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Inspiring Direct Selling Microentrepreneurs: The Passion To Persist

By Dr. Charla F. Brown, Dr. Victoria L. Crittenden, Dr. Joseph F. Hair, Dr. Greg W. Marshall

According to Peterson and Crittenden (2024), relatively little is known about microentrepreneurs, a subset of entrepreneurs who employ a microenterprise business model. While not easily defined given the socioeconomic heterogeneity of those engaged in microentrepreneurial endeavors (Bogenhold & Klinglmair, 2015), Barratt, Goods, and Veen (2020) expounded on this labor market trend of a network of microentrepreneurs who have shifted from dependent employees to their own boss. Zhang, Bufquin, and Lu (2019) attributed nonhierarchical relationships with a company via a platform (e.g., Uber, Airbnb, Taskrabbit) and sales of another company’s products (e.g., Amway, Mary Kay, CUTCO Cutlery) as examples of the trend toward microentrepreneurship.

The microentrepreneurial business model, however, is not a new or recent phenomenon. The peddler model of distribution that set the stage for the large independent workforce in direct selling is an early example of a pre-industrialization microentrepreneurial model (Luce & Crittenden, 2021), with Grinder, Pascal, and Schwartz (2010) noting the peddler model as one of the earliest examples of entrepreneurial marketing. Unlike small business owners, such microentrepreneurs can achieve financial and social affordances without the associated demands of becoming a small business owner. According to Torregrossa (2016), the key characteristics of microentrepreneurs are:

  • They plan to keep their businesses at a manageable size, without the intention to hire employees and/or grow into a larger company.
  • They can begin engaging in trade/exchange immediately without the need for infrastructures, funding, and/or a business plan.
  • They often learn business skills as they go.
  • They measure success in their own ways by balancing income generation with business autonomy, flexibility, long-term self-reliance, and personal well-being.

The characteristics of microentrepreneurs are exhibited in direct selling since the microentrepreneurs are backed by established brands that provide support in building the business and ongoing opportunities for development. Essentially, engaging in direct selling provides the microentrepreneur with a business-in-a-box (Crittenden & Bliton, 2019). Unfortunately, little research has been conducted that examines microentrepreneurs (Peterson & Crittenden, 2024), with traditional human and organizational research focusing attention on the more identifiable employer-employee relationship (Keith, Harms, & Tay, 2019; Meijerink & Keegan, 2019). As such, while the literature suggests that microentrepreneurs need an environment in which identities are nurtured (Barley & Kunda, 2006), there is little effort devoted to exploring human and organizational relationships that exist in the context of a labor-intensive, independent salesforce as found in the context of direct selling. Rather, Barley and Kunda (2006) noted what exists is an “excess of ideology and a dearth of data” (p. 46).

In the direct selling model of microentrepreneurship, training, socialization, and support represent resources provided by the direct selling company to offer a low-risk pathway for an individual to build his or her business. To this end, the current research was guided by the following two research questions:

  1. What resources encourage a direct selling microentrepreneur to persist?
  2. What resources can boost a direct selling microentrepreneur’s passion?

More precisely, guided by the management literature, the research examines how resources (i.e., sales training, socialization, and organizational support) and self-efficacy influence the direct selling microentrepreneur’s passion and persistence. The next section offers the theoretical framework upon which the research project was framed. In that theoretical exposition, hypotheses are derived. The research methods employed to examine the hypothesized relationships are then articulated, followed by the data analysis and a discussion of the analytical results. Implications for those engaged in the direct selling marketplace are then offered.

Theoretical Foundation

This research is grounded in two theories that provide the foundation for considerable work in the field of organizational sciences. Central to the conservation of resources theory is the resources tenet that “individuals strive to obtain, retain, foster, and protect those things they centrally value” (Hobfoll, Halbesleben, Neveu, & Westman, 2018, p. 104). Social cognitive theory provides an understanding for predicting behavior based on learning and change (Bandura, 1986). Self-efficacy is the focal construct of Social Cognitive Theory (SCT) and is defined as “belief in one’s capabilities to organize and to execute the courses of action required to produce given attainments” (Bandura, 1997, p. 2).

Conservation of Resources Theory (COR)

The conservation of resources theory (COR) is substantively a “motivational theory that explains much of human behavior based on the evolutionary need to acquire and conserve resources for survival, which is central to human behavioral genetics” (Hobfoll et al., 2018, p. 104). COR theory is one of the most researched theories in the fields of organizational sciences, being applied in studies ranging from general stress (Hobfoll, 1988) to work-specific stress (Bono, Glomb, Shen, Kim, & Koch, 2013), and burnout (Halbesleben, 2006). In COR, resources are defined as “those objects, personal characteristics, conditions, or energies that are valued by the individual or that serve as a means for attainment of these objects, personal characteristics, conditions, or energies” (Hobfoll, 1989, p. 516).

Hobfoll (1989) categorized resources into the following four resource groupings:

  • Object resources – value based on a condition of their physical nature or the value assigned to them by the individual based on rarity and/or expense,
  • Conditions – relative to the degree they are valued/sought after (e.g., tenure, marriage),
  • Personal characteristics – based on the level of stress resistance they offer, and
  • Energies – more finite (e.g., time, money, and knowledge).

At the heart of COR theory is that people are motivated to protect their resources. COR’s principle of resource investment holds that “people must invest resources in order to protect against resource loss, recover from losses, and gain resources” (Hobfoll et al., 2018, p. 105). In their work, Hobfoll et al. (2018, p. 104) maintained that people “employ key resources not only to respond to stress, but also to build a reservoir of sustaining resources for times of future need.” According to Bono et al. (2013), positive events can accumulate over time to help build resiliency in case of resource loss. From a direct selling perspective, in conjunction with COR, the variables of salesforce training, salesforce socialization, and organizational support are resources that lay the groundwork for the independent salesperson to have a stronger sense of self-worth.

Research Implications

Prioritize Sales Training and Company Connectivity
with Microentrepreneurs

  • A noted strength of the direct selling industry is its established use of technology to foster relationships, enhance product knowledge, and lend company-provided content to support marketing efforts.
  • Direct selling companies can continue to monitor which resources best fit the needs of the sales organization.

Prioritize Intentional Passion-Building

  • Task-specific self-efficacy can be associated as a person’s belief in his or her abilities rather than an individual’s self-esteem or intentions. As such, it can be a predictor of accomplishment depending on whether a person believes he or she can complete the task, and it can be a critical component to summoning the motivation to continue.
  • In this study of direct sellers, microentrepreneurial passion is a tool through which self-efficacy increases the likelihood a direct seller will persist. Operating as a mediator, passion served as a link between task-specific self-efficacy and microentrepreneurial persistence.
  • Direct selling companies should continue to prioritize intentional passion-building within their salesforce.

