The Future of MLM

The Future of MLM

Based on the three major trends currently influencing the shape and direction of network marketing worldwide, we expect to see the following developments in the coming decade.

This assumes there will be no other factors, such as global war or environmental catastrophe – an assumption that can never be safely relied upon where human beings are involved.

Two streams of MLM

We foresee network marketing dividing into two distinct streams. This will be temporary. Ultimately, only one stream will survive as network marketing. The other will be absorbed into another trend currently taking shape in the world of conventional retailing.

This scenario will arise from a combination of all three of the present trends, and will be the direct result of two different applications of technology…

Technology used to acquire and service customers
Technology used to recruit, train, communicate with, recognise and support productive, pro-active retail sales networks

Here’s why and how it will happen

This divergence is already beginning to occur. As Internet access and e-commerce pick up speed (and they’re already outstripping all predictions), two important things will happen:

Consumers will use the Internet for more and more of their shopping needs, for more of their recreational and social activities, and for more of their work related activity (telecommuting).

The existing home theatre, home gym, home office, home entertainment centre, etc will be augmented by home medical centres (connected directly to doctors and other health specialists), home learning centres (instead of schools) and other in-home services so that consumers will have fewer reasons to leave the comfort and amenities of their homes.
Supermarkets and other conventional stores will increasingly convert to automated warehouses that pick, pack and deliver, without the expensive real estate (including car parks) required now — or the staff.

Shopping as we now know it will change dramatically. Fewer businesses will be able to afford the luxury of expensive premises, car parks, etc, and competition from home-based or mobile in-home services (run by displaced former-employees) will add to their costs.

Consumers will become increasingly isolated. Many will crave human contact. With the ageing of the world population, this need will grow.

Those MLM companies moving in the direction of servicing customers on line will pursue this direction more vigorously than ever. To fund their growth, many (if not all) will be forced to seek listing on stock exchanges and go public. For their distributor networks, this may well be the beginning of the end. Before too much longer, most of these companies will cease to be MLM companies. Click here to find out why.

Those companies who maintain a retail focus in their distributor networks, and who opt for using the Internet primarily to train and support their distributor networks, will go from strength to strength. Many of the newer generation of network marketers — most of whom are displaced former middle and senior managers and professionals — will take network marketing back to its origins as a high-leverage retail sales and distribution system. There will be a return to the basics as MLM rediscovers its roots in new, more powerful ways.

They’ll be the people forging long-term, loyal customer relationships with people starved of face-to-face human contact. And, since income in MLM is unconnected to time, servicing those customers will be seen as an essential — and enjoyable — part of running a successful network marketing business once more.

Those customers will become the primary pool of golden prospects for new distributors, too.

A very different target market

Added to all this is the fact that the Baby Boomers will be the prime market.

The Baby Boomers are the best educated, most accomplished, most outspoken, most politically active and most self-centred, comsumption-oriented, demanding generation in recorded history — and the first ever to limit the size, scope and opportunities of the next generation.

Because of this, their loneliness in retirement will be pronouned. They will expect — demand — regular service and human contact.

Ultimately, this stream will be the only one to survive as network marketing. The other will be taken over by large, publicly-owned conglomerates focused on economies of scale and Return On Investment to stockholders. While income streams will still exist, they’ll be more like current on-line affiliate programs than traditional MLM, with limited scope and very limited returns.

Two articles on the future of MLM by John Counsel
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