Direct Selling, also referred to as Multilevel Marketing (MLM) or Network Marketing or Referral Marketing, is one of the oldest and most traditional selling forms worldwide. But the advancements in technology and internet have made it even more popular
The Direct Selling industry is one of the major revenue contributors to the Indian government and the country’s economic development.
The mantra, ‘Low Investment High Returns’ attracts many to collaborate with Network Marketing companies in their quest to attain financial freedom.
Network Marketing has all along involved door-to-door or person-to-person selling. Even Network Marketing companies found it difficult to update their salesforce about their revised product prices or new launches. Even training new salespeople was a long process.
However, advancements in technology, especially the advent of smartphones, have revolutionized how the Network Marketing world executes its tasks today.
The easy access and affordability of the Internet have further facilitated the eCommerce activities of the Multilevel marketing companies. This article discusses how technology and the Internet have made life easy and convenient for the Multilevel Marketing world.
Direct Selling Business and Its Working Process
Let us first know what Direct Selling is and how the working process of a Network Marketing business takes place.
Direct Selling is a type of retail marketing involving person-to-person or door-to-door sales and marketing. The business majorly includes three entities – the Direct Selling Company, the Sales Representative, and the Consumer.
Direct Selling companies hire salespeople who are not directly on their payrolls. The salespeople hired are popularly known as Sales Representatives or Distributors or Direct Sellers, or Network Marketers.
The Direct Sellers earn an attractive commission when they sell the products or services of the Direct Selling company. Then they are also encouraged and incentivized to recruit more salespeople. These salespeople are placed in the company’s sales network under the Direct Seller who recruits them.
The earnings of Direct Sellers continue further. They earn a percentage of the commissions on the sales of their downline and downline’s downline. This income earned with any efforts by them is called residual income.
Reasons for Direct Selling Gaining Popularity in India
The onset of the Covid-19 pandemic was responsible for inducing an economic and unemployment crisis worldwide. But it also catapulted the Multilevel Marketing industry to the fore!
The Network Marketing provided self-employment to millions who lost their livelihoods during the pandemic. Many who were compelled to take a salary cut collaborated with Direct Selling companies to earn a parallel income. So, that explains the main reason behind the increasing popularity of the Direct Selling business. But as the pandemic recedes, other factors listed below are driving the popularity of Multilevel Marketing.
- A Good Source of Income – Many employed are taking to Network Marketing to earn a second income. Others who are not employed are opting for it to earn their livelihood and become financially independent. Extra Savings: This platform enables members to earn fixed plus variable incomes by which they can save more money for themselves. It helps in improving their financial conditions.
- The Feeling of Owning a Business – Most people find it prestigious and like to boast about owning a business! However, the ‘Low Investment Low Risk’ associated with a Multilevel Marketing company makes it more attractive.
- The Opportunity to Connect Socially – Direct Selling is all about focusing on growing your network of people. It allows connecting with society. Direct Selling is a platform that enables you to meet new people and make friends with them. Interacting with more people not only helps you to earn but socialize too. It makes you feel a part of society and never lonely in a world that believes in connecting virtually more than in person!
Technology has Transformed the Network Marketing World
Technology has revolutionized the way companies conduct their businesses today. Technology has transformed the way business is done in the Direct Selling industry too. Technology is making it all possible – from managing the supply to direct selling.
Technology has enabled Small and Medium Businesses (SMBs) and Direct Selling companies in levelling the playing field with larger organizations. Today, these businesses use an array of technologies, including hi-tech computer servers and smart mobile devices. It has helped them to develop a competitive edge in the economic marketplace.
Technological advances are enabling Direct Sellers to work more efficiently. It allows them to connect with their prospects or customers remotely using video-conferencing tools. It also allows Direct Sellers to stay in touch with their clients or update them using several Direct Messaging tools.
Internet – Enabling Multilevel Marketing Companies to Facilitate eCommerce
Let us first be clear about what eCommerce means. In simple terms, eCommerce is the buying and selling of goods or services on the Internet.
Businesses can conduct purchase and sale transactions with their customers or suppliers directly! It has helped them to eliminate inefficient intermediaries in between and save a lot of time!
The advent of the Internet of Things will benefit the eCommerce industry. It will help them to streamline their operations. It will make it easier to track and manage inventory and track products ordered by customers in real-time.
The Technology-Internet Combination: A Boon for the Direct Selling Industry
When the economic and unemployment crisis set in due to the Covid-19 pandemic, most companies across industries struggled to sustain their operations and revenues. But the Direct Selling industry stood out! Ever wondered how and why?
