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Is Network Marketing Recession Proof and if so, Why?

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By cindyschulson



Network Marketing is Actually Growing with the Recession

As more people lose their jobs or fear losing their jobs, people are looking for ways to generate additional sources of income. They want income that is recession proof. One industry that has proven to be recession proof is network marketing.

A look at the numbers confirms this growth, especially during tough economic times.

According to USA Today, "Direct-sales businesses... are seeing their sales forces rapidly expand as the nation's unemployment rate soars to nearly 9% and those who lost jobs and nest eggs look for new ways to make money."

Niel Offen, president of the Direct Selling Association, confirms this. "We're recession-resistant in the sense that more people come to us during economic hard times for supplemental income or replacement of a lost job".

While industry totals for 2008 are not yet available, there are clear indications that recruiting among direct sales and network marketing companies is on the rise. For instance, Avon saw its U.S. sales force grow to more than 680,000 through March, its largest ever. Silpada Designs says its sales force in the U.S. and Canada was up 11.8% on May 1 from a year earlier, while Isagenix saw a 30% increase in its sales force in March from a year before.

While recruitment is up, results are growing as well. It has been predicted that more millionaires will be created in network marketing than in any other industry over the next 10 years.

According to the Direct Selling Association (http://www.dsa.org), "It is instructive to look at the last documented recession, which lasted from November 2001 to November 2002. In 2001, direct selling companies reported an additional 1.2 million sellers over the prior year, with anecdotal reports indicating that many of those recruits came on board in the last quarter of the year, post 9/11. (The average increase between 1990 and 2006 was about 656,000 sellers per year.) Sales showed a similarly positive performance as 2002 sales were up $2 billion from the prior year, far outpacing the average increase between 1990 and 2006 of $1.2 billion."


What is Fueling the Growth of Network Marketing?

Establishing a network marketing source of income makes sense, especially during tough economic times. Many business gurus, including Donald Trump, Suze Orman and Robert Kiyosaki support the network marketing industry.

As Kiysoaki says, "A true Network Marketing business is the exact opposite of a traditional business model. The Network Marketing business is designed to bring you up to the top, not keep you down at the bottom. A true Network Marketing business does not succeed unless it brings people up to the top".

Robert Kiyosaki's cash flow quadrant explains what creates wealth. The E and S quadrants, being Employed and Self-employed, trade time for money. The only way to gain financial freedom is through the I quadrant, Investor, or the B quadrant, Business owner. As we know, Investment comes with risks. The B quadrant, owning a business, is the best way to get ahead financially.

Kiyosaki recommends network marketing as the best way to move into the B quadrant. Network marketing is a legitimate, low investment opportunitiy. The barriers to entry are very low, there is minimal investment required, and limited overhead. MLM provides an equal opportunity for everyone. You help yourself by helping others.


Advanced Marketing Methods and Online Tools are Furthering the Growth of Network Marketing

The other factor fueling the growth of network marketing, is the rising sophistication of marketing techniques being used by representatives. Old school techniques of chasing after friends and family and calling cold leads, are being enhanced by new school attraction marketing techniques. With attraction marketing, you can literally attract qualified people to you rather than chase after them. You do this by creating valuable information that your target market is seeking, most often on the Internet.

Attraction marketing is really advancing thanks to the teachings of such industry leaders as Ann Sieg and Mike Klingler. Sieg is the author of such highly regarded free reports as The 7 Great Lies of Network Marketing and Attraction Marketer's Manifesto. Klingler is the creator of a free internet marketing training program, Renegade University. Ann Sieg and Mike Klingler have recently joined forces to develop the leading internet marketing training program and online community, Renegade Professional. They have also developed a mentoring program called Renegade Breakthrough, for serious entrepreneurs who are ready to take their business to the next level.

To learn more about how attraction marketing can help your network marketing business, contact Cindy Schulson for a complimentary consultation. You can reach her at 619 318 8688 or email cindy@homebusinesswins.com

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