Why Network Marketing?

This page is my review on an article written by Leonard W. Clements about why network marketing is big business.

Leonard mentioned how many experts in Network Marketing expected people in mass to join Network Marketing because it is the best homebased business opportunity and it provides great residual income opportunity. Expecting people to join MLM in mass is too optimistic.

Leonard feels people would join network marketing more because of a want than a need.

Here is an interesting idea. People buy because of emotion. You might not need a sports car, but if your desire is strong enough you will probably get one even if it puts you in debt.

You may not need extra money but you probably want it. Who doesn't want more of that extra green stuff.

If you see network marketing as your avenue to the sports car and beach front property, you will probably join.

Certainly Multi Level Marketing may fill much more than your needs but your wants also, what more can you ask for.

Leonard feels that too many network marketers work too hard in promoting their business opportunity to other network marketers instead of finding fresh blood.

8 Reasons Why Network Marketing Is Remarkable

Reason 1: The Economy

Before writing this article Leonard actually set out to prove that bad economic times disfavored network marketing. He said his research proved him wrong. A bad economy is a big reason why network marketing is attractive to many.

Mike Kingler in Recession Riches discusses why network marketing is attracting people in a down economy. Corporate executives saw their positions as secure in a healthy economy. In a bad economy they now consider their jobs as insecure. Many people are seeking a homebased business. Why not let network marketing fill that need?

Reason 2: Demographics

Following the trends is a secret to wealth. The baby boomer generation is retiring and many probably don't have enough to live on. They are also interested in looking and feeling younger. Many MLM companies are health and wellness based products.

He talked about the increased numbers of direct sellers which many would include network marketers. The bottom line is there is a net increase of network marketers. More people are joining network marketing than quitting.

According to Leonard the 76 million baby boomers had approximately 75 million babies who many will turn 18 over the next 7 years. 18 is the minimum age someone can join a network marketing company.

Reason 3: Wall Street

Reason 4: Supply And Demand

What happened was during the 90's a lot of Multi Level Marketing companies started up and saturated the industry. Many who contemplated starting an MLM company chose to be a distributor instead.

More supply than demand created small downlines for distributors.

With less multi level marketing companies it creates a greater opportunity to build a larger downline because there are fewer options to choose from as there once were.

Reason 5: New Blood

One approach is to market to those already in mlm. There are advantages and disadvantages of doing this depending on how you market. If you are doing network marketing the old school way and they are already in network marketing you are in a battle between your company and their company. Tim Sales has commented he doesn't feel so right about this.

With attraction marketing it doesn't matter if they are already in mlm or not. In attraction marketing you are teaching and educating and providing value. If a network marketer stumbles upon your website and you are able to provide him much greater value than you are doing him a service. You are probably selling affiliate programs that work to build any mlm company and he may choose to purchase from you.

Leonard said the internet will bring the new blood into network marketing.

Leonard explains why many mlm companies failed using the internet. The reason is because using replicated websites doesn't work. Google sees it as spam and you will not even be ranked. Google wants reliable businesses providing unique content. Technically unique content is hard to come by because it is all repackaged and restated in different ways.

Leonard said, "The internet is a sales, training and recruiting tool with unimaginable potential…." This is a reason why network marketing is becoming unmatched.

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Reason 6: Positive Media Exposure

Reason 7: Regulation

The law suits are not as much as they used to.

The illegal pyramid scheme lawsuits is a big confusion.

Leonard said, "Either you're an illegal pyramid scheme, or you're a network marketing company. You can't be both."

There is legislation that will create federal regulation of network marketing.

According to the author, federal regulation will weed out the bad apples and prevent much of the company start up failure rate. Only a real solid network marketing company will start up.

Reason 8: Industry Growth Rates

The top 12 publicly traded Multi Level Marketing companies had a 14.6 growth rate from 2000 to 2001 which was more than doubled from 1999 to 2000.

If you missed it at the top click The Coming Network Marketing Boom for your free PDF article.