Direct selling has become an increasingly popular avenue for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.

In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.

I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.

We designed the study to provide actionable insights across 10 key categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

In this series, we are digging deeper into each of these categories, focusing this month on all things related to Recognition.

Last month highlighted one of the more shocking findings of the study related to compensation—particularly how we market and present the “size” of the income opportunity. The most critical actionable insight was that when it comes to compensation, you really need to have targeted messages depending on your audience as not only do you risk not appealing to the right generation, but there is significant risk associated with turning them off irreparably.

When it comes to recognition, the consequences of “getting it wrong” might not be so dire, but this category represents MASSIVE upside when we can get it right. Interestingly, the differences between men and women were just as stark as the differences between generations.

But let’s start with what we mean when we talk about “Recognition.” For the purposes of this study, recognition was really explored under the umbrella of “Motivations.” Meaning, we examined all the programs, communication, celebration and incentives that would most likely resonate for direct sellers to join, stay and thrive with direct selling companies.

The ultimate goal here was to divine what specific things we could employ to help each generation maximize our compensation plans by moving up in leadership and improve retention by having a cohesive, aligned set of programs and incentives that all work together to inspire your sellers to keep going.

If you follow this series or my podcast, you know how passionate I am about retention, often referring to it as the holy grail of our industry. Turns out, this study revealed all kinds of insights that we have been helping companies employ to specifically drive retention (with awesome results, BTW!).

The Gifts that Keep on Giving

The way we phrased the first question speaks to this retention issue. We asked all participants:

What would absolutely convince you to stay at a direct selling business after the first three months?

This question served two purposes, and we covered some of the results in our last installment about compensation. As you may remember…the first answer was definitely crafted by Captain Obvious himself (we’re all pretty sure he’s a guy, right?). Number one answer on the board—with 55 percent ranking it as their #1 answer—getting paid.

Repeat after me: duh!

But starting with the second answer things start to get REALLY interesting.

For Gen Z, the belief that they are part of a cause or a company that is creating change in the world would “absolutely convince” them to stay with a company. Absolutely convince. And this is in their FIRST THREE MONTHS.

Now, I can already hear so many of you saying to yourselves…believe in a cause? That’s not recognition. That’s an entirely different segment of our events. That’s not even part of the sales and recognition team.

Precisely. But perhaps it should be.

As we move to the Action Item portion of the article, here is your first Action Item. Since I feel like we are having a conversation now, I know what you’re thinking: ”Heather, wasn’t this very thing an action item last month? Didn’t you already advise us to tell our charitable story early, proudly and often?”

Yes. Yes, I did. That should tell you how powerful this topic is…it makes the action list for MULTIPLE categories.

Action Item: Completely rethink the role that your mission and charitable cause has in your field recognition program, making your field leaders the hero of the story, not the company.

What do I mean by that? So many of us talk about our cause, our mission, our impact, our accomplishments that we are making as a way of touting the company. Making sure we are telling others how amazing “the company” is.

What if we flip that script? What if the impact that we are making is instead framed through the lens of our field leaders. What THEY are doing to effect change. How many children THEY have fed. How many carbon units THEY have offset. How many bottles THEY have kept out of landfills. How many natural disaster victims THEY have helped.

What if we sent them a snapshot each year, Spotify Wrapped style, that pulled their specific stats and showed them the difference they were making in the world? What if that was one of your recognition categories on your monthly conference calls, social posts and annual events?

If you are targeting Gen Z or Younger Millennials, you may be incredibly surprised at the loyalty, passion and energy this change can make. And when it comes to retention—nothing is stickier than the belief that YOU matter.

Be Better, Not Boring

When you look at some of the more traditional elements of recognition that we employ in our companies, the bottom line is that most of the historical ways we recognize people, the next generations find…well…boring.

Less than 25 percent of Gen Z and Younger Millennials said that “Mentions on the Company Social Media Pages” or “Being Recognized at a Regional or National Event” would make them feel valued.

That’s not a lot, given how much time energy and expense we put into all of those…especially event recognition. So, if the question is “why,” the answer is two-fold.

One, it’s just not as cool as it once was. The next generations are increasingly looking for things that benefit their families; their communities; and the lives they are building. They are not looking externally for affirmation nearly as much as the older generations. As a commentary on society, awesome! But this shift certainly requires a few pivots as far as our recognition budgets are concerned.

But what’s the second reason? How Insta-Worthy the experience is! The what-used-to-be-ubiquitous pictures on social from all our events: walking across stage; waving flags; getting jewelry, flowers or whatever else—feel like relics from another era. What used to be Facebook fodder is considered cringeworthy by younger generations.

What do they want instead? Experiences. Moments. Magical moments that elevate their personal brand. They want to expose their community of followers to things they haven’t seen; places they haven’t been; and experiences they haven’t had.

We see that from the anecdotal comments from the study as well as the data. The study showed that two of the top three things that would make younger generations feel valued:

• Getting to Go on a Trip to Somewhere Fun and Bring a Guest
• Tickets to Events or Experiences (Concerts, Sporting Events, etc.)

These combined represent the top choice for 69 percent of all generations and 91 percent of Gen Z and Millennials.

Action Item: Scrub those recognition budgets. Reallocate as much as you possibly can to things that are experiential in nature.

So what does that mean in practice? Take a look at all those programs that you have (that used to be super successful) and re-frame them. For example, do you have a “pin program” or something similar where your leaders can earn different rank advancement jewelry, pins, necklaces, watches or jewels embedded in things that denote achievement?

We’ve all been there—and the OGs in our field will never be shy about telling us how much and how hard and how long they worked to get that next thing! Just so they could show it off. But that just doesn’t work anymore. And all too often we feel like these programs are foundational—a part of our culture and history—so it almost feels sacrilegious to think about abandoning them.

It’s not. They were created for a specific moment in time. And they worked. Now they don’t. It’s OK to change.

What if the thing they were working to “complete” or “achieve” were figurative (or literal) passport stamps. How many different states can they earn weekend retreats in? How many different countries can they see because of your company? How many different concerts? Super Bowls, the World Series…whatever it is…keep the “collection” in place—just swap out the elements for things that will resonate even more with today’s seller. And worried about those events? Still recognize…but highlight those achievements instead.

The love language of the younger generation is firmly rooted in experiences. Experiences that enrich their lives and—most importantly—that photograph beautifully. Because if you can’t share it on Instagram…did it really happen?

So that covers the first part of recognition and what makes tomorrow’s sellers feel valued, celebrated and will make them want to stay forever. Please look out for the next article where we jump into all things promotional. What works? What doesn’t? How much is too much? Each generation, as they say, has big feelings on this issue. Can’t wait to share them with you.

WANT TO KNOW HOW ATTRACTIVE YOUR COMPANY IS TO EACH GENERATION? Schedule your Generational Attraction Assessment today, complimentary for DSN Gold and Platinum Supporters.

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the January/February 2024 issue of Direct Selling News magazine.

The post GENERATIONAL INSIGHTS / Recognition first appeared on Direct Selling News.

But how do you turn all of that learning into action? The key is to pin down a handful of revelations that rose to the top, and then do something with them! In an effort to help us all take action, whether you were there or not, here are the next steps I would encourage any executive to take, inspired by Fall DSU 2023. 

1 / Get Serious About the Hispanic Market

The most blatantly clear takeaway from DSU was a lot of companies growing in the US have one thing in common: a commitment to the Hispanic market. This was a key point in about four different presentations. Whether you decide to target the Hispanic market or not, every executive needs to be intentional about how you’re thinking about this market, both globally and especially in the US.

2 / Simplify until It Hurts

John Alcala, CEO of It Works!, reminded us of just how much distributors have on their plates…and that’s before we add all of our stuff (promotions, incentives, announcements, launches…) to the mix! We all talk about simplifying our business, but do we really do it? To experience the kind of simplicity that actually prompts growth and duplication, you’ve got to shed some of the secondary “stuff” that only gets in the way for the average distributor. Go find it and do something about it.

3 / Experiment, Learn and Adapt

pawTree Founder and CEO Roger Morgan walked us through a few scenarios where the company identified a problem; came up with a possible solution; and launched quickly. Some worked well; some didn’t; and some only worked within very specific circumstances, but not others. The takeaways from his specific examples were helpful, but the biggest takeaway is this: am I tracking everything I do well enough to know if it works and why? And then do I keep iterating to see the improvement?

