The Solution

Jobs, jobs, jobs. That's (almost) all we hear these days as candidates campaign for jobs of their own. Where are the jobs? How do we create jobs? Why aren't we creating jobs? Who is it that creates jobs, anyway? These are vital questions for the United States' economy, as millions of people are currently un- or under-employed. We must find a way to get these people earning incomes to support themselves and their families, and to lessen the strain on the government's safety net programs. But by focusing solely on jobs, we, as a society, are missing the boat on a solution that can bring everybody who jumps on board (and puts forth the necessary effort, of course) the income they need and boost the nation's economy. Regular readers of this blog will already know what this overlooked solution is: Direct Sales.

Before I get into how direct sales can solve the country's (and the world's?) economic shortfalls, let me first give you a thumbnail sketch of how the model works.

Companies that produce a product or service can go the "traditional" sales route, spending large sums of money on advertising and employing a team of salespeople to find customers. Or they can opt for direct sales (a.k.a. "Network Marketing", a.k.a. "Multi-Level Marketing", or MLM) and attract a sales force of independent representatives (IRs) who want to build their own businesses and live life on their own terms, without being beholden to a traditional job. These IRs then do the work of finding customers and additional IRs.

When an independent representative brings in a new IR into the network, that new IR takes a spot "below" her in the network structure, becoming part of her team, or "downline". He is part of what is known as her "first level". And as the newbie finds new members for his own downline, they also become a part of hers as well, on her "second level". As this process continues, the IR's team builds multiple levels, hence the Multi-Level Marketing moniker.

Each independent representative earns commissions for the sales she makes, as well as from the sales made by her downline. The larger and more successful her downline, the more she will earn in commissions. So it is well in her interest to encourage and assist her downline in building their businesses. That's one thing that makes the direct sales business model so much better than "normal" jobs"--everybody is energized by helping each other build their businesses, especially when they are promoting a product or service that they really believe in.

By the way, the commissions you earn from sales made by your downline are what is known as "passive income", the best kind of income there is. You did the hard work once to build your team, and you now earn income every week or month from your downline's sales without having to put the hard effort into it. You will, of course, have to do some work to keep everyone motivated and replace lost IRs and customers, but not as much as the first push to build your team.

So that's how the direct sales model works. But how can it help save the economy and the people most adversely affected by it? I hope by reading the paragraphs above that the answer is obvious. If everyone (adults 18 and over) were to:

• Drop any fears and misconceptions they have about direct sales,
• Join a direct sales network of a product or service they love,
• Build and foster a team of their own,
• Buy products and services from their friends and relatives who have their own direct sales businesses for other products, and
• Promote the direct sales business model to everyone they meet,

imagine the possibilities. I did a little of that in a previous posting, Imagine. I'll wait while you click over and read that...

...OK, I see you're back. To continue, beyond the financial help to the individual, the national economy will improve as more and more people have more and more income at their disposal and fewer and fewer people need government assistance.

Of course, we have hurdles to overcome to get direct sales going to the level I envision (and promote) here. The biggest ones in my estimation are:

• Current misconceptions about the industry, and
• How to bring in people who may not have money on hand to cover the modest costs required to start in most MLMs.

I see a place for the government in helping out with these issues, since it is in the nation's interest for its citizens to be generating income that they can: a. pay taxes on, and b. spend. I can see a national campaign, backed by the government, to promote the industry as what it is, a terrific, low-cost way to own your own business. I can also see the Small Business Administration offering loans to cover the start-up costs. Since you can join many--if not most--MLMs for less than $1000, such loans would not be much of a blip on the nation's budget.

So that's how we fix the economy. It saddens me that so many people are focused on jobs as their sole means for putting food on their table--and even getting a table to put food on--when another, better solution is so readily available. What do you think?