According to an article at Reuters.com last year’s big surge in the number of new direct sales consultants did not translate to more sales. Hopefully the 2009 figures, which aren’t yet available, will show better results, but direct sales revenues have been dropping over the past couple of years according to DSA reports. In 2006 direct sales were $32.18 billion; in 2007 the figure was $30.8 billion, and sales dropped again last yer to $29.6 billion.
The full article, “Avon calling: More workers try direct sales” can be found at
http://www.reuters.com/article/idUSTRE5BF55A20091216
Does that mean people shouldn’t start a direct sales business or should drop the one they already have? I don’t think so. What I think it means is that direct sellers should adjust their marketing and their approach. Market what your customers are want to buy and focus on providing extra customer service and amenities. When you can’t compete on price, compete on a more personal level.
People would still rather buy from someone they know and trust. When you go the extra mile to provide personal attention they can’t get elsewhere you often gain a customer for life.
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December 20th, 2009 at 9:37 PM
Very interesting. I am wondering how much of it is that the customers are spending less, and how much of it is that the existing consultants are selling less. I know on my team many occasional sellers have had to get jobs outside of the home and their business has taken a backseat, so they are selling less. But those who are willing and able to work consistently are still doing great, so that tells me people are still buying. Maybe it’s just being distributed differently now. I do know that those who continue building their contacts and providing customer service during the ups and downs will be in a great position when the ups stick around! Thanks for sharing!
Karen Clark
December 22nd, 2009 at 8:43 AM
Hi Karen. Thanks for stopping by and commenting. You make a great point with “…those who continue building their contacts and providing customer service during the ups and downs…” When sales are down it’s natural to be discouraged and it’s easier to slack off or give up. Success comes from sticking to it!