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Happy New Year! After a healthy winter break (went skiing – luckily no broken bones) I’m greeting the new year with a dose of optimism I hope will infect others so the economy can find the jump start it needs. Everyone is evaluating their financial situation and looking for ways to make things a little brighter. Over the break I thought about some of the reasons why direct selling is generally fairly resilient during any economic situation and thought the following five messages summed it up pretty well.

1. Direct selling represents the ultimate microenterprise. Any individual who is willing to work hard has the potential to be a successful direct seller. Some choose to do that on a small scale – others take it much further. The flexibility, creativity and potential for growth distinguish direct selling from more traditional businesses. Low-start-up costs and ease of setting up shop add to the appeal.
2. Direct selling is a case study in personal empowerment. From getting over the fear of standing in front of an audience to being the first person in a family to own a small business, direct selling provides millions of women and men around the world with a path to success. Reaching one’s financial goals is often secondary to the importance of the life skills gained through direct selling.
3. Every direct seller is the equivalent of a local small business. Even direct sellers working with companies with billions in annual revenue are making a local impact through their individual efforts. For their customers, the company itself isn’t nearly as important as the fact that they are supporting someone in their community.
4. There’s never been a better time to stay home and enjoy the company of family and friends. Who needs a night out on the town when you can have just as much fun at home – without the crowds. Adding shopping to the mix just doubles the fun.
5. Consumers tend to look for things that will make them feel good during a recession. Many direct selling products can do just that. From a lipstick to “look good” to nutritional supplements to “feel good,” people are looking for little extras that won’t make big dents in their pocket books. Eating at home more? Try some new kitchen accessories or food mixes. Foregoing the family vacation? Redo a room in your home instead. With the wide variety of products and services offered through direct selling, it’s easy to get creative with ways to spark consumer interest.

The economy will rebound – it always does. It may take time and there may be some bumps in the road, but in the meantime, focusing on stabilizing and improving your personal financial situation is key. For some, that may mean pinching pennies, for others it may be looking for additional sources on income. Either way, the future for America is always bright.

As baseball great Yogi Berra once said, “It’s déjà vu all over again.”

This week I’ve seen several blog posts repeating the tired assertion that 99% of direct sellers lose money. One even referred to the myth as a “cold hard fact.”
As I’ve pointed out previously on this blog, more than half of direct sellers report that their net income from direct selling, after taxes and expenses, is positive. In addition, positive net income is reported by nearly half of new direct sellers – those representing their current company for less than a year.
I’m sure this post will encourage the same critics who spread the 99% myth to respond to this message with the same information, that quotes the same circle of people, referencing the same “research” again and again. You can go back and review all of those previous discussions on earlier posts on this blog if that information is of interest to you. I won’t repeat it all here.
Anyway, my purpose with this post is not to spend more time debunking the 99% myth with dueling facts and figures. We’ve done that already. More important are the stories of actual people, average Americans like those profiled in a few recent media stories I’ve linked to below, who personify the success direct selling can provide – whether success is $200 a month or much more. Take a look at these examples:

Direct selling has carved out substantial niche

Direct sales businesses boom as economy tightens

Direct sellers strike balance, maybe gold

There are a couple of key points from these stories worth mentioning.

Not everyone in direct selling earns a six figure income, but then, not everyone is looking to earn a six-figure income. Many of the people profiled are seeking a little extra income in their spare time and they’re obtaining it via direct selling. As I am proud to point out, the median income for a direct sellers is about $2,400. The average income is actually significantly higher, but statistically speaking, the $2,400 number is far more accurate – that’s based on the millions of people just looking for (and achieving) supplemental income.

One of the other theories posited by direct selling critics is that if you’re not already in the business, it’s too late and the market is saturated. Not true. As the stories above demonstrate, successful direct sellers are entering the business all the time.

As I’ve said numerous times on this blog – direct selling is not for everyone, and just as with anything in life, there are people who will try it and not find the level of success they were hoping for. Anyone considering direct selling should clearly define their personal goals and thoroughly research both the industry and the specific company they are considering. Hopefully this Web site will assist in those efforts.

So, keep in mind that despite the stories in the articles above, success in direct selling is not guaranteed. But contrary to what our critics would have you believe, neither is failure.