The Direct Selling industry grabbed the opportunity and leveraged the benefits of technology and affordability of the Internet to the fullest. The industry increased its eCommerce activities.
Consumers were confined to their homes due to the government’s several lockdowns and social distancing measures. It became inconvenient for them to buy their daily needs and essentials. But the online ways adopted by the Network Marketing companies made it easier for them.
Tech-savvy consumers were able to compare prices, view product reviews and place their orders online. Further, they were delighted to get their orders delivered to their doorstep. It was a great relief and had to become the buying platform for many consumers.
Network Marketing was thus able to sustain its operations and grow its sales and revenues. The advancement in technology in hi-tech computer servers, smartphones and other electronic equipment in conjunction with the Internet has certainly enhanced the consumer-business connection.
Digital and Social Media Marketing: Boosting Sales of Direct Selling Companies
Social media is one of the effective digital marketing channels used today by many Direct Selling businesses. It is enabling them to increase their reach, visibility, and brand awareness. Further, a professional approach to social media marketing helps you to reach your target audience. It helps you in your lead generation process and then converts them into customers.
Social media helps you improve your online presence; it helps boost the SEO for your website. Social media can help to facilitate your Direct Selling in different ways listed below.
- It helps you to build excitement about new launches or offers.
- It helps you to share your content and get consumer feedback and reviews.
- It acts as a testing platform to know how your audience responds and to what.
Apart from social media marketing, other strategies that you can implement as part of your digital marketing includes e-mail marketing, SMS marketing, telemarketing, blogging, landing pages, newsletter subscriptions, and SEO strategies.
Post-Pandemic Scenario: Direct Selling Industry to Help Revive Economy
According to the World Federation of Direct Selling Associations (WFDSA), more than a hundred million people worldwide are involved in the Direct Selling industry. And in India, more than five million are associated with the industry, and more than 50 per cent of them are women! That’s very much in line with the government’s Women Empowerment initiative.
The number of Direct Sellers in Indian in 2016-17 was around five million; It rose to around six million in 2018-19. It works out to around eight hundred people who joined the industry during the three years. The MLM business model is a major contributor to the government in terms of revenue and economic development. The industry is estimated to grow to INR 645 billion by 2025.
The Network Marketing industry is very much in line with several initiatives taken by the government to boost the overall industry. Listed below are ways how the Direct Selling companies are helping in reviving the Indian economy. The industry is supporting the government’s vision of achieving a self-reliant India.
- In Line with Government’s ‘Make in India’ Initiative – Direct Selling companies either manufacture their goods locally or ties up with a local manufacturing goods company to sell them.
- In Line with Government’s ‘Skill India’ Initiative – When you join a Direct Selling company, it imparts skills in sales and management. It develops your personality and hones up your communication skills. It is always going to help you in going ahead in your general life routine.
- In Line with Government’s ‘Women Empowerment’ Initiative – Direct Selling shows people a way to be self-employed. It shows the way to attain financial freedom and become entrepreneurs. It is to be noted that more than half the workforce employed by the Network Marketing industry are women.
- In Line with Government’s ‘Vocal for Local’ Initiative – Many Direct Selling companies collaborate with Small and Medium Enterprises (SMEs) for manufacturing their products. And many also support the SMEs with technology & manufacturing know-how or provide them with equipment & machinery to manufacture quality products. All this goes a long way in promoting India as a manufacturing destination.
The Direct Selling industry grew by leaps and bounds in the bygone year and is currently growing at a good pace. The present market size of the Indian Direct Selling industry is INR 16000 crores. It is expected to grow to INR 64500 crores by 2025. The Direct Selling industry is expected to be the backbone for the revival of the Indian economy.
Conclusion: Leveraging technology and online ways of marketing can boost your Direct Selling business.
Whether you want to meet your prospect or customer, or want to devise a lead generation strategy, or conduct a training session, or your customer wants to place an order. The combination of technology and the Internet makes it all possible.
Gone are the days when you had to travel to meet your prospect or customer to make a sale or presentation. Gone are the days when you took customer orders manually. Times have changed, and with it has come in advanced technology. Direct Selling companies are today leveraging eCommerce. Direct Sellers are using smartphones and online video-conferencing tools to connect, present, or conduct training sessions. Certainly, advancements in technology and easy access to the Internet have made life easy for direct selling companies, direct sellers, and consumers alike. It is high time you maximize the benefits to boost your Direct Selling business.
