Over the past 100 years, the direct selling channel of distribution has evolved along a similar pathway as the traditional industrial economy business model found in most mature economies throughout the world.
The industrial economy business model, and its accompanying traditions such as rigid and inflexible work hours, the need for all jobs to be conducted at fixed locations, is now considered a business model in excess of 100 years old. Ironically, direct selling (channel of distribution) is also a business model that is also over 100 years old. Both the traditional industrial economy model and the direct selling model have changed significantly. Neither model resemble their original version.
During the course of a century, many things have changed. Some brands, business models, and channels of distribution no longer maintain the same value as in years past. The traditional industrial economy model is now yielding to what may be described as amore of a digital economy than a physical economy. Machines replace people and they actually improve quality while reducing time and capital invested. Artificial intelligence is no longer the topic of science fiction movies, it is beginning to impact day to day living. During the industrial revolution machines replaced people or supported people with efficiencies unsurpassed during previous times. People were still needed to operate the machines.
Now comes another type of revolution. Technology is the major contributor and the major player. Innovative technology enables huge machines to be reduced to smaller and more powerful machines. Our cars are now faster and so is every other form of transportation. Our rocket ships go farther. The space station is real and so will be a trip to planet Mars. The new titans of industry are now titans of technology, and all business models are impacted. One technology replaces another very quickly. The question no longer exists as to whether or not we are experiencing a technological revolution. The question is more about how much we will evolve in our efficiencies and what our society will look like ten short years from now, not 100 years from now.
We are also living in a “less is more” focused society and economy. Simplicity trumps complexity. Vast technological innovation makes it possible. The gig economy is a perfect example of how less, more flexible work can add more to the pursuit of happiness and balance in the life/work equation. The emergence and acceptance of the gig economy has fueled the emergence of the Individual Entrepreneur.
Running parallel to the evolution of the traditional industrial economy model is the direct selling channel of distribution. Originally, direct sellers were those who took the products and services of a brand to the doors and homes of the consumers who would purchase those products or services. This activity gave birth to the expression “door to door salesperson” and “party plan selling.” Fast forward to today: We have evolved from traditional commerce dependent upon physical interaction and exchange to ecommerce which requires no physical interaction. The emergence of super smart technology and the digital platform makes this possible. Stores are now online, and we can shop 24/7 and possibly receive what we purchase the very next day. Insurance Policies, Real Estate and even Cars can be purchased online and todays direct seller is more often online vs offline.
The Individual Entrepreneur seeks flexibility and freedom in the manner in which they work. The new Individual Entrepreneur may not choose one pathway to the type of work they engage in; they are becoming more likely to choose multiple pathways. Once again, the gig economy, it’s amazing and sustained growth, is proof of concept.
We are also observing a vast amount of innovation and change within the direct selling model. Simplicity is the new focus, and technology is being embraced in a major way. The direct seller is now more intermediary than seller. The direct seller is supported by technology and state-of-the-art tools that enable the direct seller to function as an entrepreneur with the support of a company that actually provides just about everything needed. Engagement cost is minimal, often free, and the products and services provided are provided by the company. The company creates the marketing concept and provides the tools which typically include a rather sophisticated but personalized website. The company also provides order processing and order fulfillment meaning the direct seller is not required to carry inventory or build an order processing fulfillment system. This also means that there are no geographical or time zone constraints as to where customers are located.
Today’s direct seller is truly an Individual Entrepreneur. For those seeking to better understand the new entrepreneurial possibilities, we suggest the exploration of direct selling companies. Find a product or service that you can truly embrace and love and the building a direct selling business may be an excellent choice when seeking Individual Entrepreneurial opportunities.
