There are many distributors that believe you cannot build a network marketing business in a down economy. However, if you take a look at how many of the network marketing and direct sales companies are performing right now, you may want to challenge this belief.

Network marketing and the economy are not just fair weather friends. The network marketing industry thrives in any economy. In a good economy these types of companies do well. The reason is because even in a good economy there are people who are looking to better themselves financially or create more time freedom for themselves and their families.

Why Does Network Marketing Work in A Bad Economy?

In a bad economy, the network marketing industry thrives as well. The reason is because as people lose their jobs and struggle financially, they look for solutions to address their financial challenges.

In fact a bad economy can many times be the best time to build a network marketing business. What’s significant about building during a bad economy is that there are many people who under normal circumstances wouldn’t look at an opportunity like this that are much more open to the idea in a bad economy.

As a result of this trend, many network marketing companies are reporting good news during a bad economy.

Which Network Marketing Companies Are Reporting Good News?

Take for instance, Xango. With record job losses and high unemployment, the company announced that they have just recruited their one millionth distributor in their six year history. Many network marketing companies never reach a million distributors, much less hitting that mark in 6 years, several of which have been bad years economically.

Avon is also sharing good news about their company during this tough economic environment. The company has been struggling in recent years to grow its business. This is understandable as it is challenging to grow when you’re already a billion dollar company.

However, in the most recent earnings and financial news released by the company, Avon reported increased growth in a wide variety of different areas. Sales of beauty products rose 15% from the same quarter last year. The number of active representatives increased 5%. Operating profit increased 33%.

Pre-Paid Legal Services has reported continued growth despite the bad economy. Here’s what Steve Williamson, the Chief Financial Officer of the company had to say about how the tough economy has affected the business...

"In tough economic times we see increased interest in people wanting to market our Legal Services Plans as Independent Sales Associates. This increased interest will lead to our 16th consecutive year of growing our Membership revenues."

These are all network marketing companies with completely different business models offering products and services in completely different product industries. Yet, all of these companies are reporting good news and growth even during these trying economic times.

The bottom line is that in any economic slump there are industries that struggle and there are industries that do well. The network marketing industry is one of those industries that historically has done well during these types of environments.

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