Every eleven seconds, someone around the world starts a home-based business.
The vast majority, some 30 million in the USA alone (according to Home Based Statistics) start their businesses in the Network Marketing Industry, looking to achieve financial freedom from home. Mark Hayes, professional marketer from California writes; “What many do not realize is that while Network Marketing is strong, global trends indicate the MLM business model is quickly being replaced by the new Direct Sales model”
Why is Direct Sales replacing MLM? The writing is on the wall according to Mr. Hayes, a 10 year veteran of MLM, stating that:
1) MLM’s make duplication very difficult with outdated marketing techniques and limited “local/warm market campaigns”
2) MLM’s offer small commissions compared to Direct Sales…this means more work for less money.
3) MLM’s refuse to allow their consultants to utilize the largest market on the planet, THE INTERNET, making saturation in local regions imminent.
Photo by jenny downing (on the run)
bobby press on July 14th, 2009 at 1:22 pm
At some point, the MLM programs will wake up to the fact that their limitations on Internet activity are hurting much more than they’re helping.
And, for what it’s worth, many direct sales opps have limitations in that regard, too.
Nate Holland on July 14th, 2009 at 8:15 pm
I understand where they’re coming from but direct selling seems to be too much work too. MLM gives you a chance to work at home and do your own thing. Probably, you don’t earn as much as you would with direct selling, but with good products and a great mailing list, you’re good to go.