Passion and Persistence Spur Sales Success,
Build Reservoirs of Resources for Challenging Times

  • The results of this research suggest that microentrepreneurial passion and persistence make a powerful combination that can spur sales success. The results provide support for the mediating role of passion through task-specific self-efficacy to microentrepreneurial persistence.
  • As direct selling microentrepreneurs build reservoirs of sustaining resources for times of future need, they equip themselves to handle future challenges in the marketplace.

Social Cognitive Theory (SCT)

From the SCT perspective, Bandura (1982) proposed four primary ways to increase self-efficacy:

  • Enactive mastery (gaining expertise through task-specific or work-related experience),
  • Vicarious modeling (learning through observation or comparison of others),
  • Verbal persuasion (gaining encouragement from verbal affirmation and/or perceived support), and
  • Emotional arousal (using psychological and emotional states to boost confidence).
  • Enactive mastery captures the experience of task performance. Bandura (1982) declared it the most influential and authentic source of efficacy information. Experience can make a lasting impression. Success can beget success; just as failure can beget failure. Successful experiences can heighten perceived self-efficacy; just as repeated failures can decrease it. As knowledge and skill development increase, task mastery can increase.

Bandura (1982, p. 126-127) defined vicarious modeling as “Seeing similar others perform successfully can raise efficacy expectations in observers who then judge that they too possess the capabilities to master comparable activities.” Learning by such observation “enables people to acquire rules for generating and regulating behavioral patterns without having to form them gradually by tedious trial and error” (Bandura, 1982, p. 19). A competent role model can both share knowledge and information in context of the environment and communicate appropriate strategies to overcome challenging situations.

Verbal persuasion can encourage an individual’s capability beliefs regarding task and/or goal achievement. The influence of verbal affirmation, social persuasion and encouragement can generate enduring increases in self-efficacy beliefs (Anderson & Betz, 2001; Bandura, 1982). Accordingly, Bandura (1982) claimed the persuasive boosts in self-efficacy can direct them to try hard enough to succeed, thereby promote skill development and a sense of personal efficacy. Persuasive efficacy’s impact can be greatest when the encouragement is realistically grounded and is considered reasonable by the individual based on past performance or similar circumstance. What a person believes about their ability can affect what he or she can achieve.

Emotional arousal incorporates an individual relying on their “physical and emotional states in judging their self-efficacy” and can be strengthened in relation to a reduction in stress or anxiety (Bandura, 2012, p. 13). By using psychological and emotional states to boost confidence, an individual can judge their capabilities in relation to the situation and expectation of success.

Self-efficacy research is divided into two categories: general self-efficacy and task-specific self-efficacy. In his meta-analysis regarding self-efficacy and personal selling, Peterson (2020) described general self-efficacy as an overall confidence one has in his or her capabilities, and task-specific self-efficacy as a belief in ability subject to specific tasks or circumstances. He asserted that general self-efficacy is more commonly identified as a fixed personality trait, whereas task-specific self-efficacy can be modified, developed, and changed over time. The sales literature supports the use of task-specific self-efficacy in relation to sales-related outcomes (Brown, Cron & Slocumb 1998; Chowdhury 1993; Sujan, Weitz & Kumar, 1994).

Microentrepreneurial Passion and Persistence

Passion research is central to the entrepreneurial literature. Baum and Locke (2004) were proponents of passion as a means of enabling entrepreneurs to face challenges of uncertainty, resource shortages, surprises, and rapid change. Cardon, Wincent, Singh, and Drnovsek (2009, p. 517) later defined entrepreneurial passion as, “consciously accessible, intense positive feelings experienced by engagement in entrepreneurial activities associated with roles that are meaningful and salient to the self-identity of the entrepreneur.”

Entrepreneurial persistence is the sustained use of goal-directed energy over time (Cardon & Kirk, 2015; Shane, Locke, & Collins, 2003). It requires motivation, confidence, and resilience (Baum, Frese, & Baron, 2014; Shane et al., 2003). The literature utilizes several terms interchangeably when discussing persistence – grit, tenacity, perseverance, and goal-direction (Baum & Locke, 2004; Duckworth, Peterson, Matthews, & Kelly, 2007; Howard & Crayne, 2019; Shane, Locke, & Collins, 2003).
However, even with a toolbox of resources and tapping into emotional sustenance, fulfilling what a direct seller aims to accomplish is not without difficulty. Persistence through difficulty, fueled by passion, might be the difference between accomplishment and defeat. Dale Carnegie spoke to the need for both passion and persistence when he said, “Flaming enthusiasm, backed up by horse sense and persistence, is that quality that most frequently makes for success.”

Conceptual Model

With COR and SCT as complementary, adjoining theories, the hypothesized model in the current research is shown in Figure 1. The three independent variables explored in this study are: sales training, salesforce socialization, and perceived organizational support. Foundationally, SCT explains human functioning through a trio of factors (behavioral, personal, environmental) that can influence a person’s learning experience and capabilities. By operationalizing Bandura’s (1982) four sources of self-efficacy, these three independent variables are argued to serve as predictive vehicles to influence a salesperson’s task-specific self-efficacy while also mirroring the behavioral, personal, and environmental factors identified in SCT. Drawing from principles of COR and SCT, the study reported here investigated the influence of sales training, salesforce socialization, and perceived organizational support on task-specific self-efficacy, and, ultimately, on microentrepreneurial passion and persistence.

Hypotheses Development

Sales Training
Wilson, Strutton, and Farris (2002, p. 78) defined sales training as a “deliberate and formalized accumulation of information, concepts, and skills that are intended to foster competence or enhance the performance of salespeople.” As the direct seller’s sales role expands, so do increasing requirements to “process, internalize, and manage requisite capacities to fulfil their job roles” (Sager, Dubinsky, Wilson, & Shao, 2014, p. 1). Sales training is a program and a process; it is a conduit of information and an organizational channel for communication. Sales training is an investment. As Cummings (2004, p. 26) argued, organizations that “skimp on training, particularly for new sellers, risk losing staff—and sales.”

Numerous scholars (e.g., Attia, Honeycutt, & Leach, 2005; Bradford, Rutherford, & Friend, 2017; Lassk, Ingram, Kraus, & Mascio, 2012; Pelham & Kravitz, 2008; Román, Ruiz, & Munuera, 2002) have conducted research in sales training and its impact. In their meta-analysis, Singh, Manrai, and Manrai (2015) reviewed 56 articles of sales training research spanning from 1985 to 2014. They advocated enhanced sales training skills to be a potential source of a firm’s competitive advantage. The authors pointed to advanced technology, customer relationship management, and globalization as sources of the potential importance of sales training programs, and they asserted the potentiality of productivity and financial gains as reason to view sales training as a firm resource.

Thus, the following hypothesis is offered:

H1: Sales training is positively associated with task-specific self-efficacy.

