The Gig Economy and the case for simplicity in Direct Selling

This post was first published on August 28th, 2019. Written by LK.

During the second it takes you to read this sentence, Amazon will collect about $4,722 in revenue[1]. The company’s total revenue for 2018 was $230 billion representing a 31% increase over 2017. Amazon’s success can be traced to a simple operating principle: Make it easy for customers to find and purchase items. In fact, Amazon sold 175 million items during Amazon prime day alone[2]. Many books have been written about simplicity over the years and today’s customers are rewarding companies who provide simple and affordable customer solutions. If simplicity is key, where does this leave the Direct Selling industry?

When most people hear the words Direct Selling, they think of elegant Avon ladies going door-to-door cheeringly proclaiming, “Ding Dong, Avon calling” or the fit Herbalife Distributors proudly wearing buttons that say, “Lose Weight Now Ask Me How”. These once efficient methods of attracting customers are waning. Customers today have instantaneous access to product details, pricing, product reviews through their mobile devices. Most online retailers also offer rewards points and free next-day shipping making online shopping highly compelling for customers. Where does this leave Direct Sellers? How can independent representatives continue to exist and thrive alongside behemoths such as Amazon, Walmart and eBay? The answer lies in providing personal, simple and transparent customer solutions.

Direct Selling was the original “Gig” where people could earn a supplemental income by selling products to friends and family. The typical methods included brochures, house parties and business opportunity meetings, order taking and delivery. All of these activities require significant time and effort. Traditional independent sellers are constantly looking for new customers and recruits to grow their business. Modern “Gig” opportunities are simpler and offer “you-do, you-get” income opportunities. Take Uber for instance; drivers are provided trips based on their location and are paid for picking up and dropping off customers. There is no need to sell, recruit or process payments; Simply show up, provide a service and get paid instantly. Today’s “Gig” opportunity seekers are looking for simple and flexible earning solutions and the Direct Selling must rethink their entire existence or become irrelevant.

To compete, Direct Sellers must simplify their products, training, recruiting and current compensation. The truth is that the current way of operating is obsolete and not attractive to younger generations seeking non-traditional income. The number of people willing to share great products within their social network is growing and these “Nano-Influencers” are great candidates for Direct Selling. They will not distribute brochures and may not have any inclination to drive for Lyft, but they will create a video showing the benefits of a product or service. They are even more inclined to do so if they can get paid for their efforts.

Simplification requires:

1. Real Products — Transparent product claims that satisfy customer needs.

2. Business Transparency — Explain income opportunity in 30 seconds.

3. Awareness — Independent Influencers rewarded for creating product awareness.

4. Online selling — Customers transact directly with the company.

5. Immediate income — Influencers are instantaneously rewarded for referrals.

6. Technology — Complete infrastructure to rewards influencers on-the-go.

Direct Sellers have been around for a century and truly invented the “Gig opportunity”. In order to survive, the industry must reinvent itself. It must become relevant again by offering younger generations an alternative to office work. Gig workers are looking for technology-driven opportunities that allow them to be responsible yet mobile and work on their time. They are looking for ways to generate part-time or full-time income though simple daily activities that feel good and help others feel good as well. It’s that simple!

To learn more about our work, contact our team or follow us on LinkedIn. For more insights, follow our writers and editors: LK, Chris MGH, and Gabriel Queiroz Silva.

[1] https://10under100.com/amazon-statistics-facts/

[2] https://www.vox.com/the-goods/2019/7/17/20698328/amazon-prime-day-2019-boycotts-protests-aftermath

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