Should The Business Be Called MLM or Network Marketing or Direct Sales?
By Edward Ludbrook
Its alway good to have the latest facts and analysis on the industry to give you a feel of the big picture! Understanding your industry builds understanding and confidence.
Rather than bury you with facts and analysis [my speciality], I'll give it to you piece by piece over three emails.
EVOLUTION HAS ARRIVED!
PROOF of the EVOLUTION of this industry is captured in this one graph! This graph is the % of companies that use MLM plans or single level in USA from DSA 2007.
What does it mean?
Basically that MLM/Network Marketing = Direct Sales [and visa versa]
There is always confusion over whether your business is 'MLM', 'Network Marketing, Direct Sales, TEAM marketing etc etc. It does not matter amongst us insiders, YET it is very important in marketing or brand building.
The fact is that 20 years ago, Single-level companies dominated direct sales and these companies hated the MLM companies. Also MLM companies thought the term 'direct sales' was uninspiring so they used MLM and then Network Marketing.
Now even Avon has gone MLM. YET they haven't actually 'gone MLM'. In really the MLM plan has proven itself the best way to reward leaders. So Avon has a 'leadership programme using a MLM compensation plan'.
Basically EVERYTHING is Direct Sales now. Thus even me, 20 years of promoting 'mlm' and then 'network marketing', I now only use the term Direct Sales. Thus the 'Direct Sales University'.
SO what?
Well it means when you analyse the industry we focus ONLY on Direct Sales.
It means that the terms MLM and Network Marketing will be used less and less by companies.
In fact the brands 'MLM' and 'Network Marketing' will be hi-jacked by the 'Internet Opportunity World' who are just focused on recruiting. Basically online pyramids.
Lets be honest 'MLM' and 'Network Marketing' are confusing and often negative terms to use in sponsoring presentations now anyway.
It 'Direct Sales' from now on!
That's cool, companies like Dell and Amazon also say they are in 'Direct Sales'!
Seize the Day!
Direct Sales Boom Markets are in South America, Russia, Thailand and India.
World Federation of Direct Sales Assocations collated all the countries statistics. It isn't perfect yet it gives us an idea of trends, hot countries and concerns.
Global Retail Sales - US$113 billion
Global People - 66 million
So what does this mean?
Point 1 - this is a large established industry. We are big yet compared to most industries we are still very small. Less than 3% of global retail sales.
Point 2 - Trends?
Basically the industry is growing yet it is slowing. Classic indication that an industry is evolving! IF you look at the detail.
Point 3 - The detail
There are many changes globally.
Boom markets are South America, Russia, Thailand, India.
South America is rocking.
Only USA and Japan has more sales than Brazil. $10bil in sales.
Equador has the same sales as Sweden. Colombia has more sales than Canada. Venezula more than Australia.
Russia is going CRAZY!
4.4million people. Nearly half of all people in Direct Sales in Europe!
The slow markets are Asia and the most established. Asia has boomed SO much, its time they had a bit of a shakeout. The established markets are in the process of evolution. 100% Success will transform them!!
Summary
1. Big established industry
2. The first to develop are in process of evolution after a huge boom and the last to develop [russia, south america, india, etc] are still in 1st growth boom.
Standard stuff.
Just make sure you are part of next generation, not past generation!
Seize the Day!
Ed
The Leadership Guy
What is the Size of the Companies in Direct Sales Industry Globally?
A great magazine called Direct Selling News is published for Corporate Leaders globally. They just announced the details of a survey of the 'big companies.
Now this is companies as measured by 'wholesale revenues' - how much money came in the door!
Billion Dollar Club
There are 11 companies with more than US$1billion is sales.
Obviously led by Avon on $10.9bil [and 5.5million people].
Amway is on US$8.2bil - up $1bil in one year!
8 US companies, 2 Europeans and a Brazilian.
$100 Million Club
There are 64 Direct Sales companies with more than $100mil sales. 64!!! Wow!
Companies by Country:
United States 42
Japan 13
Germany 2
Peru 2
Brazil 1
China 1
Mexico 1
Sweden 1
United Kingdom 1
Yes, you saw correctly, 2 from Peru!
What does this tell us?
66% of companies are American yet only 25% of sales come from USA. Lets hope the Americans know where their future lies. I think they do.
We have a diverse industry. Not just a few stars.
We know how to do this business!
Most important point is that EVERY $100mil company could become a $billion one.
Big growth ahead!
Seize the Day!
Ed
The Leadership Guy
How to Spot the Next Big Trend
By Charlie Page
Have you ever known someone who could see around the
next corner ... see trends forming before others do?
What would you have given to know that Google would
become the giant it now is or that YouTube would be so
pervasive?
And yet, some people did see these things coming.
People who possess such foresight are often credited
with having a 'sixth sense' for business.
Yet when they are interviewed they consistently state
that the only thing that makes them special is a keen
sense of observation.
Unless they are universally humble, not a description
that fits this crowd, perhaps sharpening our sense of
observation is in order.
One word of warning. What I am talking about here is
taking a bit of time to observe trends about what
people need, NOT about following what the marketers
push.
If you fall prey to the "next big thing" mentality that
the gurus count on you will find your wallet empty,
your brain spinning, and your prospects few.
Am I saying the $2000 home study course or online
memberships are a ripoff? Not at all.
I'm just saying that it is more valuable to *think*
about what people need and find a way to meet that need
than to follow the herd waving their Visa cards at the
next big thing marketers.
That said, let's look together at how to develop that
kind of foresight.
1. Study trends and fads.
There are many great books on
trends and what's coming next. Read a few and learn how
to spot the trends.
Just as economists look for 'leading indicators', you
look for leading indicators on the Web. What's the next
'killer app'? Does it hold up in the real world, or is
it being hyped? Answers to questions like these can
provide a keen insight into what's next.
2. Start predicting.
Keep a notebook with your predictions of what the next
big thing will be in the next 3 months, 6 months and
one year. This step alone puts you way in front of 99%
of the general public.
3. Think globally.
The Internet has made the world a global marketplace
that you can attack. Don't overlook opportunity by
thinking only locally. It's as easy to sell across the
globe as it is across the street. Factor this in when
you study the market.
4. Position yourself to know the key players.
After you learn how to see trends coming, contact who
you think the key players will be and form a
relationship with them. It does NOT matter that you are
a small fish and they are a guru. Have the chutzpah to
contact them and you gain instant respect.
5. Become 'sales resistant'.
If you are going to get into the prediction game,
you'll need a powerful sense of what's real... and
what's just smoke and mirrors.
The key is to be at the right place at the right time.
See the trend, get in and make your money.
Once you learn to do that, it may be you being
interviewed as the next innovator!
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Charlie Page helps people succeed online with products
that educate combined with personal support.
To see all that Charlie offers, including a chance to
work with Charlie personally, visit him now at ...
http://www.RealWorldTactics.com