Network Marketing in a Recession - Why Recessions Are Good For Network Marketers

The network marketing industry has gotten a tremendous amount of attention during the recession for it's ability to be "recession-proof". While this is true in some respects, we need to closely examine anything that purports to be "recession proof" simply because nothing is immune from the effects of a recession. However, recessions do buoy some industries, so let's take a closer look.Why Home Businesses & Network Marketing Have AppealThe first reason that network marketing sees growth in a downturn is because of awareness. In good times, people get happy working at their job, happy with their investments, happy with life. Only in a recession does anyone think twice about the concept of "security", and why working for others puts you in a very precarious position. When masses of people are laid off, it causes everyone to consider the concept of starting their own business.The second reason that networking sees a boom in downturns is because of capital. Not everyone who is laid off is broke - many corporate executives take severance packages, and transition them into another career. These are ideal candidates for home businesses, simply because they are used to hard work, are typically well-educated, and are not counting on their business to pay them a normal 9-5 paycheck from day one.The third reason that networking sees a boom is because of their competitive positioning. Many industries have huge barriers of entry. Franchises run tens of thousands or even hundreds of thousands of dollars just to get INTO business. That doesn't include marketing, inventory, employees, accounting...or your salary. Many businesses run in the red for years before becoming profitable. With a home-based or networking business, someone can invest a few hundred or few thousand dollars, and the only additional expense is marketing. This allows the average person to get moving with a comparatively tiny capital investment.The key is in understanding the most critical factor - marketing. With good, targeted marketing, anyone can create their own profitable business from scratch.