4 / Compare Your Business to Neora

A huge perk of DSU was hearing from Founder and CEO Jeff Olson and Co-CEO Deborah K. Heisz from Neora about their journey in their case against the FTC. The work they’ve done is so vital for every single one of us—both in terms of validating what we do and also shedding light on how we should do it. But in Stuart Johnson’s words, “If you’re still doing things the wrong way, this is not a win for you!” Deb shared some of the elements of Neora’s business (like 80 percent of those who buy from them are Customers and receive no commission) that strengthened their case. It’s in no way the hard-and-fast rule that must be followed, but if you need a standard to compare yourself against, it sounds like we just got a new one.

5 / Start Using AI (whether you want to or not!)

I’ll admit I’ve been slow to jump on the AI bandwagon. It can feel a bit overwhelming to understand. And it can feel like “just one more thing,” when I’ve already got enough “things” in my life. But after listening to Blake Mallen and Brandon White talk about how they’re putting AI to use right now, I realized my excuses hold little weight compared to the unbelievable benefits that can come from incorporating AI into how I work and live. Rather than figure it all out, I’m simply dedicating 15 minutes a day to using AI in some form or fashion. It’s the only way I’ll learn it and appreciate it. Maybe you should, too.

6 / Success Is in the Segmentation

No single speaker focused on segmentation as a topic, but many alluded to it. Bridgehead Collective’s Founder and CEO Heather Chastain’s generational research certainly shines a bright light on the need for us to segment what we do. The panel on affiliate programs (and how different each program is) certainly showcases how companies are trying to segment the opportunity in new ways. We even learned of the differences among segments within the Hispanic market. We can all do a better job of segmentation. Whatever is holding you back—technology, resources, know-how, WHATEVER!—let’s make 2024 the year we do something about it.

7 / What We Do Still Matters

Vivian Mokome, Founder and CEO of Vivian Mokome Projects, shared a heartfelt reminder that direct selling changes lives…and, in her estimation, can change continents! She sees direct selling as a prominent force for change in Africa. We must evolve as a channel and respond to the market in terms of what it wants and how it wants it. But we cannot lose sight of the actual life changes that have occurred and continue to occur, no matter how tempted we may be to downplay it in the midst of so many changes. Remind yourself of the greater good your company pursues and provides regularly. There’s no other fuel like it.

Were there more takeaways at DSU? You bet!
This is just a starting place. If you were there, think back to the points above in context of your own experience and determine what makes sense for your company. If you weren’t there, this list can still prompt extremely helpful conversations for your team. And bring them to DSU 2024! DSN

Note from the Editorial Staff: We’re excited to include these insights from industry expert Brett Duncan. Look for more content from Brett in the coming months on the pages of DSN.

Brett Duncan specializes in helping direct selling companies evolve into modern social selling models while still maintaining the culture and essence of who they are and what makes them different. He is Co-Founder and Managing Partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps.

From the December 2023 issue of Direct Selling News magazine.

The post 7 Top Takeaways for Executives from DSU Fall 2023 first appeared on Direct Selling News.

Direct selling has become an increasingly popular avenue for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.

In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.

I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.

We designed the study to provide actionable insights across 10 key categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

In this series, we are digging deeper into each of these categories, focusing this month on all things Compensation and Value Proposition.

As we shared consistently throughout this series, the news surrounding all generations is that EACH is radically different in how they want to be prospected, talked to and approached about direct selling opportunities. We have highlighted that a “One-Size-Fits-All” approach simply doesn’t work anymore, and that insight continues when it comes to compensation plans and the overall value proposition that each generation sees in direct selling.

Money Changes Everything

Last month highlighted the methods, channels and types of training preferred by each generation. The stand-out insight was the need for a clear, simple roadmap for success. Something that outlines the prescriptive steps to take—but not in any way taking away from the authenticity and spontaneity of a successful direct seller.

The insights we gleaned around compensation were likely the most shocking to me. I mean—really—of all the things I thought each generation could agree on, money would have been at the top of my list. How complicated is money?
The more, the better, right?

Not necessarily.

But let’s start first with what each generation does agree on. We chose to structure this part of the study around what each generation would need to feel like their experience with direct selling was “worth it.” We chose this language because it speaks both to overall satisfaction as well as a judgement on reward vs. effort, a key to retention.

The first question we asked was around what would absolutely convince them to stay at a direct selling business after the first three months. As you might expect…all generations agreed that the number one reason (by a landslide) was getting paid and receiving money in my account.

But what was surprising was when you start to dig into the second and third choices. That’s where the generations diverge in a practical AND philosophical way.

Lending a Helping Hand

Our youngest respondents, Gen Z (18-26), shared that the belief that they are part of a cause or movement would absolutely convince them to stay at a direct selling business after the first three months. The vast majority of this audience listed this reason as the #2 or #3 for their loyalty.

Action Item: Let your charitable light shine. So many of us have great causes at the heart of what we do, and there are entire articles to be written about the collective impact our channel has around the world. But how much do we emphasize this to our newest representatives? Before you skim to the next paragraph after mentally checking this one off in your mind as an “of course we do”….you might want to check!

We did a blind sample of 15 top direct selling companies last July—all of whom have donated more than $1,000,000 to causes they care about. Only two of them shared any information with us as part of the join flow, starter kit, welcome messages, getting started, onboarding or recognition in the first 90 days. Only two. Ensure that you are promoting your cause; celebrating the successes; and showing new folks how they can easily get involved, sooner rather than later!

Show Me the Money

So…what about our Gen Xers and Older Millennials? Well…they had a more practical affirmation for their #2 and #3 things that would absolutely convince them to stay….and it had to do with proof.

Eighty-four percent of Gen Xers reported that seeing the product or service work in their own life was a critical element to their ability to continue to represent a brand. That’s significant—and significantly more than their younger counterparts.

Action Item: Survey new representatives in the Older Millennial and Gen X category within 90 days of joining to ensure they are seeing and feeling the benefit of the product in their own lives! Sounds simple but think how powerful it is.

I’m talking one question—via text—sent asking for a scale of 1-10. Think what you could learn. Those that are 6-10 are happy with the product? You’ve just reminded them of that fact. For those who enter 1-5, think of the incredible opportunity you now have to reach out; show them how much you care; how much you believe in your product; and how important their experience is to you. And if you’re feeling under-resourced—utilize AI tools to save some execution time.

Okay, so that’s the start of the value proposition—what would convince me to stay? Again, while divided on the second and third choices…all generations were united in their declaration that money topped the list.

How much money? That’s where it gets REALLY interesting.

The Magic Numbers

Radical differences emerged when we asked all respondents “how much money would you have to make per month in direct selling to absolutely convince you that it’s worth it.” Me, in all my Gen X smugness, was pretty sure I knew the answer. After all, I’ve long preached that “if the number you’re talking about doesn’t have a comma in it, it’s not a big enough number.”

Well, turns out I was right…but not for everyone. Not by a long shot.

Older generations are significantly more likely than younger generations to believe direct selling is worth it if they make $1,000 or more per month, but younger generations are significantly more likely than older generations to be convinced that direct selling is worth it if they make between $250-$499.

That’s it. Between $250-$499 is the sweet spot for them—vastly different than reflected in the older generations.

Further digging into the data shows that when you talk about an income opportunity of more than $1,000 per month, especially early in the business, younger generations are more than just nonplussed…they are turned off. Their “scam-dar” goes up, and they can’t get to YouTube fast enough to search “Is insertyourcompanynamehere a scam?” And guess what they find then? Nothing good. Don’t look, it will just depress you.

Action Item: Tone all discussion of income down. Way, way down. Phrases like “supplemental income” are your friends. There is no need to give anything other than a realistic picture of what they can reasonably expect to earn in their first few months…along with, of course, a fair picture of the significant effort that they will have to put forth to achieve it.

We only have things to be proud of here, fellow direct sellers! Really. Not only is a modest discussion of income—paid only through the sales of products to end customers—the gold standard of compliance right now, it has the added benefit of being the right thing to do and the shining prize of also being EXACTLY what the next generations want to hear.

