Can Community Marketing Save Your Retirement?
We’ve all heard the story, if you tell only six friends about this business and you tell six friends who tell six more friends, you are on your way to financial freedom and never have to work again, right?
Let’s face it, whether you call it multilevel marketing, direct selling, or network marketing, the entire industry gets a bad rap. It’s often referred to as the pyramid scheme or gets rich quick, and frankly there’s enough evidence to approach it with caution. However, since I’ve been researching trends in this business model, I’ve come to a very different conclusion. One that actually suggests that network marketing can play a crucial role in how well baby boomers and others retire.
For full disclosure, please note that I am not affiliated with any tiered marketing or direct selling company and that I am not receiving any compensation from the industry for my opinions on them. I share this with you because, after writing the most read, copied, and cited MLM article in industry history, I was accused of writing it to promote my own MLM business, or the industry in general. which is not the case.
The interesting thing that most people miss about the important link between retirement and network marketing is that you get a very different picture when you take out the financial aspects. Since Social Security was founded in 1935, people have been brainwashed to believe that retirement is all about money. That a successful transition from work to personal life requires the right amount of dollars, the right asset allocation, and the right spending plan. But that’s just not the case. There are many people with significant amounts of money saved for retirement who are utterly miserable.
In other words, they built their nest egg in a dead or dying tree. They may no longer get along with their spouse, have no life or friends outside of work, have broken relationships with their children, or have given up their health in hopes of getting it back later. They essentially sacrificed some of the things that matter most to them in an attempt to buy them back in retirement. When they get there they can feel lost and uncomfortable and struggle with their transition.
In particular, they struggle to meet their health goals, connect with new people, learn new things, and long to be part of a community. What I am telling you is that the average retiree is at least 25 pounds overweight, feels tired for part of the day, is moderately depressed about something, has low self-esteem in one or two areas of life, and recognizes that they are only good have a best friend and lead a pretty simple life overall.
In short, retirement creates several non-financial gaps for individuals and couples that need to be addressed. If it doesn’t, it can lead to a downside of retirement that includes feeling unfulfilled, bored, and irrelevant.
Similarly, when you eliminate money from the network marketing industry, a new perspective emerges. Personally, I love talking to people in this industry because they always read, post and share something inspiring. They have goals, a dream board, and generally use the products they sell to improve their looks and behaviors.
This not only promotes a positive attitude and atmosphere, but also a lot of structure and activity. Many network marketing companies offer weekly calls, local meetings, and an annual conference. All of this brings the members out of the house, building knowledge and developing new skills. At the same time, it offers them the opportunity to meet new people and to deepen existing connections.
Wellness-based MLMs in particular are well positioned to help people retire more easily and more successfully for two reasons. First, they create a positive dynamic. When people start losing weight, have more energy, or get compliments on the way they look, it builds momentum. They see, feel, and hear the benefits of their work paying off, which encourages them to stick with the changes they make. Second, there is a group effect. Many people have difficulties developing and maintaining a new health, diet and exercise program on their own. But when you do it in a supportive community with others, it’s much easier to get through the tough days and stay on the right track. Also, if you take better care of yourself, you will be able to leave a better legacy than money could ever offer.
This group effect also plays an important role in a retired person’s social network. Studies show that being around negative, pessimistic, or sarcastic people can be harmful to your health. And many people can get into trouble when it comes to who they are with and who they are related to. Which means that successful aging includes hanging out with optimistic, positive people.
That’s not to say that network marketing can solve all your problems and that it’s worth joining every company in the industry. What I am telling you is that the network marketing model is an inexpensive, widely available way to fill in some of the psychological loopholes that you may lose and be unable to develop on your own.
It’s also important to note that while I expect significant growth in the ranks of many MLM companies, there will also be significant growth in companies that adopt this model and its many advantages. In fact, this is one reason why I worked with the Retirement Coaches Association to develop the Certified Professional Retirement Coach certification.
The formula for future business growth is based on the idea that people don’t want to retire in just a traditional format. You crave knowledge and want to feel relevant. They want to improve their own transition and feel compelled to help others avoid the pains and pitfalls they have experienced. They want a supportive community where their opinions count and where they can openly ask personal, business, or other questions. They are keen to hear and explore new ideas, and need ways to make new connections through face-to-face interactions.
Whether it is network marketing or a new industry, you can save your retirement by removing the concept of money. That way, retirees can focus on developing new skills and knowledge, helping themselves and others, building community through supportive relationships, or feeling good about their new identity and purpose in retirement!