Salesforce Socialization
As the foundational study regarding socialization in a sales context, Dubinsky, Howell, Ingram, and Bellenger (1986) asserted that successful assimilation of the salesforce was critical to an organization’s overall sales success. Salesforce socialization is a process through which an individual comes to understand behaviors, gains social knowledge, and develops skills associated within an organization’s sales role. This socialization can take place via training, observation, and experience. Sager et al. (2014) claimed that salesforce socialization’s critically important capacity to link goals and behaviors, increase sales job proficiencies, and build beliefs regarding those proficiencies is often downplayed or outright ignored.

As the social aspects of salesforce socialization are expected to increase task-specific self-efficacy through vicarious modeling and verbal persuasion and encouragement via organizational assimilation in microentrepreneurs, the following hypothesis is offered:

H2: Salesforce socialization is positively associated with task-specific self-efficacy.

Perceived Organizational Support
Perceived organizational support refers to the beliefs employees form regarding the “extent to which their organization values their contributions and cares about their wellbeing” (Eisenberger, Huntington, Hutchison, & Sowa, 1986, p. 500). As employees tend to assign humanlike characteristics to their organization, perceived organizational support is filtered through their perceptions of favorable or unfavorable treatment. According to this logic, favorable treatment by the organization equates to an organization’s favor regarding the employee. Conversely, an organization’s unfavorable treatment of the employee signals its disfavor. Further, the humanistic characterization of the organization affects how employees attribute an organization’s intent. Just as in social relationships, there are similarities in the formation of POS regarding an organization’s intent and/or commitment to the employee. Eisenberger et al. (1986) ascribed attributional heuristics on employees’ perception of resources received from the organization as either sincerely/voluntarily given and earned versus resources given through legal parameters or regulatory enforcement. Perceived organizational support is looked upon more favorably if the recipient believes they result from the organization’s voluntary actions as opposed to external constraints (Rhoades & Eisenberger, 2002).

In a meta-analysis designed to evaluate organizational support theory, Kurtessis, Eisenberger, Ford, Buffardi, Stewart, and Adis (2017) reviewed 558 organizational support theory studies based on hypotheses involving social exchange, attribution, and self-enhancement. Generally, the results indicated that perceived organizational support is inherently important in the employee-organization relationship, with positive implications regarding an employee’s well-being and favorable view of the organization. DeConinck and Johnson (2009) examined the effects of perceived organizational support as it related to salesforce turnover in 384 salespeople. The authors found that perceived organizational support positively related to organizational commitment.

As perceived organizational support can encourage salesperson well-being through emotional arousal via reducing work-related stress, providing positive coping strategies for the work environment, and promoting self-enhancement by fulfilling socioemotional needs in microentrepreneurs, the following hypothesis is offered:

H3: Perceived organizational support is positively associated with task-specific self-efficacy.

Microentrepreneurial Persistence
Ahearne, Mathieu, and Rapp (2005) found that a salesperson’s persistence and engagement may increase as self-efficacy increases. Thus, the higher the self-efficacy, the higher the likelihood that a salesperson will be persistent and engage in task-specific sales activities. That is, salespeople are more likely to persist in activities in which they have confidence. With each challenging encounter, salespeople with high self-efficacy develop confidence and a sense of greater competence. Higher levels of confidence can foster a cycle of increased effort and participation as competence increases. Greater levels of self-efficacy can impact an employee’s behavior through an increase in the areas of effort allocation, persistence, and coping strategies when faced with task-related obstacles (Chebat & Kollias, 2000; Srivastava & Sager, 1999). Brown et al. (1998) found that salespeople with higher self-efficacy set higher goals and were more likely to achieve them.

Research has shown self-efficacious individuals tend to take advantage of built-in organizational opportunities. Self-efficacious salespeople manage resources from their organization in anticipatory response to work demands and challenges, finding that higher levels of self-efficacy led to greater focus, competence, and confidence in these individuals performing their work (Mulki, Lassk & Jaramillio, 2008). This is consistent with COR in that salespeople are motivated to build resource reservoirs to equip themselves to handle future challenges. Thus,

H4: Task-specific self-efficacy is positively associated with microentrepreneurial persistence.

Microentrepreneurial Passion
Vallerand, Blanchard, Mageau, Koestner, Ratelle, Léonard, Gagné, and Marsolais (2003, p. 756) defined passion as “a strong inclination toward an activity that people like, that they find important, and in which they invest time and energy.” Forest, Mageau, Sarrazin, and Morin (2011) asserted that passionate activities are more central to the individual’s identity and can, therefore, be expected to have greater personal, positive impact than goals or motivation. Cardon and Kirk (2015, p. 1041) examined the emotions of passion and persistence together, “If we don’t consider passion or other emotions in our research on persistence, then we may be missing a full understanding of drivers of this and other important outcomes in entrepreneurship.”

COR theory discusses a building up of resources as laying the groundwork for positive gain spirals to occur. Recognizing that positive gain spirals can take time to build (Hobfoll et al., 2018) the positive gains inherent in building task-specific self-efficacy may also take time to build. As the positive gains in task-specific self-efficacy serve as resources that can have an impact on microentrepreneurial passion through replenishment via their resource investment, the following hypothesis is offered,

H5: Task-specific self-efficacy is positively associated with microentrepreneurial passion.
As microentrepreneurial passion reflects the consciously accessible, intense positive feelings experienced by engagement in microentrepreneurial activities, the following hypotheses are examined in the research:

H6: Microentrepreneurial passion is positively associated with microentrepreneurial persistence.

H7: Microentrepreneurial passion mediates the relationship between task-specific self-efficacy and microentrepreneurial persistence.
The following section describes how the trio of independent variables was examined as key resources to help promote further resource gain and how these resources contribute to giving direct selling microentrepreneurs the passion to persist with their business-in-a-box.

Research Methodology

The research methodology employed in this project utilized knowledge gained from previous direct selling research conducted by Peterson, Crittenden, and Albaum (2019) and Crittenden, Crittenden, and Ajjan (2019) in which data from direct sellers were derived as clearly and precisely as possible. To this end, a questionnaire was developed that would capture, rigorously and theoretically, the information about the hypothesized relationships and a data collection process was identified. In this section, both the questionnaire design and the data collection process are articulated. Additionally, a demographic overview of the respondents is also provided here.

Questionnaire Design

A survey instrument was developed from items adapted from previously validated scales. In general, the scales were developed originally for companies and/or sales divisions within companies. Thus, minor editing was completed to adapt all scales to a direct selling context. In addition, a limited number of items were added, where appropriate, to update the measures for emerging social media and business analytics topics. Demographic information was also collected.

Sales training was measured using items adapted from four sales training scales and was assessed through the dimensions of perceived sales training climate, perceived sales training effectiveness, and product knowledge. Perceptions of sales training were measurement utilizing Sager et al.’s (2014) three-item training climate scale and four-item organizational support of training scale. Direct sellers’ perceptions of the overall effectiveness of their company’s sales training were measured by Johlke, Stamper, and Shoemaker’s (2002) perceptions of firm training scale. Perceptions of the effectiveness of their company’s product knowledge sales training was assessed using the Wilson et al. (2002). Additionally, three items were added from Rentz, Shepherd, Tashchian, Dabholkar, and Ladd’s (2002) technical knowledge scale. All items were on a 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree).

