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Women in Network Marketing:
Why They Still Earn Less Than Men
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The following is an update of an article that originally
appeared in Upline in 1994.
There are differences between men and women. Honest! It’s not an
old wives’ tale. We approach nearly everything differently: our relationships,
the way we communicate, how we face family challenges, how we view the
world … and, yes, how we do business too. I believe the contrasts
are healthy, but recognizing our own unique patterns as women can give
us an edge in our success in business—especially a “people”
business like network marketing.
In the 1600s and early 1700s, the cash economy was primarily made up
of farmers, artisans, and small shopkeepers—men who worked at home
or near home with the women of their family working by their side. Business
was a unified family enterprise centered in the home.
Then came the industrial period, when factories began to produce goods
for the mass market that previously had been made only for personal consumption.
As families began buying labor-saving machinery, many women and children
went to work outside the house and became an important source of wage
labor in the factories, while the men stayed home and tended to the regular
farm chores.
By about 1890, all of that changed as opportunities began to present
themselves for men to earn more money off the farm. Husbands left the
home to earn cash while wives stayed home and nurtured the family.
Over the past 100-plus years, a man’s worth came to be measured
by his prowess as a successful income earner, while a woman’s was
tied more exclusively to creating a good home environment and being a
supportive wife. Being an exemplary husband or father or having strong
spiritual inclinations became less important as measures of manhood. More
and more, spiritual and moral values were left up to the woman.
With their focus on keeping the home fires burning, women became more
dependent on men’s wages and lost the marketable skills and psychological
benefits that come from publicly recognized work.
By the early 1940s, during World War II, women were going back into the
workplace to help out in the war effort. By 1970, 40 percent of all working-age
women had jobs outside the home. By the ’80s, that figure had nearly
doubled. It became the norm to have both the husband and wife working
outside the home. Even though they could now afford more luxuries, this
complete emptying of the home placed considerable tension on the family
unit. Divorce reached an all-time high.
The period of the 1990s introduced yet a new era, which bears strong
similarity to pre-industrial times. Evidence suggests that a shift in
values is taking place as both the younger and older members of the Baby
Boom generation are making family life and personal time a priority. For
the first time in 50 years, the entrance of women into the workplace has
peaked and is now dropping. Many are leaving to start their own businesses
where they can be at home with their children and don’t have to compete
in the status-race of the typical business environment. Today, women represent
about 40 percent of all small-business owners. Last year alone, hundreds
of thousands of women began their own businesses.
We are fast approaching a period in which 40 to 50 percent of all businesses
will be operated from home. More and more men, facing burnout, layoffs,
downsizing, crumbling pension programs, and disillusionment with Social
Security, are moving into or joining their wives in home-based businesses.
The lives of men and women are once again merging as they seek to create
a more unified family economy centered at home.
There has never been a better time to be growing a network marketing
business.
A Glimpse into the Future
With the technological advancements of the twentieth century, the home
environment has emerged once again as an effective place from which to
earn a solid income. Whereas the corporate executive was the hero of the
20th century, it is becoming clear that the leadership of the entrepreneur
will be “the defining trend of the business world in the 21st Century.”
This finding is from a recent survey of leading Americans, commissioned
by Ernst & Young. The survey’s conclusion predicts that the Entrepreneurial
Age that has just begun will be characterized by “greater emphasis
on personal fulfillment; increased innovation; creative work arrangements;
a more competitive work environment; the decline of union influence; more
strategic alliances, such as minority participation and joint ventures;
minimum government intervention and regulation; and higher income compensation.”
Clearly, a new breed of professionals is emerging—those who are
no longer satisfied with the social mores and work ethics prevalent at
the close of the 20th Century. These new professionals have been stepping
off the corporate ladder to create a new work environment. They’re
seeking personal fulfillment through their work, opportunities for personal
growth, and enough control over their time to allow them to enjoy life.
They want to make good money, but many also want to have funds left over
to spend for unselfish purposes.
The profession most likely to advance the dawning of this entrepreneurial
age is network marketing.
