What The Economic Downturn means to Network Marketing
Try as we may to disregard it, the global economic downturn will affect your network marketing business. Business in 2009 is NOT going to be anything like it has been in the past. That is not to say the economic impact is necessarily a bad thing, no, it is just going to be different, very different. With the credit markets in shambles, the real estate market in the tank and spendable wages on the slide, the smart network marketer is well advised to take a hard look at their prospecting methods and approaches.
Two factors are going to be prominently at play this year, well actually three.
In our current economic situation people are going to naturally look to conserve their cash. Although that may not be the smartest tactic, according to Robert Kiyosaki, the majority will hoard their cash. Essential purchases will become the priority as impulse buying is reigned in. So, getting someone to part with an initial sign up fee will require they perceive value in their purchase well beyond the cash outlay. That will demand the networker develop personal skills to expertly share benefits so a prospect understands the power of this particular purchase.
Of equal importance is the second factor, the need for people to take control of their lives, break the bonds of dependence on an employer for their financial security. Many feeling insecure in their employment will consider alternative sources of income. Those conscious of the shift from employer based income to self-generated income will seek new opportunities to fulfill that thinking. The wise networker will seek out these people in off-line methods away from the “dog chasing its tail” mentality on the Internet. The use of warm market, local advertising, home intros and such will broaden their prospecting base.
Finally, the third factor, and probably the most critical, is fear. This fear factor occurs in the real world and shows up as “fear of the unknown”. None of us, let me repeat that, none of us know how this economic shift is going to play out. Uncertainty is the only thing we can count on, along with increased levels of stress. Those who choose to do nothing are assured to ride the roller coaster without the benefit of a brake or directional control. It’s like driving a car down the highway with no steering wheel and no brake pedal, the “driver” is just along for the ride. Offering a prospect personal control over income and finances will give you an extreme edge.
Obviously, each of these factors, and probably several not here mentioned, will play into your prospecting and recruiting methodology and success in 2009. One thing is for sure, your network marketing business plan for 2009 cannot run profitably on a 2008 platform. Plan accordingly.