The results are in and there were a few surprises. Network Marketing Business Journal (NMBJ) conducted a recent industry-wide survey with a few objectives. We wanted to know how informed distributors were and how much they understood the industry. We wanted to get a current pulse on how the industry was doing and what the field thought about how the industry was doing. We also wanted to obtain current statistics about the demographics of the industry.

The responses numbered in the hundreds. However, it is difficult to determine if we can claim that the survey was scientifically significant. If we had paid an expensive marketing company to conduct the survey, they would probably have claimed that it was.

NMBJ did several things to reduce the bias of the survey. We sent out hundreds of thousands of surveys printed in the publication above our paid circulation, including to people in all of the industry’s 2,300 companies. This greatly lowers the bias when compared to an association survey, which surveys only its member companies, which represents less than 10 percent of the industry companies. In addition, we placed the survey on our Web site, which has one of the highest industry-wide traffic records of any Web site in the direct sales/network marketing industry. Third, two other industry associations and their memberships participated.

Survey results

1. What do you know about the Federal Trade Commission’s (FTC) purposed Business Opportunity regulation?

Over 30 percent stated that they have not heard of it. This is especially troublesome, since survey participants are those who receive the industry trade publication, NMBJ, or visit its Web site or is a member of an industry association. Therefore, there is a bias towards participants hearing about this important issue. That implies many more than indicated are still not aware of the proposed FTC regulation. Another 42 percent admit not knowing much about the regulation and only about 28 percent say they are familiar with or have studied it.

2. If you answered A, B, or C in question 1 [that you have heard of the purposed Business Opportunity regulation], do you think, as written, the regulation will …

Seventy-four percent of those who are at least familiar with the proposed FTC regulation believe it will devastate all but the few largest companies or at least will be a problem for most companies but the industry will survive.

3. Do you believe that the best solution for the FTC regulation issue is …

Seventy percent of those who were aware of the regulation want to defeat the regulation as do the Multi-Level Marketing International Association (MLMIA), the Distributors Rights Association (DRA), the Direct Selling Women’s Alliance (DSWA), the World Association of Persons with disAbilities (WAPD) associations and legal advocate Jonathan Emord.

Less than seven percent of the respondents want a compromise as the Direct Selling Association (DSA) wanted from the start. (It is noteworthy that NMBJ’s challenge of the DSA’s position on the FTC regulation is the primary reason that the DSA took away our membership. In writing, the DSA sighted that members are not allowed to disagree with or critique the DSA according to its Code of Ethics. Yet, less than seven percent agree with the DSA’s position.)

4. Do you believe that the FTC, who has been working directly with the DSA for years, devised its Business Opportunity bill to …

Fifty-eight percent of the respondents who knew of the regulation felt that the FTC regulation was intended to increase the FTC’s power to take action against any direct selling company it desires or was done in collusion with the DSA to provide a monopoly barrier for the few large direct selling companies and force out smaller competitors. Surprisingly, a third felt it’s simply an attempt to protect consumers.

5. Do you think the direct sales/network marketing industry in the United States is …

Sixty-five percent said it’s growing faster than 10 years ago and 10 percent said it’s growing slower than 10 years ago with 10 percent saying it’s growing at the same pace. This is a more positive response than we anticipated.

6. Do you think recruiting is …

“Harder than ever before” was chosen by 37 percent, “same as before,” 25 percent, “easier than before,” 29 percent and “don’t know,” 11 percent. All of NMBJ’s indications are that recruiting is much harder than before.

7. What do you believe is the most effective recruiting method?

Person-to-person in person is still the best method and two thirds agree. Surprisingly, only six percent thought by phone was the best method. Ten percent thought advertising was the best method and 17 percent thought the Internet was the best method.

8. Do you believe that the direct sales/network marketing industry’s reputation has …

Those answering “improved over the last 10 years” were 51 percent, “about the same,” 31 percent, “worse,” over 12 percent and “didn’t know” was six percent.

9. Do you believe it is easier for new distributors to …

Finally, the tide has turned to what I have been teaching for decades. Only eight percent believed recruiting their warm market is easier, those who retail to their warm market were 18 percent, those who retail to their warm market and recruit people who want to build a business for their cold market were 43 percent, with retail to and recruit to their warm market at 31 percent.

10. Do you think the Distributors Rights Association (DRA) …

Eighty-four percent felt the DRA represents the interest of the entire industry.

11. Do you think the Direct Selling Association (DSA) …

About a fourth thought the DSA represents the entire industry, companies, vendor and distributors. Of course, they are wrong. Eighteen percent said the DSA only represents companies, which are the only voting members. Thirty-five percent of respondents who knew about the DSA believe it really only represents the few large companies who contribute to most of the DSA funds and control most of the committees. That means over half realize that the DSA is an owner’s club. Yet 10 percent were misguided enough to believe the DSA represents the rights of the distributors. The balance of respondents never before heard of the DSA.

12. Do you think the Multi-Level Marketing International Association (MLMIA) …

Over 60 percent of the respondents realize the MLMIA represents the entire industry – companies, vendor and distributors – who all are voting members. About a fourth believe the MLMIA represents corporate needs more and 10 percent realize that the MLMIA protects distributor rights.

13. Do you believe the Direct Selling Women’s Alliance (DSWA) …

Thirty-five percent thought the DSWA is strictly for women and 35 percent realized it allows women, men, companies and vendors as members with 11 percent correctly assuming it is primarily for party plan companies and distributors. Almost no one  (three percent) wrongly felt is a non-profit association where all members get to vote. However 17 percent mistakenly believed it is part of the DSA.

14. Rank 1 for the largest to 4 for the smallest in terms of number of voting members.

The answers were all over the board. The correct answer is _2_DRA _3_DSA _4_DSWA _1_MLMIA. The DSWA is a privately owned association and has only three voting board members. The DSA has less than 200 corporate members who vote.

15. Rank in terms of number of paid members from 1, for most, to 4, for least.

Again, the answers were all over the board. The correct answer is _4_DRA _3_DSA _1_DSWA _2_MLMIA. The DSWA has over 10,000 paid members, which makes it have more than all of the others combined in the United States. The MLMIA and DSA are close but the MLMIA has a large distributor membership too.