MLMM: Chapter 4 – The Business System of The 21st Century


“Investing in the Direct Sales Industry has been one of my best investments” – Warren Buffet

Direct selling is the original social networking business. Long before we even knew what a computer was, people were getting together for fun, socializing and shopping. Add in technological power and globalization, and you’ve got a winning formula.
In 2010, direct selling companies generated over $125 billion in revenue in 150 countries through more than 75 million men and women who are changing lives serving others. This 125-billion-dollar-per-year industry represents an accessible way for the average person to launch a legitimate home-based business with the potential for generating a very substantial income. It offers the opportunity to launch a business on a part-time basis, and then grow that into a full-time (or more) income. And it requires the least amount of start-up capital and ongoing operating expense of virtually any legitimate business model. It is responsible for enabling the creation of an untold number of millionaires.
The Direct Selling Industry provides a solution to our shrinking job market. More than 12 million jobs have been eliminated from the U.S. economy since December 2007, and experts say it could take 12 years to re-create what’s been lost.
What is most appealing about becoming a direct seller is that anyone can do it. According to the Direct Selling Association, the industry’s trade organization, 24 percent of direct sellers have a high school diploma or less education; however, 35 percent are college graduates and 1 in 12 has a postgraduate degree. These statistics are expected to possibly change dramatically as technology redefines the way direct sellers conduct their businesses and more and more Americans look for easier ways to attempt entrepreneurship by starting their own home-based business.

The New American Dream

My prediction is that, over the next ten years, we will continue to experience unparalleled growth within the direct selling industry.
Baby Boomers have been driving the economy for many years, and they will continue to drive the economy for years to come. And these Boomers all have children who are getting ready to enter college or have finished their four years, and are finding it challenging to secure employment.
As Boomers and Generation Xers are downsized out of their respective careers, have seen their assets cut in half and are worried about healthcare, they’re going to need to re-create themselves and find other vehicles that can pay them what they have been accustomed to earning throughout their careers.
Over the next ten years, three major factors will drive hyper growth in the direct selling industry.

Point #2: We’re in a Recession Period

If you look back over time, you’ll find there tends to be a recession about every eight years. Consistently, direct sale/network marketing have grown during the down periods. Those who have sworn off this industry in the past are now taking a serious look as the recession has caused them to embrace other income opportunities. Our industry offers hope for millions of Americans who are looking for solutions to increase their financial portfolios.

Point #3: Baby Boomers and Gen Xers Are Looking for Alternative Income Opportunities

As a Baby Boomer myself and looking back on my childhood, we were told to go to school, get a great education, find a job in corporate America, work there for thirty to forty years, and retire with a pension that pays us half of what we were earning during our careers. That surely doesn’t seem like the American Dream to me!
Millions of individuals over the age of fifty are wondering what they’re going to do. One of the main reasons that corporate America is downsizing is due to the high cost of providing health care benefits for these individuals.
Additionally, millions of Gen Xers between the ages of thirty-four and forty-four years of age are worried about their job security.
This creates an unbelievable pool of people who will embrace the direct selling industry.
Just think about this for a minute: A majority of these displaced Baby Boomers who have held high-level positions in their respective careers know exactly how to build teams and lead people. They fit the perfect profile for our industry. Like other industries, our industry also pays well for leadership. To my knowledge, there is not another industry out there today where these individuals can go and have unlimited earning potential like they can in direct sale/network marketing.
And, as parents, we have an opportunity to educate our children about the power of leverage and recurring income. This education could prove to be one of the greatest gifts we can ever give them. Even if they work a home-based business part-time, most of them can earn more than what they would be earning with a college degree (assuming they can find a job). Let me be clear here: I’m not discouraging them from going to college. I’m suggesting that those who have already gone, or are currently attending, be exposed to the potential earning power in our industry, not to mention the education they will get dealing with people, engaging in teamwork, overcoming rejection, breaking through fears, building relationships, and so much more. For some, this may be the best and least expensive education they will ever receive.

Point #4: Generation Y

This generation who are also called millenials could potentially have the biggest impact on the future of our country. These are people born between 1983 to 1994 and in the United States alone are 80 million strong. They have many things going in their favor. Let’s take a look at a few.
They are…Tech-Savvy: Having grown up with technology and rely on it to perform their jobs better. They are plugged-in 24 hours a day, 7 days a week. Family-Centric: This generation is willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance. Achievement-Oriented: They want meaningful work and a solid learning curve.Team-Oriented: They value teamwork, they are loyal and committed.Attention-Craving: They may benefit greatly from mentors who can help guide and develop their young careers.

Point #5: The Aging Population Demands Products to Enhance Their Quality of Life

Today, everyone is concerned about what’s going to happen with our healthcare system. This concern is going to force people to take more of a proactive approach to their healthcare. This will drive the consumption of health and wellness-based products. Having been involved in health and wellness for the past thirty years, I have experienced the benefits of taking a proactive approach toward healthcare.
I have also witnessed thousands of others who have taken a proactive approach and are doing everything they can to strengthen their immune systems and prevent degenerative disease. There are many factors that go into why one comes down with certain degenerative diseases, but one of the factors we can all agree on would be stress.
Statistics show that a good percentage of people will spend the first half of their life making a living and preserving their wealth, and the second half of their life spending their wealth to preserve their health.
In our current healthcare system, more than 1/6 of our entire economy is spent on what we call healthcare.
The good news is that we can change this paradigm! Working smart through the power of leveraging eliminates stress, provides more time to exercise, and affords us the opportunity to manage our own healthcare through proactive measures. This plan makes way more sense to me!

To create a new business that makes money, and more significantly, employs others, and more significantly, gives a product to a customer that improves their life, is our greatest challenge, our greatest opportunity, and the greatest gift, far greater than any charity that we can give our fellow person.”
―Paul Zane Pilzer


So, are you ready to join our tribe and help millions of people live the life they were destined to live?

Exercise #1: Why Direct Sales?

As we begin our mental workouts together, let’s answer a few questions now and then to see if they change after you complete your entire exercise program:
1)    What does your life look like (or will it look like) as a result of your business?
2)    Why (besides the money potential) are you really doing the business?
3)    What is the one thing in your company that you believe in most, and why is that important to you?
4)    For those of you who have not yet joined a company, what is the most important thing you’re looking for in a company? And why is that important to you?
5)    Why would someone join you in your business?

Continue to chapter 5