Key to Success

Former President Bill Clinton hailed its opportunity: “Your industry promotes core values all around the globe and gives people the chance to make the most of their lives.”

British Prime Minister Tony Blair declared it “A tremen- dous contribution to the ove- rall prosperity of the economy."

And billionaire investor Warren Buffet labeled it simply “The best investment I ever made.”

None of which should be news to the 13 million Americans and 53 million people worldwide, who are already part or the business of the 21^st century. It’s called direct selling, or network marketing. Others term it multilevel marketing or referral marketing. Whatever you call it, right now in the world of direct selling, business is booming. Direct selling has grown more than 91 percent in the last 10 years and currently enjoys annual sales of $30 billion in the United States and $100 billion worldwide.

Each and every week, about 175,000 people in the United States, plus more than 300,000 around the globe, dive headfirst into the industry’s exciting potential. Yet, despite its explosive growth, less than 1 percent of the world’s population is currently involved in direct selling, meaning the industry has only tapped a tiny fraction of its limitless possibilities.

How is it possible that an industry is thriving when we’re supposedly stuck in the middle of an economic recession? Will, that is simply a matter of perspective.

The glass-is-half-full camp believes this is a time of massive economic change. And discerning entrepreneurs who recognize these shifting trends and stake their claim in these mew and emerging industries will be the ones to gain enormously. As Fortune magazine recently stated, “Forget the paycheck; your W-2 days are over. It’s a 1099 world now.”

And one of the fastest-growing industries is direct selling. Distinguished economist and best-selling author Paul Zane Pilzer predicts 10 million new millionaires will be created in the United States between 2006 and 2016. What’s more, Pilzer specifically states that many of these new millionaires will be from the direct selling industry.

Several business-savvy individuals and large, respected companies have taken notice.

Sir Richard Branson, founder of Virgin Records and Virgin Atlantic Airways and one of the richest men in the world, owns Virgin Cosmetics Company, one of the leading cosmetics firms in the United Kingdom and---you guessed it---a direct selling company. Companies such as Lillian Vernon, Time Warner and Citigroup, among many others, have launched direct selling companies.

In addition, Robert Kiyosaki, best-selling author of the Rich Dad series, financial planning expert David Bach, whose appearances on The Oprah Winfrey Show have changed the financial fortunes of millions, and Stephen Covey, author of the legendary "7 Habits of Highly Effective People", each have noted the enormous potential of direct selling.

If these respected business owners, companies and authors have taken a closer look at direct selling, why haven’t you? For many, direct selling remains an enigma, and despite its resurgence, “It’s a pyramid scheme”; "Only a select few actually make any money"; “You end up with a bunch of products you can’t sell.” Such antiquated view and general misunderstanding of the business actually works often rest at the core of the industry’s relatively low profile. In truth, direct selling is a decades-old business model that is really quite simple to master.

The Mouth That Roared

Direct-selling is based on a simple concept that advertising executives and Hollywood producers have used for decades: nothing sells a product or service better than word of mouth. How many times have you seen a movie, liked it, and then told a friend to go see it? Now imagine if the studio that made the film sent you a check for your recommendation --- sounds pretty good, huh? Well, that’s essentially the concept behind direct selling.

Instead of employing a separate sales force, direct selling companies compensate the people who use, love and enthusiastically recommend their product or service.

Today’s direct selling distributors---also called representatives, associates, or Independent Business Owners---tell customers, typically people they know, about products and services that can improve the quality of their lives during the course of everyday, normal conversations. “How did you lose weight?” “What lipstick are you wearing?” These person-to-person conversations might take place at home, at work, or at a coffee shop. And you don’t have to be an experienced sales-person to make money if what you’re selling is a product you use and believe in.

In this age of information overkill, we quite often tune out the barrage of media messages that overwhelm us on a daily basis. But we still and always will trust our friends and families and their word-of-mouth recommendations---and that’s the power of direct selling. Seth Godin, best-selling author of Permission Marketing, says when it comes to selling, “What works is delivering personal, relevant messages to people who care about something remarkable. Direct sellers are in the best position to do this.”

Home Sweet Home

According to a U.S. Small Business Administration report delivered to President Bush in 2004, small business now account for nearly one-half of the country’s total output and employ about half the private-sector work force. More that one out of every eight U.S. households today is involved in a home-based business.

