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Network marketing businesses can be much more successful in some countries than others. And the reason appears to have nothing to do with average earnings, and everything to do with culture. So it is that one MLM business in the health sector has Thailand as its leading territory – a country with a low per capita income, but a highly entrepreneurial attitude.
According to recently collated figures from the Direct Selling Association, the USA, where the network marketing structure and business model was invented, remains the leading country where the format is used.
Second on the list is Japan, where the market is said to be worth almost $23 billion. And third is Brazil, the highest growth market on the globe. The contrast between these two countries, in terms of national culture and style, could not be more marked. In Brazil, the opportunity that direct selling via an MLM business offers, can provide a more realistic route to higher earnings, than a mainstream business building opportunity or a job.
Fourth and fifth places in the table are taken by Germany and China – again, two contrasting countries. The Germans have a highly structured economy with a high average standard of living, while China is undergoing massive change and generating hundreds of new millionaires through the growth of all types of businesses.
Sixth in the league is South Korea, followed by Mexico, the UK, Italy and Russia. So a wide variety of countries with no clear link, in terms of cultural background or economic level. So what is the reason why a network marketing company will succeed better in one country than another?
The answer must lie in the prevailing attitude towards different types of business. As a Brit, it is easier to comment on my own society, and it is clear that the British have a culture of employment; of taking a job created by someone else. Whether that is a legacy of the Victorian mills, or some other historical events, the philosophy that one should seek a job is still deep within the culture. Looking at the tax system, to the banking and mortgage markets, the preferred mode is still for an individual to be employed, for the consistency of a regular wage to be favoured over another, more entrepreneurial way of earning a living.
In such an environment, the self-employed person or entrepreneur is still generally frowned upon, or at the very least thought of as a bit of an oddball. Setting up a home-based business is generally seen as something that is rather unusual, and slightly risky. And here’s the problem, where a relatively new business type such as network marketing comes across a culture that is resistant to innovation; those involved at the vanguard simply have to work harder to convince others to listen to their proposition.
But the flip side to anyone getting involved in an internationally based network marketing business is that you can build a cross-border team. And as any investment adviser will tell you, it’s best to spread your risk by diversifying your portfolio. So the idea of building a team of network marketing distributors that includes people in other countries is a great way of picking up on those nations where multi-level marketing (MLM) businesses have been proven to grow and work well.
The great news is, it doesn’t matter where you start! Be careful how you select which network marketing business to team up with, and you will tap into an international business with the opportunity to grow in other countries at a pace that can become independent of your involvement.