Salesforce socialization was assessed using the social aspects (i.e., serial and investiture socialization dimensions) from Jones (1986). In addition, several new items were added to extend the queries about socialization in terms of perceived value to the company. Respondents answered on a 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree).

Direct sellers’ perceptions of organizational support were assessed using eight items adapted from Evans, Landry, Li, and Zou’s (2007) sales supportiveness scale. Evans et al. adapted their measure to a sales context from Wayne, Shore, and Liden’s (1997) short-form adaptation of Eisenberger et al.’s (1986) Survey of Organizational Support. A 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree) was used.

Task-specific self-efficacy was measured using items adapted from three self-efficacy scales. Direct sellers’ confidence for selling compared to others was measured using seven items adapted from Jones’ (1986) eight-item self-efficacy scale. Intuitive selling skills assessment was adapted from Sujan et al.’s (1994) seven-item self-efficacy as a salesperson scale. Skills capability assessment was measured using Wang and Netemeyer’s (2002) self-efficacy scale, capturing the confidence level a salesperson has in their capability to do their sales job. A 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree) was used for all items.

Microentrepreneurial passion was measured using 10 items adapted from Cardon, Gregoire, Stevens, and Patel’s (2013) entrepreneurial passion scale. The original scale included 13 items assessing two dimensions (intense positive feelings and identify centrality) across the domains of inventing, founding, and developing. Items were adapted from the domains of inventing, founding, and developing into an overall domain of direct selling. Four items were retained from the original 13-item scale with no adjustments and six items were modified to reflect a direct selling context. Direct sellers responded on a 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree).

Microentrepreneurial persistence was assessed using an adapted version of Howard and Crayne’s (2019) Multidimensional Persistence Scale (MPS). The MPS is a 13-item measure that assesses three dimensions of persistence: Persistence Despite Difficulty (five items), Persistence Despite Fear (five items), and Inappropriate Persistence (three items). Only the Persistence Despite Difficulty and Persistence Despite Fear dimensions were used and adapted to a direct selling context. Responses were on a 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree).

Additionally, to gain a better understanding of how direct selling microentrepreneurs receive training (e.g., in-person versus online) and the hours associated with each type, the following questions were asked: “How many hours of face-to-face (in-person) sales training have you received in the past year?” and “How many hours of online (not in-person) sales training have you received in the past year?” In assessing how often direct sellers engage in digital sales training activities, survey respondents were asked to indicate their frequency of use on a graphical slider bar scale, with 0=Never to 10=Very Frequently/Daily. Digital training tools queried were instructor-led sales training videos, interactive online sales coaching, downloadable sales training kits, and self-selected online sales training courses. Finally, in gauging how often direct sellers utilize digital support tools, survey participants were asked to indicate their frequency of use on a graphical slider bar scale with 0=Never to 10=Very Frequently/Daily. The following digital support tools were included: communicating within direct selling company (e.g., instant messaging, text messaging, blogs, dashboards); interacting within company via private social media platforms; participating in web-based video conferencing (e.g., Zoom, Microsoft Teams, Skype); utilizing downloadable social media content via a mobile device.

As typical in survey work and in particular in previous studies of direct sellers, demographic information was collected regarding education level, gender, race, ethnicity direct selling industry tenure, direct selling hours worked per week, direct selling product category, and direct sales average monthly income.

Data Collection

A sample of direct sellers was obtained by means of an Internet-based survey via the use of Qualtrics. The survey employed standard screening protocols to obtain meaningful data. Initially, the survey included a screening verification question confirming the participant was 18 years of age or older, proficient in the English language, currently engaged as a direct seller, and willing to participate in the study. Participants who did not answer affirmatively were not allowed to continue with the survey.
Following the initial screening question, a rigorous screening protocol was employed to ensure all respondents were involved in direct selling. After clearing the initial, standard protocol screening, the participant was provided an expanded description of the terms “direct selling” and “direct seller.” The expanded description of direct selling and direct seller terms was:

“In this questionnaire, you will see the term ‘direct selling.’ For the purposes of this questionnaire, we consider direct selling to be a business model that provides entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment. Direct selling includes sales made through one-to-one selling, in-home product demonstrations, as well as online sales. Compensation is based on sales and may be earned based on personal sales and/or the sales of others on their sales team. A ‘direct seller’ is an individual affiliated as an independent contractor with a direct selling company, who 1) sells products/services to consumers, and 2) may sponsor people to join their direct sales team.”

Directly after this description, participants were asked, “Are you currently an independent contractor (i.e., an independent associate) for a direct selling company?” Participants who did not answer affirmatively were not continued with the survey effort. To further screen appropriate direct selling participants, potential respondents were then asked, “How many direct selling companies are you affiliated with?” Possible responses were “I am not affiliated with a direct selling company,” “one direct selling company,” “two direct selling companies,” and “more than two direct selling companies.” Again, participants who answered they were not affiliated with a direct selling company were removed from the survey. Individuals who declared affiliation with one or more direct selling companies were also asked to provide the company’s name. This additional screener served as a manual check to ensure an appropriate sample.

Rigorous participant screening and continual refinement of the Qualtrics sales panel inclusion criterion yielded responses from 42 verified microentrepreneurs engaged in direct selling activities. The demographic characteristics of the sampled group are displayed in Table 1.

Data Analysis

Partial least squares structural equation modeling (PLS-SEM) was selected for this data for several reasons. One, the research objective involved prediction of theoretical relationships in assessing the role of organizational resources and task-specific self-efficacy in influencing microentrepreneurial passion and persistence. Two, PLS-SEM enables the ability to work with non-normal data with sample size challenges. Three, the technique offers the flexibility in assessing higher-order constructs. Specifically, PLS-SEM derives solutions with small sample sizes when models are comprised of many constructs and a large number of items (Hair, Ringle, & Sarstedt, 2011; Hair, Risher, Sarstedt, & Ringle, 2019).

The evaluation of a PLS-SEM model includes a two-stage assessment of first the measurement model, followed by a subsequent evaluation of the structural model (Sarstedt, Hair, Cheah, Becker, & Ringle, 2019). The data were analyzed using the Confirmatory Composite Analysis (CCA) process for partial least squares structural equation modeling (Hair, Howard, & Nitzl, 2020). Smart PLS-SEM 3.0 was used to execute PLS-SEM and assess the measurement and structural models.

