Has the current economy helped or hindered your MLM business?

Discussion in 'Network/Multi-level Marketing' started by Cheryl0305, Jul 25, 2008.

  1. Cheryl0305

    Cheryl0305 New Member

    Just wondered how the current economy has affected your network marketing business. Has it helped you because there are more people looking for a second source of income or has it been more difficult to find people that aren't broke. Also, how has affected your organizational volume and current commission checks?

    Cheryl
     
  2. Escalade

    Escalade Guest

    Network Marketing is recession-proof since this is a people's business. It is actually helping out since gas prices keeps on rising and people are really eager to start building a long-term business and start earning residual income. The key here is to start a foundation once, then you get paid over and over throughout your lifetime.
     
  3. unselfishguy

    unselfishguy Guest

    I agree with Escalade. Network Marketing is recession-proof. No matter how the economy is like, people are still looking for ways to change their lifestyle and become financially free from home
     
  4. getagrip

    getagrip Gold Member

    Escalade: Network Marketing is recession-proof since this is a people's business. It is actually helping out since gas prices keeps on rising and people are really eager to start building a long-term business and start earning residual income.

    This is actually both true and false. On the one hand, more people may join MLMs because they are looking for ways to supplement their incomes. On the other hand, consumers in a resession - with sky high gas prices - are less likely to spend money on things they don't need, so even though you might be able to get more people to join your MLM, the chances of you making product sales are diminished, which hampers your ability to earn money.

    Ultimately, the ability to make money in any business depends on how much demand there is for the product you are selling, and whether or not people are willing to shell out money to buy that product. When consumers hold on to more of their money because they don't have a lot of disposable income to spend, you are much more likely to succeed when the product you are offering is seen as a need, compared to a want.
     
  5. itsjoanne

    itsjoanne New Member

    So much depends on our attitude.

    We can see the current economic conditions as a great opportunity to build our business.

    There is no question the economy is hurting many people, and some of them will be open to network marketing.

    I do believe in sharing what we have to offer to people. Whether or not they respond of course is up to them. But we have a wonderful thing to offer people.... a chance for financial security if they are willing to take action.

    I really believe network marketing can thrive in these economic times.

    Joanne
     
  6. annadenise

    annadenise Active Member

    It depends on the product and the company. Ex.: Baby boomers are concerned about health issues and as people get older they tend to take some nutritional supplements. So health related products geared toward baby boomers are not affected as heavily as some other products might be. In fact the particular co I work with has had unprecedented growth in the last 3 months, and it has been around for 9 years.

    Also as others have stated here, this is a time when people are looking for either supplemental or replacement income due to the economy in the USA.
     
  7. luvtravel

    luvtravel New Member

    There is ALWAYS a need to earn a good income

    Families need more money to buy food pay for gas and the business I promote is booming

    It's a Mom-friendly business especially for the busy Mom!
     
  8. alexa

    alexa New Member

    I don't agree at all that network marketing is recession-proof, and I think the historical evidence is overwhelmingly against that point of view, too. In recessionary times, worldwide, more network marketing companies get into trouble than in non-recessionary times. That was well observed in the 1980's.

    Looking at it superficially, you might think that in bad economic climates more people are looking for additional income sources. I think that's true in so far as it goes, but many of the people who are looking, especially in the early stages of a recession, are those who aren't all that well equipped to set up a run a business, don't do their due diligence, and make many mistakes, so the newbies probably don't do so well, overall, in a recession as at other times.

    The pricing of the company's products is also highly relevant. If they're universally perceived as "overpriced", that will have more of a negative impact than the need to earn extra money has a positive impact, because people will find themselves thinking "How am I going to manage to sell this, at that price, when people are so short of money?" And that saps confidence and makes prospecting really difficult.
     
  9. DHL

    DHL New Member

    I think it's a double edged sword. People are looking for a second income because their hours were either cut back because of the economy or cut out all together. That should make people want to give alternate incomes a shot right? WRONG!!!! The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest". That's the reason you should do it in the first place!! It goes around in a vicous circle. I've been in multi level for many years, and always made sure i picked GOOD QUALITY PRODUCTS OR SERVICES to promote, and never really had a problem promoting them, and i definitely feel the punch of the economy. MLM's are hard work, but they should also be fun, and motivating. Sometimes i feel guilty about taking someone's last dollar, (as they put it) The problem is people would rather sit around and complain about being miserable instead of getting out and changing their lives for the better. Believe me, the economy has hurt my family as well, but i refuse to sit around and watch it get worse. I try to use my knowledge to the best of my ability, and try to invest in opportunities that can truly be something great!

    DHL
     
  10. alexa

    alexa New Member

    DHL: The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest".

    I think we all hear you there.

    But that's one of the reasons why MLM companies which require their distributors to pay a sign-up fee and then make a regular monthly purchase themselves, just in order to "qualify" to get paid, are coming in for some trouble in this economic climate. Exactly as they have done in the past in recessionary times.

    People are looking for something they can set up and get running with almost no cost at all, and no monthly outgoings, precisely because they "don't have any money to invest".

