Home

Newsletter

Motivational Email

MLM Articles

Free Training

Blog

Online Services

Positive Outlook for Network Marketing in Canada

The Direct selling industry, which includes network marketing, represents an important and dynamic segment of the Canadian economy. Currently 1.3 million Canadians are associated with the industry and direct sales boast a vigorous 25% growth in the last two years (2007-2008) – from $1.57 to $1.96 billion – and sustained a 10% to 20% increase over the past decade..¹

Direct Selling offers consumers a wide variety of choices through the direct distribution channel, with hundreds of different products from all over the world. Including:

food and nutritional products
cosmetics and skin care products
clothing
candles
jewellery
toys and educational items
telephone and Internet service
... among others

Of the 60 plus companies in Canada’s robust direct selling industry, more than two thirds are members of national Direct Sellers Association (DSA), including global firms with household names such as Avon, Mary Kay, USANA Health Sciences, Nu Skin, Quixtar, Shaklee, and Canadian-based companies like Epicure Selections.

The industry itself is represented by 3,900 permanent employees and more than 600,000 Independent Sales Contractors (ISCs) who contribute $1.96 billion into the local economy.

In a recent Socio-Economic Impact Study conducted by Ernst & Young on behalf of the Direct Sales Association, it was estimated that, in addition to $966 million in direct revenue, almost half again - or $438 million - streams from indirect contributions of the direct selling industry, the spin-off as it buys from other Canadian companies (e.g. suppliers of merchandise, office supplies, shipping, etc.)²

Direct selling and network marketing in Canada has also attributed to enhancing the way of life for many Canadians; particularly for those people looking for increased flexibility around work schedules and family life. The benefits that stream from network marketing stem further then just financial improvements, a recent survey amongst those involved in the Direct Selling Industry demonstrated that 65% indicated "improved professional skills", 78% cited "build self esteem", 70% noted "build better sales skills", and 70% said "build better business/management skills" ³.

While jobs, income, investments, and taxes can be more easily quantified, social contributions are no less vital than economic impacts. Indeed, these achievements in individuals' lives — increased self-esteem, self-confidence, organization and management skills — build a stronger future for direct sellers, their families, their communities, and their country³.

Our Predictions for Network Marketing in Canada

The first two months of 2009 were a disaster for working people; 240,000 workers lost their jobs. The job losses in January 2009 were the largest monthly loss ever in Canada. November to February losses are the steepest since the crushing recession of 1981/82.

Since June of 2008, Canadian households have lost 8% of their net worth. Household credit debt grew by 2% in the fourth quarter of 2008. Two of the big three U.S. automakers in Canada, General Motors and Chrysler, say they will pack up operations in Canada if they don't receive nearly $10 billion of taxpayer bailout money. Together they employ some 20,000 workers in vehicle assembly and tens of thousands more in parts manufacture, sales, and service. Chrysler wants its workforce to concede even deeper cuts in wages and benefits than those voted by GM Canada workers in mid-March 2009.

Cuts to social services will soon be the order of the day as governments cry poverty and deficits mount. Bank analysts say the federal government will have a budget deficit of $40 billion in fiscal 2009. The government of Ontario, the province with the largest manufacturing employment, has announced the largest budget deficit in the province's history for 2009, $14.2 billion ⁴.

The above figures make grim reading for many hard-working Canadians, however with any economic downturn comes an opportunity to re-assess the financial direction for any individual. In line with this financial self-evaluation many people are now realising that job security was something of the past and that they only way to shore up their current financial reality; while taking control of their financial security for the long-term is by putting into place a "Financial Plan B".

That Plan B for many is plugging into one of the fastest growing business trends in Canada, home business, direct selling and network marketing. We predict in particular that network marketing in Canada will be very strong for those individuals who capitalise during these tough times. Many people will use the economic downturn as an excuse not to grow a network marketing business, but those entrepreneurial people who take this once in a life time opportunity will thrive through the difficult times to come.

With the advent of Social Networking and the rapid advancements in Online Technologies and the Internet, the very nature of the network marketing industry has changed both in Canada and across the globe. Now there is the opportunity to build a large residual/leveraged income without having to sell products face-to-face or even leave the home. There is potential to build an international organisation from the comfort of your own home office.

With continual advancement in communication and networking strategies, direct selling and network marketing in Canada is forecasted to have significant growth over the next 5 years and in the long term to be bigger than the franchise industry of today.

If you’re looking for a Financial Plan B and would like to review network marketing opportunities in Canada please contact us for advice.

Learn more about the global network marketing industry and how network marketing in Canada compares to other countries.

For more information about the Direct Selling Industry in Canada please visit their DSA website.

References:
¹ http://www.dsa.ca/content/industry/
²http://www.dsa.ca/content/industry/
³ http://www.dsa.ca/content/industry/stats.php
⁴http://www.globalresearch.ca/index.php?context=va&aid=12945