12 trends to explore in the direct selling industry

16 trends to explore in the direct selling industry

Nikhil Ravindran
Updated on - 02 Nov, 2020

It’s 2020 and the trends in the direct selling industry keep on changing. Not everyone is aware of these trends that can influence the business to a better extent. Here is a list of top 16 trends to explore in the direct selling industry.

1. Shopping – Brick & mortar or virtual?

Shopping is more a necessity and the two-most preferred scenarios are normal In-store shopping and online shopping. It’s a 50-50 deal, where some prefer to buy from e-commerce stores, the other half love to feel the touch and then, buy!

Shopping – Brick & mortar or virtual

Trends change and people have many opinions and concerns in the case of shopping. Direct selling trends spread equally across the two extends. Direct selling is aimed at the market for traditional shoppers as well as for online shopping.

The direct selling industry is agile and adequate to contain any product selling methods. Affiliate plugin programs and digital marketing boost shopping treatment; this trend can be seen in the future with advanced marketing methodologies.

2. Online Stores breaking new grounds

No doubt, the global crisis prevailing now has increased the bias towards online shopping. Not that traditional brick and mortar mode of selling is not working, people have become more comfortable with the online mode. The advancements in the technology have also sped up sales through online platforms. Given that the online mode provides an extra advantage to make decisions without having a sales representative in front of you boasting about the product, it improves your purchase decisions. Also, comparison between a different range of products available in the market is way easier when done online. All the advantages have made people think twice before stepping out of their home to have a conventional purchase from a physical Store.

Online stores for direct selling
3. Demographic, Pyschographic and Targeted Sales

Just because your product isn't selling well in the market, by anyway means there is no demand for the product? Definitely NO. It could be that your product is not reaching the right people who need it. To make that happen, sellers nowadays are using demographic and psychographic insights.

Conventionally, people have been using demographics to run targeted ad campaigns. While demographics refer to age, gender, occupation etc, psychographics are more on traits like lifestyle, attitude, interests and so on. When it's about taking purchase decisions, it has been found that psychographics have a comparatively larger impact. In this way, having an idea about what characteristics your prospects possess in order to identify more probable customers among them, is definitely going to bring in more sales.

Demographics for targeted sales in direct selling
4. Fulfillment strategies - Out with the old, in with the new

There was a time when the purchase pattern of the customers was in sync with the price variations alone. People were ready to wait for a product if it would enable them to purchase at a lower price. But now things have changed. While there is no doubt that free shipping has a significant impact on customers making a purchase, the ability to offer such a discount profitably is always questioned. As the competition among companies and third party logistics companies tighten, innovative fulfillment strategies are being implemented by them with great profitability in order to maintain an upper-hand in the market. Some of them include:-

  • Expansion of fulfillment centers to more local areas so that shipments can be delivered at a cheaper and faster rate.
  • Same day delivery is made possible by the enhancement of local distributor networks to areas with greater demand.
  • Right automation process to co-ordinate e-commerce platforms and delivery networks, which eliminates the need for human interventions and calculations to a greater extent.
Fullfillment strategy for successful direct selling
5. Socializing through internet – Proper communication channel

Socializing is the best way to connect with people around the world and it boosts the brand reach in low-budget. It’s the awareness that keeps things going and online customer engagements are add-on advantages.

Socializing through internet - Proper communication channel

New product launches, brand awareness, lead generation, advertising media, loyalty programs and reward systems, etc. are performed using the trending social media channels. Proper and regular communication can be built over these platforms easily.

6. Virtual Reality - The new 'Real'

What if you could provide your customers with 3D experience of your product at the comfort of their homes? Well, with the help of computer-generated imagery, things get pretty easier. It can open up various possibilities, to visualise and present your product before the customers that are impossible otherwise. It helps the customers to make their first decision in a better way. This method is now being widely used by various sellers aiming to provide a better experience of their products to their customers. Especially during this time, where people can't visit offline stores as frequently as they did before, virtual reality is helping customers to make better decisions.

3D experience with virtual reality in direct sales
7. The compensation plan – New versions

Time has moved on and so is the marketing world. A new trend among the direct selling industry is having their own marketing plan from that of basic plans like binary plan, Unilevel compensation plan etc. Having a unique plan that can maximize the utility of resources and make a high volume of sales is perfect.

The compensation plan – New versions

Right marketing techniques bring the right source of customers and compensation structure (bonuses, commissions, etc.) need to be more appealing and idealistic.

