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Will these businesses saturate?

Thursday, December 9, 2010 , Posted by Munib Shaukat at 10:14 AM


Will these businesses saturate?

Saturation is a question that is reasonably common, especially when dealing with the more mathematically-minded prospects. The basic worry is that the seemingly exponential growth rate of network marketing companies tends to hint that within a few short years, everyone in the country will have joined up and therefore there will be no money left.

There are three answers to this point. But first of all, if you remember this point about pyramid selling was that it was highly unstable and required new members being added all the time whereas network marketing is stable without growth. This is because goods are being sold outside the business structure to fund those inside the structure. Even if half the people in the world were to join, people would still buy their own products, and so goods of value would pass from outside the structure to inside. People would still make money! As I said earlier, it is possible to make money in NETWORK MARKETING even if you don't sign anyone in!

And now, to the answer to the question;

Firstly, there is the argument from evidence. Clearly, there is a false assumption in the question. If you look at the maths, NETWORK MARKETING should saturate within years, whereas the larger companies have been in existence for many decades.

Secondly, just logically - most people don't want to do NETWORK MARKETING! Many people can't see themselves in a sales-type scenario, or maybe they have poor self-confidence, or perhaps they're already happily wealthy. Others can't be bothered to put in the work that is required in NETWORK MARKETING to gain a decent income. They'll be happy to buy the products, but don't want to join as a distributor. Some of these people later change their minds when they see you succeeding. For some, their finances appear strong, and suddenly they are struck by a large setback and they decide they need to look for something else.

Thirdly, there are people being born every day. There are around a million people born every year in the
UK alone, and the number of people involved in NETWORK MARKETING countrywide is far less than this. The pool of those looking for a business opportunity is constantly growing.

For a more mathematical answer, and to explain the first point above, one must look at the structure of a NETWORK MARKETING group. The answer to why NETWORK MARKETING doesn't saturate (as is clearly evidenced in real life) is complicated, but is basically due to the fact that NETWORK MARKETING businesses, in reality, never grow exactly like those in idyllic example group diagrams. Just as the majority of people don't want to join, the majority of people who do join don't actually put in any more than a token effort. NETWORK MARKETING is locally exponential - wherever you get a real powerhouse who puts in huge amounts of work and drives their group forward at an astonishing rate, but in practice it grows very linearly in most situations. Most people actually don't put in the effort required to drive truly explosive exponential growth. Your group will grow at the rate you work on it for some time, until you find enough people in your downline who are willing to work on it just as hard as you are!

Finally, not everyone who joins a NETWORK MARKETING business will stay in - remember that lots of people decide that the business isn't for them and they quit. This is especially common amongst people who have been mislead into thinking that NETWORK MARKETING is an easy way to make huge incomes without any effort. Anybody entering the business with that attitude will quickly discover that they are wrong, and will probably drop out. It is very unwise to encourage people to join a network marketing organisation by misleading them - apart from the illegality of it, you're just going to get people annoyed, which is the last thing you need!

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