NOT so good news

Another 45,000 hit by global slowdown

KUALA LUMPUR: Some 45,000 employees in the manufacturing sector will go on leave soon as most factories will shut down for the Chinese New Year celebrations.

Human Resources Minister Datuk Dr S. Subramaniam said factories would stop operations for two to three weeks and employers would ask the workers to take either paid or unpaid leave.

“This (shutdown) is because of a drop in demand. And so, the factories have to temporarily terminate their workers,” he told reporters after opening the Agro Explosion 2009 Seminar & Workshop yesterday.

He said that as of Jan 12, some 14,000 people had been retrenched. However, there were also some 15,000 vacancies in various sectors registered at the ministry.

On the National Union of Bank Employees and Malaysian Trade Union Congress opposing the Government’s plan to have a pension scheme for private sector employees through the Employees Provident Fund, Dr Subramaniam said it was due to a misunderstanding.

“The ministry is thinking about senior citizens who can no longer work and have used up their EPF money. We need a system to help them,” he said.

Recession and Network Marketing

"Recession causes people to open their minds to gaining alternative sources of income." Lou Clements, Marketwave Inc. We will examine the reasons why recession is a great time for networking so you can be in a better position to discuss them with potential Business Builders or "I Caner's".

1. Evaluate History

(a) Recessions: people experience and economic downturn...lost jobs, lost earnings, lost hope, lost security, etc. Where to turn?

1950's: early 1950's, no network marketing companies worth talking about; late 1950's, Shaklee, Neolife, and Amway all came out from 1956-1959. Unemployment rate low in first half (in fact in 1953 it was an all time low of 2.9%). In the last half of the 1950's, the unemployment rate was highest since the Great Depression in 1958 at 6.8%.

1960's: early 1960's all networking continued to flourish with advent of Mary Kay in 1963, and Avon, Tupperware, and Fuller Brush all achieving momentum. Late ‘60's saw a great softening in the industry with no new companies coming on of any significance. Unemployment high in the first half of the decade; over 2 and ½ million workers were back to work in the second half.

1980's: Again we saw the network marketing industry really flourish in the first half; while in the second half of the decade, it softened and many network marketing "fiascos" occurred. When networking is soft, people and companies take more risks. There were twice as many lawsuits in the second half of the 1980's as were in the first half. In the first half the unemployment rate reached its highest level in 40 years at 9.7%. While at the end of the ‘80s there were almost ½ the number out of work as there were in the early ‘80's.

1990's: Once again, the trend occurs. In the early 1990's (1990-1994) huge momentum in the industry, in fact "there was more wealth created in by way of MLM from 1990 to 1994 than any other time in history." Network Marketing Lifestyles May 2000. From 1996-1999, we had a network marketing recession. In the early 1990's, the unemployment rate was very high and then in the later years in the 1990's it hit a 30 year low of 4.2%.

Why were the 1970's an exception? They really were not but they played out differently. It was an exceptional decade...the first half of the ‘70's saw unemployment rates jump. The attention to network marketing took off but with all the heightened attention, five times as many lawsuits were filed from 1970-1974 than all of those filed in the ‘50's and ‘60's, and the big one, Amway, which challenged the very existence of network marketing, lasted until finally settled in 1979. This legal dispute of course dampened what otherwise would have been a greater boom in network marketing in the second half of the decade. In the first half, recession of ‘73-'75, many MLM companies' growth took off.

2. Where are we headed in 2009?

All major indicators suggest recession: stock market, credit card debt, mortgage foreclosures, fall of the dollar against foreign currencies, company earnings reports across all sectors, manufacturing sector, employment figures, etc.

3. How do we take advantage of this opportunity?

(a) Market health products? This does not solve the average person's perceived need/want. Health cannot be a major priority in this time.

(b) Make a shift to support people in building residual streams of income to empower them to withstand any kind of economic downturn. "Recession causes people to open their minds to gaining alternative sources of income." Lou Clements, Marketwave Inc.

4. What are the selling points of a network marketing business?

(a) Security (not found in a recession)

(b) Financial freedom

(c) Time freedom

(d) Self-development

(e) Self-employed; no boss so no sacrifice of your own values;

Creating your own standard for the ethics in your business

(f) Time freedom

(g) Purpose driven: helping others with focus on them

(h) Unlimited income: no one telling you what you are worth

(i) Residual income

(j) Dream again

(k) Great relationships

(l) Reduce stress

(m) No employees

(n) Tax benefits are terrific

SO, STRAP YOURSELF IN AND GET READY FOR THE RIDE OF YOUR LIFE!!

