Good question.

1. I think that Network Marketing (or MLM), as it generally exists today, will vanish for all but a few types of products. For companies that use MLM, the value of a downline has traditionally been to introduce new distribution channels and new customers -- and the downline took about half the total profits for that. The Internet and other technology advances have resulted in better and cheaper ways for a company to market directly to potential buyers (by one estimate, 93 percent of all U.S. consumers are already "databased" by at least one on-line seller) -- so the downline potential is being squeezed out. I do think a new type of MLM will emerge for certain companies and products where the downline individual is not so much a seller/distributor, but rather a post-delivery servicer. (That "servicer" role would help reduce the thousands of MLM complaints on file with BBB's, Consumer Affairs groups, and state Attorneys General, too.)

 

2. Pros and cons depend on who you are in the whole deal. If you're the company, the advantage is that you essentially have other people using their money to get you new customers. The disadvantage is that you have no control over how those people represent (or misrepresent) you. If you're in the downline, the advantage is that you can get into your own business easily. The disadvantage is that unless you're in the network early and can build a proftable downline of your own, you probably won't make much money. If you're the customer, the advantage is you might be able to buy a product that you'd have never seen in a store or even known about otherwise. The disadvantage is that if you are not satisfied with that product, the downline individual who sold it to you may be unwilling or unable to correct the problem or refund your money.

 

3. I'm sure there are many such databases, but I can't offer a specific link or pointer.

To whom?

Dao Marketing,

I don't know about the answers to your first two questions but for number 3, my suggestion is to try Craigslist.com. I have posted employment ads for seasonal part time employees and have been very successful. Another resource to try is Goodwill. They have employment counselors that can set you up with what you are looking for. Have also been successful with them as well. Plus they are still feeding me applicants even though I am not in need any longer. Still taking them as you never know when the diamond will show up.

1) I think the network marketing will be "a" business in the 21st century but not "the" business.
The vast majority of MLM or network marketing businesses only have about a 1% true success rate.

Even the very large and oldest company Amway (Quixtar) are running into problems and legally have to inform all new members that the average representative makes only a hundred or so dollars a month.

2) I have always said the pros of MLM or NWM are that anyone can join and the costs are relatively small. If someone is very motivated, they can start a business easily with all resources and training provided and since the upline have a vested interest in the new person, they get help. This is why Robert Kyosoki and Donald Trump promote them. It is an easy start for a motivated person.

The con is very often times the person who joins doesn't truly have an entreprenuerial mindset and doesn't have the drive, determination and time to make a success of it. Most of the upline will stop helping those who aren't "working" the business by attending meetings and bringing prospects etc. So most of the would be "business owners" end up paying monthly for a while or buying products (all which support the upline) and don't make any money of their own.

3) There are several forums where home based businesses and money making opportunities abound. Just search google for home based business forums. One that I know about is called whydowork.com forum.

I would caution you though. Since most business opportunities are low cost, those sites also attract all manner of scam artists promising get rich quick programs and often time offering outright illegal schemes.

I would only deal with MLM or NMM companies that are listed with the Direct Marketing Association
http://www.the-dma.org/index.php and the better business bureau http://welcome.bbb.org/.

Good Luck

Network marketing is a marketing has been around for a while and is based on relationship building, so it sounds to me you're referring to Multi Level Marketing. To me, It's a business model that it's getting more and more relevance in the 21st century.

The good is that if you work at it you can develop a regular stream of income. Then again, anything you work at is likely to get you that result.

What I don't like about it is that, except a few exceptions, is based on recruiting rather than selling a product and it attracts many people that are looking for a quick and easy way to get rich.

There is one network marketing / affiliate marketing company that is a member of my Chamber of Commerce that I see at just about every "network" event that I attend. He works hard on his business, and lately he even had to get his wife involved because he is getting so busy. The point is Network Marketing is nothing unless you market the business.

Why do network marketers fail... They fail to realize that you have to work very hard just like every other salesperson in the world works hard on lead generation and the sales process in general.

What's good about network marketing? The good is it is almost like buying a franchise with no money. What's bad about network marketing? It takes a lot of work to get any business off the ground and this doesn't appear to be revealed when a person buys into the business.

I personally like network marketing but if buy into the hype you and don't devote 100% of you time to this (or any) business you will probably struggle.

David Peterson - President: Atlanta Sales and Consulting
http://atlanta-sales-training.atlantasalesandconsulting.com/