GLOBAL RECESSION COMING?
Help People! NetWork Marketing Can
Be Their Salvation!
By Rod Cook, B.sc., M.A., M.B.A.
The Global Economy keeps staggering around worldwide!
Russia saw a tremendous upset in their system. The Asian nations,
including the financial powerhouse that was Japan, are on the brink
of collapse. In the US all signs indicate a recession. This always
starts toward the end of boom in the financial cycle and indicates
an economic downturn. Worldwide people are worrying about their
On top of that we have the impending Y2K (year 2000
computer glitches) that will compound the economic problems. People
are beginning to worry. Then they quit spending money. This "Psychology
of Fear" fuels a recession. Y2K problems fed recession fears,
making the worldwide staggering worse two years ago. We aren't saying
there is going to be a "Depression" which is much worse
than a recession. What we are predicting with our studies (proven
98.6% correct over 10 years) is higher unemployment and underemployment
(people forced to work for less money).
STEP ONE --WHY?
General economic theory has proven that there is
a recession "about" every 8 years. This "boom and
bust" cycle has pretty
well "played true" for the modern history
of the United States. The interesting thing is that NetWork Marketing
has grown during the "down" periods. The oldest MLM Company
we can track is Watchers that started in 1934 at the bottom of the
depression. Nutrilite took off in 1945 during the economic decline
after WWII. Shackley and Neo-Life faired well in the post Korean
War slump. Amway got a good start building with the slump in 1958.
Mary Kay started with the downturn in 1963-64. This seemed to hold
true in 1992 when Kaire, Life Plus and numerous other companies
started up and became boomers.
STEP TWO -- UNDERSTANDING
Understanding the relationship between low cost
entrepreneurship and economics is important. During the last few
years the world economic boom made people complacent and lazy. In
the US, the jobless rate dropped to all time lows of less than 5%.
People had to be sick, lame, or lazy not to get a job. The underemployed
(hamburger flippers) got higher paying jobs (assembling computers)
and their income rose. So rather than looking for an alternative
to a job or seeking extra income these folks sat around and watched
television. Now 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
Another big factor that will fuel the growth in
NetWork Marketing is that many "Baby Boomers," who put
their saving in the stock market, just got a rude wakeup call! With
the decline of the stock market they saw their retirement plan funds
lose 25%-50% in value. They are realizing that the stock market
is not the great money fountain utopia it appeared to be. With the
of upward spiral of the stock market many baby boomers had resumed
their high flying, fast spending ways and have meager savings except
for the stock market. The stock market downturn was a rude awakening!
As the stock market flounders around in the future watch panic follow!
"Baby Boomers" with good sense will be looking for a secondary
way to build a residual retirement income.
STEP THREE - RESEARCH
To carry this further let's take a look at growth
during periods of economic decline. In the previous graph we tied
the start of some major companies that exist today with the downturns
in the economy.
This graph involved the study of 3 older companies Amway, Neo-Life,
and Neo Life and their accelerated growth rate during the 1973 recession.
Data from several other companies supported this same finding but
the information was not available for all years of the study.
In this graph we show the increase in growth of
major NetWork Marketing companies that were up and running in the
recession of 1973-75. If you study the graph you will note that
the companies weren't doing bad when the recession started. They
had a fair amount of growth. However when the recession came they
took off like a rocket!" Even after the recession their growth
rates remained higher than before the recession. This was probably
due to two reasons (1) the memory of the recession lingered in peoples
minds after the recession was over (2) a larger distributor base
recruiting more new people. The primary conclusion is that NetWork
Marketing does better during a recession!
STEP FOUR --CONFIRMATION
A telephone survey of 100 MLM company owners and
executives brought some interesting replies. I asked the owners
what they attributed the "lull" in the industry to. A
total of 58% said they thought it was the economy! Most said they
couldn't publicly admit it. The remainder gave mixed answers with
no statistical meaning.
Grab your hat and prepare for the next big boom
in NetWork Marketing! If you are a newcomer, study the industry
closely (and quickly), if you are an old timer get out all your
contact lists for the last couple of years. In a recession they
may turn out to be solid gold! You have to get out and help people
out of their economic duress!
It is the greatest of times to grow your NetWork
Marketing business! Whether you are a veteran or beginning NetWork
Marketer the future is bright. Why? History proves that when there
is an economic downturn NetWork Marketing booms! Why? Consumers
start looking for the best quality at the best price. Where do they
find it? Often in the quality products offered by NetWork Marketing
companies. Once they try the products and find that the value they
offer, the customer quite often is open to becoming a distributor.
Why? The recession causes people open their minds to gaining alternative
sources of income! Why? If they are still employed they are worrying
about the possibility of losing their job or having it downgraded.
If they are unemployed they are seeking ways to build their income
without spending large amounts of money to start a business. NetWork
Marketing is perfect for all types of concerned people during a
Rod Cook is the President of America's MLM Consultants
and Editor of the MLM Insider Magazine. When not working on starting
new companies he researches and teaches on MLM subjects. Rod has
the largest MLM library in the industry. The 1999 Edition of How
To Start Your Internet Multi-Affiliate or NetWork Marketing Company"
is out. This massive 280 page 8.5"x11" gives all the inside
secrets of starting a company from an MBA/Marketing perspective.
In its' 6th year of publication it is considered the "Bible
of MLM" information.