Key Actions to Align Your Business to the Future
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Direct selling—like many other industries—has had to quickly adapt to a new normal these past five years.
A global pandemic, skyrocketing inflation and a work-from-home movement have created disruption in the economy. Factor in the recent exits of brands like Beachbody, Seint, Color Street, Rodan + Fields and Beautycounter, and it would be natural to assume that the industry is experiencing unprecedented pressure. But viewing the history of the channel through a broader lens tells a story of resilience that dates back over a century.
“The direct selling industry has literally withstood wars, massive recessions and changes in technology,” said Amber Olson Rourke, Neora Co-Founder and President. “At the end of the day, it’s built on people loving a product and sharing that recommendation on a platform of mentorship. That is never going out of style.”
Rourke, a second-generation direct selling success story, witnessed her father, Jeff Olson, launch successful ventures that span both the analog era of the fax machine and the introduction of social media and the digital revolution. Through it all, she says, he held onto a deep commitment to the direct selling model and his theory of The Slight Edge, a best-selling book he authored about how tiny efforts compound over time into tremendous impact, both of which he leaned into as he built Neora’s culture.
Through the years and countless changes, she has seen how a deep commitment to the model can withstand almost any disruption.
“The internet didn’t make direct selling go extinct; it became a tool for finding direct selling products,” she said. “Social media didn’t make direct selling any less relevant. It only made it more relevant.”
Resilience and a willingness to adapt have always been critical, but as the industry enters into a unique and new phase of disruption, there are key essentials for driving success in the future.
Keep Your Promises
For direct selling to thrive, relationships have to be front and center, Rourke says. Distributors must feel supported and customers need to feel valued and heard. What’s more, they need to know they can trust the companies and products they represent and share. For that reason, if a company makes a commitment that sales and residual incomes are something that can be built and then passed on to the next generation, they need to be prepared to follow through.
“If you break your core promise about supporting your people, what do you have left?” Rourke shared. “That is the core promise of the direct selling space—that you can represent a product and brand and be rewarded, not just for that singular sale, but for the lifetime of that customer. And not just your sales, but the people you develop and their sales, too.”
This is not an easy promise to keep, as many companies who have recently elected to abandon the multi-tier direct sales model for a single-tier affiliate-only model have discovered. There are a number of significant factors that have led to the rising number of well-known brands exiting the channel, not the least of which is regulatory pressure from the federal government. But there are budgetary restraints as well for both companies and customers.
“Here’s what I believe,” Rourke said. “Pressure breaks what was weak to begin with and strengthens and fortifies what is strong. I think that’s what we’re seeing now. We’re seeing that the pressure is breaking the executive teams and leadership that were never really that committed to their field and the model. And it has strengthened and fortified those of us who are truly committed to being the leaders and future of this space.”
Invest in Your Products and Product Experience
Customers have more options now than ever. For this reason, direct selling brands need to build product portfolios that are full of unique and in-demand offerings that aren’t readily available via retail.
“It’s all about the products,” Rourke said. “They can’t be ‘me-too’ products where your company drives the demand and then customers can purchase something similar at Sephora or GNC, because customers will purchase where it’s most convenient.”
Today’s ecommerce world demands niche products with differentiation and patented ingredients that have been heavily researched and are presented in a first-class manner from the minute they are added to the cart to the day they arrive on the doorstep.
Shipping should be fast and predictable. Product websites should rival big box retailers with personalization. And the customer service experience should be top notch. On the distributor side, representatives should be allowed to earn commission on their sales regardless of whether they build a team.
Built for the Future
For Neora, products have always been the central driver for their overall revenue. Co-Founder and CEO Jeff Olson shared, “We became the fastest growing company in direct sales based on one product—our night cream. We have spent 14 years looking for the next breakthrough, and we are about to launch it at our upcoming conference. I believe what we will achieve together with our field in this next run will be historical.”
More than 80 percent of Neora’s sales come from customers who have never sold or represented the product in any way, which not only protected the company during its lengthy battle with the FTC but also provided financial security for future growth.
Adhering to this template led to Neora being recognized with the 2024 DSN BRAVO Impact Award and Olson receiving the BRAVO Leadership Award as well. It also serves as the roadmap for a future that Rourke believes will catapult the company into its next level of growth. On all fronts, Neora is working to fortify its future.
“People want supplemental income, but they want it in a flexible way,” Rourke explained. “That’s an advantage for direct selling. I believe the best days are ahead for the companies, teams and distributors who are committed to doing it the right way and doing it for the long haul.”
Neora and its Founders have enjoyed one of the most successful track records in the industry, thanks to Olson’s consistent ability to select and lead profitable new ventures as both distributor and company owner. Today, Neora, and the companies who share their same commitment and passion, will be uniquely positioned for a future of success.
From the March/April 2025 issue of Direct Selling News magazine.
