The fact is that “explaining the industry” has become much easier for the networker in recent years. Not only can direct sellers point to the U.S. presence of 14 million networkers selling $30 billion in products and services, but U.S. financial markets and Wall Street have provided much needed validation.

1. In addition to Warren Buffett’s Berkshire Hathaway, the signature U.S. financial conglomerate, acquiring Pampered Chef, major Wall Street and N.Y. investment capital funds have invested billions of dollars in the acquisition of Shaklee, Herbalife, Arbonne, Neways, etc.
2. Leading direct selling companies are traded on major financial stock exchanges, including Avon, NuSkin, Tupperware, USANA, Pre-Paid Legal (LegalShield), etc.
3. World famous brands have chosen network marketing as additional channels of distribution, including Virgin, Time Warner, Body Shop, Crayola, etc.
4. World financial giants such as Citibank have added billions to the bottom line in the distribution of financial services through subsidiaries such as Primerica.

Read how to tell the difference between a pyramid scheme and a “real” direct selling company in the article, “Is This a Pyramid or a Legitimate MLM?” Or, watch the video: From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM.

Visit us at www.mlmlegal.com to learn more.

People have always asked the question “Is this industry for real?” “Is MLM a real option for individuals out there?” Keep in mind we have more than 16 million people in the United States selling consumer products and services in the range of $30 billion, and more than 90 billion people around the world doing this with sales exceeding $100 billion. This activity penetrates the fabric of our society. Earlier statistics, presented by the Direct Selling Association, have indicated that, perhaps, one in ten households have somebody who is doing this part-time.

Network Marketing is Plan B for Most People…

Keep in mind that 90 percent of the people who do this are looking for auxiliary income. Basically, this is not a place where you would be looking for a full-time job, although many people have been successful in that way. However, we have noted a recent “sea change.” When the U.S. economy collapsed in 2009, we started seeing speeches, talks and articles about the attraction of the network marketing opportunity as a viable part time income option. And, here, we’re talking about companies that offer a real opportunity, with real products, not fly-by-night scams.

Avon Recognizes the Silver Lining in the Recession Cloud…

 Avon recognized that lemons make lemonade.   People started to talk about Plan B as the new Plan A as baby boomers saw downsizing at their employment, as they saw their 401K’s and their pensions cut in half. Everybody was looking for an auxiliary source of income and they were looking for a real business activity.

In 2009, something interesting occurred. Companies like Avon, which had very real opportunities to offer individuals during this very difficult economy, decided “this is our time.”  In the 2009 Super Bowl, the programming led off with an Avon commercial. Not for the cosmetics, but for the opportunity, a first in the direct selling industry. Perhaps Avon was hoping to attract all of those ladies that basically were watching just before they went into the kitchen to make nachos for the guys, but interestingly enough, right after that commercial, the National Anthem was sung by Jennifer Hudson of the movie Dream Girls.  And coincidentally, Jennifer Hudson was also a spokesperson for Avon, a very good move by the Manhattan-based company. Other companies, such as Amway, also saw that in 2009, during the collapse of the economy, it was time to present real opportunities to Americans and a time to get back to promoting their brand. As a result, in 2009, we saw a tremendous growth in recruitment all over the country. Americans were obviously hungry for something real.

Yes, Network Marketing is Real… Put the Foot on the Pedal…

Is MLM/Network Marketing still relevant? Well, if the opportunity is “real,” prospective recruits will answer with a resounding “yes.” It isn’t the next real full time job for most, but with a little perspective, it is obvious that this channel of distribution offers most people a part time opportunity that may make the difference in their next mortgage payment or payment of those notorious credit card bills. Plan B may not be the answer… but it is a piece of the puzzle.

Watch the companion videos to this blog post: From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM and Is the MLM Industry “for real” in the Business World?

You may also find the following articles helpful: “Is This a Pyramid or a Legitimate MLM?” and “Network Marketing Legal Issues.”

Visit us at www.mlmlegal.com to learn more.