What’s in It for Me?

And make no mistake the next generations are looking for additional income opportunities no matter how big or small. Throwback stat from the first in this series: 76 percent of all Americans would like to own their own businesses in the next three years.

In fact, 83 percent of those reported they would choose direct selling if they knew they could make $500 of extra income each month. Imagine if your conversion rates were 83 percent? Your retention rates? That would be needle-moving action—and all for just being transparent, realistic and honest at every opportunity.

Wow Stat: 83 percent of Americans would get involved in direct selling if they knew they could make $500 of extra income each month.

So we’ve established that money is the primary driver—not empty promises of too much money—just a reasonable amount of income for a reasonable amount of effort. But compensation is so much more than just the calculations of overrides and commissions. We have long known the power of using cash bonuses, gifts, travel, experiences and other goodies to round out the full compensation package to ensure each of our sellers feels motivated and inspired each month.

Thank You Very Much

This study probed into exactly what types of performance incentives would make them feel most valued. The top three had a wide margin of victory over all other choices.

There is a really interesting distinction. Cash bonuses for a goal-based incentive trumped “consistent and predictable selling percentage” as a topper!

Action Items: Take a look at the front end of your compensation plan. Is there a simple and easy way to break up your initial selling commission into a combination of flat selling percentage and cash bonuses for milestone achievement? A change here may be simpler and easier than you think and could help you tap into this timely and powerful motivator. Next, trips are increasingly table stakes. Ensure you aren’t overlooking the value of trips and experiences if you don’t already have them in place. And if you do, make sure you are making recognition hay out of it.

Too often, our trips become like wallpaper—rarely commented on during the actual earning period. Make sure you don’t get complacent with promotion of your incentive trips (especially if the earning period is over a year) and ensure that you are keeping those Instagram-able experiences front and center with your field. Remember…it’s only a big deal if we make it a big deal.

So that covers the compensation and “what makes it worth it.” Next month we jump into all things recognition. Bored with your recognition? Most of your field leaders are, too. We’ll share what is really motivating each generation.

WANT TO KNOW HOW ATTRACTIVE YOUR COMPANY IS TO EACH GENERATION? Schedule your Generational Attraction Assessment today, complimentary for DSN Gold and Platinum Supporters.

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the December 2023 issue of Direct Selling News magazine.

The post GENERATIONAL INSIGHTS / Compensation first appeared on Direct Selling News.

One recent episode took this to the next level—and we wanted to make sure DSN’s readers had a chance to engage with this incredibly valuable information. Wayne was joined by a trio of industry experts: Paul Adams, Owner of Adams Resource Group; Bridgehead Collective Founder and CEO Heather Chastain; and Brett Duncan, Co-Founder and Managing Partner of Strategic Choice Partners.

Ever wonder what expert consultants think about the channel? These highlights unwrap that mystery, giving you and your teams priceless insights from the outside. Wayne and his guests took a deep dive into the secrets of direct selling success: key shifts in messaging; the challenges that legacy companies must navigate; identifying the channels most valuable differentiators; the magic of simplification; and the significance of the recent Neora win. They also looked inside the channel’s crystal ball to predict what the future might hold.

With decades of experience working in various roles with direct selling companies, and as leading consultants, their expertise provides an invaluable resource for all industry executives.

Key Shifts in Messaging

The consults agree: what the channel offers is something Young Millennials and Gen Z want. But it’s often packaged in a way that doesn’t resonate with them. Some of the key factors that this demographic is looking for include being able to monetize their influence on social, being a part of a community or movement and creating multiple streams of income. Sound familiar? What they don’t want is to build and manage a team. What’s inside the box remains enticing and relevant. It’s how the box is wrapped that has lost its charm. Promises of big money read as a scam—they are looking for multiple income streams and lower expectations for supplemental income.

Legacy Company Challenges

There exists within legacy companies a generational pull to not acknowledge or change to reflect the key shifts noted above. Direct selling must adapt to these changes or become irrelevant. It’s important to acknowledge that well-established field leaders found success doing things traditionally. It’s not realistic to expect them to embrace wholesale change without support and empathy. The work to facilitate this transition needs to come from the home office. It should be corporate’s role to steward this change by supporting established field leaders while still soliciting new ones. It’s also important for these established companies to own the often misguided and misleading messaging of the past and set more realistic expectations going forward.

Direct Selling’s Value Props

There is true alignment on what direct selling’s differentiators are. So what are the things that direct selling needs to lean into? Culture and community in the form of personal development, connection, mentorship and guidance. The channel has also taken huge strides in offering real products and services that people want. And sharing products with friends, family and followers is increasing in importance in purchasing decisions. Direct selling is the ultimate example of people selling to people in an authentic, organic way—free of gimmicks, scripts and pretension and full of genuine excitement and enthusiasm.

Keep It Simple

Customer experience continues to become more and more important as direct selling competes directly with DTC brands. The experience of onboarding also becomes more and more vital as aspiring entrepreneurs have multiple options on where to put their efforts. Direct selling tends to build unnecessary complexities into processes. The experts are united in their belief that those complexities come at a cost. There can be no extra steps, funnels or hoops to jump through. How to pay; how to join; how to get paid all must be streamlined and simplified.

What the Neora Ruling Really Means

The most important thing about the Neora ruling, according to the experts, was that it proves the model can be validated. The caveat to that is that if you aren’t doing the right things, this isn’t a victory for you. The Neora ruling will not lift regulatory scrutiny, but it will provide a blueprint for what companies need to achieve. Executives must familiarize themselves with the ruling and ask themselves the hard questions about whether their companies would hold up to the same scrutiny.

Future Forward

The group all agreed that more acquisitions and consolidations are on the horizon. They were also united in their opinion that FTC scrutiny will not be going away, and companies must make sure their values and practices align with the measuring stick provided in the Neora ruling. A final future insight was the need for companies to embrace the current culture and climate of change, including a laser focus on customer acquisition; offering real products with real value; and bringing new and younger people into the industry.

Listen to This!

We’ve just scratched the surface of the insights and insider tips shared in this episode. It’s an hour and a half you and your team simply can’t afford to miss. Listen to the episode in its entirety and to subscribe to Direct Approach and the full lineup of DSN podcasts.

From the December 2023 issue of Direct Selling News magazine.

The post Insights from the Outside first appeared on Direct Selling News.

Direct selling has become an increasingly popular avenue for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.

In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.

I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.

We designed the study to provide actionable insights across 10 key categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

In this series, we are digging deeper into each of these categories, focusing this month on all things Training.

As we shared consistently throughout this series, the news surrounding all generations is that EACH generation is radically different in how they want to be prospected, talked to and approached about direct selling opportunities. We have highlighted that a “One-Size-Fits-All” approach simply doesn’t work anymore, and that feedback is amplified when it comes to Training.

Clear Blueprints and Guideposts

Last month we shared some shocking insights about Getting Started and Onboarding. Most of the shock factor came from the fact that an overwhelming majority of Younger Millennials and Gen Z preferred to be onboarded in person vs. online, or even working at their own pace. This is fueled by their underlying belief that they do not possess the skills necessary for success. The manifestations of this belief carry through just as strongly to what kind of training they believe is necessary for success and confidence in their new business. However, what we see transition a bit as we move from onboarding and getting started to ongoing training programs is a marked increase in the desire for “learn at your own pace” and other forms of on-demand training.

In fact, when we asked all generations which type of training would be the best to gain experience and confidence in direct selling in the first 30 days, the number one answer, in fact the number one choice of more than half of the respondents was:

“A clear training program that provides a roadmap for success, that I can review at my own pace, on my own schedule.“

This represents a clear differentiation in the data between how people want to learn at the very beginning and how they want to engage on an ongoing basis. Now, for followers of this series, you know we are all about putting data into action so that leads us to our first Action Item on this area of insight.

Action Item: Ensure that your training programs are easily accessible online; broken up into manageable segments of no more than 20 minutes; and in a format that can be consumed and worked completely on demand.

As we probed further into precisely what type of training all generations believed was necessary to give them confidence to build their businesses, I think two of the next three responses are going to surprise you.

The second most desired training is not a surprise, focusing in on “hard skills” training like how to place orders, get paid or engage with company technology (calling Captain Obvious). But after that, we start to see some of the really interesting generational differences come into play.

