Network Marketing-Recession Proof?
The United States economy is falling apart due to mortgage meltdowns, credit and rising fuel costs that are causing great concern worldwide. Fears are that a U.S. economic dive will hurt the entire world economy.
U.S. and worldwide, everyone is beginning to worry. Once they start worrying, they quit spending money. This "sense of fear" causes bigger recessions. I'm not saying there is going to be a depression, which is much worse than a recession. What I am seeing, based on surveys conducted by many companies (which have proved exceedingly accurate over the past 20 years), is higher unemployment and under employment - qualified people forced to work for less money than their qualifications would warrant.
MLM- How Does It Measure Up?
Most economic theories holds that there tends to be a recession about every 8 years. The entire history of the modern U.S.A. reflects this boom-and-bust cycle. Consistently, Network Marketing (MLM) has grown during these Times.
The oldest MLM company is the marine-vegetable (seaweed) supplement company, Wachter's, started in 1937 near the bottom of the Great Depression. Nutrilite took off in 1945 during the economic decline immediately following World WarII. Shaklee and Neolife fared well in the post-Korean Warslump. Amway started building well with the slump in 1958. Mary Kay started with the downturn in the 1960s. This theory held true in 1992 when Alliance, Kaire, Life Plus, and a number of other companies started up and boomed.
Others like Herbalife went into hyper growth due to the same recession and became billion dollar companies.
When recession hits, those with any "business sense" are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best of all alternatives is Network Marketing.
Understanding the relationship between low-cost entrepreneurship and economics is important. During the past few years, the world economic boom has made people complacent. In the U.S., the jobless rate dropped to all-time lows of less than five percent. People had to be sick, lame, or lazy not to get a job. Hamburger flippers got higher-paying jobs, such as assembly work, and their incomes rose. Rather than looking for an alternative to a job or seeking extra income, these folks sat around and watched tv.
When recession hits, you are going to find that the best alternative is MLM, also known as Network Marketing.
Over the years many companies that were just making it or even doing well saw great growth when the recession came, they took off like rockets!
During the early 2000's recession (November 2001), MLM company growth rates jumped higher than they were before the recession. This was due to two reasons:
(1) Fear leads people to new income sources and they WORK the opportunity, not watch TV.
(2) The doubt of the recession lingers in the minds of people so there is an "after effect".
(3) During the recession companies grew, recruiting more new people that lead to exponential growth and expansion
One reason for the growth in Network Marketing is that many Baby-Boomers have put their life savings into the stock-market. With the market's shaky up and down spirals, many Baby Boomers are slowing their high-flying, fast-spending ways due to meager savings except for shaky stocks. With the inevitable, decline of the stockmarket, they will see their retirement plan funds lose drop in value.
Will panic will follow?
We hope not! But, Baby Boomers with good sense will be looking for more ways to build a secondary residual retirement income. A common phrase today is, "multiple streams of income."
Hold your breath and prepare for the next boom in NetworkMarketing. If you are new to MLM, study the industry closely. If you are an old-timer, get out your contact lists for the last two to ten years. In a recession, they will be solid gold! All you have to do is get out there and help people out of their economic troubles.
Timing Is Everything
This is the best time to grow your Network Marketing business. Whether you are a veteran or a beginning network marketer, the future is bright. With the millions of new people coming online every day and the economic troubles, this the the all time greatest moment to work from home.
Recession causes people to open their minds to working from home. If they are still employed, they are worrying about the possibility of losing their jobs or having them downgraded. These are the times to look for fast, cheap and"stay-at-home" alternatives.
MLM - Network Marketing?
This field is the last way for a average person to make a above average income, part-time or full time.
MLM - Network Marketing is the ultimate"recession-proofing" for your economic life.
To Your Success
Tony Short
