An Update on What Network Marketing (and all Entrepreneurs) Should Learn From the Auto Industry

I first wrote this hub a few months when there was debate about the auto industry and whether or not there should be a bailout (see below). Since then, we all know what happened and the situation continues to disintegrate.

This week General Motors notified 1,100 of its 6,000 dealerships that it is terminating their contracts, the first step in an even deeper 40% cut in its retail network. Chrysler also announced hat it is dropping nearly 800 dealers, or about a quarter of its network, as part of its bankruptcy restructuring.

This might sound strange, but from a vulnerability standpoint, dealers are much like network marketers.They are entrepreneurs, but their business is tied to a particular company.

What happens if you are a network marketer and your company closes its doors? It happens all the time, in fact, it just happened to two of my colleagues this week.

That is why it is so important to learn attraction marketing and to brand YOU, rather than a company. As you go about building your online presence, you are developing a following of people who find value in what YOU have to offer. If your company goes bust, it isn't fun, but you have established credibility and your list will continue to follow you.

Being an entrepreneur involves risk. There is no doubt about that. But you can minimize that risk by learning to brand yourself through attraction marketing and by creating multiple streams of income. Learn how to do that and you will recession proof your business.

Contact me for a complimentary consultation to talk about how you can recession proof your business. Email me at cindy@homebusinesswins.com, skype (cindyschulson) or telephone (619 318 8688).

A couple of months ago, the CEOs of the big three automakers flew to the nation's capital in private jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy. For GM alone, the cost of the trip cost an estimated $20,000. GM’s CEO flew in the company’s 36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

As you know, the auto industry ended up getting $25 billion in federal loan guarantees. But it didn't end there. The second request came six weeks later, after sales had plunged across the industry in the face of consumer fears.

There are arguments to be made on both sides as to whether or not the auto industry should have received financial assistance, and if it should continue to do so. Many questions have been raised as to the efficiency of the automakers’ operations, the quality of the vehicles, and the type of cars being made.

Amid all the controversy and divergent opinions, it is good to step back and see what we can learn from this situation. Two important things come to mind.

#1 – If you want to make money, then working for someone else isn’t the way to do it, unless you happen to be in the teeny minority of big wigs flying around in private jets. And even their days may be numbered.

#2 – If something isn’t working, take a step back and figure out what you need to do to make it work.

If you are a network marketer, the lessons learned from the auto industry bailout are especially profound.

#1 – If you want to make money, start a business for yourself rather than work for someone else. Most people who do this become self-employed and that’s great, but if you don’t work you don’t get paid. Instead look at ways to start a business. Financial gurus like Robert Kiyosaki recommend network marketing as an excellent business opportunity. It has very low barriers to entry, is easy to run (little or no overhead, no employees) and offers great training and support. Not to mention that you get to earn residual income and profit from the efforts of not only yourself, but others on your team. Furthermore, it is your business. You get paid based on your efforts.

#2 – If something isn’t working, stop banging your head against a wall. Change it. If you’ve been involved with a network marketing opportunity and you haven’t been successful, take a step back and look at what isn’t working. Then invest the time and effort to learn new ways of doing internet network marketing.

Those of us who have taken the time to learn how to do attraction marketing are experiencing a profound change in our businesses and our results. After five years of chasing after people and working leads, I stopped banging my head against a wall and learned new methods that actually work. It took the realization that there is a smarter way to do this business, the openess to exploring new ways, and the determination to learn from others both within and outside the industry. Let us hope that the auto industry executives will follow that same path.

It is not clear what will happen with the auto industry in America. Hopefully we won’t just put a band aid on the situation but really take this as an opportunity to make real and lasting changes that will benefit the industry, it’s employees and consumers.

Cindy Schulson is a coach for those who work from home or want to have a home business. Her focus is on working smart by helping you leverage the power of the Internet and attract qualified people to you. Visit her at Home Business Wins to book a free consultation and to receive a FREE copy of her ebook. You can contact her directly at cindy@homebusinesswins.com or call her at (619) 318-8688.