Rounding out the top five answers, we have:

• Being assigned a Trusted Guide in the business for regular answers, help and support.
• Soft skills training communication, sales, how to have conversations and speak to groups of people.
• Short training videos, LESS THAN ONE MINUTE EACH, sent to you daily from your colleagues, other successful people or your trusted guide.

Fascinating, right? What’s even more interesting is that when you break it down by generation, the desire for soft skills training leapt all the way up to number one for Gen Z. That’s right—the MOST requested needs for training for the future generation of direct selling leaders were for communication; starting and holding conversations; and how to speak to groups of people. Not sure about you, but most of the companies I work with don’t include this kind of foundational training AT ALL as part of their onboarding. Sales training, yes of course! Scripted exchanges for how to close a sale? Sure. But that’s not what we are talking about here. We are talking about very fundamental basics of how to hold conversations; how to follow up; how to engage with other humans in a professional way; and how to conduct meetings or communicate in business to small or large groups of people.

The data couldn’t be clearer—Gen Z (and to some extent, Younger Millennials) are crying out for help—and we would do well to listen.

Action Item: Go back to the basics—WAY back. Implement a fundamental communication training module as one of the very first elements of your training programs. If you’re not sure where to start, use the QR code at the end of this article to request information. Bridgehead has put some energy into designing a plug-and-play module that could help.

Fast, Frictionless, User Friendly

Now let’s talk for a minute about that last bullet. The ask is straightforward. Please send me—once a day—a short training video that will fuel my success from someone who has done what I need to do. Simple, right? Well, when’s the last time anyone at a direct selling home office created ANY training content that was less than one minute long?!? Right…thought so!

This speaks to the ongoing challenge of shortened attention spans and desire to engage in a fast and frictionless way.

Action Item: Issue a One-Minute Challenge to your top leaders to gather a TON of content to share out with everyone. Give clear instructions on a simple background, lighting, etc., and ask them all to share in ONE minute or less, their top tip for someone just starting out.

Then, put this into action! Take a cohort of new distributors (pick a month) and send them all one video a day for 90 days and compare their results to their performance from other months. What do you have to lose? The whole project will take little effort (remember, these are meant to be authentic and don’t need to be super polished). And it could yield tremendous results.

Another “wow stat” that emerged with this topic is the appeal of outside experts. Turns out, that virtual, live presentations by an outside expert on information that is relevant and helpful to build their business is most appealing to older generations, with 74 percent of Older Millennials and Gen X listing it in their top three, compared to only 24 percent of the younger generations. Something super interesting to consider when choosing how to allocate your dollars most effectively.

The Right Method for the Message

OK—that’s what each generation had to say about what KIND of training they were looking for, but what about HOW they want to be communicated with.

We all know the “what communication channel to use” struggle is real. Should we email everything? Text it? Post it? Push notification it? Put it in a Facebook group? Zoom it? Teams it? Or…worst of all…choose all of the above so they tune us out completely! We have seen so many companies wrestle with this issue, so we decided to get some data to help us sort it all out.

Turns out Americans have very different and distinct opinions on HOW they want to receive different types of information. That “One-Size-Doesn’t-Fit-All” axiom shows up again and again.

When asked “how you would like to be communicated with in each of the following situations in your first 30 days,” the answers were super clear—and very different for each type of communication.

There is a lot of information in that chart, so I encourage you to spend a few minutes digesting it, but here are some top-line highlights. Depending on the situation, Americans want to be communicated with very differently during their first 30 days as a distributor in direct selling.

Email is the preferred communication method when learning or receiving information.

Text is the preferred communication method for quick questions and check-ins.

Group video chat is the preferred communication method for meetings.

One-on-one video chat is a back-up communication method for most situations.

Action Item: Reorganize your Communication Plan by slotting different types of communication into precise and distinct channels based on this data.

Not only will it simplify your internal processes, but it will drastically increase your engagement and effectiveness, so all that effort spent crafting the perfect message is read, received and put into action.

Also, pay special attention to the strong preference for two-way, text-based solutions for both quick questions as well as high fives and recognition. You may want to consider how you are using text and ensure you are maximizing its effectiveness.

So that covers the training highlights, please look out for next month’s article where we jump into the crowd favorite and lifeblood of our industry: Compensation and Value Proposition.

I may have to see if I can get more pages for that one—lots and lots and lots to unpack so look for plenty of action items including a few proven quick wins that you can get up and running in less than 30 days.

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the November 2023 issue of Direct Selling News magazine.

The post GENERATIONAL INSIGHTS / Preferred Training Methods first appeared on Direct Selling News.

Direct selling has become an increasingly popular avenue for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.

In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.

I set out to discover America’s perceptions of entrepreneurship, the gig economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.

We designed the study to provide actionable insights across 10 key categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

In this series, we will be digging deeper into each of these categories, focusing this month on Recruiting and Prospecting as well as Motivations and Decision Criteria. As we shared in last month’s issue, the news surrounding all generations is that their perception of our industry is actually far more positive than we sometimes think it is.

One Approach Does Not Fit All

An element that was a recurring theme in this study was how differently each generation responded to each key insight area. On one hand, that shouldn’t be surprising. However, I am struck by how often we, as an industry, tend to approach all prospects and distributors with one voice, one message, one point of view.

The data shows that a radically different approach is required. Each generation has distinct (and often competing) preferences, decision criterion and motivators. These differences were on full display when considering recruiting and prospecting.

The study took a comprehensive look at all facets of sponsoring including probing each generation for where, how, from whom and in what forum they wanted to hear about the earning opportunities that we provide.

We started first with finding out how comfortable each generation was learning about direct selling opportunities across a whole range of different scenarios. Options for them to rank included: a discussion with a friend or family member already involved; video or series of videos on YouTube; automated on-demand portal; group discussions; in-person meetings as well as several others.

Not surprisingly, the highest ranked selection with 74 percent of all generations choosing it as their top answer was learning about the business from someone they know already working it. BUT, coming in just one percentage point behind, was—wait for it—learning about the opportunity from a video or series of YouTube videos. When you isolate just Gen Z and Younger Millennials that increased to the top spot by a wide margin with over 85 percent of those generations indicating that was their preferred choice.

Action Item: Take a hard look at your YouTube channel. Don’t have one? Start one now!

The least preferred place to meet? A full 35 points behind the number one choices: meeting one-on-one or in a small group in a coffee shop or restaurant. This beloved and much-trained-upon method was deemed “old-school” and “cringey” across the board.

Action Item: Scrub your training materials for suggestions to schedule a 1:1 in person as a great prospecting tool. Maybe five years ago, but not today!

Then, we looked to understand what tools or resources they would find most helpful when first making the decision to join. This was intended to get us all some answers for how to best create/re-create those opportunity “leave-behinds.” Turns out, the highest scoring item for conversion was a one-to-three-month written roadmap for success. That was more pivotal in any decision making than success stories, income claims and projections, videos, brochures or even product samples. The only generation that didn’t rank this first was Gen Z. They wanted to see examples of people in their age range that had found success. So—sort of the same principle—but they wanted that roadmap to come from someone they could consider a peer.

Action item: Ditch the opportunity brochure. Create a one-page roadmap to success instead.

What Really Moves the Needle

Okay, so every generation has now been approached and provided with a roadmap for success…but what are they really looking for from us? We asked them what the biggest benefit was that they saw in direct selling. Again, the number one reason was sort of obvious—make extra money, of course! But second and third were a virtual tie between having control over when and where they worked and getting paid weekly. Weekly pay is a key benefit and decision driver.

Bringing up the bottom of that list were some old-school favorites that we may want to rethink how much we focus on, such as getting to attend celebrity events, keynote speakers and the opportunity to get recognized for their success.

Wow Stat: 75% of all generations and 92% of Younger Millennials were more likely to join a company that supported a social cause that they believed in and pointed to that as a key decision factor.

So, what will help them make that final decision? There are two major drivers that showed up as factors that would OVERCOME any skepticism they might still feel over joining.

1. A cost to get started UNDER $100
2. Generating sales and income in first month of business

This “less than $100” showed up clearly in all generations but particularly for Millennials.