Finding a Renewed Pride in our Womanhood
The New Entrepreneurs of the 21st Century want balance in their lives.
How men and women create this balance will be different. Each sex has
something valuable to learn from the other. My observation is that on
the whole, as they enter the entrepreneurial era, men are feeling self-confident
about what they will have to contribute. There are exceptions, of course—particularly
those men who may be entering this new era following an unsolicited layoff.
I sense that women in general are feeling less confident and more downtrodden.
Today, more is expected of women in the workplace. Actually, we expect
more of ourselves. We know our strength in the home environment, but feel
an uncertainty, a lack of confidence, in the world of business.
I challenge the women in network marketing to join me in a renewed awareness
of our own self-worth. We have so much to do at the turn of this millennium.
We have much to offer our industry, our companies, our families, and the
members of our networking organizations.
We need to realize how much we have to give and how needed our feminine
qualities are in today’s world.
Innate Leadership Qualities of Women
Styles of business leadership are changing. According to John Naisbitt
and Patricia Aburdene in their book, Megatrends for Women, in the rule-based
leadership mode typical of mature corporations (which they describe as
“male”), you exert “command and control” over people
to achieve a result. Here are some of the key attitudes:
Pay attention … I’ve got the answers … Stay in rank …
Manage from the top … Follow orders … Here’s the bottom
line … Power … Strict rules … Discipline.
Command-and-control is appropriate in a relatively static marketplace
where the margins are slim—where you know exactly what your goal
is and what are the necessary steps to achieving it, and the key variable
between success and failure is tiny increments of cost. It’s not
appropriate in a fast-changing environment where the goals themselves
are changing, the methods of reaching them are evolving, and new ideas
that might come from the lowliest member of the group can result in big
profits. For instance, it’s hard to imagine running a computer-related
business exclusively from the top. Young programmers know the culture
of computer customers better than any experienced managers could.
A fast-changing environment favors free-wheeling, personality-based,
“guerrilla” leadership, which Naisbitt and Aburdene characterize
as feminine, where the key attitudes are:
Encourage participation … Open to change … Empower others …
What are your ideas? … Be a role model … Creativity … How
can I serve you? … Share a vision … Facilitate and educate …
Manage from the center … Network.
We have been in transition with regard to leadership styles for more
than a decade now. Neither style is really male or female; either one
can be effective or ineffective, depending on the market environment;
both are subject to abuse.
But the authors contend that the personality-based leadership style tends
to be appropriate in the fast-changing, entrepreneurial environment we
are entering—and that it is a style which women take to naturally.
Women Earn Less Than Men—Even in Network Marketing!
We know that women are paid about 75 cents on the dollar, compared to
their male counterparts in the business world. But why is it that the
vast majority of women still earn less than men in our industry?
When I wrote the first version of this article in 1994, I reported that
direct sales in the United States were responsible for over $14 billion
of annual retail sales, of which network distribution carried over $11
billion in 1992, sold by over five million independent sales reps. Ninety
percent of all new participants in our industry that year were women.
Yet, in companies with both male and female marketers, 90 percent of all
income was earned by men.
Six years later, network marketing in the United States is carried on
by some 10 million independent sales reps. The percentage of network marketers
who are male has grown from ten percent to thirty-five percent of the
industry’s makeup—a clear indication of the growing professionalism
of our industry. And yet, still, after all these years, women who are
at the top in this industry are outnumbered by men ten to one. Why?
For years, as women, we have described ourselves as victims. “Corporate
America is dishing out the unfairness to women. There’s no equal
pay for equal performance. Women are not promoted as readily as men.”
There is always someone to blame for women’s lack of equality.
But, I ask you, what is our excuse in network marketing, where each of
us works for herself? Who or what is really holding us back? I’m
afraid that we have met the enemy and she is us. We are holding ourselves
back.
Success Principles for Women in Business
So what can we do? Let me offer four success principles for those women
whose goal is to get to the top level in their company and make serious
money.
