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Is Network Marketing / MLM Really an Industry?

April 12th, 2008 · No Comments

Many people describe and talk about the network marketing industry in various ways and it seems to be very common to call it an industry.

Is Network Marketing / MLM really an Industry?

This was a question I have been pondering about for quite some time. In today’s social media, I figured, why not throw it out to other great minds and see what everyone thinks? I have since had some super conversations and great replies from many bright minds.

I often did in the past, I have written about it as such, but I had an initial conversation with Chris Gross of Networking Times about the question.

He does not believe it to be an industry because network marketing spans so many different industries. For example, there are tel com networking companies, there are beauty/skin care, there are legal companies, fruit juice companies, and many many many more.

Point being that network marketing is not the industry, it is the marketing and sales method used within a company.

I understand his point, and believe it to be valid, but wanted to open it up further for discussion.

I take part in several network marketing forums, and through there have a very large network of bright networking minds available.

Here are some great answers I received:

Of course it is. It’s simply an industry that defines itself by the distribution and marketing method of its companies and participants rather than by categories of products or services.

Thus, a company like LifeForce is part of two industries: nutritional and MLM.
A company like ACN is a member of two industries: telecom and MLM.

Tony Rush

…………………

It seems that the term “industry” is one that is used to mean many different things. In fact, if you check out a variety of definition sources you’ll find divergent opinions on what the term means. I like the one that follows:

“the aggregate of manufacturing or technically productive enterprises in a particular field, often named after its principal product: the automobile industry; the steel industry.”

If we use that one, then it’s not an industry. But folks often refer to retailing as an industry, or “drive-thru restaurants” etc.

I think the term “industry” is often used because some think that the term provides some legitimacy. Frankly, like Mary K, I think it’s bigger and better than most would infer when they use that term to describe it.

Lavona Rann

…………………

We don’t use the term “Network Marketing Industry.” There are
several reasons for this, one of them is the “blank look” we get
from prospects when we use the term. They have no idea what
you’re talking about. Instead we use the term Network Marketing
Profession.

Art Jonak

………………..

I have made my mind up. Network Marketing is NOT an industry, it is a profession, and in this profession we have the opportunity to take part in several industries.

Have a great day guys,

Anders Gustavsson

Tags: Industry Misc.

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