The final model, including construct indicators, is shown in Figure 2. To test the hypotheses, the model was assessed for significance and relevance of the path coefficients. Confirmatory composite analysis (CCA) is the recommended approach for assessing PLS-SEM results (Hair et al., 2020). In using CCA, the following analyses were examined: estimates of loadings and significance, indicator and composite reliability, average variance extracted, discriminant validity, and selected prediction metrics, including PLSpredict (Schmueli, et al., 2019). To test the hypotheses, the model was then assessed for the significance and relevance of the path coefficients. Table 2 provides the path coefficients and significance for the hypothesized relations and for training, task specific self-efficacy, and microentrepreneurial persistence as higher order constructs.

In the next section, the results of this data analysis are presented for each hypothesis and for the additional training characteristics for which the respondents were queried that addressed the questions underpinning this research effort:

  1. What resources encourage a direct selling microentrepreneur to persist?
  2. What resources can boost a direct selling microentrepreneur’s passion?

Results

The seven research hypotheses related to how resources contribute to giving direct selling microentrepreneurs the passion to persist with their business-in-a-box are restated here:

H1: Sales training is positively associated with task-specific self-efficacy.

H2: Salesforce socialization is positively associated with task-specific self-efficacy.

H3: Perceived organizational support is positively associated with task-specific self-efficacy.

H4: Task-specific self-efficacy is positively associated with microentrepreneurial persistence.

H5: Task-specific self-efficacy is positively associated with microentrepreneurial passion.

H6: Microentrepreneurial passion is positively associated with microentrepreneurial persistence.

H7: Microentrepreneurial passion mediates the relationship between task-specific self-efficacy and microentrepreneurial persistence.

H1-H3 proposed positive associations between the variables of sales training, salesforce socialization, and perceived organizational support with task-specific self-efficacy. H4 & H5 proposed positive associations with microentrepreneurial persistence and microentrepreneurial passion, respectively. H6 proposed a positive association with microentrepreneurial passion with microentrepreneurial persistence. The summary results of the hypotheses testing are offered in Table 3. The results indicated full support for H1, H5, H6, and H7, marginal support for H4, and no support for H2 and H3.

Of the trio of independent resource variables predicted to help promote further resource gain and contribute to giving direct selling microentrepreneurs the passion to persist with their business-in-a-box, sales training (H1) was the resource most strongly predictive of task-specific self-efficacy. It might be that the small sample size contributed to the lack of support for salesforce socialization and perceived organizational support and is something that deserves further investigation. In terms of sales training, the current data suggest that successful experiences through sales training can heighten task-specific self-efficacy. Through a multi-faceted training experience, a direct seller can be exposed to potential selling situations in a learning environment, observe and emulate others, and receive verbal encouragement lending confidence in selling skills and increasing self-efficacy beliefs.

Sales training programs represent actionable, practical resources that can help propel sales success. In addition to the scale items capturing dimensions of sales training, questions regarding frequency of use of a direct selling company’s digital learning and support tools were included in the survey. Online and/or digital learning tools include use of instructor-led sales training videos, online sales coaching, downloadable training kits, and self-selected online training courses. These tools offer flexibility in online delivery and can be customized to the training needs of a direct seller.

Table 4 shows the means and standard deviations of the responses. Interestingly, there was dispersion in reported frequency of use, with evenly distributed responses on both ends of the scale. This finding can lead to actionable results for the direct selling company. Gaining a greater understanding of which tools are most frequently used can help tailor a company’s digital offering to fit specific salesforce needs.

In similar fashion, survey participants were asked to assess frequency of use of their company’s online and digital training support tools. These support tools included assessing within-company digital communication (e.g., instant messaging, text messaging, blogs, dashboards), within-company social media interaction, participating in web-based video conferencing (e.g., Zoom, Microsoft Teams, Skype), and downloading training/social media content via a mobile device.

The results shown in Table 5 indicate more frequent use of digital support, especially in the areas within-company digital communication and downloading training/social media content. Direct sellers commonly use this path of digital connectedness to foster relationships, enhance product knowledge, and company-provided content to support marketing efforts (Fleming, 2019). These digital support tools can offer a direct selling company connection and training consistency with a remote salesforce.

Once built, via the impact of sales training, task-specific self-efficacy was hypothesized to increase both microentrepreneurial persistence (H4) and microentrepreneurial passion (H5). Of the hypothesized associations, self-efficacy influenced both passion (p<.001) and persistence (p<.02) positively. This pathway of self-efficacy to passion to persistence indicates those who are higher in task-specific self-efficacy are more likely to experience passion for their direct selling activities, thus making them more inclined to persist (Bandura 1982, 1997; Brown et. al., 1998; Cardon & Kirk, 2015; Holland & Shepherd, 2013). As such, a direct selling microentrepreneur’s task-specific self-efficacy perceptions, coupled with persistence in goal-pursuit, represent a potentially important link in influencing direct selling success. However, the relationship between task-specific self-efficacy and persistence in this sample was weak (p < .10).

The discovery illustrates the importance of passion in the self-efficacy to persistence path and strengthens the assertion that passion helps drive the relationship between the two. Cardon and Kirk (2015) reached similar findings using a different conceptualization of entrepreneurial passion (i.e., passion for inventing, passion for founding, and passion for developing). Following a hierarchical regression framework, their results indicated a significant relationship between entrepreneurial self-efficacy and entrepreneurial persistence before passion was entered into the model. Once dimensions of passion were entered, the significance of entrepreneurial self-efficacy either decreased or became non-significant. Positive gains in task-specific self-efficacy serve as resources that can have an impact on microentrepreneurial passion. It could be that passion is increased through resources gained, particularly through sales training and self-efficacy.

Finally, passion was also expected to amplify persistence (H6). Passion and persistence are considered drivers of entrepreneurial action. Cardon and Kirk (2015, p. 1041) examined the critical role of entrepreneurial passion in overcoming the challenges inherent to starting and running a business and stated, “If we don’t consider passion or other emotions in our research on persistence, then we may be missing a full understanding of drivers of this and other important outcomes in entrepreneurship.” In the current research, direct selling microentrepreneurial passion strongly influenced microentrepreneurial persistence. As microentrepreneurial passion reflects the consciously accessible, intense positive feelings experienced by engagement in microentrepreneurial activities, passion serves as the driver of sustained action through persistence. The current study demonstrates such passion-related intentions and behaviors can amplify a direct selling microentrepreneur’s ability to persist.

The final hypothesis (H7) stated that microentrepreneurial passion mediates the relationship between task specific self-efficacy and microentrepreneurial persistence.

As the relationship was marginally significant between task-specific self-efficacy and microentrepreneurial persistence, the hypothesized model was rerun in the absence of passion. Results revealed a strong direct relationship between task-specific self-efficacy and persistence, with a path coefficient suggesting that passion partially mediates the relationship between task-specific self-efficacy and microentrepreneurial persistence. The total indirect effect from task-specific self-efficacy to microentrepreneurial persistence through microentrepreneurial passion was statistically significant and meaningful. These results indicate further support for the mediating role of passion through task-specific self-efficacy to microentrepreneurial persistence.