Action Item: Take a look at those starter packs and your overall cost of entry. In all cases—regardless of generation—having an option less than $100 is critical for success.

Stay Focused (and Stay in Touch)

The Direct Sales Generational Engagement Study, conducted by Bridgehead Collective, sheds light on the perceptions of direct selling across different generations. It reveals varying levels of interest and motivations among different age groups; highlights effective recruiting strategies; emphasizes the importance of onboarding and retention strategies; and explores the significance of community in fostering success as a direct selling distributor.

By understanding these generational perspectives and using the information to precisely position all facets of your business, you can tailor your approaches to attract, engage and retain distributors effectively.

Next month we will walk you through Onboarding and Getting Started and share the shocking (yes, I said shocking) insights on how each generation—especially those Young Millennials and Gen Zers—want to engage with your company. I promise you it’s not how you think!

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the September 2023 issue of Direct Selling News magazine.

The post GENERATIONAL INSIGHTS / Recruiting & Prospecting in Direct Selling first appeared on Direct Selling News.

Letting go of what was and doubling down on what’s next.

We’re experiencing a return to normal. Does this phrase sound familiar?

The pandemic brought an unexpected boom to the direct selling industry. Many companies saw revenue increases and incredible growth. As the pandemic has eased, so too has that explosive growth. Only 18 companies made our 2023 list of companies who experienced three consecutive years of revenue growth. And overall, the industry saw the beginning of a decline in total retail sales at the end of 2022.

It would be easy to assume that these numbers reflect a natural market correction—one that doesn’t signify a decline in progress or relevancy, but rather a return to pre-pandemic levels. After all, U.S. direct selling revenues reached $40.5 billion in 2022, which is a decline from 2021, but still a sizeable increase from $35.2 billion in 2019.

The problem with this theory is that consumer spending hasn’t followed this trajectory. In July, Deloitte released its State of the U.S. Consumer report, revealing that retail sales were up 31.6 percent from pre-pandemic levels and non-store sales were up 69 percent. Consumers are buying—particularly in discretionary categories—so why aren’t direct selling revenues reflecting that boost?

As the research shows in The Future of Work: Insights into the Gig Economy Workforce, the gig economy is growing four times faster than the traditional economy. However, the number of gig workers representing direct selling has decreased from 5.2 percent to 2.3 percent. The DSEF Growth and Outlook Study shows an eight percent decline in the number of direct sellers in 2022.

At Direct Selling News, we believe the direct selling industry is in, perhaps, one of the most important Inflection Points in its entire 100+ year history. The term inflection point originated as a mathematical description depicting that moment when the curve of a graph changes direction moving up or down. A point when business leaders must proactively address the future of their brands and the relevancy they bring to market.

What we are experiencing is not a return to normal; it’s a critical moment to address the channel’s strengths and opportunities to evolve forward. A time to determine if next year’s P&L sheets will reflect a positive shift in momentum or another year of steady decline?

DSN worked closely with channel advisors, executives and analysts, compiling five strategies to help companies understand the current state of their business so they can more effectively position themselves for growth.

We must be candid and honest about where the channel has been and is. The so-called normal of 2019 doesn’t exist anymore. This is a critical moment in time where companies have two choices. Stay in a state of comfort and complacency and expect similar results. Or, let go of what was and move forward with open, innovative minds and embrace evolution to build for the future.

Ultimately, the choice is yours. But the time has come to make that choice.

1 / Dig into the Data

It’s time to take a brutally honest look at the statistics surrounding the last few years. The drastic bump that most of the industry enjoyed during 2020 and 2021 was not typical, nor does it appear to be continuing. Allowing this data set to incorrectly inform future projections and strategies prevents companies from reaching their full potential.

It is imperative that companies dig into their historical information to genuinely understand the impact the pandemic had on their most important statistics. The priority must be to look for trends that indicate future habits; identify key patterns; and discover exactly what behaviors your fields are engaging with today—successfully and perhaps not-so successfully.

2 / Avoid Being a Regulatory and Compliance Target

The channel has to work together. Clean, simple and transparent are the obvious antidotes to a tough regulatory environment, but no one company or brand can turn the tide in the industry’s favor to heal decades of reputational damage.

“We have got to make ourselves unimpeachable,” said Heather Chastain, Founder and CEO of Bridgehead Collective, a consulting firm for the direct selling industry. “You don’t have to be a bad actor in the channel to gain a bad reputation. Take a look at the transparency of your programs, incentives and compensation plans and eliminate any loopholes or obfuscation. We have to be on a mission for transparency.”

Larry Steinberg, chair of the Buchalter Law Firm’s MLM Practice Group agreed, “Now is as good a time as ever to refocus your business plan on retail sales, a robust preferred customer program and communications with your field about the importance of compliance. There is ongoing rulemaking activity in the business opportunity, earnings claim and restrictive covenant areas. Staying under the radar is becoming increasingly more difficult, and the stakes are higher than ever.”

Eliminate hidden fees. Make it simple to opt out of an auto-ship agreement. Communicate with the field about the importance of compliance. Use dollar amounts instead of points to pay commissions and achieve bonuses. Do whatever it takes to communicate that your product and opportunity can withstand a critical eye. When in doubt, choose transparency.

3 / Understand Changes in the Marketplace

Today, customers want a seamless shopping experience that is transparent from end-to-end. They want to engage with companies who deliver on their promises with little-to-no barrier to entry, frictionless experiences, minimal clicks, streamlined shopping cart processes and reward incentives that are attainable and delightful. If there are 17 hoops to jump through to get the prize, you’ve missed the point—and you’ve likely lost a loyal customer.

Zooming out a bit, digital fluency is crucial. Consumers, particularly younger generations, expect everything from first impressions to shopping, purchasing and delivery, to have a simple, yet impressive, responsive digital component. The way people buy is now staggeringly influenced by a brand’s digital footprint, even if they ultimately buy in person or in a retail environment.

Shoppers are still spending, but only where and how they want to shop. The direct selling product and customer proposition must be on point and at the same level or greater than massive online platforms like eBay and Amazon.

The growth of ecommerce is proof of the concept that people are shopping differently. The growth and use of the digital platform provides an opportunity to compete with any brand, at any time, through people who love what they are experiencing and desire to share with others what was shared with them.

Make sure your products and platform serve today’s customer in meaningful, memorable ways that will make them want to come back time and time again—and bring their friends along with them.

4 / Challenge Old Mindsets

For decades, the direct selling industry has positioned itself as a massive, team-building opportunity. Marketing messages traditionally lauded the six-figure earner, the luxury car bonus and a certain lifestyle to spark interest. Not so much today.

“Gen Z and Millennials don’t respond to that like generations before them did,” Chastain said. “They are more interested in making an extra $250 or $500 a month to supplement additional income streams and rarely have an interest in building a downline, much less lead a team.”

Chastain and her company Bridgehead Collective recently released a first-ever research study conducted with Jason Dorsey on the impact of Gen Z and Millennials on the marketplace including specific implications for direct selling.

Businesses and brands are more than their compensation plans, but it’s imperative to analyze whether the incentive and payout structures in place are truly meeting consumer and distributor demands. Take a deeper look at the touchpoints that could move customers from casual purchasers to loyal repeat buyers.

Direct selling companies should be thinking of themselves as brands first. If you still think your compensation plan is the most important way you can attract new customers and prospective independent contractors to your company, it may be time to change your mindset and the language you use to position yourself in the marketplace.

5 / Be Mindful of Chasing Trends

Identify what needle you’re trying to move and then put straightforward, clear strategies in place to deliver those results.

“Be really thoughtful about the buzzwords you use to describe your strategic decisions,” Chastain said. “Some companies are saying they are jumping on the affiliate trend, but are they really? Or are they just simplifying the front end of their compensation plans?”

Consider how your culture supports ordinary people who want to participate in your company’s unique niche and mission. Grow your customer base to boost revenue, rather than investing in a few top team-building leaders. And—above all else—cultivate a brand identity, shopping experience and product story that sparks love, loyalty and longevity in the hearts of shoppers.

Straightforward Strategies Win

There appears to be a clear direction that industry analysts and experts agree will move the channel in the right direction: streamlined, transparent operations focused on selling quality, high-value products and services.

