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Some friends recently asked me if there were any new “game-changers” in the direct selling industry. I’ve been involved in this industry for 40 years, and I believe we are experiencing sweeping changes that will inevitably impact the way business is conducted. I believe in the power of three, so I will limit my thoughts to three areas that you—the leaders in the industry—can evaluate your positions against.Social media is changing the way we communicate. If you are concerned about the average age of your salesforce, then you already understand that the younger demographic expects your company to communicate the way they communicate. Facebook-type functionality allows a large group of people to become involved in a conversation almost instantly. While I have yet to hear that social media is directly affecting sales or recruiting, I know that many of you are finding it a game-changer in how people connect and communicate. For instance, a consultant—after an outstanding day—who comes home, gets on her computer and shares her enthusiasm with her social media group will instantaneously transfer personal excitement to hundreds, even thousands, of others. Once a message goes out, a dialog can occur within moments, because someone out there is always online when you are. This dialog transfers more and more excitement, as more people get into the action. Sales and recruiting are affected indirectly. This phenomenon is a game-changer! Check out our cover story on page 10, and see how companies that Barbara Seale spoke to are using social media.
In the years to come, women will continue to be direct selling’s primary growth engine. If women are not building their businesses solo, then they are key partners. For instance, network marketing companies are loaded with husband-and-wife teams.
I believe that women will continue to prevail as the growth engine,but with differences. America is rapidly becoming more and more diverse.
Last month, Miriam Muléy shared some significant statistics. Within the next decade, mothers of color (Hispanic, African- American and Asian) will represent more than 50 percent of all mothers, with a purchasing power that will grow from around $600 billion today to more than $1 trillion! The economic power within this group must be reckoned with, and the products and services sold by direct sellers will have to pass the consumer test. Are the products and services really of the highest quality, competitively priced and appealing to significant segments in the marketplace? With so many companies relying on personal consumption as an integral part of their business model, products and services must satisfy consumer scrutiny.
Companies will also find it more and more challenging to satisfy different types of consumers if the home-office staff and salesforce do not begin to match the emerging rainbow in the marketplace. The changing color of America will be a game-changer for many. We have seen companies close their doors in the past year, and some because an aging salesforce could not be turned around in time. Failure to recognize and reflect the changing demographic of the American marketplace could prove to be just as challenging as an aging salesforce.
The terms direct selling and network marketing are blurring. We typically have associated party plan with group selling and a way to achieve retail success very quickly. In general, network marketing focused more on organizational building—thought to be the way to truly unlimited income potential—with consumption playing an ever-increasing role in the business model’s success. Both descriptions offer great business potential, so why would a company not want to embrace the best of all strategies and tactics to enable independent contractors to enjoy the finest form of micro-enterprise?
As unemployment continues to soar, it’s obvious some jobs will never return. Too much efficiency has been gained by “cutback necessity” and the increased use of technology. This situation may change how the public thinks about job opportunities versus entrepreneurial opportunities. Perhaps the recruiting pool for direct sellers will continue to increase.
Products and services will have to withstand the consumer test; therefore, independent contractors will want to take advantage of the best of selling and recruiting tactics that lead to quick, yet sustainable, income opportunities.
Game-changers are already at work; I hope you are as well!
Enjoy the issue!
John Fleming
Publisher and Editor in Chief