What does a Recession Mean to Network Marketing

You can’t escape the talk of the economy these days. It’s everywhere. Every news station, every business magazine, and every major newspaper is talking about it. So what does all the talk about a recession or a declining economy mean to your Network Marketing business?

Some may use the recession as an excuse to not work their business. They may be focused on the product of their direct sales company only and think “No one can afford my products right now; they have other needs that must take priority.” They focus on the negative and all consuming media coverage and think, “This doesn’t work. I can’t have a successful home business during a recession. I’ll just wait to work my business when the economy starts to pick up again.”

But if you are serious about your Network Marketing business and fully understand the potential you have to offer people a financial alternative, then sitting back and waiting for improvements in the economy is a huge mistake. You will welcome the bad economic news. Consistently, the Network Marketing industry has grown during these economic downturns.

Yes, it is true that in good economic times, people can afford to buy more consumer goods. Thus, your Network Marketing business will do well to offer high quality products.

But in bad economic times, people are concerned about downsizing and job layoffs. They are looking to make extra money or develop Plan B to their employment situations. A downturn in the economy results in people opening their minds to alternative sources of income. You can provide a solution for these families.

Network Marketing allows the average individual to get involved in starting their own business with very little capital outlay. For instance, one can start with our company for under $50. You have the ability to offer people a way to protect themselves from future uncertainty. You can provide hope and a way for them to create financial security for their family.

You may have heard that Network Marketing is really the only industry that is recession proof. So it is the winner every time - good or bad economy.

How the recession affects Network Marketing?

Should you be spending time on network marketing when the economy is in a downturn? By Michael L. Sheffield | October 21, 2002

Q: I've been working with a network marketing company and am concerned about what others are saying about us being in a recession.

How will this affect my business?

Should I be spending my efforts on this part-time business right now in these uncertain times?

Should I focus on retail customers or on building my sales organization?

A: Whether or not we are in a recession is a topic I'll leave to the economic wizards.

However, having worked full time in direct sales and network marketing through several times of faltering economic indicators, inflation, unemployment, layoffs, etc., I have some thoughts on this matter.

In today's news, you get mixed messages.

But if we are in a recession, what does it mean to you, the distributor?

If you're not doing anything and looking for an excuse not to do anything, a recession is about as good a reason as any.

But if you're serious about your network marketing business, then, believe it or not, a recession could be the best thing that's happened to you in a while.

Shaky economic times have historically produced a renewed awareness of the need to make more money.

You'll find people who were previously uninterested in your business are suddenly looking for new financial opportunities.

They want a business that doesn't require a lot of capital, allows them to establish their own hours and offers rewards that can grow faster than capital or labor requirements.

Sound good to you?

It's the business you're in right now!

While other businesses offer one or more of these benefits, only a true network marketing plan can offer all three.

The reality is that leveraging your time through the multiplication process of network marketing is the hardest principle to teach others, yet it's the easiest to attain if you're involved with the right company and right product at the right time.

It's such a simple concept, people sometimes refuse to accept it as being something that could actually work for them.

They suffer from "analysis paralysis," trying to figure out why it won't work rather than why it will, making the whole process more difficult than it really is.

But when people are motivated by concern for their financial future, the sponsoring process becomes much easier.

Spouses are more supportive of their partner spending extra hours working to create more financial security for the family.

If you're pre-planning for uncertain times, consider that customers scrutinize your product or service more when dollars are tight. Is your product or service a "need to have" or a "nice to have"?

Products that are necessities rather than luxuries do better during times of uncertainty.

Do you focus on retail or recruiting?

In network marketing, these are never exclusive.

Building a strong retail customer base is critical, but you must recruit others to duplicate your efforts.

Learn the success formulas for yourself, then teach others to achieve that same success.

There is no other way in network marketing.

You can't achieve significant success on your own--you only have so many hours each day.

Nor can you sponsor that one hotshot person who'll make you a success while you sit back and watch the dollar bill sprout wings and fly into your mailbox.

You need a plan to duplicate your efforts through many others.

It's a vivid example of the biblical admonishment, "as ye sow, so shall ye reap."

Network marketing is and always has been a person-to-person business, so nothing happens until two people talk.

During recessions, talk to people about protecting themselves against an uncertain future via network marketing.

As Ralph Waldo Emerson said, "It is one of the most beautiful compensations of this life that no one can sincerely try to help another, without helping themselves."

Michael L. Sheffield is the CEO of Sheffield Resource Network, a full-service direct sales and network marketing consulting firm.

He is also the co-founder and chairman of the Multi Level Marketing International Association (MLMIA).

He can be contacted through http://www.sheffieldnet.com.