MLM Comes of Age

For many people the very letters "MLM" conjure up images of scams and ripoff schemes and unscrupulous people creating huge "pyramid schemes" to benefit themselves. Of course, then there are the very reputable companies that have built very successful businesses and have created some of the world's largest distribution networks that have lasted for decades...and are still growing.

Such names as Avon, Mary Kay and Prepaid Legal have been around for decades and use the MLM model to build very successful businesses. The old Amway organization is still one of the largest consumer distribution networks in the world. So why does MLM have such a bad rap? After studying this question for some time now and having experienced a number of network marketing ventures, I think it comes down to a few simple facts. These we will take a closer look at on another "blogday" as it deserves its own detailed analysis.

It is clear, I think, to most people that the phenomenon called MLM is about to change. This is due to several events merging at the same time. Firstly, the evolution of the Internet. It wasn't really around in its current form ten years ago but it now provides a platform for smaller companies to compete head-to-head with the bigger players. People, in ever increasing numbers, turn to the web now for all their information, including shopping and placing their orders.

Secondly, in the current economic downturn, people are losing their jobs left and right and it is getting worse. This means in many cases, millions of unemployed individuals will have to seek out some other form of income. As 90% of the population is still working many of the 10% unemployed will be looking for ways to sell them stuff. For many that will be the only way to create a decent income. Investing in a new business or buying a franchise is not an option for most people. They also cannot find another job. So what is left?...NETWORK MARKETING! Low start-up costs and ready-to-use marketing materials and tons of free training. In fact in most cases for a couple of hundred bucks you are in business.

Lastly, we have all the retailers either going out of business or closing stores and trying to find ways to reduce expenses and sell more effectively. Many are finding out a centralized distribution center, a commission-based local sales force and electronic advertising (the Internet) is a lot cheaper than local stores, labor costs and massive consumer campaigns to get people to put expensive gas in their cars for the privilege of spending their money.

We are on the verge of network marketing (MLM) becoming mainstream. The only question is will you be in front of the curve and profit from a trend that is almost inevitable? This blog plans to explore this question in great detail and help you find the right opportunities. The next posting we will explore why so many of us have not succeeded to date in this emerging giant.

Colin Buckingham - Global Internet Entrepreneur