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State of the Industry
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April / May 2000
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Other
State of the Industry
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A Networking Population Explosion

The Four Greatest Fears of Starting Your Own Business

The Academy of Network Marketing?

The Code of the Business

Your Time Is Now

The Village is Back


please click below for a more updated version of his article with video

http://www.mlmconsultant.com/mlm_network_marketing_economy_recession.htm

 

WHEN RECESSIONS COME NETWORK MARKETING GROWS

By ROD COOK

If you're in network marketing, there's good news, and there's bad news - and the great news is that, for you, they're both good news.

State of the Industry In good economic times, people are less interested in career alternatives, but they can more easily afford to buy more consumer goods. In bad times, they crave new business opportunities. Today, we could soon be facing global recession - and tremendous worldwide opportunities for you.

Our Countercyclical Business

General economic theory holds that there tends to be a recession about every eight years. The entire history of the modern United States reflects this boom-and-bust cycle. Consistently, network marketing has grown during the "down" periods.
  When recession hits, those with any intelligence are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best of all alternatives is network marketing.
Understanding the relationship between low-cost entrepreneurship and economics is important. During the past few years, the world economic boom has made people complacent. In the U.S., the jobless rate dropped to all-time lows of less than five percent. People had to be sick, lame, or lazy not to get a job. Hamburger flippers got higher-paying jobs, such as assembling computers, and their incomes rose. Rather than looking for an alternative to a job or seeking extra income, these folks sat around and watched television.

When recession hits, those with any intelligence are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best of all alternatives is network marketing.

In the graph, we show the increase in growth of several major network marketing companies operating during the recession of 1973-75. You will note that the companies were not doing badly when the recession started. They had a fair amount of growth. However, when the recession came, they took off like rockets!

Even after the recession, their growth rates remained higher than they were before the recession. This was probably due to two reasons. First, the memory of the recession lingered in people's minds. Second, there was now a larger distributor base, recruiting more new people.

Another factor that will fuel the growth in network marketing is that many Baby Boomers have put their life savings into the stock market. With the market's recent upward spiral, many Baby Boomers have resumed their high-flying, fast-spending ways and have meager savings except for stocks. With the inevitable, cyclical decline of the stock market, they will see their retirement plan funds lose 25 to 50 percent in value. Panic will follow. Baby Boomers with sense will be looking for secondary ways to build a residual retirement income. We maintain now is the best time to grow your network marketing business. Whether you are a veteran or a beginning network marketer, the future is bright. Soon consumers will be looking for the best quality at the best prices. Where do they find it? Often in the quality products offered by network marketing companies.

Recession causes people to open their minds to gaining alternative sources of income. If they are still employed, they are worrying about the possibility of losing their jobs or having them downgraded. If they are unemployed, they are seeking ways to build their income without spending large amounts of money to start another business.

Network marketing is the ultimate "recession-proofing" for your economic life.


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