A different economy

Let’s look at the economy a little differently. I don’t know about you, but I’m tired of hearing about the doom and gloom. There has to be good news out there, and guess what…there is!

There are a number of direct selling companies out there that are not only surviving—they are thriving! They seem unaffected by what the economy is throwing their way. What is most interesting is that it shouldn’t be a surprise. In years in which the economy has experienced a recession in any part of the year, the direct sales industry has grown. From 1987-2007 there were three recession years (1990, 1991, 2001). In all three of these years, direct sales grew more than the Gross Domestic Product (GDP) did.

Yet, Direct Selling (also refferred to as Referral Marketing, Network Marketing, etc.) still has negative association for most people. Why? At the same time this industry is grossly underestimated in size and contribution to your local and global economy. Just to give you some insight into this, I got some numbers from The World Federation of Direct Selling Associations (http://www.wfdsa.org/). Before going into the numbers, let me provide a quick into to this organization first.

The World Federation of Direct Selling Associations (WFDSA) is a non-governmental, voluntary organization globally representing the direct selling industry as a federation of national Direct Selling Associations. The Federation pursues the highest level of ethical conduct in the global marketplace, fosters advocacy by partnering with government, consumer and academic leaders, and strengthens management of national and regional Direct Selling Associations.

The WFDSA mission is to build understanding and support for direct selling worldwide, and supports direct selling companies and associations by:
• Developing, maintaining and promoting the highest global standards for responsible and ethical conduct.

• Advocating the industry's positions and interest with governments, media and key influencers.

• Serving as a trusted global resource for information on direct selling.

• Facilitating interaction among direct selling executives on issues of importance to the industry.

Following research, the WFDSA lists as some of the most popular reasons people choose direct selling:
• Direct selling is a good way to meet and socialize with people.

• Direct selling offers flexible work schedules.

• Direct selling is a good way to earn extra income.

• Direct selling is a good way to own a business.

• Earnings are in proportion to efforts.

In addition to that, anyone can do it. There are no required levels of education, experience, financial resources or physical condition. People of all ages and from all backgrounds have succeeded in direct selling.

Furthermore, direct sellers are independent contractors. Although you have access to training and support from an established company, you're your own boss, which means you can:
• Work part-time or full-time - you choose when, where and how much you want to work.

• Set your own goals and determine yourself how to reach them.

• Earn in proportion to your own efforts. The level of success you can achieve is limited only by your willingness to work hard.

• Own a business of your own with very little or no capital investment.

BIG business

Now, as far as some of the numbers goes, here are some from the WFDSA that might surprise you (last updated on May 8, 2009):

• In 2007 there were 550,831 people in direct selling in Canada, with $1.42 billion in sales

• In 2007 there were 1.9 million people in direct selling in Mexico, with $3.986 billion in sales

• In 2007 there were 419,500 people in direct selling in the UK, with $3.56 billion in sales

• In 2007 there were 15 million people in direct selling in the US, with $30.8 billion in sales

In 2007 alone worldwide sales the industry generated $117 billion in sales, with 62.7 million people in direct selling. As you can see from these numbers, this is serious business…a major industry.

Obviously, the income opportunity depends on the compensation plan of the company you choose to represent as well as most importantly the amount of effort you put in (as mentioned above).

“Distributors participate in this industry overwhelmingly on a part-time basis. Mean gross income is about $14,500, but $2,500 is the median income, meaning 50 percent of people earn more and 50 percent earn less. The reality is that you have to understand the motivations that bring people into this industry, and people’s motivations are primarily modest. They may not even be financial. They could be more about recognition or social contact.” - John Fleming, Publisher and Editor in Chief, Direct Selling News.

Like many others do initially, you may think that you don’t have the time to start your own business. That is actually the other amazing thing about this business; the Direct Selling Association’s research shows that over 60% of people in direct selling spend less than 9 hours per week on their business!

It is a simple business model that every 3 year old kid is very familiar with, and so are you. As a matter of fact, you are currently actively engaged in this referral marketing. You don't think so? Huh... I’m sure that not a day goes by that you don’t refer someone you know, to a product, business, or service that you liked. That, my friend, is referral marketing. Direct Selling is the same, the only difference is you get paid for your efforts.

So let me ask you this question. Why is it, that if you don't get paid for it it is fine but when it becomes a phenomenal income opportunity it suddenly is considered to be shady business? What is wrong with doing what you already do, but have the company who’s product or service you recommend pay you a commission? Only seems fair to me.

YES! You CAN change your future!

I encourage you to keep your options open when it comes to creating (additional) income for your family, just like I did. You can change your future, and the future of your children. Don’t reject something before you know, and understand, what you are rejecting. Inform and educate yourself. Not all businesses are created equally. This is also true for businesses in the Direct Selling industry, and yes, there are scams out there on the internet!

However, the bottom line is that Direct Selling is one of the simplest, fair, and accessible ways to earn extra income. If you’re looking for a sideline or a part-time job that will help augment your budget, then joining a direct selling company could be the answer.