Implications for Practice

Sales training emerged as an applicable resource in this model of direct selling microentrepreneurial passion and persistence through its influence on task-specific self-efficacy. Sales training is an investment, a program, and a process. As such, sales training can serve as a directive conduit of information as well as a channel of communication with a remote salesforce. Because of its potential to improve company connectivity with microentrepreneurs, sales training can be characterized, beyond salesforce socialization and perceived organizational support, as a crucial direct selling company resource. Direct selling companies should continue prioritizing effort in bolstering their training programs.
Sales training tools can be dispersed virtually and can lessen the distance between a direct seller and the company. Just as respondents in the current research were asked to rate the frequency of use of specific sales training tools and digital support, a direct selling company can employ similar within-company measures. Direct selling companies gain practical insight on company-specific sales training resources routinely used by their salesforce through continually monitoring these training tools and resources. Instructor-led sales training videos, online sales coaching, downloadable training kits, and self-selected online training courses offer flexibility in online delivery and can be customized to the training needs of a direct seller.

A noted strength of the direct selling industry is its established use of technology to foster relationships, enhance product knowledge, and lend company-provided content to support marketing efforts. Technology allows for an actionable approach to bolstering such communication. As digital training and communication efforts offer increased connectivity and consistency with a remote salesforce, direct selling companies can continue to monitor which resources best fit the needs of the sales organization.

In the context of professional selling, perceived task-specific self-efficacy relates to a salesperson’s self-assessment of capability regarding sales-related tasks. Task-specific self-efficacy can be associated as a person’s belief in his or her abilities rather than an individual’s self-esteem or intentions. As such, it can be a predictor of accomplishment depending on whether a person believes he or she can complete the task, and it can be a critical component to summoning the motivation to continue.

In this study of direct sellers, microentrepreneurial passion is a tool through which self-efficacy increases the likelihood a direct seller will persist. Operating as a mediator, passion served as a link between task-specific self-efficacy and microentrepreneurial persistence, highlighting its importance within this context. Cardon, Glauser, and Murnieks (2017) asserted that sources of entrepreneurial passion can be as individual as the entrepreneur and it “provides the fire that fuels innovation, persistence, and ultimate success” (p. 24). Direct selling companies should continue to prioritize intentional passion-building within their salesforce.

The results of this research suggest that microentrepreneurial passion and persistence make a powerful combination that can spur sales success. The results provide support for the mediating role of passion through task-specific self-efficacy to microentrepreneurial persistence. As direct selling microentrepreneurs build reservoirs of sustaining resources for times of future need, they equip themselves to handle future challenges in the marketplace.

Study Limitations

Despite contributions, this study’s potential limitations must be acknowledged. The survey necessitated same-source data that was collected at one time. As this study is a cross-sectional design, there are concerns with common method variance (i.e., variance that is attributable to the measurement method rather than the constructs the measures represent). Actions were taken throughout the data collection process, however, in an effort to reduce the possible biasing influence of common method variance.

Also due to the cross-sectional nature of this study, the ability to draw causal conclusions is a concern. Since the data were collected at one time, there was no temporal separation between independent and dependent variables, thus limiting a causal interpretation. The constructs in this study represent variables that can fluctuate over time. As such, this study’s design may hinder the ability to assess if the changes in one construct led to changes in another. A cross-sectional survey design limits the interpretation of causality. As such, a causal interpretation cannot be applied to this study’s results (e.g., sales training cannot be interpreted as causing increases in task-specific self-efficacy, despite strong evidence of its positive influence).

Another potential limitation is the use of Qualtrics response service instead of collecting data within direct selling companies. Despite extensive description and identification through the initial data request process with Qualtrics, the sample population available in their databases is limited. This opens concerns about whether the participants were current direct sellers. However, several iterations of screening check questions were required to verify participants were indeed actively involved in the direct selling industry. Participants who did not answer affirmatively were not surveyed. As a result of these screens, there is no reason to suspect any deficiencies in the sample.

Finally, this study’s sample size was 42 direct selling microentrepreneurs currently engaged in the direct selling industry. While the sample size fell within the recommended minimum requirements, this number could limit the power to detect significant relationships as well as the ability to reproduce results. For future research, recruiting greater numbers of respondents could add to the study’s ability to detect significant relationships. Additionally, although efforts were made to tailor survey items to the direct selling context, there is still the possibility that survey items may have been too general or irrelevant for the respondents. Going forward, working directly within direct selling companies to refine items and obtain data would allow survey items to be tailored to company-specific programs and processes. This approach would allow the development of survey items that are possibly more meaningful to both direct selling microentrepreneurs and direct selling companies.

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Professional and Personal Benefits of a Direct Selling Experience

By Dr. Robert A. Peterson

Direct selling is simultaneously a channel of distribution and a business model that offers entrepreneurial opportunities for individuals to market and sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations, and/or online. As a distribution channel, direct selling is ubiquitous and, in 2016, touched the lives of an estimated 20.5 million Americans. Individuals are drawn to direct selling for a multitude of reasons beyond a desire to earn a living as a full-time direct seller or to earn extra money or make a special purchase as a part-time direct seller.

The research reported in this Executive Summary documents the impact of a direct selling experience on 14 business and professional skills as well as on 13 personal life skills. A substantial majority of the current direct sellers surveyed, more than three-fourths, agreed that they benefitted from their direct selling experience in terms of improved business and professional skills, and that skills gleaned from a direct selling experience transferred to their personal lives. Moreover, there were significant and positive relationships between self-perceived skill levels and self-perceptions of direct selling success and performance in a non-direct selling job. Findings regarding the impact of a direct selling experience on personal life skills in particular suggest that a direct selling experience can have a powerful influence beyond direct selling per se and, as such, can indirectly contribute to the betterment of society.

Four hundred ninety-five current direct sellers and 465 former direct sellers were surveyed for the present research. Findings from this research have several practical implications for recruiting, training, and retaining direct sellers. These findings and implications are briefly summarized below.

Reasons for Joining Direct Selling Company

Twelve (12) possible reasons why the direct sellers surveyed joined their current direct selling company were investigated.[1] The most frequently stated reason for joining a direct selling company was “I believed that the products are of such value that I wanted to share them with my friends, neighbors, and the public.” Eighty-one percent of the survey participants stated that this was a reason they joined their current direct selling company. The least frequently cited reason for joining a direct selling company was “I wanted a full-time working career;” 35 percent of the direct sellers surveyed gave this as a reason for joining their direct selling company. In general, the reasons for joining a direct selling company can be categorized as “people/social,” “financial” (income/job), and desire for a specific “product.”

The median number of reasons survey participants gave for joining their current direct selling company was seven (7). Thus, on average survey participants stated that seven of the 12 studied reasons were in fact reasons why they joined their current direct selling company. There were no substantive differences across the current direct seller segments studied regarding the number of reasons given for joining a direct selling company.

