From left, Jeff Dahl (31 Gifts), Tami Merica (Nerium Intl), Roger Morgan (pawTree)

The direct selling business model is predicated on creating value with its customers to build distributor networks. How our business model creates value through relationships and impacts business performance was discussed with nearly 900 students at the University of North Texas (UNT) on February 22.

DSEF’s “Co-Creating Value in a Technology-Enabled Marketplace” campus event, which featured three leading company executive speakers, was an idea conceived by DSEF Fellow, Dr. Lou Pelton, Associate Professor of Marketing and Logistics at UNT. With the rise of web-based, mobile and social technologies, customer expectations continue to rise. But faced with a myriad of choices, customers are turning to trusted sources – family members, co-workers and friends – when making decisions on a product or service purchase. “Direct selling is the 21^st-century’s channel for optimizing value delivery in customer relationships,” says Lou.

In traditional retail, when wholesale manufacturers sell through retail distributors, they have very little control in how the product is sold or whether the customer leaves the store or website happy and satisfied. In direct selling, companies can visualize the customer journey and provide their independent salespeople with the training, tools and support needed to create it. “How do you create value with your customers? Not by putting products on a shelf,” says Roger Morgan, Founder and CEO of pawTree, a pet nutrition company. “Our products are best tried and trusted through relationships.”

Relationships are the heart and soul of every direct selling company. A company’s customers often sign-on to be salespeople, who in turn, share the value of the product with family and friends and motivate others to do the same. “Whether you work as a direct seller or start a company of your own, consider how you can add value,” says Tami Merica, Vice President of Sales at Nerium International, a premium skincare company. “Recognize people for their work. Create your own personal brand. Be a positive influence in someone’s life.”

Having a positive impact in people’s lives extends well beyond business, for many direct selling companies. “Five percent of our company’s revenue is given to charitable organizations every year, but not many Wall Street companies give at this level,” says Jeff Dahl, President of Thirty-One Gifts. Direct selling companies are uniquely positioned to make a difference in the lives of their customers, their independent salespeople and in their communities.

The advancement of digital technologies, mobile devices, and social media has led to significant changes in the way consumers shop. “Once considered a newest trend, omni-channel retailing is now the standard, but direct selling is rarely discussed as a channel option in college classes,” says DSEF Fellow, Dr. Jay Ryu, Associate Professor of Interior Design and Fashion Merchandising at Texas Christian University (TCU). “What’s great about hosting direct selling executives in the classroom is they share their sales and marketing strategies with our students and broaden their awareness.”

DSEF’s “Channel Strategies for Digital Consumers” campus event at TCU featured executives from four direct selling companies – Essential Bodywear, Initial Outfitters, Jamberry and Youngevity. Speakers discussed integration of various online strategies to support the direct selling channel, including use of online parties, websites, mobile apps and social media with more than 320 students and faculty in 13 classes. The event concluded with a real-time interview of our speakers on Facebook Live.

“Direct selling is about empowering individuals to be your distribution channel,” says Brian Posalski, Director of Digital Marketing for Youngevity, “and to build brand awareness across as many consumer touch points as possible.” Companies provide an online platform and develop marketing campaigns that distributors use in their businesses. Integrating marketing communications provides a seamless branded experience, regardless of channel or device. It benefits a company’s salesforce and customers, but it can be challenging as well. “As a company, we have to keep up with the changing channels,” says Alicia Storbeck, President and Founder of Initial Outfitters. “Facebook marketing, Instagram marketing, Snapchat marketing – all are critical for a viable company.”

A corporate marketing department standing ready to support their independent salespeople with websites, social media and promotional campaigns is only one advantage of the direct selling experience. Low start-up costs and flexible work hours are other hallmarks. Research shows that how successful an independent salesperson becomes is strongly associated with the number of hours worked, (Join Stay Leave study). “Direct selling is really customizable,” says Elizabeth Thibaudeau, CEO of Jamberry, “you can work as little or as much as you want.”

Finally, the skills gained through the direct selling experience are often transferrable to other jobs. With entrepreneurship on the rise and corporate jobs declining, college graduates need to be competitive in the employment space. They need people skills to be successful. “In my experience, relationship-building is often what’s missing in most college programs,” says Carrie Charlick, CEO and Founder of Essential Bodywear. “Direct selling companies focus on personal training and development of their independent salesforce. We fill an important gap.”