People love the benefits of working for themselves and enjoy the freedom they gain from designing their own prosperity, No more long commutes; no more bosses controlling their incomes; no more office politics. Best of all, you don’t have to sacrifice time with your family in order to provide for them. And thanks to the Internet, direct sellers can now expand their business to Chicago, San Francisco, Hong Kong or London and still make their child’s soccer game.

The ease of entry makes direct selling a practical, accessible method for millions to earn additional part-time income without having to quit their job. The typical direct selling company provides all the tools, systems and training needed to be up and profitable immediately at a nominal entry fee.

This was the aspect of direct selling that caught the eye of David Bach, financial planning expert and author of The New York Times best-seller, The Automatic Millionaire. “The beauty of direct selling is that it’s all done for you. There isn’t any real start-up time. You don’t have to create a business plan. You don’t have to create a product. The only thing you need to do is find a reputable company, one that you trust, that offers a product or service you believe in and can get passionate about.”

While more than 80 percent of direct sellers do it for part-time supplemental income, there are hundreds and thousands of success stories who strike it rich. One financial expert who was stunned by the fortunes being made in direct selling is Robert Kiyosaki, financial educator and author of The New York Times best-seller, Rich Dad, Poor Dad. “Direct selling gives people the opportunity, with very low risk and very low financial commitment, to build their own income-generating asset and acquire great wealth.”

The Power of Residual Income

The fast-food cashier earning minimum wage and the highest-priced attorney keeping track of billable hours have something in common---they’re both trading time for money, and the day they stop working is the day they stop being paid. They’re trapped by a fundamental need to continue working. And to make more money, they have to work more hours. It’s an endless cycle that can, if you’re not careful (or proactive), cut right into your retirement time.

If working for a salary won’t buy you financial freedom, what will? There’s really only one answer: residual income.

Residual income is money that keeps coming in long after you complete the work that created it. This can include the monthly income from a rental house, dividends from stock investments and even oil, gas, book or song royalties. Regardless of the source, residual income is the name of the game, and the genius of the direct selling model is that it makes residual income a very real possibility for absolutely anyone, regardless of age, background, education or skills. Not everyone is going to own a valuable piece of real estate or write a best-selling book. But anyone can run their own direct selling business.

Anyone Can Do It!

As the ultimate equal opportunity solution, direct selling represents the purest form of equality through free enterprise. In fact, that’s one of the most striking features of the industry: it involves men and women from all walks of life; all ages; all racial, ethnic and socioeconomic groups.

In fact, the top earners in direct selling represent as diverse a group of successful case histories. According to the Direct Selling Association, the industry’s trade group, 24 percent of direct sellers have a high school diploma or less education; 35 percent are college graduates; and one in 12 has a postgraduate degree.

Success in direct selling also doesn’t require a specialized background or sales personality, and those who excel in direct selling are not always those with the most polished sales skills. Instead, Godin says, “What’s relevant is offering a special element that people can get nowhere else. Great sellers offer something of real value---not the price, but the way the transaction makes someone feel.”

Making a Difference

And that “special element,” in essence, is at the core of direct selling’s true appeal: people are hungry for a proven way to prosper through a lifestyle that contributes to the greater good of all.

The most successful direct sellers know that in their business, the only way to succeed is by helping others succeed. For many successful direct sellers, the sense of satisfaction that comes from helping others achieve their goals is one of the strongest reasons they are a part of this industry.

“Direct selling helps affirm people’s worth and potential, and can open up a whole new alternative income stream that can make a huge difference in their life. It is an entrepreneurial opportunity where people can use their talent and their passion towards a greater good,” best-selling author Stephen Covey says.

Former President Clinton echoed those sentiments when he met with a group of direct sellers. “You strengthen our country and our economy, not just by striving for your own success, but also by offering opportunity to others. You also are part of a global movement that promotes free enterprise and awards individual initiatives. In a very real way, [direct selling] promotes core values all around the globe.”

Direct selling’s status as the business world’s best-kept secret may soon be in jeopardy. But that’s what happens when business is booming. E-MAIL POTATO

Bad Ass Mule

The Secret of Success

Tevis Ride 2007