A focus on the fundamentals of brand building means a focus on everything—not just commissions or compensation plans, but incentives, recognition, gifts—everything. If that sounds like it might dig into the bottom line, that’s because it likely will. But the payoff, Chastain says, is well worth it.

“Find profitability elsewhere,” she said. “The dated approach to compensation plan design may be costing the company too much as it attempts to be relevant in a very different marketplace. Refocus your energy on delivering quality content. Be ruthless with the products that earn a spot in your lineup. When you focus that kind of efficiency within your company, it will free up the few margin points you need to support a simple, generous combination of commissions, incentives, recognition and community for affiliates, distributors and customers.”

A lot has changed since early 2020. Smart and strategic companies aren’t focusing on what they see in the rear-view mirror. They are focused on the road ahead—what’s working today and how to build for the future.

Believing that the industry’s recent dip in overall numbers is simply a “return to normal” means buying into a strategy of a pandemic era when nothing was truly normal—not the economic landscape, not shopping habits, not everyday life.

We can all agree that there will be geopolitical challenges domestically and globally as we move forward. But in spite of those uncertainties, direct selling decision makers must look to the future based solely on current market conditions and best practices, free from outdated models, ideals and traditions.

As company leaders prepare to make strategic plans for 2024, they will have to decide if this will be the year the direct selling industry participates in an evolution that will make it more relevant and accessible for the months, years and decades to come.

From the September 2023 issue of Direct Selling News magazine.

The post The Inflection Point first appeared on Direct Selling News.

Direct selling has become an increasingly popular avenue for individuals to start their own businesses and earn income. To gain a comprehensive understanding of the perceptions surrounding direct selling, the Direct Sales Generational Engagement Study was conducted by Bridgehead Collective and carried out by The Center for Generational Kinetics, led by President Jason Dorsey.

In this first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more.

I set out to discover America’s perceptions of entrepreneurship, the gig-economy and—more pointedly—direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level. This study aimed to explore the attitudes, motivations, limitations and beliefs about starting a business in America, as well as uncover perceptions of direct selling, recruiting strategies, onboarding methods, distributor retention and preferred payment structures.

We designed the study to provide actionable insights across 10 key categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

In this series, we will be digging deeper into each of these categories, starting right now with Perception of Industry and Channel.

The good news (and alternative title for this article) is “They Don’t Hate Us.”

I say that somewhat tongue-in-cheek given what have felt like pretty significant headwinds on our category, industry, who we are and even what we call ourselves. The data tells a different story. But before we get into that, let’s just review what the study showed about starting a business in general.

Perceptions Around Starting a Business

The study revealed that half of Americans expressed interest in starting their own businesses within the next five years. Younger Millennials, in particular, showed a significantly higher likelihood (63%) of pursuing entrepreneurship. Men were also more inclined (59%) compared to women (41%), and individuals with a graduate degree showed the highest likelihood (71%) of venturing into entrepreneurship. Furthermore, 76% of Americans expressed a desire to own their own business within the next three years, with younger Millennials exhibiting the highest aspiration rate (83%).

That’s a lot of potential new people interested in doing what we do. But what kind of business? Interestingly, approximately 42 percent of Americans reported having considered working in the direct selling industry. Notably, Gen Z (18-26) and younger Millennials (27-35) displayed a greater inclination towards direct selling, both in terms of considering it as a career option and actively working within the industry.

WOW STAT: 60% of Americans think owning their own business is harder than being an employee at a business.

But what about direct selling? We have long heard about the negative perception this channel has, particularly among the next generation of direct sellers.

Again (sensing a theme here?) the data tells a different story. But in an industry that has been playing the “name game” for quite some time (direct selling, social selling, digital selling, affiliate marketing, referral marketing, social marketing and on and on), so we decided to test them all! Which of these, if any, had a negative perception and which did not.

Americans have the most positive perception of:

• Digital Marketing (60%)
• Referral Marketing (58%)
• Direct Selling or Direct Selling Industry (55%)

Did you see that….55+ percent of all Americans have a Positive or Very Positive perception of Direct Selling. The only category of business that scored less than 50 percent positive was Multi-Level Marketing, but we can’t really pretend to be surprised by that, can we?

This is great news, everyone. That means that we don’t have as much resistance to the very language that describes what we do as we may have thought.

Where it really gets interesting is when you break it down by generation. Younger generations, especially younger Millennials, have a significantly more positive perception of all direct selling businesses or categories tested compared to older generations.

And look at those Younger Millennials—across the board—significantly more positive than any other generation about our industry. No matter what we call it.

So, ultimately what does this mean? Words matter. Precise positioning of our opportunity, using language that resonates based on the specific and targeted generation you are trying to attract can radically improve the effectiveness of your messaging and your results.

Next month we will explore the ever-critical world of Recruiting and Prospecting and learn how each generation wants to hear about your business opportunity: in what setting, with what technology and using what words!

Spoiler alert: Digital is not the all-powerful solution we tend to think it is with the younger generations!

Words That Resonate

The Direct Sales Generational Engagement Study—conducted by Bridgehead Collective—shed light on the perceptions of direct selling across different generations. It revealed varying levels of interest and motivations among different age groups; highlighted effective recruiting strategies; emphasized the importance of onboarding and retention strategies; and explored the significance of community in fostering success as a direct selling distributor.

By understanding these generational perspectives—and using the information to precisely position all facets of your business—you can tailor your approaches to attract, engage and retain distributors effectively.

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the July/August 2023 issue of Direct Selling News magazine.

The post GENERATIONAL INSIGHTS / Perceptions of Direct Selling first appeared on Direct Selling News.

A first-of-its-kind study details how every generation of Americans across all genders, geographies and socio-economic levels perceive, engage with and measure success and opportunity in direct selling.

Times have changed, but in the direct selling channel executives can easily assume (read: hope) that some things never will.

That belief was challenged last year when Jason Dorsey, President of the Center for Generational Kinetics (CGK), presented his generational research at Direct Selling University. Generational research identifies differences between generations in underlying motivation, actions, behavior and predictable tendencies. And while his findings illustrated how deeply the generational divide impacts how people perceive and engage with the world around them and detailed how companies cannot simply rely on one messaging style to effectively reach all ages, all the insights were borrowed from research done in other industries. As I dug deeper into this game-changing topic, I quickly discovered that no generational study of any significance had ever been done just for the direct selling industry.

As a (ahem) seasoned executive and the founder of Bridgehead Collective, a firm founded to help companies in the channel innovate, form and execute strategic plans in a dynamic digital environment, I know the importance of well-researched data. Operators at our core, we use data to help companies maximize every dollar spent. Data is the foundation for determining how to allocate investments; where to leverage human power to lead through change; how to identify and overcome internal and external obstacles to growth; and how to decide which strategies will have the most robust impact on measurable results. That’s why, as I listened to Jason, I knew that we needed to harness the power of original generational research in a way that would specifically analyze the direct selling industry. If we want answers that we’re willing to dedicate all our resources towards, then we must do the research. As much as we’d like to think we’ve been around long enough to have all the answers, we often need to reach out to those who actually do.

New Generation-Specific Strategies

In a first-of-its-kind study, Bridgehead Collective chose to partner with the Center for Generational Kinetics, which has led more than 100 research studies in all major industries. Their seminal annual study, The State of Gen Z, formed the basis for the best-selling book, ZConomy and has been consistently featured in national and global media including The Wall Street Journal, New York Times, CNN and many more. I set out to discover America’s perceptions of entrepreneurship, the gig-economy and, more pointedly, direct selling. Statistical significance was of ultimate importance in this analysis, so the study represents a wide-sweeping sample that is reflective of America, with an equitable mix of genders, demographics, employment status, education levels and location that allows for a 97 percent confidence level.

When we launched the study, my biggest fear was that I would spend a year immersed in this process, only to resurface with findings that were predictable. I anticipated a year full of “Well, as we suspected…” but instead, I was thrilled by the differentiated and potentially game-changing nature of our results, and I think you will be too.

