Actionable insights and opportunities from the first-ever direct selling generational engagement study.
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 Onboarding and Getting Started. As we shared in last month’s issue, 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 highlighted that a “One Size Fits All” approach simply doesn’t work anymore, especially when talking about the words we use in our opportunity materials; what we include (or don’t!) in our starter kits; and everything in between.
Boosting Confidence. Building Belief.
As we now move to the insights on Onboarding and Getting Started, this theme continues. If you’re following this series, you will recall that last month I promised you SHOCKING insights from this section of the study—and I meant it.
It’s in this section of the study that we start to see an incredibly powerful trend emerge from our younger generations (Gen Z and Younger Millennials). Through their responses, these generations consistently show that they are experiencing a disproportionate amount of insecurity in their ability to perform successfully. Throughout their responses, there is this underlying belief that they:
- Do not possess the skills necessary for success;
- Are looking for physical samples of the products they’re promoting;
- Crave a “trusted guide” to help them be successful.
And—as part of these shocking results—they really, really, really want these interactions to happen in person, NOT online. Now, before you fall to the floor, they do consider a 1:1 video chat as being “in person”. But still…pretty surprising!
In fact, the top three types of onboarding that would make all Americans feel most welcomed, accepted, comfortable and prepared to build their business are:
Being introduced to a mentor or “trusted guide,” followed at equal preference by receiving a physical starter pack as well as sample of the product being promoted topped the list across generations.
Action Item: The word “mentor” is a bit heavy. Everyone wants one, but younger generations don’t think they can be one. “Trusted Guide” emerged as the most compelling way to reference an “upline” or a “sponsor.” If you are focused on Gen Z or Younger Millennials—update your language.
The Value of Face-to-Face Interactions
Now, when it really gets interesting is when we probed deeper on exactly how each generation preferred to interact and work with their “trusted guides” and mentors as they were getting started. Not gonna lie…this one (as the Gen Z say) had me shook!
Completely counter to what I thought, Gen Z (52%) and Younger Millennials (51%) prefer to experience onboarding all or mostly in person significantly more than older generations.
In fact, 27 percent of Younger Millennials preferred to have their onboarding ALL in person vs. online vs. just 15 percent of Gen X.
That’s HUGE. And potentially transformative.
When we start to think through the trends that so many of us have followed of doing all onboarding training online or LMS automated systems or digital “learn-as-you-go” solutions, and then spend all our strategic offsite time trying to understand why our getting started programs aren’t as successful as we hoped they would be….well, here’s a clue as to why!
Even when you put all the generations together, we see that over 75 percent of all people want to be onboarded at least half (if not more) online.
So…what’s the action item? This one is a little more complicated, because it crosses over into your sphere of influence as a company, not your span of control. As direct selling executives, we LOVE our span of control. Because then we can be doing something. Something to put in a deck; show our bosses; present to the board.
But this action item requires you to use your influence. To encourage leaders, sponsors, guides and uplines to adopt in-person onboarding and training as their primary vehicle to success. Remember, virtual still counts as long as it is 1:1! Point to the data. But, more importantly, appeal to their heart.
The reason for this preference comes from an incredibly relatable place. A place of insecurity. How many of us can identify with feeling unsure, ill-prepared and uncertain about the path ahead? My guess…ALL of us.
Just remind your field of this and encourage simple and duplicable systems to facilitate in-person, one-on-one training that recognizes each individual for where they are; what they want; and that shows them how to best get there.
Conversation Starters
Then we started to dig into what would motivate each generation to get started in talking with others about their direct selling business. The Holy Grail, right? No need to answer, I know it’s the Holy Grail.
Well, here are the top three answers on the board:
Nothing particularly shocking there, right? These are things we have been talking about for decades in this industry. You should pay attention to the top one as that “confidence” thing has many applications in how we transform our businesses.
However, I think the real story is in the fourth response. Very close in ranking to number three, but perhaps the most instructive for us. The highest-ranking motivator, after the obvious ones, was this:
Honestly, how many of us really market this opportunity as a way to make money JUST by selling? I know, I know…need to fill the leadership pipeline…drip on everyone…sell mostly as a gateway to recruiting…I’ve given the speeches!
But what I really, really want you to see is that over a third of everyone surveyed put THIS in their top three reasons that would motivate them to recruit. And, when we look at Younger Millennials, that jumps to 46 percent.
That’s crazy. And scary. And powerful.
Action Item: Really, really look at how you are training and supporting onboarding messages. Support the idea that referring friends and family isn’t just the first step, but a powerful way to build a business.
The Return of the Starter Kit
I think coverage of this topic “Onboarding and Getting Started” would be 100 percent incomplete without the mention of our insights on Starter Kits, so let me scratch that itch!
This was just as shocking as anything we have covered so far because—like many of you—I have been totally involved in all those “digital-first” initiatives and plans to move to a “digital starter kit.” Frankly, positioning this as something we believed the next generation wanted as opposed to the cost-savings initiative it really was! But, I digress. The data is EXTREMELY clear.
Almost 90 percent of all generations say definitively that a physical starter kit with samples of the products they will be selling is essential to their success. 90 percent.
And that group that we think would prefer that digital starter kit we have been working so hard on perfecting?
Not what you thought, right?? This was so surprising to me and, frankly, super encouraging
Action Item: Eliminate digital-only starter kits, focus instead on how you can create a physical starter pack that helps instill product experience, product confidence and tangible evidence that your product is relevant and amazing!
Please look out for next month’s article where we tackle the ever-popular and all-important topic of Training. How does each generation want to be trained? What works the best? What have you double-downed on that is really the LEAST successful. All that and more in next month’s feature article!
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 October 2023 issue of Direct Selling News magazine.