MLM Industry Trends

by
Michael Brosnan
Achievement Quest Consulting

Part 1

Current Growth Trends

Since the inception of the MLM industry in the 1950’s there has been six recessions in the United States of varying degrees. With each recession the MLM industry has experienced significant growth. Currently our economy is just coming out of an official recessional period. Though the economy has faltering in recent years, the indicators are starting to show that the MLM industry is beginning a growth trend here in the United States. Many MLM companies, large and small, have experienced record growth in overall sales and sponsoring in the last quarter of 2004. With the start of the New Year many of those same companies are seeing even greater growth from month to month.

“As the economy goes, network marketing goes opposite.”

Over the last six to eight years the industry as a whole has grown worldwide however there has been only moderate growth domestically. This slower growth here in the U.S. has been over compensated for with double-digit growth in the Asian market, especially Japan. At the same time the Pacific Rim has been suffering from one of the worst economic downturns in modern history. This is further proof of the theory that “as the economy goes, network marketing goes opposite.”

The reason for this phenomenon is simple, there are more people looking either to supplement or replace their income. There are more opportunity seekers in a recessional period due to the uncertainty of their present financial situation. Many have lost their jobs, had their wages or overtime cut back or simply are concerned that they may be next in line for being laid off or cut back. For some who may be secure in their financial situation, a recession serves as a wake-up call that the party may be over and sitting around every night watching sitcoms isn't’t going to work anymore.

"Of the hundreds of thousands of bonus checks sent out by MLM companies each month the largest percentage of them are for less that $500."

The MLM industry presents a chance for these passive opportunity seekers to create another stream of income without having to make a sizable capital investment to start their venture. Of the hundreds of thousands of bonus checks sent out by MLM companies each month the largest percentage of them are for less that $500. These checks and the sales volume they represent are the lifeblood of the industry. By percentage, much fewer people have created wealth generating income streams through network marketing. It is true that there are thousands of people that enjoy complete financial security through their MLM businesses, however the formula which has created such growth and permanence in the MLM industry for over fifty years is providing supplementary income opportunities to mass amounts of people.

This being the case, it is exactly why the MLM industry has grown well during unstable economic periods. That is why now is an ideal time for start-up companies to launch their ventures. There are vast amounts of people that will be drawn to this industry in the next few years. These will be individuals that have yet to consider this industry. Demographically there where tens of millions of people that entered the workforce during the last decade that had never in their adult work experience seen the lean times of economic instability. These people had the luxury of enjoying extra income, vacations, leisure time and other benefits of a strong economy. They need alternatives and for the first time they will be open to opportunities presented to them via network marketing.

Look at these statistics:

• 14 Million people working from home full-time.

• Another 23 million working from home part-time.

• Increasing by over 600,000 people per year.

• Average work from home income $59,250 per year.

• 84% recommend working from home to others.

• 29% work at home with other family members.

• 20% of home based entrepreneurs said that their business grossed between $100,000 and $500,000 last year (2000).

The Great American Dream is gone. Official U.S. government reports
indicate that more than 3.5 million jobs have been eliminated in the past 10 years - including over 2000 jobs per day last year alone - and an estimated 55% of all jobs created in the next 10 years will be near minimum wage in stores, restaurants, and bars. 90% of all the people in North America earn less than $40,000 a year and today's two-income family are not living as well as their parents did.

So what is the alternative to the to the Great American Job? Richard
Poe, former senior editor for "Success Magazine," describes in his recent
book that a shift in thinking has resulted in over 14 million people working
from home full-time, and another 13 million part-time. This number is
increasing by almost 600,000 per year. And the average work from home
income is $59,250 per year, about twice the average income of wage earners working for someone else. By the end of the decade over 46% of us will be working from home.

Home based business wage earner's success rate is over 85% compared with small businesses like retail shops and restaurants, at about 95% failure rate after 5 years. Couple that with the flexibility we have to change our schedules and set our hours and then those of us who are parents are now available when our children need us, plus we no longer have the need for the "foster homes" we call day cares, where the care-givers get to see all the "firsts" your child performs. There's no wonder the number of people looking to work from home has skyrocketed.

This "New Era" of financial growth is largely due to the latest technologies that are now available to those who desire to work from home. Imagine what it would be like to run an international operation if you so choose, right from the comfort of your own home. Well, this is exactly what we offer! We offer a "freedom" that is available through a constant flow of income that does not depend on the whims of a boss, bonuses or the economy.

Take a look at some of these statistics:

At age 50:

75% of the population has less than $5,000 in the bank for retirement.

At age 65:

45% of Americans depend on relatives
30% depend on charities.
23% are still working (most can't afford to quit and work until they are no
longer physically capable).
Only 2% are self-sustaining.

At the present time:

It is impossible to support a family of two working full time at minimum wage!

For the first time in history, the current generation is averaging a lower
standard of living then their parents! Automation is taking layoffs to
record highs!

The Bureau of Labor Statistics says... ...

Out of 100 people that start working at the age of 25, by the age of
65... –

1 is wealthy
4 have enough money to retire
63 depend on social security or charity
29 are deceased

95% of people, age 65 and over can not afford to retire and work until they die!!

What Happened to Safety & Security?

Why we no longer put our trust & faith in "Big Business"

In J. Paul Getty's book "How To Get Rich", his first rule for success is, "You must be in business for yourself. You will never get rich working for someone else."

This partly explains why someone starts a new home-based business in the United States every 10 seconds. In the past 14 years alone, the numbers of home-based businesses have grown from 6 million to 32 million with no slow - down in sight. In fact, an estimated 8,493 new home businesses open every day.

The United States is now driven by an information and service economy. Over the past decade, Fortune 500 companies have laid off 4.4 million workers while smaller companies steadily continue to reduce their work forces.

As companies continue to downsize and re-organize, many professionals will seek out and search for new ways to take control of their careers. Many of these individuals have forsworn traditional "nine to five" office jobs and are making their homes pay off in more ways than one.

For the entrepreneur, home-based businesses have become the bridge
between work- crazed big cities and easy- paced family-oriented small towns. Link Resources Corp. reports that market research shows more than 29 million people run either full-time or part-time businesses from their homes. People used to believe that their livelihood depended on living in big cities near big corporations. That is no longer true, thanks to personal computers, increased phone services, fax machines, and the Internet, it is no longer necessary to live in close proximity to "Big Business". You can now operate that "Big Business" right from your home office.

Within the last five to seven years, technology has been brought to an affordable level so that almost everyone has an equal playing field in the work-from-home industry...

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Next Month: Part 2, The Evolution of Buying

About the Author:

Michael Brosnan is the founder of Achievement Quest Consulting (AQC) which is an MLM/Start-up consulting firm with 6 years of operation and over 25 clients to date. AQC has developed and executed content and strategy for existing and mainly start-up MLM companies in the areas of compensation, marketing, training, corporate messaging and image; budgeting and projections, project coordination, product development and recruiting strategies, policy and procedures, forms and applications, just to name some of the services provided.

E-Mail: mikeb@max.com