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Understanding the relationship between low-cost entrepreneurship and economics is important. During the past few years, the world economic boom has made people complacent. In the U.S., the jobless rate dropped to all-time lows of less than five percent. People had to be sick, lame, or lazy not to get a job. Hamburger flippers got higher-paying jobs, such as embling computers, and their incomes rose. Rather than looking for an alternative to a job or seeking extra income, these folks sat around and watched television.

When recession hits, those with any intelligence are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best alternative is MLM also known as Network Marketing.

We followed the increase in growth of several major Network Marketing companies operating during the recession of 1973-75. Companies that were not doing badly when the recession started, they had a fair amount of growth. However, when the recession came, they took off like rockets!

During the early 2000’s recession (officially starting in November 2001), MLM company growth rates jumped higher than they were before the recession. This was due to two reasons: (1) Fear leads people to new income sources and they WORK the opportunity, not watch TV. (2) The doubt of the recession lingers in the minds of people so there is an “aftereffect”. (3) During the recession the company grew a “freverant” distributor base, recruiting more new people that lead to exponential growth.

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