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Reasons for Entering Gig Economy >
percentages of commissions paid to those who joined those companies. I do, however, VIVIDLY remember the philosophies these great leaders created and advocated. Each company was built on a foundation of principles and values. Each of the companies mentioned went on to become successful brands associated with direct selling. Direct sellers are motivated to participate when they see more than a transaction and the percentages associated with the transactions.
3/ Simplicity vs. Complexity is the essence of new strategies designed to attract new direct sellers. Affiliate programs will become more and more popular and will be embraced by more direct selling companies. The rationale for the popularity in affiliate programs is based upon proof of concept. Again, the growth of the gig economy is the proof where simplicity, ease of engagement and quick rewards for effort are recognized. The growth of the gig economy does not represent new competition for those companies using the direct selling model, only a reminder that the origins of the model remain fundamental to the appeal of the direct selling model.
Growing market share will be dependent upon attracting more prospects in the effort to attract more shoppers, customers and direct sellers. This is the basic premise upon which the direct selling model was founded. However, the manner in which direct sellers are attracted must now evolve beyond traditional motivations and attract others based upon unique methods of recognition and compensation and excellent support. This will enable the attraction of shoppers and the acquisition of a greater market share of customers and those who seek affiliation with income earning possibilities and opportunities. Direct selling companies must now own the brand.
New Focus. New Opportunity.
As the direct selling channel embraces concepts of simplicity and engages the use of digital platforms and digital tools in customer acquisition/ retention efforts, direct selling will become more of a preferred choice by those who explore income possibilities related to the gig economy.
This simply makes sense because the benefits of being rewarded for customer acquisition and retention and the efforts of other direct sellers that are personally influenced are unique to the channel. Unlike other choices now available via the gig economy when seeking new income possibilities, direct selling opportunities continue to remain unique in that a direct seller aggregates the benefits associated with acquisition and retention of both customers and others who affiliate. This attribute should be considered a powerful motivator! Rich DeVos, Co-Founder of Amway, once described direct selling opportunities with three words: “An Uncommon Freedom!”
In the past, direct sellers typically chose one direct selling company to partner with. Today, we find that 69 percent (U.G. Research October 2021) of gig economy participants work multiple gigs. Multiple gigs can be complementary of one another. Direct selling has always been viewed as a viable way to develop an income with freedom and flexibility. Perhaps, direct selling companies will benefit from understanding that the new direct seller may be making other choices for income possibilities and the choice of a direct selling company may not be the only choice. However, direct selling should be perceived as a preferred choice if not the ultimate choice or Ultimate Gig…simply because it is!
Instant Gratification Motivates Direct Sellers
Companies are using technology to reward gig workers by paying quicker for performance. This is a prime motivator for working a gig. Quick pay solves problems faster when financial health and cash flow are primary motivators.
The gig economy has revolutionized the idea of paying quicker for performance. This is the new reality of the gig economy. The phenomenon has ignited the concept of work on demand. When there is a demand for work, a gig company meets the demand in real time through engagement of independent contractors who make themselves available.
TODAY’S DIRECT SELLING companies must be competitive and appealing in look, feel and functionality with respect to digital platforms, expanding possibilities and eliminating physical, geographical and time zone constraints.
Technology is the connector. Almost three of four workers are found to live paycheck to paycheck when paychecks occur on a weekly, biweekly or monthly basis. Accelerated pay is a huge motivator that fuels the appeal and growth of the gig economy, and this feature is now being incorporated into most direct selling models.
The new opportunity for the direct seller is to target more of the general marketplace, appealing to those who wish to easily affiliate with brands, products and services they love.
New Perceptions Will Motivate
Positioning of the opportunity is critical to what motivates, attracts and leads to engagement. What motivated direct sellers in the past does not totally sync with what motivates prospects now or in the future.
Public perception of direct selling models will improve dramatically as it becomes inclusive of newer iterations of the existing models. Perception will improve as labels become less important. It’s imperative to remember: n The importance of simplicity in recognition, rewards and compensation methods. n The gig economy i s approximately 10 times the size of direct selling and growing in both participation and revenue at a very robust forecasted CAGR through 2027. n The gig economy focus is more on flexibility, freedom, fair rewards and simplicity. Direct selling is a subset of the gig economy and just one of many choices available. n The robust growth of ecommerce should become an asset for direct selling companies. n Digital tools that enable sharing the brand’s messaging can no longer be considered “nice to have.” They are essential.
Direct selling companies have not, historically, considered ecommerce to be competition. However, ignoring ecommerce is no longer an option. Today’s direct selling companies must be competitive and appealing in look, feel and functionality with respect to digital platforms, expanding possibilities and eliminating physical, geographical and time zone constraints. The utilization of direct sellers as intermediaries is a natural way to personalize the experience of engaging an ecommerce platform. As the public perceives us as being more than a direct seller/network marketer/social seller but more of a personalized provider of products, services, possibilities and opportunities, we will motivate more to seek our model as both a consumer and a micro entrepreneur.
As direct selling models of distribution embrace the current inflection point, the opportunities that lie ahead are as strong as ever. Direct selling is an uncommon opportunity…An Uncommon Freedom! DSN
JOHN FLEMING is the author of Ultimate Gig: Flexibility, Freedom & Rewards which provides an in-depth glimpse of the future of work and how the gig economy has fueled the growth and appeal of flexible work opportunities. John is principal of Ideas and Design Group, LLC and in both the DSA Hall of Fame and DSEF Circle of Honor. John is also a recipient of the DSN Bravo Lifetime Achievement Award. John has recently released LEVERAGE, a free eBook download.