“Second wind”: network marketing is reborn
Traditional network marketing does not leave anyone indifferent - some are delighted with the prospects, while others consider it almost a global evil. On the one hand, the business is growing rapidly and it’s in stable demand. On the other hand, suspicions of the financial pyramid schemes and the imposition of goods do not allow him to fully realize its potential.
But a new hope for networkers appeared on the horizon — cryptocurrency. Blockchain, smart contracts, decentralization. Maybe these technologies will cleanse MLM of its shortcomings and take it to a new level?
Let's look into this controversial topic without prejudice. What prospects and risks does network marketing pose? Why do some people love him while others criticize him? And can cryptotechnologies solve its problems?
Let's look into this controversial topic without prejudice. What prospects and risks does network marketing pose? Why do some people love him while others criticize him? And can cryptotechnologies solve its problems?
Network marketing is not the same as a pyramid scheme
With the development of social networks and online trading, Lado Okhotnikov found a new opportunity for growth. Analysts from Forsage noticed a change in consumer preferences: moving away from traditional shopping methods in favor of recommendations from acquaintances and friends played a key role. In this context, network marketing based on direct sales using the capabilities of smart contracts shows stability.
The geographical distribution of sales indicates the development of strong trade ties in the regions of Asia and America.
Until this moment, companies operating in the network business had owners, management, and all work was tied to a group of people. But Forsage found a way to ensure that each member of the network remained completely independent.
Decentralization means that decisions and changes in conditions depend on the consent of the community and the logic of the smart contract, and not on the power of individuals. Therefore, Forsage no longer falls under the criteria of a Ponzi scheme.
To understand what a Ponzi scheme is, imagine that a friend comes up to you and says: “Listen, there’s a cool way to get rich quick! You join our community and pay a fee of 10 thousand dollars. Then you bring friends who also pay 10 thousand. They give you part of their contribution, after which you get your money back and still remain in the black. And so every time.”
Tempting, isn't it? But in reality, this is a regular Ponzi scheme - when your earnings are based only on your followers. Sooner or later, it will become impossible to attract new participants. Because in this scheme, money is not taken through the transfer of value that cryptocurrencies offer.
Until this moment, companies operating in the network business had owners, management, and all work was tied to a group of people. But Forsage found a way to ensure that each member of the network remained completely independent.
- In the Forsage ecosystem, there is no one who can change the rules and conditions. Founders are regular people who follow the same rules and mechanics as everyone else in the community.
Decentralization means that decisions and changes in conditions depend on the consent of the community and the logic of the smart contract, and not on the power of individuals. Therefore, Forsage no longer falls under the criteria of a Ponzi scheme.
To understand what a Ponzi scheme is, imagine that a friend comes up to you and says: “Listen, there’s a cool way to get rich quick! You join our community and pay a fee of 10 thousand dollars. Then you bring friends who also pay 10 thousand. They give you part of their contribution, after which you get your money back and still remain in the black. And so every time.”
Tempting, isn't it? But in reality, this is a regular Ponzi scheme - when your earnings are based only on your followers. Sooner or later, it will become impossible to attract new participants. Because in this scheme, money is not taken through the transfer of value that cryptocurrencies offer.
The things that are not scary to invest in
The IPO volume in the US and Europe fell 71%, from $283 billion to $81 billion, and the number of offerings fell to 596 from 1,237. Global M&A turnover fell 54%. And this is not to mention the fact that over the past six months, Citigroup, Wells Fargo, and JPMorgan have closed almost 300 of their branches. And all this against the backdrop of sharp fluctuations in the S&P500, which demonstrated high volatility, reflecting the multidirectional influences of economic, financial and geopolitical factors.
And now we need to take a healthy approach to considering the situation with the network sales market, since the issue of transparency and security of large corporations in the stock market raises certain doubts among investors.
In the past, there were accusations that not all participants were backed by real dollars in the required amount, which has repeatedly caused unrest in the public. This gives rise to risks that should be taken into account by those who prefer to make money on the stock market or want to invest in any companies.
And now we need to take a healthy approach to considering the situation with the network sales market, since the issue of transparency and security of large corporations in the stock market raises certain doubts among investors.
In the past, there were accusations that not all participants were backed by real dollars in the required amount, which has repeatedly caused unrest in the public. This gives rise to risks that should be taken into account by those who prefer to make money on the stock market or want to invest in any companies.
Bad advice: I don’t want to be a partner, I’ll wait until the money comes by itself
- The humble truth is that long-term, sustainable income requires effort, dedication and work. Investing in education, professional development, and systematically working on your skills are key factors in ensuring financial success.
In the light of what is happening, network business is showing a positive trend. When some experience a crisis, others find a point of growth in this. According to the latest report from the World Federation of Direct Selling Associations (WFDSA), the global networking market has shown steady annual growth of 1.5-2% since 2015.
Amway, Herbalife, Avon, Infinitus and Vorwerk were among the top 5 trend-setting companies in the direct selling industry. However, some people still have mixed feelings about network marketing. Why is this happening and why is cryptomarketing the future?
Returning to the WFDSA statistics, about 120 million people are involved in network marketing, with almost half of them considering this type of income as their main source of income. And with the advent of blockchain technology, the trend is only getting better.
- 90% of network marketing agents spend 25% less time on work, while their earnings remain at the level of those employed in completely different fields.
Direct sales in all areas - Africa and the Middle East:
Sales changes compared to 2021, sales details in specific countries, total number of active participants in direct sales, and participation of men and women in South Africa and the UAE.
At the moment, it is clear that the future belongs to crypto, and within the framework of the coming crypto-anarchism, it is unlikely that marketing will begin to show negative dynamics.
“It’s a pity,” only those who truly believed that network marketing is a pyramid will say. However, in practice, everything is quite the opposite: stocks, exchanges, and futures trading have much greater risk.
So, if you have high ambitions, are not afraid of communication, are ready to develop and invest, then you definitely need to take the opportunity to master this type of income.
At the moment, it is clear that the future belongs to crypto, and within the framework of the coming crypto-anarchism, it is unlikely that marketing will begin to show negative dynamics.
“It’s a pity,” only those who truly believed that network marketing is a pyramid will say. However, in practice, everything is quite the opposite: stocks, exchanges, and futures trading have much greater risk.
So, if you have high ambitions, are not afraid of communication, are ready to develop and invest, then you definitely need to take the opportunity to master this type of income.
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