Summary and history: (Clarification of terms: – ‘CEO’ is referring to the ‘Chief Executive Officer’ of a corporation and the ‘SEO’ is referring to the term ‘Search Engine Optimization’ using the Internet and Social Media Networks like Google, Face book and Twitter etc). With the down turn in the economies of the industrialized countries and with the Gekko’s (see the two “Wall Street” movies) of the Banking and Securities cartels driving and creating the international money challenges, we see the Industrial Revolution making a faster exit towards primarily SE Asia than it has during the past 30 years.
It was about 30 years ago that the North American and European governments started to provide funding for off-shore developments with the classical government bureaucratic do-gooder belief that they were helping exports, helping third world countries and creating markets. That approach ended up exporting jobs and then, once the western industrialized countries’ industries realized the access to those lower labour costs off shore, the exodus started to accelerate. Now the manufacturing jobs of the industrialized market economies are primarily in China and India due to the lower cost labour content. Take a look at the labels on your cars, telecoms equipment, computers, entertainment devices, clothes, kitchen implements etc. This focus of the reduction on the manual labour portion of the total cost has been a repetitive experience again and again in many industries and over many years as mechanization started to make inroads into both productivity and methods in order to reduce the cost of the labour portion and then the overall costs to the consumer. For example the introduction of thrashing machine on the English Victorian farms in the 1800’s. Please see the reference to the BBC series below. This introduction of new labour-saving machinery was met with resistance and riots from farm laborers who lost their jobs. Also the introduction of weaving machines in Holland which contributed to the workers losing their jobs and who, in protest, threw their clogs (sabots) into the machinery, hence the word ‘sabotage’. As further evidence of the shift of labour and jobs, if you have an opportunity, take a look at the documentary movie: called “Manufactured Landscapes” and see the effects on and by the various industries in developing countries.
The Professional shift from “Corporate to Consultant” and further: In the late 70’s and early 80’s professionals started to see and experience changes concerning their careers, by being laid off and or finding they could earn more as consultants rather than as employees. As consultants they were able to increase their income, sometimes dramatically, but also found that they were traveling a lot and working sometimes a very large numbers of hours. This took away from their family life and the question ‘is it worth it’ would invariable surface. I have been there and done that to the extent that I was away from home up to 8 weeks at a time and onetime when I came home from a long business trip my young daughter asked my wife:”Do I have to do what that man says”. Earning lots of income but no family life and missing many family events is really not the way for a family to live and grow.
The respectability of network marketing surfaced in 1979 when the US Government defined Amway as not a Pyramid or Ponzi scheme due to there being a product and service, which by the way is the definition of a legitimate business. Those negative terms still hang around in the minds of the people who do not understand the difference or the definitions. The same process took place during the development of franchises in the late 50’s when the US Government were 11 votes away from defining franchising as an illegal method of doing business. Now over 35% of North America GNP is franchise generated. With this new knowledge regarding business development and alternatives many of those consulting professionals started to join the Network Marketing (NM) industry and found that they could start a home-based business with very little capital investment, commute in their pajamas from the bedroom to the computer for their work, travel much less and have a better home and family life due to being around a great deal more.
However that too has its shortcomings namely that the sales processes and trainings that Amway had introduced in the 1950’s, were still being used and were already out of date and are even more so today. An excellent book was written in the mid 90’s called “The New Professionals” by Dr Charles King, Professor of Marketing at the University of Illinois in Chicago, and co-authored by James Robinson then VP US Chamber of Commerce, ISBN 0-7615-1966-1. Its subject is ‘The Rise of Network Marketing As the Next Major Profession’. This book covers the historic period from the beginnings of NM in the 40’s when one could not tell the difference between a con artist and a visionary, to the mid 90’s when professionals and others were entering the industry in droves as the Industrial Revolution started to accelerate its exodus from the industrialized countries and so therefore traditional jobs were disappearing. The whole expansion of the NM industry was being based upon, what is now referred to, as the Old School methods. The result is that so few people make any money using these old methods (approximately 1% based upon the “earnings disclosure” statements from several Multi Level Marketing companies) due to the structure and trainings making participants “advisor dependent” instead of “system dependent”. Unfortunately a great preponderance (percentage) of the ‘advisors’ are less than competent to either advise or lead.
Well the market has shifted again and the methods have also shifted and these shifts have come about primarily due to two events: 1. The explosion of digital technology that has dramatically expanded the use and appreciation of information and the subsequent effects on society as related to the use of the Internet, and 2. The large number of manufacturing and assembling jobs moving off shore. Of course other factors affect these two events including population growth, the I.T. industry, transportation systems etc. The methods referred to are the marketing and sales activities that are most important factors in building a business, any business. The shift has gradually been made away from the “Old School” system (over 50 years old) which includes: “approaching friends and relatives, buying lists of uninterested people, hotel and home meetings etc”, to the relatively new world of “Internet Marketing” with all the strengths of worldwide connections to people who are looking for what you are offering. The result is that it makes the business owner ‘system dependent’ instead of ‘advisor dependent’ and the system is an amazingly accurate, dependable and reassuring support mechanism.
Personal experiences: Why I feel able to comment on this aspect of progressing from a Corporate life to Home Based Business ownership: – Starting as a Professional Engineer in the UK and also in Canada, having worked for 7 years with a very large UK company (including a 5 years engineering apprenticeship) and 5 years with a large Canadian company (both in an engineering capacity and then a marketing role) I decided to leave the Corporate world due to the frustration and confining environment of bureaucracy. Due to these experiences I feel encouraged to share with you my route of transition. In the ownership and self driving role that I chose, I built 10 companies from scratch including from the conception of the idea to determining the market, to clearance of the new company name and to incorporating them and financing them. The smallest was a $15,000 start-up and the largest a $25 million start-up.
Those company developments all included the necessary components of a complete business plan as well as the demands of the corporate records of the minute book. These detail included ‘shareholders, stock types (debt and equity) creation and issuing shares, directors’ and shareholders’ meetings and minutes’. As to operational management and the daily running, I was the CEO of each of them. You may see from this that my background developed to become broad and financially based and also internationally driven since the businesses involved a lot of travel. I have done business in, worked in and developed projects and deals in 22 countries.
Mike January 28, 2016
Posted In: Marketing