- Strengthen your self-confidence. In general, as women, we
lack belief in ourselves. We don’t have all the self-confidence
it takes to be regarded as a leader. We must continue to work on and
project our personal power, remembering that attitude is more important
than ability. Keep a journal, read books, listen to tapes, attend seminars,
use creative visualization. Not a day goes by that we can’t wake
up saying to ourselves, “I am making a difference in my world!
I have even more to give today than yesterday!”
- In prospecting conversations, “mirror” the person you
are addressing, using neuro-linguistic programming. If you are prospecting
a man, you need to think like a man. Most men will not be turned on
by great skin care and only moderately by effective vitamins. They will
be moved by the prospect of financial security and lifestyle freedom.
Reinforce that by assuring them that our business is based on solid
product. With most men, it is more effective to lead with the opportunity
and close with the product—not the other way around.
- Lead like a successful woman as you build your organization—not
like an imitation of a successful man. Women who fall into the trap
of modeling themselves after an aggressive male leader are not usually
appreciated in business. On the other hand, most men will admire and
pay attention to a business woman who is logical, business-like, not
too pushy, and still very much a woman. We shouldn’t be afraid
to be who we are and let our own leadership style emerge. If you are
a caring, nurturing person, let that come through. Remember: people
don’t rise to the top in network marketing without bringing a number
of other people with them. Women have an innate ability to make others
feel very responsible, yet well-cared-for.
- Use leverage. Women sold most of the $20 billion in goods
distributed through networking in the U.S. last year. Yet a small percentage
of the total commissions paid out went to women. Why? Because women
still see themselves more as retailers than as heads of organizations
made up of retailers and business-builders. A focus on retailing alone
in network marketing is laudable for those who have other priorities—placing
family and other personal equilibrium ahead of work—but it is impossible
to reach the back end of any compensation plan in network distribution
on your own retailing efforts alone. You must leverage yourself by finding
a vast number of people who are each willing to order a small volume
of products or services as they in turn use and share the product and
teach others to do the same. Think big. If you are after serious money,
you must change your focus from receiving 30 to 50 percent of your own
personal effort to earning a much smaller proportion (three to ten percent)
of everyone else’s effort. High-level success in network marketing
is a combination of effective leadership combined with leveraging through
other people.
Successful men and women with well-rounded achievements are in touch
with both their male and female sides. Both sexes benefit from the balance
of these characteristics. As we discuss feminine values, I am not necessarily
referring to qualities unique to women, only qualities that come more
instinctively to women and, therefore, are more feminine in nature.
As we face the dawning of the Entrepreneurial Age, the female influence
will particularly exert itself in professionals who are seeking balance,
nurturing, and integrity as necessary aspects of their work life.
BALANCE: Without the female influence, most leaders would be
inclined to talk money, money, money as the only reason to get involved
in network marketing. With the female influence, we balance it. We talk
about having enough money to do the things we most value, enough time
to enjoy it with the people we love, and enough security to go into the
future without worry.
NURTURING: Without the female influence, a dog-eat-dog competitiveness
would pervade our industry exclusively. With the female influence, there
is also an unmistakable nurturing, supportive quality. Beyond the very
attractive and obvious financial opportunity, our industry offers personal
growth, free time, control of our lives, fulfillment, travel, altruism,
support, bonding, and friendship. There is no other business in the world
where our success is fostered the more we help others succeed. This aspect
of our business—really showing our love for others—is ideally
suited for women.
It is the female factor that enhances what I love to call “relationship
marketing.” Ours is a business built on relationships.
INTEGRITY: Without more infusion of the feminine side, integrity
might well be subservient to the philosophy that “anything goes in
business.” Traditional businesses are often geared toward conquering
and winning at the expense of others. An objective sense of justice is
often attributed to the male side in each of us. At the same time, the
revulsion we feel when we witness cheating, favoritism, or inequity of
any kind, is the reaction of our feminine side.
Both men and women with a strong female side find that their innate sense
of values goes far beyond fairness. It embraces kindness and concern for
the well-being of others. The example I am about to describe is something
that I suspect a male-dominated psyche would find difficult to understand.
The scene was the 1992 Olympic trials in the women’s marathon event.
