Forbes Magazine, by Robert Laura 9/1/2014
WOULD YOU JOIN A MULTILEVEL MARKETING COMPANY FOR RETIREMENT INCOME?
At some point in your life you've been pitched a...network marketing business opportunity. While the pitch varies from company to company, it basically promises a chance to ditch your 9-5 work schedule, be your own boss, and make lots of money while making new friends in the process.
It all sounds good on paper, yet there is a seemingly endless debate over whether these companies and programs are legitimate business opportunities are not, so I dug in and got the real scoop. As a result, I believe that the entire industry is poised for explosive growth and can be one of the most significant solutions to America's current retirement savings crises... Combine that concept with eye-opening statistics like AARP's estimate that half of all baby boomers (76 million) are interested in starting a business and the makings of a massive trend are in place.
As far as the retirement savings crises is concerned, more and more people are coming to terms with the fact that they probably aren't going to be able to save enough money to just sit around and slowly deplete their nest egg from 62 to 100. With the average 50 year-old estimated to have less than $50,000 in retirement savings, there is an obvious need to find alternative ways to either save more or generate supplemental income starting now, and continuing throughout retirement. Moving beyond just the dollars and cents, boomers are growing tired of feeling guilty or bad about their past savings habits and are interested in moving towards possible solutions.
Another growing reality... Is the increasing number of baby boomers who are disenchanted with their current careers. They are worn out from years of the corporate grind and don't feel the connection between their job and the people it impacts outside their office walls or company grounds. They are shifting their focus from accumulating a giant nest egg to a desire to be part of something bigger and better...to have a positive effect on others...and working in retirement.
MLM and direct selling programs also offer very low barriers into entrepreneurship, often providing training, support, and ample encouragement along the way. As retirees begin to realize they need activities that keep them busy, relevant, in good health, and connected to others, The time, energy, and cost to participate in these kinds of companies make them very appealing to large segments of the population caught up in these dynamics.
Daria M. Brezinski PhD, a practicing psychologist: "Many people don't realize that Multilevel Marketing Companies are successful because they help people satisfy a number of important human needs, including feeling significant, having connections, learning something new, and making a difference."
This is not ringing endorsement for the entire industry. Like any investment of time, money, and energy, people need to be aware of what they're getting into and do their homework.
... The industry could soon experience larger than life growth spurred by baby boomers looking to adjust their retirement feelings and plans.