Swimming towards the eye of the economic storm
Swimming towards the eye of the economic storm –
Wow. It is official, summer of 2009 has begun. Talk about strange days.
Starting or building on an existing home business has been arduous for many this year. And it is not going to get any easier. Many months ago, as early as this past fall, I spoke about what was at the forefront for us as an industry. I discussed the current recession and the likelihood that things may become considerably worse. I noted that we could cross the threshold of depression starting in 2009. The carnival barkers on the television are not telling you the whole truth. Regardless, whatever it is, it isn’t fun. We are being dealt many challenges.
Needless to say, I took some heat by my community of subscribers and clients. Many thought I was being too “gloom and doom.” I was told we needed to think positive, not frighten people. Pundits and top economists can label this recession any name they prefer (someone actually referred to it as “The Great Recession”). However, it should be quite clear to all of us that we are in the early to middle stages of a correction period that is going to change our industry and The United States, forever. There is no turning back.
Of course, I kept on writing and not all of my writings were about gloom. Some of my topics included: focus, mindset, managing the budget, work ethic (behavior) and other vital subjects that will impact your home business in the months to come. My biggest goal was to mentally, emotionally and financially prepare you for a tough stretch. I wanted everyone to be aware that business would get harder. Understanding has always been relevant. The key to execution is preparation. And good preparation starts with awareness. So here we are.
I am certain that our industry is going to recover after the storm passes (I estimate a few years). In fact, we are going to be a completely different industry over the next decade. The dream of having a successful home based business will never die. Dreams will become reality for some. New technologies, processes and business models will advance as a result of this economic downturn. Companies will learn how to maximize all of their available resources and get the most from distributors in the field. People will become more creative and self-reliant (whether by choice or not). Distributors will become entrepreneurs. Leaders will be born.
Our industry is de-leveraging. Quite frankly, the end of wasteful spending habits was long over-due. The Network Marketing and Direct Sales industry is dealing with its first very severe recession, but do not panic; this is healthy. Recessions are a facet of normal economic cycles, make reference to Austrian Economics, or Darwin’s theories; only the strong will survive. The companies with the best products will sustain and thrive. All others will fail. The distributors that work the hardest will eat well. Those who don’t, won’t.
I will depart with this thought: In the first quarter of 2008 it was estimated that a total of $11 billion was spent on internet advertising (the primary reason for our vertical growth this past decade) by means of search engines, display ads, email, video and other forms of advertising. In the first quarter of 2009 that number dropped to $5.7 billion. To some, this is significant. And it is, but top experts believe the set-back is considered only temporary. The internet is going to bounce back much quicker than other mediums such as TV, radio, and print. There will be no long term decoupling for these pair of business partners (MLM and the internet).
We all learned at a young age that the key to swimming is always keeping your head up. So as you swim towards the eye of this storm, you can never give up!
To Your Success!
Robert Polonsky is the National Sales
Director for New England Marketing North America