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13/06/2016

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AN EMERGING GIANT – WHAT IS THE DIFFERENCE BETWEEN DIRECT SELLING AND NETWORK MARKETING?Network marketing – also called ...
05/06/2016

AN EMERGING GIANT – WHAT IS THE DIFFERENCE BETWEEN DIRECT SELLING AND NETWORK MARKETING?

Network marketing – also called multilevel marketing (MLM), person-to-person marketing, and one-on-one marketing – is a form of direct selling. You may already know about direct selling. Avon, Tupperware, Mary Kay, Fuller Brush… these are just some of the direct selling companies that have been household names for decades. Since the 1980’s, new network marketing giants have emerged, including Nikken, Herbalife, NuSkin, Maleleuca, and Prime America.

Direct selling companies market goods and services through networks of thousands of independent distributors. These distributors either buy products from their companies and then resell them to consumers, or they sell products on behalf of their companies for a commission on retail sales.

Network marketing gives direct selling a new spin. In both types of companies, distributors make money by selling products directly to consumers. But in network marketing companies, distributors can also make money by building their own sales organizations and receiving commissions or bonuses on the sales generated by the distributors in the organizations. The term “multilevel marketing” springs from the fact that distributors receive commissions on multiple levels of their organizations. Most direct selling companies today are structured this way.

Much of the power of network marketing springs from the fact that most people tend to seek advice about products, services, and even business opportunities from their friends and relatives. Moreover, they generally trust that advice. In fact, a poll by the Roper Organization revealed that the advice of friends and relatives carries even more weight than the advice that comes from strangers with impressive credentials. The poll showed that for every person who seeks financial counsel from a financial planner or stockbroker, three go to friends and relatives for advice.

Network marketing allows people to put that trust to work in a positive way that can improve the lives of those who give the advice, as well as those who take it.

HARD FACTS AND DEMOGRAPHICS ABOUT A GROWING INDUSTRY FROM 2006 (These facts are constantly changing but are reflective of the immensity of the direct selling industry)

Every week, more than 55,000 people in the United States alone sign up as network marketers – 150,000 per week worldwide.
In excess of 13 million people in the United States alone are distributors for network marketing companies; one in ten households have a direct seller.
Throughout the world, there are approximately 50 million network marketing distributors.
In the United States, sales in the network marketing industry are in the $30 billion range. Worldwide sales approach $90 billion.
The world leader in network marketing is the U.S. with Japan in close pursuit in the $20 to $30 billion range. Countries with at least $1 billion in sales include the U.K., Brazil, Italy, Germany, France, Canada, and Taiwan. Business is booming in the new frontiers as well: Eastern Europe, Russia and the People’s Republic of China. In fact, Amway in 2004 is headed for $2 billion in China, country only on the brink of formally allowing the reintroduction of network marketing.
Seventy-five percent of all network marketing distributors are women. Men account for 25 percent. (These numbers likely reflect the demographics of long-dominant companies like Avon and Mary Kay. Recent growth in the industry has been among newer companies that have a more even balance between male and female distributors.
Approximately 80 percent of networkers are part-time and 20 percent full-time people who work 30 hours a week or more in their business. For the vast majority of networkers, it is a “second job,” with the hope of $300 to $500 per month in auxiliary income.
About 3 percent of all networkers will make more than $35,000 a year; 2 percent will make more than $50,000; 0.5 percent will make more than $100,000 annually; and about 0.1 percent will make more than $150,000.
About 13 percent of direct marketers are African-American; almost 5 percent are Latinos; 1 percent are Asian; and about 0.5 percent are Native Americans.
Approximately 66 percent of distributors are between ages 25 and 44. Another 14 percent fall into the 45 to 54 age bracket. Seniors over the age of 65 account for about 5 percent of direct sellers.
About 8 percent of direct sellers have physical disabilities.
Over two-thirds of all network marketers have high school degrees or some college education, and 25 percent have a college degree or beyond.

THE FUTURE IS UP

So, where is this business going? The answer is “UP.” During the next decade, the Direct Selling Association projects that network marketers will recruit more than 200 million new distributors into the business worldwide. Asian markets are expanding rapidly, including India. In fact, even during recessions, the direct selling industry proves to be rather resilient. To know that all you have to do is check out the latest headlines. That’s not bad for a cottage industry that started with potions and lotions. Many will be along for this ride. “Going Up!!”

WOULD YOU JOIN A MULTI-LEVEL MARKETING COMPANY FOR RETIREMENT INCOME?At some point in your life you’ve been pitched a mu...
05/06/2016

WOULD YOU JOIN A MULTI-LEVEL MARKETING COMPANY FOR RETIREMENT INCOME?

At some point in your life you’ve been pitched a multi-level marketing (MLM), direct selling, or network marketing business opportunity. While the pitch varies from company to company, it basically promises a chance to ditch your 9-5 work schedule, be your own boss, and make lots of money while making new friends in the process.

