The Theory That Network Marketing is Dead
Fair warning… I'm going to go on a rant.
Maybe it's one too many of Dan Lok's "MLM is dead" ads, but I need to say something about the theory that network marketing is dead.
It's an easy thing to say (and believe). Especially when:
- There seems to be an intensified attack from the media
- Facebook is denying MLM or company-specific ads more frequently
- There are so many different "work from home" options now
- People can't get their products to sell
The quick conclusion is… "well, I guess MLM doesn't work anymore and it's time to find something new."
Here's why that's a TERRIBLE conclusion.
First, the numbers say otherwise. In 2018, Network Marketing hit a RECORD $193 BILLION in Global Retail Sales, up 65% over the last 10 years. (Data Source: WfDSA)
- $76 Billion were paid out to distributors in 2017 (which works out to about $208 Million paid out every single day)
- Network Marketing reached a record 116.7 Million distributors in 2017 (and this doesn't even include registered or retail customers)
- Since 2009, Network Marketing companies generated nearly $1.5 Trillion in sales (and have paid out over $600 Billion in commissions)
Isn't that interesting? The numbers actually show a sustained growth in the Network Marketing industry over the past 10 years, with future growth expected to continue, especially in emerging markets.
How much growth? Well, analysts suggest the industry is on pace to generate over $1.5 Trillion in sales over the next 5 years. (That means about $400 Billion will be paid out in commissions to reps.)
The question is, how much money of that will go to you?
But what about the next generation of reps? I heard Millennials are impossible to recruit…
Again, let's look at the data. Here's the breakdown of who's doing Network Marketing right now, by age:
- 1% – Generation Z (Age: 2 – 22)
- 37% – Millennials (Age: 23 – 37)
- 34% – Generation X (Age: 38 – 52)
- 27% – Baby Boomers (Age: 53 – 73)
- 1% – Silent Generation (Age 74+)
Say what you will about millennials and technology and social media… the industry is growing and evolving and expanding rapidly right now.
In fact, in 30 years, I've never been more excited about Network Marketing as I am today!
I've never seen it so SIMPLE to do. I used to send faxes and place classified ads and send direct mail. Now, with social media, sales funnels, Zoom meetings and Instant Messenger, I can meet with my teams and conduct business all over the world. For free.
What About Other Home Businesses like Amazon? Aren't those easier to make money with?
Want to get into the e-commerce game? Fine, get your products out of China, deal with overseas manufacturing, quality control, import restrictions and inventory management.
(Oh, and you don't own the customer, Amazon does.)
Want to do affiliate marketing, selling someone else's products? Fine, just know that the life cycle of most products is about 3-6 months, so you're going to constantly have to keep reinventing yourself and finding new traffic sources and viable products.
(Also, there's very little leverage, meaning you make the sale, you get a one-time commission. Then you start over. Your income is still dependent on you, and you alone.)
Want to become a freelancer and work from your laptop? Fine, build yourself a website and sign up on all the freelancing sites, and spend your days (and nights) working for clients, helping make their dreams a reality. And when you stop working, your paychecks stop coming. No leverage.
4 Reasons Network Marketing Is Still My #1 Choice
- Network Marketing is one of the simplest paths to entrepreneurship. Easy to get into. Great products to sell. No manufacturing to worry about. No inventory to stock. No accounting or collections. No employees. Minimal risk. Huge leverage and upside potential.
- Network Marketing offers everyone an equal opportunity and compensation structure, regardless of age, sex, race, religion, or level of education.
- Network Marketing is one of the few places where women earn dollar for dollar what men earn. There is no gender pay gap. You are compensated based on your ability to perform. Simple. In fact, the industry as a whole is 74% female, and only 26% male.
- The Exponential Residual Income factor. Nothing else offers an opportunity for regular folks to able to earn an exponential residual income, for a minuscule fraction of the cost of traditional business.
Network Marketing is no longer on trial. It's a proven and viable profession. A profession that's helping millions of people get ahead financially and moving many closer to their dreams.
So why would anyone write off this industry? Why would you write off the opportunity for exponential residual income because maybe you've struggled in the past, or because some reporter or Internet Marketer is trying to throw rocks at the industry for his own gain?
If I flip this script for a second, I'm going to say this….
The people who become MASTERS at the skill of communicating are the people that are going to make as much money as they want, while the rest of the masses go off in search of the next shiny object.
Network Marketing isn't even close to dead. It's thriving! But you may need the following…
- It might be time to get creative with HOW you use social media to prospect and attract others.
- It also might be time to see that the master networkers — no matter how they recruit — all have one skill in common. They are master communicators (they know what to say and when and how to say it).
- It might be time to refocus on the fundamentals of inviting, presenting, and training, so that you set a good example for your team to follow.
- It might be time to lean into your natural personality and brand, instead of trying to "become" like someone, thinking that is the key to selling (it isn't).
If your business and your team are not growing, it’s an easy out to decide that MLM is dead and it’s time to go hunt for the next shiny object. But I would gently remind you that learning to communicate effectively with prospects is fundamental to any business, so you might as well be in the industry that gives you the most leverage and upside potential.
Maybe it's time to study the fundamentals of communicating effectively with others, so that you protect and build healthy relationships, and more people buy what you're selling!
P.S. The Ultimate Prospecting & Recruiting Toolkit is launching November 25th, and this blog post is a pre-cursor to the training that will be coming when it launches. I'm tired of watching people struggle to build their network marketing businesses, and we're about to change that forever.
Article written by Tim Sales and posted on the NetworkMarketingPower.com website.
Article reposted on Markethive by Jeffrey Sloe
Visit MarketHive to learn more: http://markethive.com/jeffreysloe