Network Marketing with Magnetic Sponsoring and The Renegade

 By Mike Klingler

With the recent news of the devastation that is taking place on Wall Street and in the real estate market it is clear that a recession is certainly a possibility. There are two schools of thought about whether network marketing is a recession proof business.

“This is a terrible time to build my business. People barely have the money to pay their bills. Where are they going to get the money for my start up fee and monthly product requirements?” 

“This is the best time to build my business. Because times are so tough, people really see the value in starting a business on a part time basis. They are willing to redirect their spending to make the necessary sacrifices to start a business.”

So which view is right? Let’s take a look at the numbers to find out.

Network Marketing Companies’ Performance During the Last Recession

The last economic recession that took place in the United States was from March of 2001 to November of 2001. If recessions were bad times to build a network marketing business you would think it would show up in the financial performance of network marketing companies.

According to the Direct Sales Association, in 2001, the estimated US retail sales for Direct Sales companies was 26.69 billion dollars. That’s up from an estimated 25.57 billion dollars the previous year.

There were an estimated 12.2 million people involved in direct sales in 2001. That’s also up from 11.0 million in 2000. That means during a recession an additional 1.2 million people made a decision to get involved in direct sales & network marketing.

What’s significant about that number is that it represents a larger increase than in any of the previous four years where the economy was rocking from all of the growth that was taking place in the technology sector.

The numbers don’t lie. Network marketing looks like it is, indeed, a recession proof business.  

What Recession Factors Drive Growth in Network Marketing Businesses?

There are a number of factors in a recession or a bad economy that drive growth in network marketing. During tough economic times people who were previously not interested are more open to the idea of starting their own business.

In addition, when the economy slows down people look for ways that they can save money. If you truly offer a product that creates value in the life of a customer, particularly if it can save them money, you will do very well in a recession.

The other trend that drives the growth of a network marketing business during a recession is slow to no job growth. Many people are forced to take jobs for less pay.

As a result, many of these people are looking at ways to help them get back to the income levels they previously enjoyed. Network marketing is one of the few opportunities that can help them do that.

So if you are worried about the recession hurting your network marketing business, don’t be. In fact, it might actually help your business in a major way if history is any indicator.

Recession proof your business with network marketing success.  

To get the help you need to grow your business, click for step-by-step Internet Network Marketing Training.