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Stories in this section:
Direct Selling: A Future without Boundaries
DSA Launches Image Enhancement Plan
DSEF: Building Bridges of Understanding
Industry with Heart: XanGo
Young Company Focus: Sensaria

Direct Selling: A Future without Boundaries
by Jim Sulski

A few years ago, when Andrew Shure came up with the idea for a company that would sell unique and exclusive pet products, direct selling was the only method he considered to market his ware.

"One-on-one selling is incredibly advantageous to our products," says Shure, the Founder of Chicago-based Shure Pets, Inc. "The whole educational aspect of promoting these products face-to-face is such a stronger vehicle than putting these products up on a shelf and just having them sit there."

In fact, the direct selling approach allows for testimonials from those who would be the most familiar with Shure's products. "People can bring their pets to our sales parties," Shure explains. "That means they are more likely to have a positive experience with our products."

Shure is far from alone in his thoughts on direct selling.

Hundreds of companies-with every type of conceivable product and service-have jumped on the direct selling bandwagon in the last decade.

According to Direct Selling Association research, 2004 direct sales in the United States reached approximately $30 billion, up from $25.5 billion in 2000. Association research also shows that the number of people working in direct sales has more than doubled in a decade, to 13.6 million in 2004 from 6.3 million in 1994.

Shure's touted face-to-face selling method still makes up the bulk of what people do with direct selling, the association data also showed. Nearly three-quarters of direct selling is still face-to-face (versus over the phone or via the Internet) and most of that direct selling takes place in homes.

Since the launch of his company three years ago, Shure has witnessed and experienced this phenomenal growth. In just a little more than a year, the number of pet consultants who sell his pet products, which range from health and beauty products to treats and toys, has grown dramatically. "We have had great success with getting people to want to be part of this," Shure says.

For those companies with viable products, direct selling allows a direct connection to potential customers office.

"Our consultants are trained to sell our story, not just our products," says Erica Littlejohn Burnette, Founder and Vice President of Marketing for Our Own Image. The Yellow Springs, Ohio-based company, which was launched to the public in late 2003, offers high quality African American party supplies, gift bags, journals and home accessories.

At consultant home parties, Burnette says opportunities exist to connect to potential customers. "Our consultants and guests have a wonderful time sharing recollections and stories," she says. "For example, they might talk about how they celebrate Kwanzaa or a family reunion in their community. Those stories can then be a way to connect to our products."

One of Our Own Image's more popular products is an African American quilting journal. "The artwork on the journal is based on quilts that were created by African American slaves," she explains. "The quilts had secret messages encoded in them that lead escaped slaves to safe houses."

Customers will purchase those journals for a family historian to record a family reunion or for a record of family births, weddings or other happenings, Burnette says. "We show them how to record information that will one day be family history," she adds.

That type of interplay would be hard to replicate outside of a direct selling mode, Burnette says.

The Pampered Chef President and Chief Operating Officer Marla Gottschalk agrees. "Pampered Chef products are a good fit for direct selling because they're demonstrable," she says. "Pampered Chef Cooking Shows offer a unique interactive multi-sensory experience. Our guests can see, touch, hold and try our tools for themselves. Our consultants show our guests how to use our products to create wonderful foods by preparing a recipe right in front of them, which is available for all to taste.

"You can't get that in any retail store. The personal customer service our consultants provide, the opportunity to try before you buy, combined with our quality products, is a winning combination for our company."

"Direct selling works so well with our products as we get to talk to someone directly versus them standing in front of an array of products in a retail store," says George Fischer, the Director of Corporate Communications for Herbalife. The Los Angeles-based business is known for its weight loss, nutritional and personal care products.

"All of our products are sold through direct selling and because of the success of that, many of our customers become distributors after using our products," he adds.

Certain types of products almost demand that face-to-face encounter, says Dana Robinson, the Public Relations Manager for Stampin' Up. The Kanab, Utah-based company produces an exclusive line of decorative stamp sets and accessories for home decor, greeting cards, craft projects and scrapbooking.

"Stamping is a technique-focused craft," said Robinson. "A direct selling model provides customers with a personal 'instructor' to accompany great product. The interaction between customers and demonstrators sparks creativity, gives customers confidence in their ability, and ensures that they have a good experience with the product."

That face-to-face interaction is also what can fuel strong company growth, says Bonny Fowler, Director of Corporate Communications for The Longaberger Company.

Founded in 1973, the Newark, Ohio-based Longaberger is a maker of handcrafted baskets and other products such as pottery, wrought iron, fabric accessories and specialty foods. "Our story can't be shared on a retail store shelf," Fowler says. "It is shared person to person. And our growth was really person to person from those initial relationships."

