Why I feel Home Businesses and Traditional MLM Network Marketing Companies are on the way out the door in the next 10 years.

It was the early 1900’s a lil company called Watkins was created, which is actually still around today. This little company decided to creae a model that would allow the company to keep costs down and use a direct sales approach by allowing ordinary people to create their own indepentant businesses around the companies model.

What’s intresting is times have changed, and the way people do things today is not the same as we did them in the early 1900’s. When people get started in MLM – Newtwork marketing programs they actually think they are starting their own businesses.

Although they can determine their own income and be able to make great income is true. I also really like the concept of Network Marketing and I think it’s the best was to learn how to run a business because of the great lessons you’ll learn.

In fact Donald Trump says it’s the best business school anyone can attend.

The problem I have personally with network marketing is that the independt rep selling the product is not really running their own business from the sense they don’t control the comp plan and they don’t make decisions at a high enough level when it comes to the financials.

Here’s what has happen many time for many reps. Because they don’t control the comp plan and many other descions that are being made. The company makes all the choices, which impacts every single rep out there whether you like it or not.

Recently a little company based in California called Arbonne filed bankruptcy because they were in 200 million dollars in debt. Last Nov. of 2009 the top distributors all took a pay cut. (Warning! For the Reps)

As I look into this Arbonne situation it’s sounding like the owners of Arbonne became a little greedy and changed comp plans and stashed more cash for them, which is all greed.

Now there’s thousands of Arbonne reps out there that have built huge businesses that are about to lose it all. It’s because of their controlling it’s because of decsions that other people made outside of them that controls them.

A company several years ago, which actually created tons of Millionairs out of their reps. The same thing happened they didn’t last long after the founding owners sold the company to another party.

Because the reps don’t have full control of the company it self. They are effected by decions that are out of their control, which basically (TO ME) says these reps just have sales jobs that are sold the idea that’s it their own business, which it’s kinda of their business from the perspective they can make a few decions on their own

My point is they don’t have much or any control to how money is passed around from the higheir levels of the company and they don’t control many things, so I don’t really think it’s their business per say.