It all sounds good on paper, yet there is a seemingly endless debate over whether these companies and programs are legitimate business opportunities or not, so I dug in and got the real scoop. As a result, I believe that the entire industry is poised for explosive growth and can be one of the most significant solutions to America’s current retirement savings crisis.

Initially, that may sound like a bold statement, but it’s not if you understand retirement the way I do. The reality is, making a successful transition into retirement has more to do with psychology than with money… and the same may hold true for multi-level and network marketing.

Don’t get me wrong, money has a role in retirement, but it’s not the primary one every one gives it. Combine that concept with eye-opening statistics like AARP’s estimate that half of all baby boomers (76 million) are interested in starting a business and the makings of a massive trend are in place.

As far as the retirement saving crisis is concerned, more and more people are coming to terms with the fact that they probably aren’t going to be able to save enough money to just sit around and slowly deplete their nest egg from age 62 to 100. With the average 50 year-old estimated to have less than $50,000 in retirement savings, there is an obvious need to find alternative ways to either save more or generate supplemental income starting now, and continuing throughout retirement. Moving beyond just the dollars and cents, boomers are growing tired of feeling guilty or bad about their past savings habits and are interested in moving towards possible solutions.

Another growing reality that could benefit MLM and related businesses is the increasing number of baby boomers who are disenchanted with their current careers. They’re worn-out from years of the corporate grind and don’t feel the connection between their job and the people it impacts outside their office walls or company grounds. They’re shifting their focus from accumulating a giant nest egg to a desire to be part of something bigger and better… to have a positive effect on others… and working in retirement. Facets of life that can be fulfilled with specific types of products and service available through some MLM or Direct selling opportunities.MLM and direct selling programs also offer very low barriers into entrepreneurship, often providing training, support, and ample encouragement along the way. As retirees begin to realize they need activities that keep them busy, relevant, in good health, and connected to others, the time, energy and cost to participate in these kinds of companies make them very appealing to large segments of the population caught up in these dynamics.

This is not a ringing endorsement for the entire industry. Like any investment of time, money, and energy, people need to be aware of what they are getting into and do their homework. That’s the primary reasons I began researching the topic by reaching out to regular everyday people involved in these types of businesses and who were willing to skip the hype and offer a transparent view of the programs and give their opinions as to whether this can be a realistic source of retirement income.

I initially spoke to a retired friend who said she joined a health and beauty direct selling company as a means of meeting new people. She had recently remarried and moved to a new location, so she combined the practice of meeting new people with making extra money. After almost a decade in the business, she’s built a small niche business with family and friends despite switching to from one company to another competitor after three years.

She admits she doesn’t attend all of the company’s local meetings and goal-setting sessions because she’s not interested in becoming a top producer. She just likes to use the business activity to keep busy (particularly in the winter) and use the extra money she earns to travel and spoil the grand kids.

Having studied the psychology and behavior of boomers, this example represents a major shift in my thinking about the industry. I no longer perceive these types of opportunities as money-making pyramid schemes. Instead, I now see it as a way to enhance many of the personal aspects of retirement that are rarely discussed let alone planned for, with the added benefit of supplementing other popular retirement income sources such as pension and social security.

Daria M. Brezinski Ph.D, a practicing psychologist and former marketing director for a multi-level marketing magazine, echoes these sentiments. “Many people don’t realize that multi-level marketing companies are successful because they help people satisfy a number of important human needs, including feeling significant, having connections, learning something new, and making a difference. I have heard people in network marketing say again and again, ‘I’m doing this because I’m meeting amazing people … making so many connections … and I feel so good about myself.’”

Dr. Brezinski’s point is well taken and easy to see practiced by popular network marketing companies. Many MLM and NM companies tout a three-to-five year plan to attain freedom and wealth, yet many of the people running company meetings have been in the business for five or ten years and still haven’t left their full-time job or landed on easy street. “As it turns out,” Dr. Brezinski notes, “when other human needs are being met, the members and consultants don’t focus solely on the financial aspects.”

Continuing my interviews, I challenged three others who are in the business to be straightforward, and prove to me that the process really works. What I found was good, consistent business advice applicable to any new business.

Lorene Hochstetler, from Ohio, recommends keeping your current job while slowly making the transition into MLM. She’s been able to replace her full-time income but explains, “It didn’t happen overnight, and I still work every day. I am very disciplined with my business and wake up every day knowing what I have to do in order to succeed at this. You have to treat it like a business and be willing to follow advice from others who have made it.”

Internet marketing, or online marketing, refers to advertising and marketing efforts that use the Web and email to drive...
05/06/2016

Internet marketing, or online marketing, refers to advertising and marketing efforts that use the Web and email to drive direct sales via electronic commerce, in addition to sales leads from Web sites or emails. Internet marketing and online advertising efforts are typically used in conjunction with traditional types of advertising such as radio, television, newspapers and magazines.

05/09/2015

You need to make a commitment, and once you make it, then life will give you some answers.

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