Tees

They say 97% of people fail to make any substantial money online. But usually its in the context of trying to sell you something to “correct this problem.” or convince you to join some MLM program that “actually works.” So is there really any truth to the huge failure rate or is it simply a combination of hype and scare tactics?

According to the IRS's own statistics, its pretty close. Though in reality no one knows the real figure, because nobody (and I mean nobody) knows all the reasons behind those "failures".

That figure doesn't even come close to telling the whole story. I pretty much ignore that figure because it has ZERO bearing on my own efforts, mindset, and ability to kick some ass.

RoD