  • However, of the current direct sellers surveyed regarding their reasons for joining a direct selling company:
  • Males were more likely than females to want a full-time direct selling job (54% versus 31%).
  • Eighty-one percent of the female direct sellers stated that they wanted to purchase their direct selling company’s product(s) at a discount for themselves and/or their family versus 61 percent of the male direct sellers.
  • Fifty-seven percent of the male direct sellers were interested in the recognition that they would receive for their [sales] efforts compared to 39 percent of the female direct sellers.
  • Seventy-two percent of the male direct sellers were interested in enhancing their personal development (i.e., becoming more confident, better business-minded) through direct selling, whereas 53 percent of the female direct sellers stated such an interest.
  • No differences were observed regarding reasons for joining a direct selling company between urban and rural direct sellers, or among direct sellers who had been with their direct selling company for various time periods.
  • Proportionally more millennial direct sellers (46%) than non-millennial direct sellers (28%) joined their current direct selling company because they wanted a full-time working career. Millennials also wanted to feel more at ease in front of other people relative to non-millennials (56% of the millennials so responded as compared to 32% of the non-millennial direct sellers).

In addition, current direct sellers differed markedly from former direct sellers with respect to the number of reasons and the specific reasons given for joining a direct selling company. Whereas 35 percent of the current direct sellers stated that they wanted a full-time direct selling job, only 16 percent of the former direct sellers stated that they wanted a full-time direct selling job. This suggests that direct selling may currently be perceived as more likely to be a career option than it was in the past. Moreover, given that the demographic profile of direct sellers may be approaching that of the United States adult population, the “pool” of potential direct sellers may be expanding.

Skill Improvements Due to Direct Selling Experience

The present research examined 14 business/professional and 13 personal life skills that might be improved or fostered by a direct selling experience.[2] Survey participants were first asked whether they “strongly disagree,” “somewhat disagree,” “somewhat agree,” or “strongly agree” that their direct selling experience was beneficial in terms of improving or fostering each of the 14 business/professional skills. For example, they were asked whether they “strongly disagree,” “somewhat disagree,” “somewhat agree,” or “strongly agree” that “I improved my decision-making skills” (as a consequence of their direct selling experience).

Similarly, survey participants were asked whether they “strongly disagree,” “somewhat disagree,” “somewhat agree,” or “strongly agree” that they had been able to transfer each of 13 skills emanating from their direct selling experience to their personal lives. An example of these skills is “I enhanced my critical thinking ability.” Seven of the skills investigated were included in both the business/professional and personal skill sets studied.

On average, more than three-fourths of the current direct sellers surveyed somewhat or strongly agreed that both their business/professional skill levels improved and that their personal lives benefitted due to skills emanating from their direct selling experience. Consequently, in an absolute sense the current direct sellers surveyed believed that “lessons learned” through their direct selling experience were helpful in both their business/professional careers and their personal lives. Across the seven skills that were common to the business/professional and personal life skill sets, survey participants indicated that the skills they acquired from their direct selling experience were slightly more beneficial to their personal lives than to their business/professional careers.

Even so, despite the high absolute level of overall agreement that a direct selling experience improved or fostered skill levels, perceptual differences did occur between male and female direct sellers. With respect to business/professional skills that were believed to have been improved due to a direct selling experience, proportionally more male direct sellers than female direct sellers believed that their sales skills had improved (88% versus 77%) and that they undertook more [business-related] initiatives (87% versus 73%).

With respect to skills applicable to a direct seller’s personal life, self-perceptions of the eight skills listed below significantly differed between male and female direct sellers, with male direct sellers proportionally more likely than female direct sellers to believe that improvements in the eight skills studied occurred because of their direct selling experience:

  • Enhanced critical thinking ability (88% versus 74%)
  • Better at coping with and managing stress (85% versus 69%)
  • Better at problem solving (90% versus 76%)
  • Feel more at ease in front of an audience (84% versus 71%)
  • Better at time management (87% versus 77%)
  • Improved entrepreneurial skills (90% versus 78%)
  • Improved decision-making (87% versus 78%)
  • Better at managing finances (83% versus 73%)

Differences between male and female direct sellers with respect to their reasons for joining a direct selling company and the skill levels gained from a direct selling experience suggests a variety of managerial implications. Additional research is required to understand motivations underlying said differences as well as their implications. For example, direct selling companies might consider instituting, emphasizing, and/or communicating different recruiting, training, and retention programs for men and women.

There were no significant differences in self-perceived skills between urban and rural direct sellers or among survey participants with different lengths of time working with their current direct selling company. Similarly, there were generally no significant differences between millennials and non-millennials with respect to self-perceived business/professional skill levels resulting from their direct selling experience.

However, three self-perceived skills differed between millennials and non-millennials in the context of their personal lives. Proportionally more millennials than non-millennials agreed that their direct selling experience improved their decision-making skills (86% versus 78%), helped them improve their interpersonal relationships (87% versus 75%), and made them more able to cope with and manage stress in their personal lives (81% versus 70%). These differences suggest that consideration be given to creating different recruiting, training, and retention programs for millennials and non-millennials analogous to those for male and female direct sellers. Moreover, similar to the male and female direct seller differences observed, differences between millennials and non-millennials should be subjected to additional research.

In an absolute sense, a majority of all direct sellers studied, current as well as former, believed that both their business/professional and personal life skills were improved by their direct selling experience. From a relative perspective, though, current direct sellers believed that their direct selling experience improved all of the business/professional and personal life skills studied to a significantly greater degree than did former direct sellers. Moreover, self-perceived skill level differences between current direct sellers and former direct sellers were in general greater for personal life skills than for business/professional skills. For example, the largest difference between the two groups occurred for the self-perceived personal life skill “I am better at interpersonal relationships.” Seventy-nine percent of the current direct sellers somewhat or strongly agreed with this skill statement as compared with 52 percent of the former direct sellers who somewhat or strongly agreed with the statement. Such differences in perceptions may reflect better company training programs now than in the past, differences in the demographic makeup or motivations of the two groups, or a combination of differences in training programs and the demographic makeup or motivations of the two direct seller groups. Additional research is recommended.

Direct Selling Success

Survey participants were asked, “How successful do you consider yourself compared to other independent contractors in your direct selling company?” Based on a 7-category rating scale anchored by “much less successful” and “much more successful,” 45 percent of the survey participants who were current direct sellers rated themselves as successful (i.e., they responded “5,” “6,” or “7” on the scale). Using the same approach, only 25 percent of the former direct sellers considered themselves successful direct sellers. As before, this perceptual difference may be due to better company training programs now than in the past, differences between the two groups—including actual success—or both company training and direct seller characteristics. Indeed, to the extent that perceptions reflect reality, the self-perceived performance of former direct sellers may be a reason they left direct selling.

