The Industry of Opportunity
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For network marketing, or "start your own business from home" it has been a very good decade. In the past 10 years, this industry came into its own and forced its way onto the map of mainstream business. A number of trends helped drive this change. Here are the key events, as far as I've observed them:
Corporate America has been downsizing and job security has faded into dimly remembered history.
Statistics show that most new jobs now come from small business.
Home-based business has become a reality for millions of Americans - inspiring millions more to dream about opening one.
The term "networking" has become a buzzword in the business press, as more people realize the crucial role of referrals in the economy.
The Internal Revenue Service has adapted its rules (somewhat) to the new home-based economy by recognizing independent contractor status and publishing specific tax-preparation guidelines for "direct sellers."
In Tune with the Times
There are a number of reasons why the network marketing industry reached maturity and respect in the 1990s.
As millions of Americans launched home-based businesses and entrepreneurial ventures of every kind, they created a climate in which network marketing could flourish. For instance, it was not so strange anymore for an attorney to leave his practice in order to run a new company of some kind out of his den. Most people have come to know someone who dropped out of the 9-to-5 world and turned entrepreneurial. Hourly and salaried employees have become intrigued with the idea of financial freedom and economic autonomy. Suddenly, they are much more open to change - and better prospects for network marketing.
Another change that favors the networking industry has to do with sex. In the past, most direct sellers were women. As a result, this was often seen as a woman's business, which tended to discourage male recruits. But as opportunities in the industry have increased, more men have been attracted to it; in turn, the all-female perception has faded, increasing the industry's ability to attract men.
The sheer number of network marketers also has exploded. By the end of the 1990s, more than 10 million people were involved in the industry here in the U.S., racking up more than $20 billion in yearly sales. Worldwide, the number of distributors has topped 30 million, generating more than $80 billion in annual sales.
When an industry gets that big, even corporate bureaucrats begin to notice. Major multinational corporations are taking account of the networking phenomenon, building it into their own plans for distributing products and services. Here are a few of the marketing partnerships that have been formed: Avon-Mattel; Tupperware-Disney; Amway-Rubbermaid; DuPont /ConAgra-Legacy.
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