The network marketing or direct selling industry is being seen as the ultimate social business model. Why is now the prime time to be in network marketing? Because it is recession proof and continues to thrive offering the unemployed or those looking for extra streams of income an easy, low-risk way to be in business for themselves. It also capitalizes on the fact that consumers prefer to buy products and services from people they know and like.
Direct selling is the original social networking business long before we even knew what computers were, people were getting together for fun, socializing and shopping. Now add to that technological power and globalization and you’ve got a winning formula.
Word of Mouth
When was the last time you watched a commercial? People buy products based on recommendations from people they know.
Direct selling does well in mature markets as well as emerging markets because word of mouth advertising appeals to the social nature in us all. Products and services are delivered directly to customers through personalized presentation that are often education, entertaining, and certainly social. They range from diverse categories as cosmetics, financial planning services, home decorating, home improvement and solutions, energy services, personal care, health and wellness, apparel and accessories, legal services and fine wines.
Paul Zane Pilzer has kept a watchful eye on the direct selling industry for more than 30 years. In the 1990s, the renowned economist who served in two White House administrations predicted that network marketers would help make the then-emerging $200-billion health and wellness channel the next trillion-dollar industry. The success of companies such as Herbalife, Medifast, Monavie, Amway, Nu Skin, USANA and Blyth are helping to confirm Pilzer’s theory.
After years of skepticism, the investment community is finally waking up to the viability of
direct selling as a good investment opportunity. Doug Lane
The real challenge is to replace lost jobs with new earnings opportunities and provide much-needed training. The jobs that baby boomers and Gen Xers trained for years ago have disappeared. Technology has replaced millions of workers and demanded new skills that too many older Americans just dont have.
Instead of focusing on new methods of training, our politicians and news media are looking at unemployment and the economic recovery as linked and they are not because most of the unemployed people today are skills-deficient. If they are over 50 years old, they probably dont touch-type or e-mail, and that doesn’t work in todays economy.
As the current economic crisis continues to take a toll on people around the world and unemployment rates steadily rise, direct selling may be the answer to a shrinking job market. The direct selling business model has always had a competitive advantage in the training that it offers, both in business and personal skills. It allows people to be retrained while they pursue something new. It gives people an opportunity when no one else will.
The biggest need in every sector of the economy, says Pilzer, is intellectual distribution, the dissemination of information about products and services. We have a huge backlog of better products and services that people aren’t buying because they don’t know about them. Direct selling is the most efficient method for the distribution of intellectual information that will improve your life. It is the ideal model that allows anyone to reach out.
Direct selling offers people the skills and tools to create new income opportunities to venture out on their own as entrepreneurs and grow in confidence versus being consumed by the fear associated with a shrinking job market. Technology is available to everyone at home and is even better than what you can get in a large company, says Pilzer. When we examine the workplace, we often find outdated computers and data management systems.
However, the best tools and support needed to run a home-based business are now available to individuals at an affordable cost. This makes a home-based business and a direct selling opportunity, in particular very appealing.