The Debate - Network Marketing - Is it the Next Boom Industry ?

The Debate-Network Marketing- Is it the Next Boom Industry ? 

          Many people have lost their jobs, homes, and businesses due to COVID-19 pandemic. While many others live in fear of losing their jobs, homes and businesses. So what is the best thing you can do during this time? Shouldn't we better prepare for the worst? Is there nothing we can do about our future? Are we so dependent on our bosses for lifestyle? Is the traditional business, that is, the hiring of premises, personnel, the only way to enter the business? Isn't the business risky?

           If you ask the government, they will tell you to cut back and give you ideas on how to save on your energy bills and your budget. If you ask the financial experts, they suggest that you should save at least 6 months of salary, so if you lose your job, you have a six-month mattress. If you ask the banks, they tell you to make additional mortgage payments, think about paying your mortgage ahead of time.

         Other suggestions are to reduce spending money on items called luxury, that is, clothing, etc. What about food? We could certainly make some cuts there. The list of clipped items could go on and on. But aren't we all really missing the point?

          Every good plan must have solutions to problems and must be backed by backup plans. If all we do is save money, cut down on social activities, leisure and food, make more mortgage payments, and live in fear, surely all we are doing is working on solutions to our problems now, what about the future? Traditional business owners have no refuge from the rise and fall of this century. How many traditional business owners are closing because banks refuse to lend money? Even good businesses are closing. Banks have frozen their loans or asked to have their overdrafts returned.

          This is an era, where traditional jobs and businesses are no longer a safe option. The property is no longer secure and many are being repossessed or are in negative equity. Those facing recovery can expect the mercy of their owners when they are renting, who increase their rent, to keep their own heads above water.

           Those lucky few, who have some money saved, where better to keep your cash? When do you find a place? How will your savings interest be? Will it constantly increase in line with inflation?

          Many companies are downsizing and many people in the coming years will face redundancy. What about those poor people, who have saved their whole lives for a pension, who have seen it almost disappear overnight? What should they do? We could go on and on. Damn and sadness, what can we do? Surely there is nothing we can do but cut back? Wait for the market to rebound in the coming years and hope for the best. Could we work towards a safer secure future? Could we build a business that can bring financial freedom for years to come? With low initial costs and big profits?
         Maybe, just maybe there is a way to build a more secure financial future? Could 'Network Marketing' will be the next big thing. Still The Debate-Network Marketing- Is it the Next Boom Industry ?

What is Network Marketing?

          Network Marketing is basically a distribution of product or services directly form the producer to consumer through the network of independent associates. This is not a new concept, we are already involved in this form of distribution chain on daily basis form the ancient times. However, Network Marketing business has formalized this distribution model.

         Lets take a simple example, if you are a housewife and you bought a new detergent powder, you tried it a liked it. Do you recommend the brand to your neighbor or a friend? Yes ! Of-course you do. If your friend bought the same brand because of your recommendation the sales of detergent powder company increases by your word-of-mouth promotion.
        Just imagine, how many recommendation do you make in your daily life. Shocked ! Yes, we do recommendations throughout the day, its human nature. Imagine, if you were paid for those referrals, how much money you have made? Network Marketing companies pays you for your every referrals and this is the difference between casual recommending and network marketing. So, Network Marketing is also commonly called word-of-mouth business.
        Network Marketing also allows you to provide this business opportunity to anyone you like with a small and low risk investment and they can do the same. So, Network Marketing is also called People's Franchise Business.
     Network Marketing is the perfect synergy between Franchising and exponential (compound) growth, which makes this a powerful business model of this century.

How big is Network Marketing Industry?

         Network Marketing is merely half a century old and is near about a trillion dollars industry and 118 million people associated with this industry. According to WFDSA (World Federation of Direct Selling Association) the total annual retails sales of December 2018 is 192.9 billion dollars, having 1.7% Global Compound annual sales growth rate (CAGR) over three year period form 2015 to 2018. This shows the sustained growth in the Network Marketing Industry over time. 

          Asia Pacific leads the industry with 46.2% of the global sales, followed by Europe 20.5%, North America 19.3%, South America 13%, Africa 0.8% and Middle-east 0.1%. 

           China hits the new industry record beating the US as the top direct selling market in the world with 35.73 billion USD which is approximately 18.52% followed by the US 35.35 billion USD which is approximately 18.32% and third biggest market is South Korea with 18.04 billion USD which is approximately 8.08% of global sales. 

          Globally, 118.4 million people are involved in network marketing by 2018 among them 74.3% are female and 25.7% are male.Asia Pacific leads the industry with 59% , followed by North America 15%, Europe 12%, South & Central America 11%, Africa 2% and Middle-east 1% involvement among the global distributor numbers. 

      Among nations Indonesia leads with 19.8 million followed by the US 16.5 million and Thailand 11.1 million people involved in direct selling industry

What is the future of Network Marketing?

       Network Marketing has evolved over half a century into a proven and a successful business model and has created many millionaires than other industry. Beginning as a part time job, Network Marketing is now a most promising career building opportunity. 

       With 118.4 million people involved and yearly increment ratio of 1.6%, is no longer a trail profession its proven and viable profession that is helping people over the globe to grow financially and achieving their dreams. 

      The economic lock-down due to corona virus pandemic has created worldwide economic catastrophe in both developed and developing world. A total of 81% global workforce of 3.3 billion have had fully or partially lost their jobs (BBC). 

        122 million people in India only has lost their job during Corona pandemic (CMIE, India) which is much higher than the US of 30 million. Is is estimated that 200 million workforce will completely loose their job after the pandemic.

        The global economic slowdown plays a crucial role that entrepreneurs and job holders needs to think out of the box to opt for a wide-spaced and business with low initial capital, minimum risk and high profit- “Network Marketing”- a business model which can out-stand the coming financial recession.

        Can Network Marketing can out-stand the upcoming financial recession period? Yes Of-course ! Network Marketing did smoothly in 2008/09 recession, so can do it again in 2020. Network Marketing had a average annual growth of 11% form 2009 to 2012 while all other industry were struggling for their existence. Network Marketing industry is the only one to welcome all 200 million estimated workforce who will loose their job after the pandemic.

       Network Marketing is the next boom industry not only because of its sales statistics. Network Marketing is much more than sales. It is a relationship business, so it will help to resolve the psychological issues, predicted to be the major issues after Corona pandemic. 

        Network Marketing enhances the passive income opportunity to general public, helps in women empowerment, provides opportunity for SME's, enhance employment opportunity and employment generation, initiate social responsibility and helps government as it increases direct and indirect taxes.

Conclusion

      It is evident from the above mentioned statistics and details that the Network Marketing has excellent potential to develop in future. It has impacted the social and economic aspects of people around the globe. Network Marketing will be the only industry to provide employment opportunity to maximum people who have lost their jobs during Corona pandemic. Easily we can conclude that, “Network Marketing- It is the next boom Industry”.

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