If you're in Network Marketing,
there's good news, and there's bad news - and the great news is that,
for you, they're both good news.
In good economic times, people are less interested in career
alternatives but they can easily afford to buy more consumer goods. In
bad times, they crave new business opportunities. Today, we could soon
be facing global recession - and tremendous worldwide opportunities for
you.
The U.S. economy is cracking apart
due to mortgage meltdowns and rising fuel costs (energy) that are
causing great concern worldwide. Fears are that an American economic
dive will hurt the entire world economy.
U.S. and worldwide, people are
beginning to worry. Once they start worrying, they quit spending money.
This "psychology of fear" fuels bigger recessions. I'm not saying there
is going to be a depression, which is much worse than a recession. What
I am predicting, based on surveys conducted by our company (which have
proved exceedingly accurate over the past 20 years), is higher
unemployment and underemployment - good people forced to work for less
money than their qualifications would warrant. Translated: pushed to
work for trashcan wages.
MLM A
Countercyclical
Business
General economic theory holds that
there tends to be a recession about every eight years. The entire
history of the modern United States reflects this boom-and-bust cycle.
Consistently, Network Marketing has grown during the "down" periods.
PER
CNBC CURRENT VIDEO click here
The oldest Network Marketing
company we can track is the marine-vegetable (seaweed) supplement
company, Wachter's, which started in 1937 near the bottom of the Great
Depression. Nutrilite took off in 1945 during the economic decline
immediately following World War II. Shaklee and Neolife fared well in
the post-Korean War slump. Amway got a good start building 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 (then later failed due to legal
problems, partnership disputes, and mismanagement after the
recession). Others like Hearbalife (see chart below) went into hyper
growth due to the same recession and became billion dollar
companies.
In the chart below note that during
the depth of the recession indicated by the blue dotted line
retail sales by major retail outlets took a dive. Direct sales
(90% are MLM) shown by the solid yellow line jumped as store
front retailing dropped like a rock! Today history repeats
itself!
Source: DSA and MLM Watchdog
When recession
hits, those with any intelligence 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 assembling computers,
and their incomes rose. Rather than looking for an alternative to a job
or seeking extra income, these folks sat around and watched television.
When recession hits, those with any
intelligence are going to scramble to find alternative sources of
income. In their frantic searches, they are going to find that the best
alternative is MLM also known as Network Marketing.
We followed the increase in growth
of several major Network Marketing companies operating during the
recession of 1973-75. Companies that were not doing badly when the
recession started, they had a fair amount of growth. However, when the
recession came, they took off like rockets!
During the early 2000's recession
(officially starting in November 2001), MLM company growth rates jumped
higher than they were before the recession. See the chart below
(November 2001 was the benchmark) and look at the following
growth. 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
"aftereffect". (3) During the recession the company grew a
"freverant" distributor base, recruiting more new people that lead to
exponential growth.
Source: Alexa.com
PRESS RELEASE UPDATE
2008
Herbalife Experiencing
Stellar Sales Despite Slumping Economy
3 November
2008 - Herbalife, the global multi-level/network marketing (MLM)
giant reported its 19th consecutive quarter of double
digit sales growth, according to a recent earnings report. The
company grew sales 13.7% to $602 million in the third
quarter.
The sales
gains were attributed to the company’s global growth, including
double digit sales gains globally. Profit margins were reported at
14.7%. Herbalife also has $33 million in capital expenditures,
primarily in technology investments for distributors.
North
American sales were up 23% over third quarter 2007, despite a
worsening economy domestically. "In these turbulent economic
times, we believe we're in a fortunate position at the
intersection of health and wealth," said Chairman and Chief
Executive Officer Michael Johnson. Herbalife’s products are sold
in more than 69 countries with more than 1.9 million independent
distributors. |
Another factor that fueling 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,
cyclical decline of the stock market, they will see their retirement
plan funds lose 25 to 50 percent in value. Will panic will follow?
We hope not! But, Baby Boomers with good sense will be looking for
secondary ways to build a secondary residual retirement income. A
common phrase today is, "multiple streams of income."
Grab your hat and prepare for the next boom in Network
Marketing. If you are a newcomer, study the industry closely (and
quickly). 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
duress.
Now is the best time to grow your
Network Marketing individual business or start
your company! Whether you are a veteran or a beginning
network marketer, the future is bright. Soon consumers will be looking
for the best quality at the best prices. Where do they find it? In the
quality products offered by your Network Marketing company .
Recession causes people to open
their minds to gaining alternative sources of income. If they are still
employed, they are worrying about the possibility of losing their jobs
or having them downgraded. If they are unemployed, they are seeking ways
to build their income without spending large amounts of money to start
another business.
This writer has made millions in MLM - Network
Marketing plus having owned large franchises, done business
opportunities plus done import of exotic cars like DeThomaso
Panteras, Lamborghinis and Ferraris. His analysis
is:
MLM - Network Marketing? This field with
careful selection (see MLM Detective at the MLM Watchdog) - is the last chance for the little guy to make money
in America!
Heaven bless you - driven to your financial
knees? MLM - Network Marketing is the ultimate "recession-proofing" for
your economic life.
About Rod Cook B.s., M.A.,
M.B.A.: Rod is recognized as THE major researcher in the MLM -
Network Marketing world on economics and MLM Compensation pay plans. His
majors include many hours in mathematics giving him research tools no
others in the MLM have. Rod keeps a list of over 1500 U.S.
MLM companies (plus over 100 foreign companies operating in the U.S.) on
his MLM Company World Directory (see www.mlmwatchdog.com) this alone is
a research tool no one else has as far as what MLM compensation pay
plans survive. As the MLM WatchDog, Rod can pick up a telephone
and call a company owner and get a true reading. His reputation
for honesty, integrity, and painfully blunt "telling it like it is"
makes him an industry icon. Rod says, "MLM is the last chance for
the little guy in America and for that matter the WORLD and I defend it
to the
death!"