Such direct selling methods work well for Longaberger because it also fits in well with the company roots, Fowler says. Company Founder Dave Longaberger originally tried to sell baskets in a retail setting, but had little success. "But then a woman who had been buying the baskets in his store asked if she could sell a few to her friends," Fowler says. "She wound up selling them rather quickly. So Dave Longaberger made the move into direct selling. And it was a natural fit."

Shure says face-to-face direct selling also allows his pet consultants to easily demonstrate their knowledge base about his company's products and pets. "We call our people 'pet consultants' and we don't use that term lightly," he says. "Our people know how to say 'I have a great product for your dog' because they know how to communicate to people who love their pets."

Shure says face-to-face direct selling also allows for a certain social aspect to his consultant's parties. "Many of our consultants live in suburban and rural areas and our parties are a way of getting together friends and families," he says. "We try to make our parties as fun as possible."

A benefit to Shure's company is that the social gatherings also serve as strong recruitment devices for new consultants. "If someone has a positive experience at one our parties, they are more likely to host a party themselves."

Face-to-face story telling and the sharing of experiences are also ways that companies that offer services versus products take advantage of direct selling.

"We don't believe what we do is easily communicated in mass," says Barry Friedman, Senior Vice President with AmeriPlan. "It is an eyeball to eyeball situation. In fact, we don't call what we do direct selling. We call it a sharing proposition. We talk to other people about what we do and we get them to share their stories."

The Plano, Texas-based company, started in 1992, offers supplemental health care benefits to more than 1.6 million subscribers in the United States.

Friedman says the ability to share information up close is critical to conveying information about his health care program. "For example, I might talk to someone about how a crown can normally cost $1,200 but I only paid $450 for mine," he says. "When I start sharing knowledge like that, people will listen."

Physical proximity is also key with his style of direct selling. "We work with what we call in our business a 'three foot rule', " Friedman says. "When you are within three feet of someone, you can break the ice and start a conversation."

" 'Relationship marketing' also allows for a low cost approach, which can be passed on to consumers," said Amy Niner, Marketing Communications Manager for ACN. The Huntersville, North Carolina-based company has grown into the world's largest direct seller of telecommunications services such as residential and commercial long-distance, local telephone service, dial-up and high-speed DSL Internet service, digital phone service and wireless.

"ACN uses the proven, direct selling business model to provide value and choice to consumers while also providing independent representatives with an opportunity to form their own businesses," she says. "Bypassing traditional marketing methods, ACN's independent representatives use relationship marketing to inform their family and friends of money saving alternatives available on services they are already using. Because traditional marketing methods are not used, representatives are able to pass savings directly on to their customers.

"Plus, through direct selling, ACN keeps prices down by eliminating the high cost of media advertisements, direct mail or outbound telemarketing," Niner adds.

A final benefit of direct selling is the freedom it provides for those people who become associated with one of the growing number of direct selling companies.

"ACN offers complete personal and financial freedom," Niner says. "Independent representatives enjoy the freedom of time; they can work their business when they want to. There are no limitations, and no previous experience is required. With ACN, each individual determines their own worth. And representatives have the satisfaction that comes from saving friends and family money on essential services they're already using every day. Independent representatives can build their organization by introducing friends and family to the ACN opportunity-allowing them to work with people they know and love."

Robinson agrees. "Customers, demonstrators and hostesses all enjoy the benefits of the social and creative outlet that a direct sales model offers," she says. "Customers receive free training and coaching, and hostesses, free product. Demonstrators benefit from the additional income that may be earned at their own level of desired involvement and a flexible schedule. Stampin' Up! benefits from working with a wonderfully dedicated, energetic and enthusiastic group of individuals to promote and sell its products, and the satisfaction of knowing that we are making a difference in thousands of women's lives by supplying business opportunities, a creative and social experience."

"When you are face-to-face with people, you have a wonderful opportunity to tell them how they can earn money," Friedman says. "And this is a very benign presentation. You can't ram it down someone's throat. The tact I take is that 'I'm in the supplemental health business and you may not know what that is but let me explain.' And then I start telling stories."

The success of direct selling-its growth in both revenue and the markets it serves-boils down to finding and filling a need. These virtually limitless needs include those of the people who become distributors or consultants for a company and consumers' need for better products or more personal service. When a company answers the call with a quality product and an opportunity for personal, professional and financial growth, the result is truly a future-for the company and its representatives-without boundaries.