The runners were off. The leaders had been pacing themselves perfectly.
Then there was a jam-up at the water table at the fifteen-mile mark. One
minute Janis Klecker was leading the pack; the next she went crashing
to the concrete, flipping over on her back, forcing Cathy O’Brien
to leap over her. The amazing part is what happened next: Cathy came back
to help Janis up—and Janis went on to win the race.
Cathy O’Brien lost the race—but she won the hearts of everyone
looking on. That kind of behavior is the stuff of which network marketing
is made—people winning by helping others win. Women are naturals
at this. We have done wonders to help raise the level of integrity and
deepen the values in our industry.
Build a Team
In a book called The Chalice and the Blade, Riane Eisler describes a
partnership society where collaborative couples move away from total separation
in the workplace by pooling their creative talents into a satisfying new
enterprise.
Network marketing is made for couples working together as a team. In
building a network organization with Mark Yarnell, I recognized that he
was, without a doubt, a master recruiter and motivator. But I was the
better teacher. Mark was the big-picture expert—the visionary. I
was the one who paid more attention to detail and follow-through. Other
women give balance to their partnerships with men by nurturing, organizational
skills, being good listeners, drawing others out, focusing on the products,
and generally giving an even-keeled perspective to their businesses. There
is no better leadership in network marketing than that provided by a man
and woman who love and respect each other and work cooperatively.
Before getting married to Mark, I built my organization as a single woman
for four years while serving in elected public office. Today, I am a single
woman again and am convinced that we have never been better positioned
to succeed at this business than now.
In addition to making the attitudinal changes we have already discussed,
I recommend that single women add just one additional step to the equation:
Team up with a male counterpart—an upline, downline, or sideline—who
can help fill the gaps and project the necessary balance to your business
enterprise.
Celebrate the Differences Between the Sexes
So there is a difference between the sexes—and thank God for it!
Whether we work solo or with a partner, we are in an industry perfectly
suited to us. It’s an industry that is transforming people’s
lives for the better; that is helping put priorities back in order—with
family values and home focus; that encourages and promotes close friendships
and personal relationships; and that helps people of like mind find each
other. We are in an industry where loving and nurturing others and creating
balance in our lives can lead to the ultimate success.
Thirty-odd years ago, in the 60s, I was a Roman Catholic nun living
in St. Louis. As part of my mission, I used to visit an old folks’
home nearby, where I came to know Harold—a 106-year-old man who used
to mesmerize me with his stories.
One day, after I gave him my usual hug before leaving, Harold said, “In
case I’m not around anymore on your next visit, I want you to know
something, Sister. My last relative died when I was 86 years old. That
was the last time I had been hugged … until you. Twenty years is
a long time to go without human touch. Whatever else you decide to do
as a young nun, don’t be afraid to let your caring show.”
By my next visit, Harold had died. Since that day, I have often thought
of his words. Women are caring, nurturing people in our very beings. Let
us use our gifts to influence the world we touch as we welcome the 21st
century. It will be through the development of our innate talents and
to the extent that we share our love that we rise to our full potential
and begin to make a real difference in our world.
The man I consider my mentor, French priest and theologian Pierre Teilhard
de Chardin, might well have been speaking to 21st century women when he
wrote:
“The day will come when, after harnessing space, the winds, the
tides and gravitation, we shall harness for God the energies of love.
And on that day, for the second time in the history of the world, we shall
have discovered fire.”
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Rene Reid Yarnell is a teacher, writer, and consultant for the network
marketing industry and an instructor for the Network Marketing Certificate
Course taught at the University of Illinois at Chicago with Dr. Charles
King. She is co-author of the best-selling Your First Year in Network
Marketing. You may contact Rene through her web site: www.yarnell.com.
To obtain Rene’s new book, The New Entrepreneurs: Making a Living—Making
a Life through Network, you may order through her web site or call 800-460-8604.
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You will find support by visiting her web
sites: for prospecting, TheNewEntrepreneurs.com;
for training and resources, NetworkMarketingInfo.com;
to reach Rene, Yarnell.com.
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