Opinions are the cheapest commodity going around, so do your own research. What it really comes down to in my mind is what the team and the leadership in the team is all about because that will be a big factor in your ability to succeed.

Imagine what your life would be like if money was NOT an issue? Dare to dream, and then pursue your dreams! Most importantly, don’t let someone who doesn’t dare to dream stop you from dreaming.

Thoughts? Questions?

Until next time,

Leon

mailto:Leon@TheLifestyleDream.com

http://www.thelifestyledream.com/

Income in Canada

Recently, I reviewed some statistics on Canadian incomes from Statistics Canada. Primarily, because the information that is referred to in network marketing business opportunity presentations often refers to US data. So I got curious as to how comparable this would be for us Canadians. I was surprised with what I found and wanted to share this with you.

While the study originates in 2004, it was last updated on Sept 24, 2007. While this may seem “old” data, employment and income statistics are not frequently updated and released.

• What is considered the Top 5% of income earners in Canada, made $87,000 or more per year. What really blew me away, however, is that only 8% of them live in Vancouver. The vast majority of them live in Ontario and Alberta.
• The Top 1% earners made $181,000 or more per year.
• Only about 1% of families have an income of $250,000 or more.
• When looking at what the income was made out of, it was interesting to see that the contribution of income from employment percentage-wise became less as overall income went up. They diversified their income.
• The Canadian high-income earners have significantly less income than Americans.
  

Network Marketing is more mature in the US than it currently is in Canada, as a result percentage-wise more Americans have, or have had, a network marketing business. While I don’t know what percentage of the US high-income earners have a network marketing business, it is interesting enough to point this out.

Another report from Statistics Canada (published in December 2008) mentions that the average weekly income in Canada, derived by dividing total weekly payrolls (including or excluding overtime) by the payroll employment, in 2008 was $801.92. This level of income is very attainable in pretty much any network marketing business. Note that the vast majority do so on a part-time basis, spending only a few hours per week on their network marketing business.

Considering that the cost of living and education is ever increasing, that your local economy are affected by economies all over the world because of globalization, it is critical to supplement and diversify income (just like the high income earners). I believe that these numbers support this.


It will not only help make sure that we will be able to afford to retire - I read recently that 75% of Canadians are not in a position to retire for financial reasons and that many Americans have dipped into their 401K's just to get by, but it will also open up more education options for our children, and for us to spend more time with the family.

I realize, and respect, that achieving financial freedom and wealth is not everyone’s dream. Some of us are more passionate about giving and having a bigger social and/or environmental impact. I would still suggest that increasing ones own financial situation is something that should be considered as it is an enabler for larger impact.

Think of it this way…no matter how committed you are to helping those in need, we all only have 24 hours in a day. In those 24 hours we have a bunch of other obligations, like for example, our jobs, school/university, families, etc. Therefore the amount of time we can donate is limited, and restricted to where and what we can physically do. So, consider this. How would you feel if you could donate, for example, $10,000 or more each year to your favorite charity or charities without it putting any strain on you or your family? Wouldn’t that enable you to have a much larger impact?



Closing remarks
Many of us have been conditioned with the self-limiting believe of something along the lines of “Money is the root cause of all evil”. I disagree and would actually argue that the “lack” of it is. Think of it… Whether we like it or not, we live in a world in which we all need money…for food, to pay the bills, health care, education, etc. Therefore not having financial abundance ultimately results in stress. Stress has a negative impact on your family, your relationships, your physical health, your ability to succeed. So, in my mind “Stress is the root cause of all evil”.

Not everyone has the ability to invest thousands of dollars in starting their own business or to purchase a franchise and yet we all know by now that job security is something of the past. This is why I believe that network marketing is a very valid, proven, answer to how anyone has a fighting chance to become financially free.

Like anything it does take work and there are no guarantees of financial success in network marketing, regardless of the company or opportunity you join and not everyone becomes a millionaire. Anyone who tells you differently, ask them to put it in writing for you.

From personal experience I can tell you that starting a network marketing business is a ride, and it can be the best ride of your life. You can have tons of fun with it if you join the right team, and it is the only type of business of which can be said that “you get out, what you put in and it is all yours”. The rewards are there. That has been proven time and time again. You can do it too!

The majority of the population works for someone else and has a job, yet the minority of the population has an income of $100,000+ annually. What do you think the odds are of you achieving financial freedom by working your current job? How many people do you know that did it?


You can change your financial future. If you want to improve your income, does following the crowd really get you there? I know you know the answer. There is just one thing for you to do – take action!



Leon
http://www.thelifestyledream.com/

Stuck in a pattern?

What never stops to amaze me, is people who are not happy with where they are at but don’t recognize that it won’t change if THEY don’t change what they do. It doesn’t matter if it is about their job, the lack of free time, or whether they are struggling with their health and/or finances.