We designed the study to provide Actionable Insights across 10 Key Categories:

• Perception of Industry and Channel
• Recruiting and Prospecting
• Motivations and Decision Criteria
• Onboarding and Getting Started
• Training
• Compensation and Value Proposition
• Recognition
• Incentive Trips and Events
• Retention
• Duplication and Role of Team Building

What did we learn? So, so much! Every generation has strong feelings about how we recruit, onboard and train. That maybe we knew. But no two generations are remotely the same in what motivates them to want to stay in or leave a business. In fact, as we looked at the data, it was common to see results that were significantly polarized. Each of these 10 key categories provided new, actionable insights that every marketing, sales, field communication and compensation team will want to design around. Following are just a few of these standout insights from one of those categories.

Leading with a one-size-fits-all approach is from a bygone era; I don’t think anyone is still stuck in that model. But many companies are still relying on a historical positioning of the direct selling opportunity that doesn’t really fit anymore. We must consider just how much perceptions have shifted and strategize with generational chasms in mind.

What we need is a new roadmap.

Precision Messaging

It’s common to hear direct selling executives and field leaders say they are eager to pursue Gen Z. They are the next generation of customers, after all, and represent the threshold to what’s next. In an effort to court the youngest shoppers, however, brands can jump on trend bandwagons that have the opposite effect for older generations, effectively alienating their already loyal customers and distributors in the Gen X and Millennial age brackets.

The key, then, is to deliver our messages with precision. No two generations have the same preferences, experiences and motivations, so our messaging shouldn’t either. We need to become students of generational divides, knowing how to fine-tune our communications so that they speak the language of each specific customer and what our sellers want to be called for maximum credibility (Spoiler alert: it’s not Ambassador).

This will create the trust we need with each generation to ensure our messages are heard, understood and embraced. With the right data, it’s possible to truly reach everyone by refining our audience and tailoring our messages for maximum impact.

The Sweet Spot of Opportunity

The good news is, across the board, Americans are generally interested in starting their own business. Even better, a whopping 42 percent have considered working in the direct selling industry. If we stopped there, we might be misled to think that a large segment of every generation is ready to receive the direct selling opportunity without reservation.

When we dig deeper, we find that Gen Z (ages 18-26) and younger Millennials (ages 27-35) are significantly more likely than older generations to be working or to have considered working in the direct selling industry. However, older Millennials (36-43) and Gen X (44-55) are much more likely than their younger counterparts to have never considered working in the direct selling industry.

In fact, the study told us that younger generations, especially younger Millennials, not only have a significantly more positive perception of direct selling compared to their older counterparts, they’re also considerably more comfortable learning about the opportunities it can offer.

From this survey question, another statistic was buried within the data that took us by surprise: men are 11 percent more likely than women to have a positive perception of direct selling and seven percent more comfortable learning about a direct selling opportunity.

For years, many direct selling brands have spent their energy courting Gen Z women shoppers and mom-preneurs, but the data is telling us that Young Millennial men, ages 27 to 35, are potentially our biggest missed opportunity.

If we use precision messaging, we can advance recruiting in this demographic while also tailoring our communications with the older, more skeptical demographic in a way that speaks to their doubts and concerns.

Barriers by Generation

Being an entrepreneur is no easy task, so it’s no surprise that high startup costs (54%) and failure itself (46%) are the biggest barriers Americans face when considering a new business venture. But those challenges increase as we step into the direct selling genre.

Taking all ages into account, 46 percent of Americans who have a negative perception of direct selling just have a general belief that the industry is a scam or predatory, and 43 percent are convinced they would have to get their friends to buy something in order for them to be successful.

These are big numbers that represent big barriers for any prospective distributor or customer. How can we reposition our messages to assuage these beliefs?

By digging into the data. Our study exposed exactly what words to use to overcome these barriers; how to position the opportunity; where and how to reach them; and the most effective language to use for each generation.

Once we’ve addressed these gateway obstacles, we need to consider how Americans want to be approached with the opportunity. Most generations prefer an in-person conversation with a family member or friend—surprisingly, 70 percent or more of Gen Z and all Millennials favor this method.

What no generation preferred was a group discussion led by a distributor. Group meetings, whether on Zoom, at an event or in a coffee shop, scored low across the board. There was one caveat: Younger Millennials were the most receptive of all generations across a number of categories and approaches.

This was one of the most surprising insights from the entire study. Younger Millennials don’t really care where or how they learn about direct selling. They simply want to hear about it, even more than we might have thought.

What’s Their Win?

Making extra money is by far the biggest benefit Americans seek when getting involved as a direct selling distributor. From there, having control over when and where work happens (43%) was a strong driver.

For older generations, getting paid weekly significantly influences their likelihood of engaging in the direct selling industry, while younger generations prioritize learning new skills that can be used in their daily lives and building their influence and impact.

Money is the best and most welcomed benefit by a long shot, and getting paid and receiving money is what makes people want to stay working in the industry. In fact, it’s the highest predictor of whether or not an American would choose to keep working their business after the first three months.

While this is obvious, there is more to the story. In a generation-specific analysis, we see that Gen Z is also deeply impacted by a belief that they are part of a cause or movement, and that helping at least three other people get started would absolutely convince them to stay at a direct selling business after the first three months, significantly more so than older generations. For Gen X, it’s all about getting paid and seeing the product or service they’re selling work in their own life.

How Much Is Enough?

We have all been reframing our business opportunity in increasingly compliant ways, referring to “extra or additional or supplemental income” instead of a specific dollar or some other atypical earnings amount. The problem though is that this general approach to pitching opportunity will mean different things to different people. However, now, with this research, we know for the first time how much money “additional or extra or supplemental” income really is. An extra $500 a month is enough for 83 percent of Americans to say they would get involved in direct selling, but the exact amounts vary significantly by generation. For older generations, $1,000 or more in the first month convinces them that direct selling is worth it. For younger generations, that number is only $250-$499 and the mention of more than $1,000 can raise red “ick-factor” flags that will deter them from ever joining! We have the data to show you why.

Much to my surprise, cash bonuses for hitting certain sales thresholds beat out a simple consistent selling percentage as the number one preferred performance incentive across the board. In contrast to Gen X and older Millennials, younger generations valued recognition in front of their peers or at a national or international meeting as a highly effective performance incentive.

It’s important to take note that respondents rated some of the most common industry recognition tools as the least likely to make them feel valued as a distributor, which when armed with this data, should have some of you rethinking how you recognize on social or those increasingly ubiquitous give-back trips.

Unlock Untapped Opportunity

The study clearly shows us that generations perceive this industry in vastly different ways than we may have thought.

The often-touted homogeneous, funnel marketing technique may appear more efficient, but this study proves that it is likely also less effective. We must balance efficiency with effectiveness. When we think about investment, we need to also think about changing the lens with which we’re viewing that investment. What’s a bigger spend: one cheaper, ineffective communication approach or a multi-pronged message that may cost more but delivers results?

For instance, if you want to go after younger Millennials, talk about the opportunity to earn an extra $250 a month and offer them a trusted guide to help them develop the skills they need. If you want to go after Gen X, focus on the potential to earn an extra $1,000 a month and the efficacy of your products.

There are wide bands of Americans that genuinely want and are looking for what we have to offer. All of the insights above were from just one of the 10 categories of questions, and they all offer equally insightful and actionable data we can apply to every facet of our businesses. When we fine-tune our target market and let the data guide our message there is vast opportunity waiting to be unlocked.

Want to learn more? Join us at the DSN Deep Dive event happening Friday, May 19 in Flower Mound, Texas. Jason and Heather will share their biggest surprises from this game-changing research and provide key action items to keep your messaging and methods on point for each generation. They will also be joined at the event by direct selling and social selling executives.

With 20+ years of cross-functional experience in direct selling, Heather Chastain brings a solid understanding of sales, marketing, technology, manufacturing, operations and C-Suite challenges as well as a strong collaborative and relational style of leadership to the table. Heather has held executive roles at Shaklee, Arbonne International, Celebrating Home and BeautiControl. Heather also serves as the Strategic Advisor at DSN and is the Founder & Chief Executive Officer of Bridgehead Collective.

From the May 2023 issue of Direct Selling News magazine.

The post Direct Selling’s Roadmap of the Future­—Precision Positioning first appeared on Direct Selling News.

Direct selling executives need insight and fresh ideas now more than ever before. In one of the most challenging years in direct selling history, leaders faced continued lockdowns in certain markets, changing consumer behaviors, a tense regulatory environment and lingering supply chain issues.

