Network Marketing In Japan
Thursday, March 19th, 2009
Is Network Marketing A Scam?
Network marketing is not an industry. It’s a method of distribution that’s used by many industries, whose products and services include communications, health and fitness, vitamins and minerals, toys, business training, giftware, cookware, books and videos, skin care, jewelry, insurance, household goods, office supplies, dental supplies, and many more.
The Direct Selling Association, based in Washington, D.C., tractks data about network marketing companies and their independent representatives who are responsible for marketing and distributing products and services. Due in part to its stringent membership requirements and stringent membership requirements and a hefty membership fee, the DSA counts only 140 or so network marketing companies among its members. Estimates place the total number of network marketing firms in the United States at approximately 1,000 (there are many more, actually – annual start-ups are discussed later in this section), and more, actually – annual start-ups are discussed later in this section), and perhaps 3,000 worldwide. But even if more companies belonged to the DSA., statistics about network marketing would still be difficult to obtain. By its very nature network marketing is entrepreneurial, and companies that adopt it are very independent. Out of fear of losing their distributors to one another, network marketing companies do not routinely share data with each other, or anyone else, for that matter. (Of course, publicly traded firms are required to report statistical and financial data.)
Through its annual Direct Selling Growth & Outlook Survey and other studies, the DSA publishes statistics that characterize network marketing. On a global level, the World Federation of Direct Selling Associations conducts research and reports on network marketing in approximately 50 countries. Here’s a summary of what these organizations report:
*Direct selling worldwide is more than an $80 billion didustry and moving rapidly to the $100 billion mark. The U.S. market alone
contributes approximately $30 billion, up from $14 billion in 1992, while Japan contributes approximately $30 billion. Germany
and France contribut $3.5 billion each, while Brazil and Mexico each generate sales just shy of $3 billion. Several countries,
including Italy, Taiwan, England, Argentina, and Malaysia, each produce more than $1 billion.
*The number of network marketing distributors worldwide (including those working part-time and full-time) is approaching 35
million. Of that number, 10 to 12 million are working in the United States, Taiwan is approaching 3 million network marketing
practitioners, while there are more than 2 million each in Indonesia, Japan, Mexico, and Thailand.
*People of all races and ages and both men and women are engaged in network marketing. Women dominate the industry
four to one. Senior citizens make up approximately 5 percent of the market, while the physically challenged account for more
than 8 percent.
According to Michael Shffield, consultant to hundreds of network marketing companies and president of Sheffield Resource
Network in Tempe, Arizona , one of every ten American households includes someone who is involved in network marketing, or direct selling.
The numbers are impressive, but at least one insider thinks they’re merely a third of the real numbers. Ridgely Goldsborough, publisher of Network Marketing Lifestyles magazine, a bimonthly sold on newsstands and by subscription, says, “If anyone asks me unofficially what I think the numbers are, I say they are three times whatever the DSA reports. The DSA’s membership consists of only the largest companies , and there’s a new network marketing company starting almost every day in this country.”
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