MLM: The Saturation Theory? Not to Worry! Part 3
An Introduction to Network Marketing
By Jeffrey A. Babener
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Networking companies in the U.S. are constantly cracking new demographic markets. The fast-growing Hispanic market in the U.S. is a good example. Companies like Discovery Toys have opened up the market to networks of teachers. A.L. Williams (later folded into Primerica Financial) opened the market to networks of part-time insurance agents. Quorum International, with its personal security products, added networks of law enforcement personnel and security salesmen to the world of network marketing. Oxyfresh built a successful market for its personal care and hygienic products through networks of Dental professionals, Nikken, one of the industry's marketers of health related products, has among its distributors, substained networks of doctors and chiropractors.
Baytes points to another factor that works against the idea that networkers will run out of potential recruits: there is a constant recycling of new blood in the marketplace. For instance, he indicates that the attrition from layoffs in corporate America opens up new markets. He also points to the fact that ethnic markets, such as Hispanic and Asian populations, are only recently grasping the network marketing opportunity. He maintains that new markets for products and recruits are always available.
The allegation that network marketers will run out of sales opportunities is ludicrous, especially in light of the fact that the industry's most common products, such as cosmetics and nutrition products are highly consumable. That is, consumers buy them over and over again. Walk onto the first floor of any department store. You'll note that it's almost entirely filled with cosmetics counters. Likewise note the health and nutritional section of every major supermarket chain. As long as you see these departments, you'll know that there is still plenty of opportunity for network marketers.
"Traditional markets demonstrate that as long as someone comes along with a better product, a new market opens," Baytes adds. "Just look at Honda, a company that cracked open the mature automobile market long dominated by American manufacturers." Recent history tells us that the auto industry has learned from this experience that quality and value expands markets.
The verdict: There is no question that opportunities for sales and recruitment will expand and contract. If you look at the track record of the network marketing opportunity over the past decades, it is obvious that the saturation theory is a myth.
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