To provide practical solutions, Direct Selling University enlisted more than 25 of the industry’s leading executives to share unique perspectives and new approaches regarding some of the most complex issues facing the channel today.

We kicked off DSU with the CEO Forum, one of our highest rated events, and had 75 executives in the room representing $43 billion in revenue,” said Stuart Johnson, Chief Executive Officer of Direct Selling News, Direct Selling Partners and NOW Tech. “We talked about omnichannel strategies, fighting field fatigue (our industry’s version of quiet quitting), attracting the next generation, industry reputation and the rise of affiliate models in the marketplace.”

Johnson cast vision for attendees, calling them to move beyond customer-centric thinking to becoming customer-obsessed. Following his lead, speakers provided tangible ways to improve customer conversion rates, improve salesforce morale, upgrade training systems, drive revenue and create authentic connection with customers.

“DSU gives leaders the chance to open their minds to a bigger picture,” Johnson said. “This event exists to share knowledge, future trends and success stories that inspire, challenge beliefs and spark change. I’m confident that every executive left the event with at least one game-changing idea or initiative to take back to their teams.”

Addressing Amazon

Amazon. The eCommerce goliath has been the elephant in the room for years, and for the first time, Direct Selling University tackled the challenge head-on. Without shying away from the complexities of the issue, DSU offered multiple opportunities for participants to listen and learn from experts about how to alter their approach to what is arguably the industry’s biggest competitor.

Blake Mallen, Author, President of Prüvit, delivered the most talked about speech of the event, as well as a break-out workshop session that drew more than 150 attendees, discussing his proven Amazon strategy.

“A lot of customers buying on Amazon assume they are buying from the company directly, and when they receive a damaged or expired product, they’ll either blow up the support team with their complaints or—worse—blast Amazon with negative reviews,” Mallen said. “This stuff can cause serious potential long-term damage to our brands. When you share the message that anyone can start today with the same opportunity to change their life, but when there are different prices for different people, it can erode the very heart of what our channel stands for.”

Continuing the event’s conversation about how to become customer-obsessed, Mallen explained the importance of setting an intentional Amazon game plan, telling attendees that winning the Amazon game begins with controlling their brand’s footprint on Amazon.

“This is not the future—this is the present,” Mallen said. “Amazon is a key part of the customer journey today, which means this cannot be ignored. This is something we as a channel need to do not only for our companies—but for our communities—and make the shift our industry really needs.”

Rudy Revak, Founder and Chairman, Xyngular, reminded leaders of the importance of taking care of new distributors and helping the sales force stay persistent and positive.

Shelley Rojas, Chief Brand Officer, Direct Selling News, and Heather Chastain, Founder and Chief Executive Officer, Bridgehead Collective and Direct Selling News Strategic Advisor, announced a new social community platform for DSN Supporters, as well as a new entry-level of Support, the Advocate, that will enhance the user experience and open up becoming a part of Direct Selling News to many more companies.

Magnus Brännström, President & Chief Executive Officer, Oriflame, focused on the ways the pandemic impacted work trends and how Oriflame reorganized its brand experience structure to improve the product, customer, digital, social selling and employee culture experiences.

Lynne Coté, President and Chief Executive Officer, Princess House, and Laura Beitler, Chief Global Sales Officer, Rodan + Fields, in a conversation with Heather Chastain, discussed the importance of transparency in creating alignment between the home office and the field in the midst of change and challenges.

Dan Macuga, Chief Communications and Marketing Officer, USANA, illustrated the power of their “Start Something” campaign and offered a how-to for companies wanting to create similar initiatives that drive customer engagement, loyalty and connection.

Amber Snow, Director of Diversity, Equity & Inclusion, Amway, shared how executives can make DE&I more than just a buzzword in their companies by facing the fact that people of color make up only 14 percent of direct selling representatives and persuaded leaders to make a commitment to listen, learn and act.

Amanda Tress, Founder and Chief Executive Officer, FASTer Way to Fat Loss, shared the simplicity of her company’s one-tier micro-influencer marketing model, and why she believes it could be a powerful strategy for companies fearing FTC scrutiny and enhanced regulations.

Glenn Sanford, Founder, eXp Realty, Chief Executive Officer, eXp World Holdings and SUCCESS, in an interview with Stuart Johnson, discussed the strategy behind eXp Realty’s hypergrowth and why a focus on agent experience has built a collaborative culture that drives value.

Wayne Moorehead, Marketing and Branding Expert and Host of the Direct Approach Podcast, in an interview with Stuart Johnson, reflected on the hot topics and trends discussed during interviews with leaders from 30 different companies who represent $30 billion in revenue.

Russ Moorehead, Chief Marketing Officer, Nu Skin, exposed five myths direct selling companies often fall prey to, and why the latest shopping trends give direct-to-consumer companies a significant advantage.

Patrick Wright, Chief Executive Officer, AdvoCare, gave a behind-the-scenes look at the company’s 2019 FTC settlement and described how seeing limitations as opportunities has allowed AdvoCare to increase its customer conversion rate by 10x while better serving their affiliates.

Jesse McKinney, Co-Founder and Chief Executive Officer, Red Aspen, shared a sneak peek into the company’s 2023 strategy, including four pillars—sustainability, technology initiatives, Tik Tok-style training videos and a new Gen Z-focused product category—all inspired by her experience at DSU Spring 2022.

Nick Martinez, Top Distributor, Prüvit, encouraged industry leaders to embrace distributors who are building influence instead of recruiting and why consistently creating social media content can be the key to unlocking top earner potential.

Noah Westerlund, Executive Vice President, NOW Tech, in a conversation with Wayne Moorehead, discussed the importance of Quick Commerce and long-form landing pages to increase conversion rates.

Michele Gay, Co-Founder & Chairwoman, LimeLife by Alcone, described the toll the pandemic took on women especially, and how the Three Laws of Performance helped her sales field and staff overcome the fixed mindsets and patterns of excuses that two years of living in a socially distanced world had created.

Ben Riley, President, Young Living, reminded participants of the importance of disruption and how direct selling leaders can leverage small-scale innovation and strategic change management to outsmart gig economy competitors.

Brandy Huyser, Director of XS Energy and Next Gen Strategy, Amway/XS, reflected on 20 years of adventure as the XS Energy brand built momentum by upending business-as-usual at Amway, staying focused on the field, controlling the supply chain through local manufacturing and creation and designing a youth-driven culture.

Jason Dorsey, President, Center for Generational Kinetics, Speaker and Researcher, offered a sneak peek at the first-ever generational research study conducted in direct selling that he will be leading for Direct Selling News to uncover how to quickly connect with, build trust and drive influence across generations.

Gina Ghura, Chief Marketing Officer, MONAT, offered advice for building consumer love through relationship building, personalized customer experiences, distinctive product offerings and a compensation plan that rewards customer acquisition and retention.

Rajneesh Chopra, Chief Commercial Officer, Immunotec, shared how the company invested in technology and opened new markets and manufacturing facilities during the pandemic, resulting in tremendous growth that is moving them forward in the midst of a cooling economy.

Garrett McGrath, President, ANMP, talked about the power of tiny gains and how improving by one percent every day in the areas of customer retention, community building and compensation strategies can build unstoppable momentum.

Dana Roefer, Author, Entrepreneur and Direct Selling Strategist, highlighted takeaways from her book Shopping Social and shared how education is crucial for helping consumers understand how social shopping can connect them with products that support their best life.

Darnell Self, Executive Vice President of Network and Business Development, PPLSI, shared his insights as both a field leader and industry executive, shining a light on the undervalued priorities of effective communication and a healthy team culture.

Gordon Hester, General Manager Sales, North America, PM-International AG, explained how culture is the biggest differentiator in business, and why focusing on revenue drivers and profitability can prevent feelings of entitlement and division within the field.

Must-See (In-Person) Events

The energy of this DSU—the first in-person fall version ever held—was inspiring, and the feedback received was overwhelmingly positive—making this Direct Selling University one of the most successful to date.

Planning for the next DSU event in April of 2023 in Frisco, Texas is underway, and the momentum and excitement is already building.

From the December 2022 issue of Direct Selling News magazine.

The post DSU Fall 2022: Lessons for an Evolving channel first appeared on Direct Selling News.