    In difficult economic times, the people who get rich are the ones able to offer what people already want and need - not the ones who have to re-educate people and try to persuade them to want and need different things! [​IMG]

    MLM-ers like to tell themselves, and each othe,r that when people are feeling the pinch, that's the time they want to earn extra income so they "ought" to be more willing to look at business opportunities, and sponsoring "ought" to be easier. The reality, however, has always been exactly the opposite and for exactly the reason you mention above, DHL: their two prime requirements are not needing to spend much to get started, and not needing to pay out money every month to "run their business".
     
  11. DHL

    DHL New Member

    Alexa,
    I hear what you're saying.....Believe me, i hear it every day! But in reality if someone were to go into business for themselves, whether it be a MLM or something else, there is always going to be some sort of start up costs especially in the beginning. Of course there are some exceptions to the rules, but most of the time this is the case. It could take hundreds, even thousands of dollars to start up your own company, and there is NO GUARANTEE it's going to be successful, and most people don't even take a paycheck for sometimes 2-3 years and even more! So when you look at it like that, if people have the opportunity to possibly make a very nice income for the rest of their lives, a few hundred dollars seems like a small price to pay. Not everyone thinks like that, and that is the sad reality. A lot of times it's just finding the right people, and that can take some time. I've got some people in my business, that just take the bull by the horns, and just run with it. Others it's like pulling teeth to get them to do something! But like you said in a previous post, I think people have to be in the right mindset, and really be looking. You can get lucky with people who aren't, but you just have to catch them at the right time.

    DHL
     
  12. promlmer

    promlmer New Member

    What if your products are food, delivered to your front door? More convenient, less gas and time to go grocery shopping. "Will work for food" takes on a whole new meaning. What if you could show people how to eat for free? Now we're talking.
     
  13. promlmer

    promlmer New Member

    What if your products are food, delivered to your front door? More convenient, less gas and time to go grocery shopping. "Will work for food" takes on a whole new meaning. What if you could show people how to eat for free? Now we're talking.
     
  14. promlmer

    promlmer New Member

    My product sales have gone up an average of 10% monthly. I believe we are successful in this way since our product is food. I won't live without it.
     
  15. jaynen

    jaynen New Member

    I'm kind of in the same position as promlmer. With ACN, it's a product that everybody needs, has, and is going to keep no matter what, so product sales aren't affected at all. As far as signing people up, many don't have the "extra" 500 bucks laying around, but they do have $500; they just need to know that if they invest that $500 they will see results, so the concern for success is much greater. All of this is why it's been a bit easier, people are really taking the business seriously now, because they need to make something happen and cannot afford to lose.
     
  16. bestlifeinfl

    bestlifeinfl New Member

    I have to say both helping and hurting.

    We have more prospects now and they are open to looking, but less of them have the cash to start.

    It simply means going through the num,bers.
     
  17. RICH4NURICHE

    RICH4NURICHE New Member

    INTERESTINGLY AND UNFORTUNATELY IT WAS STATED THAT ILLEGAL NARCOTICS WERE THE LEAST AFFECTED BY THE ECONOMIC SLUMP.
     
  18. donanddeexxx

    donanddeexxx New Member

    DHL: I think it's a double edged sword. People are looking for a second income because their hours were either cut back because of the economy or cut out all together. That should make people want to give alternate incomes a shot right? WRONG!!!! The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest". That's the reason you should do it in the first place!! It goes around in a vicous circle. I've been in multi level for many years, and always made sure i picked GOOD QUALITY PRODUCTS OR SERVICES to promote, and never really had a problem promoting them, and i definitely feel the punch of the economy. MLM's are hard work, but they should also be fun, and motivating. Sometimes i feel guilty about taking someone's last dollar, (as they put it) The problem is people would rather sit around and complain about being miserable instead of getting out and changing their lives for the better. Believe me, the economy has hurt my family as well, but i refuse to sit around and watch it get worse. I try to use my knowledge to the best of my ability, and try to invest in opportunities that can truly be something great
    That hit the nail right on the head!
     
  19. Mark_Worthen

    Mark_Worthen New Member

    My personal sales and the sales of our company overall are UP since the recession began. I would think that people recognize that their jobs (if they still have them) are vulnerable and they're looking for a second source of income.

    However, overall statistics show a different trend. Google Trends data shows that interest in home business, as reflected in searches for such keywords, has decreased slightly since last year and both 2008 and 2009 demonstrate much less interest compared to 2006.

    There does appear to be an annual pattern in that interest in home business, work at home, and make money online opportunities will be at its highest in December and January.

    The Google Trends graph I'm referring to is here:

    http://www.google.com/trends?q=home+business,+work+at+home,+make+money+online&ctab=0& geo=all&date=all&sort=0

    All the Best,

    Mark

    P.S. There could be other explanations for the trend shown in that graph. For example, maybe in previous years people searched for "home business" but now they search for more specific terms such as "home business Internet" or "work at home online business".
     
  20. Gcmaupin

    Gcmaupin Guest

    I am still taking my baby steps in MLM so maybe its my approach but i am running into alot of the money isnt right at this time kinda situations. i Market bolth online and face to face so I know i have a lot to learn
     

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