8. Income source – Primary/secondary trends

Direct selling is trending as one of the major sources of income in the world economy and as per reports, more than 18 million people are engaged in this industry. At present, this business model is influencing enough to act as the primary source of income for many distributors.

Income source – Primary/secondary trends

Source: dsa.org

People talk and engage with more people. Different age groups have their own interests, and they choose it as a major source of income or as a partial one.

The retirement period is also preferred to engage oneself in this sort of business. This trend has been seen in the past itself but at present, even the young generation (Generation Z) is trying to earn alongside the studies. Yes, the trend is upgrading to the next level.

9. Customer perspective & distributor selling methods

Customers must be the primary choice of every business and their perspective matters. Business entrepreneurs take care of customer preference and act accordingly. Different methodologies are used to analyze the customers and distributors product taste and convincing styles. Then new methods are adopted with specific plans that match the customer perspective.

Customer perspective & distributor selling methods

A powerful connection is established among these two groups and formulates a new trend. This course of run is currently flowing in the direct selling industry and expects to improve the customer conversion and thereby achieve product sales.

10. Entrepreneurship rises up

Like the self-employment mode, entrepreneur numbers are growing up in the industry. Generation X and Millennials’ often have the courage to become an entrepreneur and face any challenge to introduce a brand in the industry. As the distributors or consultants gains more and more experience, entrepreneurship skills rise up.

Distributor / Entrepreneur

Direct selling is one of the best platforms to lay a foundation and to set up their own product sales by considering the market situations and bearing all the risks involved in it. These set of skills are best for the marketplace and engage with more customers around the world.

11. Technology upgrades

Trends in the direct marketing industry change over time and so is technology. New upgrades and updates gain a great advantage over the industry. From a basic version to advanced AI, the technology sharpens the business tone smoothly.

Technology upgrades

Technology isn’t a pissant spectrum, Direct selling software with advanced features is well enough to automate complete business and manage things easily. Chatbots, voice bots are presently available among these packages for the best user experience. The growth is perfect and Direct selling business opportunities are before everyone now.

12. Investor attraction

The present trend looks as if investors are happy to make a potential investment in the network marketing business and raise the fund. A high-return probability of investment keeps them attracted to this business.

Investor attraction

At present experienced, seasoned or even beginner-level entrepreneurs are happy to invest. ICO / token sales, crowdfunding events are a part of such an opportunity. A smart game plan can make an investor earn a great fortune.

13. The self-employed status

From distributor status to self-employed status, the growth seems to be taking a trending path! As per the sources, about 7.6 million people in the USA are working in the industry as part-time builders and 1.4 million as full-time (in 2017).

The self-employed status

As various channels open up, the self-employed status drives to be a progressive model. “Direct sales” is trending all over the world and the ‘being employed’ tag is becoming a personalized option in everyone’s career.

14. “Say no to traditional direct selling methods” change

The traditional direct selling methods are slowly getting offshore nowadays. With enhanced technology and methodologies, a new path has opened up in the industry.

Organizations are inheriting new methods for marketing, and this trend increased the sales volume at its best.

Say no to traditional direct selling methods

Direct selling methods have improved in time and even the distributors say no to traditional methods. From door-to-door delivery to party plan deliverables, the trend has given the world a new phase!

Party plan software tools to bring more benefits to your home party MLM business.
15. Data Analytics

Data plays an important role in direct selling business and when the “analytics” element combines, a perfect business flow can be generated. With data analytics, every part of the business can be analyzed and understand what's missing and how to improve and other sorts of things. Big Data is a promising aspect that gives an exact insight about the business.

Data Analytics

Future looks splendid when the data combines with data science and AI. These data give you a predictive model by providing a solution for the question - what to do in the future? Collecting the data and making it useful for future growth tends to be perfect for the direct selling industry.

16. Mobile world – The tiny teeny trend!

A much larger world in a tiny-teeny gadget, ever expect this to happen? The world has shrunk to such smaller devices and a mobile phone has the hardware and other support to replace laptops or similar larger framed gadgets. These devices can act as a medium of marketing for communication, social media channels, internet access, software tracking, getting connected to the world, and much more.

Mobile world – The tiny teeny trend!

In the USA, about 6 % of growth in mobile visitors have been witnessed compared to the 2016-2017 time period. It’s the best platform to enhance the opportunities and widen up the business connections.

Update yourself with more trends and try to immerse yourself in the direct selling world with such trends. Following these trends will bring the best in your business, so it’s best to enhance business with it.

What to read next:
Top 500 Direct Sales Companies in 2020
Top 5 Successful Direct Selling Personalities in 2018
Top 100 Earners in Network Marketing in 2020

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