From a financial perspective, here’s the deal. If you have been an employee for, for example, 20 years following a “traditional” education and you are not where you’d like to be from the perspective of time and financial freedom, what makes you think that your you will get there if you continue to do what you’ve been doing for 20+ years?

Let’s also be real about something - there is no bail-out plan for you, nor will there be one! Government (may) come to the rescue of some large corporations, but I’d recommend you not to hold your breath on them coming to bail you out. If you are not where you want to be financially, YOU have to take ownership of that situation and YOU have to make a change.

Question – What percentage of people that you know have achieved time and financial freedom by working a job?

The answer to this question tells you that chances are that if your single source of income is your j.o.b. you will NOT achieve the time and financial freedom that you deserve and aspire to… EVER! Wake up people! The good news is that you can change this and you don’t need tons of cash to do so. You can get behind the wheel and drive your life to the destination that you want.

Often we turn to our friends and family for guidance and help, and you may have or are planning to do so. While I’m sure that their advice and input is sincere and with your best interest at heart, let me ask you a question. Would you seek marriage council from someone who has never been married, or got a divorce? My point here is that, unless your friend of family member has successfully “gotten out of the pattern” and accomplished the time and financial freedom you deserve and seek, these are not the best people to council or get advice from in this case.

So…how do you go about making a change? Well, ultimately everyone is driven by only two basic emotions – pain and pleasure. Everything we do is driven by increasing the feeling of “pleasure” and/or by reducing the feeling of “pain”. This is what decides if, and what, we buy and virtually drives any decision we make. This is the magic to you accomplishing anything in your life. Make a list of “pains” and “pleasures” associated with any situation that you want to change. If you want change, make sure that the “pleasures” associated you get from making the change are far greater than the “pain” of not changing. Be honest with yourself and this will work miracles for you.

One last note... It is easy to be dragged down by all the negativity around you. Don’t let this happen to you. You are blessed by many people around you who care for you and love you. Don't let others determine how you feel, and what you can accomplish. Success comes from within! Also, history tells us that in challenging economic times that great fortunes have been accumulated by those who broke free of the pattern. Everything is cheaper and that creates fantastic opportunities for those who want to see them.

I realize that breaking the mold, stepping out of the pattern may be a bit scary. However the rewards of doing so can be AMAZING! Decide what you want, find out how you can get it, and take action…every day towards achieving your goals. Start today… tomorrow won’t be different if you don’t!

Leon
"If you want the same results, keep doing the same things. If you want a different outcome, do something different."

Time = Money. Money = Time

Like many others I have money invested in the market. Fortunately, my financial planner knows what he is doing. When the market collapsed a couple of years ago, the portfolio of many people I know were 30-40% down whereas I was down around 10%. With the more recent issues in the market, again my losses are limited...he saw something coming and made sure my portfolio was protected as much as possible.

I don't know a lot (if anything) about investing, but what I do know is that it is important to diversify. Pretty much everyone knows that a smart investor diversifies, hedges his/her bets, spreads the risk, whatever you want to call it.

When my father, and his before him, started working the plan was to find a solid, respectable employer and to work there until retirement. It probably made sense at the time, but does it still? In those times, there was mutual loyalty...the employer was grateful to have people work for them for many years. I remember my dad getting a golden watch after working for the same company for 25 years, so did his dad after his 50 years with the company he worked for. Times have changed though... very few people stay with the same employer for more than 5 years on average. Gone are the days of employer-employee loyalty.

Earlier this week, yet another large corporation announced over 13,000 layoffs because of the economic environment. I'm still in awe over the 52,000 people layoffs at a large financial services firm late last year and these represent just the tip of the iceberg. Fact is, that nowadays the bottom-line, the margin, the EPS of a company is what it is about. So if a company can improve any of these measures by eliminating a few more employees, it will. It simply is how the market works... oh, and did I mention that the compensation a lot of these corporate executives is actually tied to these measures?

It is not my intention to suggest that none of these layoffs weren't necessary for the company's survival, nor that the leaders of these companies only look after their own interests....but, are we sure that they didn't take advantage of the situation and took this as an opportunity to let a few (thousand) extra employees go?
My point is, that for as long as I have been in the corporate world, I've not seen such a thing as a secure job. So...

Earlier on, we've agreed that when investing money that makes sense to diversify. To set up returns from multiple sources. We've all heard the phrase "Time = money". So, if we do that we'd have

"...when investing time, it makes sense to diversify and set up returns from multiple sources."

It makes sense to spread the risk when we invest our money AND it also makes sense to have multiple streams of income. Do you have an alternative source of income?

However, it is not realistic to have multiple jobs AND to have a family-first lifestyle. I would suggest you seriously consider starting a home-based business alongside of your current job that allows you to start building up an alternative stream of income. You can do this from home, after the kids have gone to bed so you don't have to miss out of quality time with them. You CAN do both...

Every business takes time to built so take action today! Take control of your financial future and your life. Living with the fear of losing a job has a significant impact on you, your relationships, your family and your happiness.


Leon

"If you want the same results, keep doing the same things. If you want different results, do something different."