Introduction
Over the past 100 years, the direct selling channel of distribution has evolved along a similar pathway to what we now refer to as the traditional industrial economy business model found in most mature economies throughout the world. We have read about and studied the impact automation had on the production of multiple products and services essential to the evolution and growth of all economies. Prior to the industrial revolution, cars were not affordable for the average person. Access to any form of transportation was limited. As our methods of transportation evolved, we began to move more freely and so did the products and services we needed to survive and thrive. Fast forward to today and we can be anywhere in the world in a few hours and products grown in other countries can be in our local grocery stores within a few days, remaining fresh and enjoyable to consume.
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. During the course of a century, many things change. Some brands, business models, and channels of distribution no longer maintain the same value as in years past.
The Technology Revolution
The traditional industrial economy model is now yielding to what may be described as more 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 and it is beginning to impact day to day living.
Now comes the technology revolution. The speed at which we accomplish anything and everything accelerates dramatically. Innovative technology enables huge machines to be reduced to smaller and more powerful machines. Some are bots. 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 the planet Mars. The new titans of industry are now titans of technology, and all business models are impacted.
The Gig Economy’s Rise
We are now 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.
Based upon aggregated formal and informal resources, 60 million plus Americans are currently involved in the gig economy in the U.S. generating an economic impact exceeding $1 trillion dollars. The gig economy reflects people’s desires for more flexible work opportunities and greater freedom as to how, when, and where work is performed.
Direct Selling’s Evolution
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.”
From the early days of door to door selling, the direct selling model included what was referred to as the “party plan” or “group selling” method where groups gathered, primarily in the home of a host, to witness demonstrations and enjoy personalized conversations about a product or service.
Key Research Insights
Recent research from the Ultimate Gig Project (2020-2023) revealed several important trends:
- There is a growing tendency for individuals to pursue multiple gigs, with direct selling often serving as a secondary gig.
- Approximately 70% of gig workers indicate their motivations are to pay household bills and/or save and invest more. Women now represent approximately half of the gig economy.
- Realistic earnings expectations persist among gig workers, with about 71% expecting to earn less than $500 per month.
The Future of Work
Modern technology is being developed exponentially and has impacted the general economy and the average person, perhaps greater than any of the earth-changing inventions of the past. The Smartphone makes everything about living and working much easier and we hold it in the palm of a hand.
There is no going back to a traditional form of work. Work from home is no longer a nice phrase sought after by a few who could not leave home because of physical limitations or family responsibilities. Work from home is now an expectation of more people who seek work more on their terms vs the employee manual.
Conclusion
Direct selling as a channel of distribution is very different from its origins of over 100 years ago. The evolution will continue! The current marketplace and the trends toward the use of digital platforms in support of brand awareness and access will be enhanced further by direct sellers who add passion and purpose to their efforts when affiliating with a direct selling company.
