Friday, November 14, 2014

Network Marketing and The New Economy

The world as you know it has changed. It will be the worst of times for people who don’t recognize that fact but for the people who do, it will be the best of times.

Over the past 100 years, an interesting phenomenon occurred. The rise of the corporation became the standard of the society. The safe and respected place for people to exist in the world was as an employee.

Step 1: Go to school and learn how to be an employee.

Step 2: Find a company that will employ you.

Step 3: Work for that company for 40 years.

Step 4: Retire.

In recent decades, the promise of being rewarded by the company for your loyalty has been exposed as a myth. People began to realize that the loyalty they were giving to their company was not being reciprocated, so a different process evolved…

Step 1: Go to school and learn how to be an employee.

Step 2: Find a company that will employ you.

Step 3: Switch companies for various political and economic reasons every 3-5 years over the course of your career.

Step 4: Find out that you can’t retire comfortably after 40 years, so you keep working.

Now we’re going through the biggest shift in our lifetime. For a century, companies have paid people by the hour, week or year, that’s changing on a global level.

The world is moving towards a performance economy. In the future, you’re only going to be paid for your performance, not your time anymore. For example the server in the food industry are paid very low hourly wages which is required by law and they make their living through tips, based on their performance. You can imagine that being applied to virtually every profession in the world…

For the office worker, here’s an example.

Let’s say you earn $60,000 annually…

Step 1: The company will lower that salary to something like $50,000 because with today’s marketplace there are other people to take the job for a lower amount.

Step 2: They will reduce your “base” salary to something like $20,000

Step 3: They will tell you that you can get an additional $30,000 over the year if you hit certain performance benchmarks monthly.
This means that if you hit your numbers, you can make an additional $2,500 per month. Now the pressure is on, and the company is loving it. If you don’t hit your numbers, the company can save more money and if you do hit your numbers, guess what? They are going to raise your requirements.

Unless you’re extremely specialized, this will happen to you, if it hasn’t happened already; and it will happen to every single profession worldwide. The evolution has begun.

Why is this happening?

One: it is a better model for the company. They’ll get better results with less expense.
Two: The New Economy needs fewer people, so the company has more people competing for fewer and fewer jobs.

Why does the New Economy need fewer people?

The exponential rise in technology has changed everything…
Remember customer service call centers where you talked to people? Today, you talk to a machine and those jobs are gone.
Remember when companies had a massive amount of salespeople? Now people order online and those sales jobs are gone. I could go on and on…

Technology and efficiency are eliminating jobs every single day, and there’s nothing we can do about it. In fact, it’s only going to accelerate. If you’re sitting there waiting for the economy to bounce back and for jobs to return, don’t. They aren’t coming back.

Network Marketing is BETTER…

The best way to not only survive, but to thrive in the New Economy, is Network Marketing. More and more companies are going to choose Network marketing as a means to tell their stories to the world because it fits the New Economy. They can provide all the corporate support and pay distributors on a purely performance basis to promote their products. It’s extremely efficient because in the New Economy, word-of-mouth advertising continues to work better than any form of promotion.

What this means for you as an entrepreneur is that you can receive all the benefits of traditional business ownership without typical risks, and there will be no cap to your income because Network Marketing companies want you to make as much as possible.

If you’re going to be paid for your performance anyway, why live with the cap???

 This article is an excerpt from Eric Worre’s book “Go Pro – 7 steps to becoming a Network Marketing Professional” Grab your paperback or kindle copy on Amazon. It is rich!


  1. Very well-written piece. As you've rightly said, we now live in a world where performance alone is rewarded. It's no longer about how many hours you put in, it's about how well you deliver!

    1. That's so true Krish! This means we need to step up and be sure our reward is what we can control. Network Marketing is the key