Lately, we have seen companies like USANA and LifeVantage that incorporated affiliate marketing and loyalty programs into their compensation plans and like Tupperware and Beautycounter that started selling their products in major retail outlets.
Upon these developments, we asked some of the prominent persons of the direct selling community how they see the future of direct sales.
“Where do you think the industry is evolving into? Will we see more of these examples and why is that?” was the question.
Feel free to add your comments at the end of the text.
David Abbey, CEO and Co-Founder of Penny AI
“Social commerce is transforming shopping. The industry is moving towards expanding direct customer channel, leveraging affiliate-type programs with influencers at every level. We will see instant buying experiences across a variety of social platforms, without the requirement of enrolling as a consultant or building a downline. A new era of social storefronts will meet customers in the flow of engagement, and deliver an instant and convenient buying experience, building on the authentic connection with the affiliate influencer. The companies that pioneer this model will attract new sellers that drive referrals, loyalty, and trust.”
Shilpa Ajwani, Founder and CEO of unomantra
“A customer-focused business is present where the customers are! We have 5 generations of potential customers served by direct sales organisations today. All of them have a different preference of how, when and where they like to engage with a company and its representatives to purchase products or services. These generational preferences are also felt in the expectations sellers and leaders have in terms of ease of doing business, receiving trainings, communication, rewards, and recognition. That’s why direct sales organisations are transforming into ‘high-touch AND high-tech’ enterprises. We will see a creative omni-channel approach in distribution plus a combination of contemporary business practices merged into traditional business models to build and sustain loyalty – both from customers and representatives!”
Mark Beiderwieden, Founder of DiSSECT
“Growth in direct selling results from expanding your share of customer wallets (product/service portfolio) or increasing the number of customer wallets (recruiting). A DS company considering the retail sales channel is questioning its core competency. It requires new structures and resources foremost in advertising, sales, and supply chain. It begs for portfolio pricing strategies permitting channels to co-exist without cannibalization and most important it requires an inclusive communication strategy to manage existing leader conflict. Can a multi-channel approach succeed with respect to existing values and ‘who you are’? The jury is out. If a current DS company is struggling, then modernizing and strengthening success fundamentals is a clearer strategy than challenging the channel and field reps that made you ‘who you are’ today.”
Robert Cavitt, CEO of Jenkon
“Affiliate relationships with retail consumers is one of the greatest opportunities for direct sellers to dramatically grow their business, while establishing safe-harbor for their business in times of aggressive regulatory oversight. Software technology today allows direct sellers to reward the end consumer for socially sharing their excitement for your products, while ensuring your sales organization still receives their commission and recognition. Consumers, especially the younger generations, demand a more authentic and interactive purchasing experience. Livestream shopping is the perfect answer. Live interaction and video-streaming is the future of digital commerce. Direct sellers can make that move today.”
Brett Duncan, Co-Founder and Managing Principal of Strategic Choice Partners
“Without a doubt, direct selling will evolve into more non-traditional channels and methods. The future belongs to companies who boldly embrace direct selling as a channel of distribution, a means to an end, and not the end itself. The marketplace still wants ‘opportunity’, but less and less the way we’ve offered it. So, let’s adapt to the market, rather than try to convince them to adapt to us. Don’t focus on how we want to sell; focus on how they want to buy.”
George Elfond, Co-Founder and CEO of Rallyware
“Following the upheavals of the pandemic, field consultants are becoming more like hybridized micro-retail businesses and gig platform contractors – mobile and adaptive – than what we have traditionally seen in direct selling. Retail is in a transitional space, with four major bankruptcies already in 2023. Direct selling is also going through transformation as industry leaders and emerging companies are increasingly finding themselves looking to reinvent the standard model and increase sales. It is only natural that these industries, which live and breathe by the selling power of their workforces, should experiment with new opportunities, whether that means expansions of direct sellers into retail, or retailers creating a more consultant-like personalized salesforce. Ultimately, I predict this road will lead direct selling to a hybrid model – grounded in synergies between the field and mobile technologies, retailers, and their communities.”