Responses to each of the 27 business/professional and personal life skill statements were significantly and positively related to responses to the self-perceived success scale (p<.001) for the current direct seller sample. Similarly, summary indices of business/professional and personal life skill responses respectively correlated significantly (p<.001) with self-perceived direct selling success. This means that survey participants who believed their direct selling experience improved their business/professional and personal life skills also believed they were more successful direct sellers than other direct sellers in their company. Again, if perceptions reflect reality, this implies that a direct selling company should target skill improvements during recruiting and training since doing so should benefit the company financially and its direct sellers both financially and personally.

Performance in Non-Direct Selling Jobs

Eighty percent of the survey participants who were current direct sellers stated that they also had a job other than direct selling. (This reinforces the conclusion that direct selling tends to be a part-time pursuit.) These survey participants (and former direct sellers surveyed) were asked whether they agreed or disagreed with the statement, “Because of my direct selling experience, I perform better in other, non-direct selling jobs,” using a 4-category rating scale ranging from “strongly disagree” to “strongly agree.” A substantial percentage of the survey participants who were current direct sellers and who held a non-direct selling job—84 percent—noted improved performance due to lessons learned through their direct selling experience. As might be expected, given differences in reasons for joining a direct selling company and self-perceived skill levels between current and former direct sellers, the percentage of current sellers (84%) believing their direct selling experience helped them perform better in a non-direct selling job was significantly larger than the corresponding percentage (66%) observed for former direct sellers. Likewise, proportionally more male direct sellers (90%) than female direct sellers (80%) believed their direct selling experience helped them perform better in a non-direct selling job.

Self-perceived performance in a non-direct selling job was significantly and positively correlated with self-perceptions of direct selling success. In addition, survey participants holding a non-direct selling job also believed that skills emanating from their direct selling experience improved their performance in their non-direct selling job. Moreover, survey participants who stated that one reason for joining a direct selling company was to improve their personal development (i.e., become more confident, better business-minded) also believed that skills emanating from their direct selling experience enhanced their performance in a non-direct selling job.

Finally, each of the 27 business/professional and personal life skills studied was significantly and positively correlated with perceived performance in a non-direct selling job. This finding corroborates the suggestion that a direct selling company target the improvement of skills of its direct sellers since doing so is beneficial to both the company and its direct sellers. When recruiting direct sellers, a company can communicate that even if a direct seller does not remain in direct selling, he or she can obtain skills that will improve performance in a non-direct selling job. Simultaneously, individuals considering a direct selling job may use that job to gain valuable skills that can be applied in a non-direct selling job as well as in their personal lives.

In brief, a substantial majority of the current direct sellers surveyed in this research—more than three-fourths of the individuals surveyed—agreed that their direct selling experience improved their skill levels for 14 business/professional skills and 13 personal life skills. Self-perceived skill levels were in turn related to perceptions of direct selling success. To the extent that current direct sellers believed that their direct selling experience improved their skill levels, they also believed that they were more successful than other direct sellers in their company.

Additionally, those direct sellers surveyed who also held a non-direct selling job believed that their direct selling experience improved their performance in this non-direct selling job. And, analogous to self-perceived direct selling success, the more direct sellers believed that their direct selling experience improved their business/professional and personal life skills, the better they perceived their non-direct selling job performance to be.

While these direct selling experience-related benefits existed across all direct sellers surveyed, certain groups of direct sellers (i.e. male direct sellers or millennial direct sellers), appeared to differ in the benefits gleaned from their direct selling experiences. As such, based on the present research, a direct selling experience can lead to personal as well as societal benefits that go beyond the economic value of direct selling per se. At a minimum, the present results suggest that an individual’s perceived self-efficacy can be enhanced due to a direct selling experience. Read full paper →

[1] See the DSEF report “Professional and Personal Benefits of a Direct Selling Experience” for a list of all reasons studied.

[2] See the DSEF report “Professional and Personal Benefits of a Direct Selling Experience” for a list of all skills studied.

 

Join, Stay, Leave: A Study of Direct Selling Distributors

By Dr. Anne T. Coughlan, Dr. Manfred Krafft, and Dr. Julian Allendorf

This paper uses a unique dataset of over 13,000 individual direct selling distributors from dozens of firms, at a wide variety of stages in their direct selling experiences, to investigate the motivations to join, stay, and leave a direct selling distributorship. We build on the literatures in sales force management and compensation, economics, organizational behavior, psychology and sociology to develop hypotheses both about each of these key decisions a distributor makes, as well as the interlinkages among the join, stay, and leave junctures in the distributor’s life cycle. Our analysis shows that many insights from these underlying academic research paradigms are robust to the direct selling situation, while others are not supported—suggesting that direct selling has many parallels, but is not a replica of, other non-direct-selling sales channels.

We find that individuals join as direct selling distributors for a variety of reasons, many of which combine multiple aspects of direct selling that a cluster of distributors finds attractive. Only a small proportion of joiners sign up purely for personal consumption of the direct selling firm’s products—but a great majority do join for this and other reasons as well. We further find that stated reasons for joining are frequently replaced by other motivations for staying as a direct selling distributor, consistent with the idea that distributors join without always knowing what direct selling will offer to them; they learn in the process of doing it. We also link certain traits as well as certain joiner and stayer types to the likelihood that a distributor will leave the firm; but interestingly, we do not find that a distributor’s reasons for joining have a relationship with his/her likelihood of leaving. Thus, the join/stay/leave life cycle path does show linkages from each stage to the next, but its failure to directly link join reasons to likelihood to leave is consistent with the learning that naturally occurs as distributors develop. Read full paper →

Managerial Implications:

  • Keep it easy, inexpensive to join, & easy to leave.
  • Poll your new distributors to learn their join-type and cultivate those who identify as social sellers and enthusiasts.
  • Communicate realistic expectations, do not over-promise—important for both “stay for business+social” and for “low intention to leave” distributor types.
  • There are many reasons for joining, staying
    and leaving.
  • Clearly communicate Rules of Conduct—direct ship has made inventory loading much less likely.
  • Poll stayers for signs of intention to leave because nature and nurture are both at work.
  • Invest in training/mentoring distributors in skills that increase productivity and retention: selling, landing new customers, recruiting/mentoring.
  • Cultivate financially successful stayers (retail sellers, income earners) à lower turnover.

Policy Implications:

  • Not all motivations are financial—there are many reasons for joining, staying or leaving a direct selling company.
  • Policy requirement to offer “preferred customer” status isn’t inherently good: most do not join solely for product discounts, but most do mention product discounts as one benefit.
  • Allow flexibility in ability to enjoy different direct selling distributor roles, at any given time across distributors and over a given distributor’s life cycle (social, not just income, can connote “success”).
  • Turnover is not diagnostic of poor performance or pyramid scheme threat—turnover is most likely in first year, when “learning on the job” about one’s fit with direct selling happens.
  • Judging a direct selling company by distributor income, “losses,” or turnover is not diagnostic of viability of business—even leavers do not uniformly blame the company.