On a nice sunny morning a few weeks ago, before I even picked The Wall Street Journal up off the driveway, I saw the headline:
"Retooling Lives -- Technological Gains Are Cutting Costs, And Jobs, in Services -- Employment Starts to Plunge As Productivity Increases; Good News for Consumers"
The article went on to describe how "much of the huge U.S. service sector seems on the verge of an upheaval similar to that which hit farming and manufacturing, where employment plunged for years while production increased steadily." This is being fueled primarily by astounding advances in computers, communications and other technologies.
In many ways, the trend is positive. As productivity increases, American companies become more competitive worldwide, and consumers benefit from lower-cost services. BUT -- the problem is, without all the jobs that the service sector provides, there may not BE any consumers!
This kind of thing has happened before. For a good part of the 19th century, most working people were employed in agriculture -- growing the foods and fibers necessary for everyday life. Agriculture was very labor intensive, and required a large percentage of the work force. Then along came the mechanization of agriculture. Suddenly, crops could be produced with far fewer workers. Productivity shot up, putting farm workers out of their jobs. In search if a livelihood, these displaced workers migrated to the cities. There they found jobs in the very factories that were manufacturing the mechanized farm equipment that had put them out of work. Thus began the Industrial Revolution and the urbanization of America.
More recently, the automation of manufacturing has had a similar effect -- driving workers out of the manufacturing sector and into the service sector. For some time now, technology has been predicted to increase productivity in services as well. And now we are finally seeing that happen.
So now where are the workers to go?
We are now able to produce more and more goods and services with fewer and fewer people. This tends to concentrate wealth in the hands of those who have the capital to invest in productivity-enhancing technology. In other words, the rich get richer and the lower and middle classes get fewer and fewer opportunities to improve their lot. But a free society cannot long endure this kind of disparity.
But as network marketers, we have the answer. Just as technology has revolutionized farming, manufacturing, and services, it has also revolutionized something else -- distribution. But unlike previous economic revolutions, the distribution revolution is biased IN FAVOR of the individual. Advances in computer and communication technology have made giant, multi-layered distribution networks obsolete. The Information Revolution has made it possible for manufacturers to provide products directly to the consumer, completely bypassing traditional distribution networks.
Network marketing is the system that best capitalizes on the new realities of distribution. The modern marketplace is large, diverse, and extremely fragmented. The old approaches of mass marketing simply don't work anymore. The market is a moving target, and it is moving at a faster and faster pace. Nothing can change faster than the market, so the best distribution system is literally the market itself. And that is the essence of network marketing.
Network marketing is free enterprise in its purest incarnation. Everyone in network marketing acts in their own best interest, unfettered by the politics, limited resources, and bureaucracy of traditional businesses. And it just so happens that in network marketing, acting in one's own best interest also benefits the rest of the marketplace as well.
As technology advances, fewer and fewer people will be needed to produce products and services. But technology is also producing an explosion in the variety of products and services available. Just a short time ago, there was only one long distance company. Now there are hundreds. I remember not too long ago when I would ship picante sauce from here in Texas to my friends in other parts of the country because they couldn't get it there. Now there are dozens of different types of salsas sold in stores nationwide. Look at all the different beers, vitamin products, computer software programs, exercise machines. There is astounding variety in the marketplace. It is so pervasive that the simple act of going shopping often turns into a confusing, frustrating experience.
And yet personal service has become a thing of the past. Go into your big, local super mega discount warehouse and start asking questions about products and features. Chances are, you will be more informed than the "sales" person who is assisting you (if you can even find someone).
Network marketing encourages customer service because it recognizes that customers are not only valuable in and of themselves, but are also even more valuable because of the potential referrals that they can create. Therefore, retail customers of network marketing companies receive excellent service that is often well in excess of what their purchases would justify in any other kind of distribution system. Think about it. If you buy your vitamin supplements from the grocery store, no one is ever going to call you to make sure you are satisfied. However, if you buy from a network marketer, you will receive plenty of personal attention.
You might even consider network marketers as "product information specialists." With the complexity and variety of products in the marketplace, the consumer needs personalized help in sorting through all the different alternatives. Network marketing is the best system for providing this service in an economically viable way.
And in the process, network marketing creates lots of jobs. The trends will only continue to get stronger, and the future for network marketing is bright indeed.
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