Jerome Freytag, Managing Director of Vente Directe Développement
“The new Affiliate role we are giving to our customers is a mix of Preferred Customers or Hostesses from the past. The principle is not new, nevertheless the digital tools are now ready to empower our customers in a very fluid and engaging way! Moreover, as the industry is being challenged towards more single level networks of independent representatives, Affiliates are a great first step to embark and then spot future leaders. Usually, we help our customers see Affiliation as a new entry title in their overall career plan. In the EU, some challenges arise due to statuses, but solutions exist.”
Jay Leisner, President of Sylvina Consulting
“Most direct selling companies are seeing drops in recruiting and sales. As a result, many direct selling companies are changing their focus. Rewarding the ‘selling’ behavior is becoming more important than building a team of distributors who buy products for personal use. Affiliate marketing is all about making sales to customers who are not affiliates. So, that is why direct selling companies are offering affiliate marketing opportunities. Will the downward trend in recruiting continue or will it reverse course? Only time will tell.”
John Lietsch, Chief Operating Officer of Bloo Kanoo
“Whilst external factors like the pandemic and the gig economy accelerated direct selling’s modernization, the resulting changes were long overdue. As modern retailers, it makes commercial sense to offer Loyalty Programs and, as opportunity providers, to offer ‘affiliate like’ relationships to gigify direct selling. And as both, it will become increasingly important to optimize the lifetime value of all our relationships, from consumer to business builder. I believe large brands will continue to successfully navigate multiple channels. However, I expect that SMBs (small and medium sized businesses) will remain dedicated to the direct selling channel because their success is underpinned by their multi-dimensional offering: Product. Opportunity. Founder. The evolution and modernization of direct selling is long overdue but with it comes the promise of a bright and profitable future.”
Lo Myrick, Owner of Lo Myrick Consulting
“Given the current state of the economy, the popularity of the gig economy, and the increasing demand for customers to be rewarded by the brands they buy from, I think it unwise for Direct Sales companies not to even consider affiliate marketing, loyalty programs, and limited-time retail programs. If Direct Sales companies want to compete with retail, or even succeed, they need to create trust and meet new consumer standards. While these programs are ‘buzzworthy’, implementing them presents its own challenges, especially as most enrollment programs are already confusing. To succeed in the coming years, executives need to simplify and create trust.”
Rodger Smith, Chief Marketing Officer of Exigo
“Tomorrow’s successful direct-selling companies will need great products promoted through various channels. They must adapt their commission programs to include affiliate and influencer models to thrive in the new omnichannel economy without alienating their legacy independent distributor networks. These trends make it essential that companies have a flexible, scalable infrastructure that allows them to adapt quickly and explore, deploy, and analyze these new adjacencies. To compete with other gig economy options, direct selling companies should embrace the proven elements that fueled their success in the past, establishing a culture that draws people in and prioritizes authentic personal relationships (in person, video, social media), personal development, and belonging.”
Terrel Transtrum, President and Founder of ServiceQuest
“The purpose of business is to get and keep customers profitably. Making sure the customer experience matches a clear brand promise will always be at the heart. Hustle, influence and relationships drive sales and always will. The industry will regularly adjust to consumer (and seller) preferences and technological advances. Work-from-home businesses in the USA grew from 10 million to 15 million in 20 years, without any sign of slowing down. Rewarding referrals, compensating affiliates and influencers for sales, and paying people for sales team productivity will evolve with creativity and innovation from marketers and entrepreneurs.”
Daryl Wurzbacher, CEO of ByDesign Technologies
“I see the industry evolving to better align with the broader direct-to-consumer expectations around both product experience and income earning opportunities. Successful companies have to lead with true product success stories and a winning experience, while at the same time – providing simple ways to engage in the income earning opportunity without having to make large purchases. I’m seeing companies from the direct-to-consumer/affiliate spaces having success adding multi-level compensation to grow their network of affiliates. I think the key for existing companies in our industry is to find the right balance between paying for affiliate/immediate sales, versus upline team compensation in order to make the opportunity appealing for casual sellers.”
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