Today I want to bore you with a very powerful information. Yes it is boring but after reading this, you will never look at Network Marketing the same again. So make sure you read every single word that follows. Good luck!
History of Network Marketing
Network Marketing is about half a century old. It all started in 1959 by the founder of Amway. The industry has since evolved through various phases to the point where it is today.
In years past, network marketing was dismissed by many business leaders as a get-rich-quick scheme, analogous to chain letter and pyramid scams. But those days are gone. Today Fortune 500 corporations flock to do business through marketing networks and Wall Street analysts sing the praises of these companies’ sales methods.
Indeed, network marketing has grown into one of the driving forces of the twenty first century economy. Industry experts estimate that annual sales through network marketing have reached about $20 billion in the United States alone and $80 billion worldwide. There is an estimate that about 8 million people are engaged in network marketing in the United States alone.
Why are so many people doing it?
“Because network marketing is the answer to one of the most nagging questions facing people in the Information Age. How do you make a living in a world where there are fewer jobs being created and many become obsolete.” Richard Poe, Wave 4, Network Marketing in the 21st Century
Phase 1 The humble beginning of the industry was initiated by the concept of direct selling. For example, I have a product and if you help sell it you can keep a share of your profit. An example of such a company that had a single layer marketing was Tupperware.
Phase 2 Over time, many people in Phase 1 begin to realize that their friends and family wanted to join them in the pursuit of business too. Thus, the concept of multilevel marketing (MLM) began to take form. The focus was still very much on personal distribution of products and profit margins rather than building a large network of individuals who will contribute accordingly. The focus was still very much on selling, personal volume and product training rather than building and training leaders. They could not see the power of duplication as the compensation plans in place only reward people for being first level distributors or agents.
Phase 3 The older companies became smarter, more mature and began to realize the potential of allowing people to earn income from multiple levels. The networkers in this phase were excited about their income potential with many of them being housewives and non working professionals. Though the money was good, this phase saw the lack of professionals, training, system and technology. A lawyer for instance could not see himself as a direct sales guy no matter how lucrative the potential income was.
Phase 4 This phase saw the birth of a new breed of professionals embarking on a new mission, that is, to build Interactive Systems. The industry was beginning to attract a different segment of society, the new professionals who were beginning to turn this part time venture into a successful career. The emphasis was building successful, duplicate networks with a strong leader-ship base supported by a structured system of training, function, books, tapes and CD’s.
Phase 5 The industry is seamless and global. There are no geographical boundaries. Thus, allowing many to build international networks through the power of the Internet from their very homes. This is the future of network marketing and it is rapidly evolving alongside technology.
The industry is the most misunderstood because of the image created in Phase 1 and 2 which required door to door selling and product demonstrations. Many shun away for fear of being laughed at by friends and their pride being tarnished. Today, times are changing and more and more people are looking for ways or alternatives to supplement their present income. The climb up the corporate ladder is very difficult. With respect to traditional business the statistics are alarming. 65% of businesses fail in the first six months, 95% fail in 12 months, out of which 10% survive and break even. A mere 1% makes a profit in 2 years.
Network Marketing is an attractive option as all one needs is a serious desire to make money and to treat the business professionally. Many walk today as ‘professional networkers’ proud of the freedom the industry has been able to provide. In the years ahead, this new revolution will continue to shake the world economy to its roots and challenge traditional economic fundamentals. It will leave the world a freer and more prosperous place.
Network marketing is poised to transform into one of the most potent business forces of the new millennium.
Now the question you need to ask, Is Network Marketing for you? I don’t know. But if you’re like me, who wants more money and time for my family, friends and community, then u should consider Network Marketing.
In the next post, i’ll give you 10 Solid Reasons why you need to take part in Network Marketing right NOW!
Authors bio is coming up shortly.