Trends within our industry point towards anincreasing level of consolidation between network marketing companies in themonths and years ahead. Network Brokers is a company that specializes inhelping companies and distributors complete mergers and acquisitions by servingas a mediator in the consolidation of Network Marketing companies or organizations.

The popularity of network marketing as abusiness model has continued to surge, as evidenced by the influx oftop-caliber professionals into our industry. And, as network marketers becomemore sophisticated in their business practices, our industry as a whole hasbegun to experience a "coming of age" maturity and legitimacy.

As in any maturing industry, the competitionfor "shelf space" (in our case, distributors) is becoming fierce.Inevitably, the number of small, start-up networking companies will decline.Many will fail, falling victim to larger companies that are better able toleverage economies of scale and dominate market segments.

Others will merge in an effort to createsolid companies–a response to the myriad of serious professionals seekinglong-term stability in our industry. Recently, my own company, 21st CenturyGlobal Network, merged with Florida-based Legacy USA, which itself is the outgrowthof two corporate giants.

What does all of this imply for multi-levelmarketers? Click here for insights from some of our industry's leadingauthorities.

If your company or distributor organizationis interested in exploring a consolidation strategy – whether merging,acquiring or being acquired – email me at rene@yarnell.com with your phone number. I will set up a confidential interview with you to discuss your options in greater depth.

Trends in Network Marketing Mergers

1. The days of companies such as Nu Skin International starting with $5,000 and becoming a dominant player within the Network Marketing industry are over.

"Corporatefounders can no longer fool around with Network Marketing companies, startingthem on a shoestring budget. They will be compelled to create solid companiesin order to respond to the myriad of serious professionals who are seeking morelong-term stability in the industry."

– Rene Reid Yarnell

2. Consolidation within the Network Marketing industry is inevitable.

   "As in anyindustry, the strong Network Marketing companies will prevail, and the weakones will fall by the wayside. These types of consolidations can only bringgreater credibility to the industry, and credibility is the key to bringingNetwork Marketing to the next level of professionalism."
   
   – Ted Elias,President of Legacy USA

"This is oneindustry that, up until now, has resisted consolidation. The reason for this isthe cultures in Network Marketing can be so different from one company toanother. Melding them can be a challenge. Now, however, the culture among someof the better quality companies–those that have been around for several years–is not so dissimilar. And size definitely has an advantage in NetworkMarketing. Over the next five years, I think we will see a lot ofconsolidation. It just makes sense."

– Greg Martin, Board Chair ofShapeRite

3. Competition and consolidation are healthy for our industry and its distributors.

   "We are in anera that is as hyper-competitive for distributors as I have every seen. We arenow competing for distributors with many other good MLM companies. We arebasically in a full-employment economy, which leads to more intense competitionfor distributors, since it is so easy for them to find a company. Butcompetition is healthy. I feel it keeps companies focused and honest inoffering the best of all aspects of our business."
   
   – Greg Martin, BoardChair of ShapeRite

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