MLM Comes Of Age
56For many people the very letters "MLM" conjure up images of scams and
ripoff schemes and unscrupulous people creating huge "pyramid schemes"
to benefit themselves. Of course, then there are the very reputable
companies that have built very successful businesses and have created
some of the world's largest distribution networks that have lasted for
decades...and are still growing.
Such names as Avon, Mary Kay
and Prepaid Legal have been around for decades and use the MLM model to
build very successful businesses. The old Amway organization is still
one of the largest consumer distribution networks in the world. So why
does MLM have such a bad rap? After studying this question for some
time now and having experienced a number of network marketing ventures,
I think it comes down to a few simple facts. These we will take a
closer look at on another "blogday" as it deserves its own detailed
analysis.
It is clear, I think, to most people that the
phenomenon called MLM is about to change. This is due to several events
merging at the same time. Firstly, the evolution of the Internet. It
wasn't really around in its current form ten years ago but it now
provides a platform for smaller companies to compete head-to-head with
the bigger players. People, in ever increasing numbers, turn to the web
now for all their information, including shopping and placing their
orders.
Secondly, in the current economic downturn, people are
losing their jobs left and right and it is getting worse. This means in
many cases, millions of unemployed individuals will have to seek out
some other form of income. As 90% of the population is still working
many of the 10% unemployed will be looking for ways to sell them stuff.
For many that will be the only way to create a decent income. Investing
in a new business or buying a franchise is not an option for most
people. They also cannot find another job. So what is left?...NETWORK
MARKETING! Low start-up costs and ready-to-use marketing materials and
tons of free training. In fact in most cases for a couple of hundred
bucks you are in business.
Lastly, we have all the retailers
either going out of business or closing stores and trying to find ways
to reduce expenses and sell more effectively. Many are finding out a
centralized distribution center, a commission-based local sales force
and electronic advertising (the Internet) is a lot cheaper than local
stores, labor costs and massive consumer campaigns to get people to put
expensive gas in their cars for the privilege of spending their money.
We
are on the verge of network marketing (MLM) becoming mainstream. The
only question is will you be in front of the curve and profit from a
trend that is almost inevitable? This blog plans to explore this
question in great detail and help you find the right opportunities. The
next posting we will explore why so many of us have not succeeded to
date in this emerging giant.
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