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Improving Direct Selling Outcomes through Application of Predictive Analytics

By Caroline Glackin, PhD and Murat Adivar, PhD

The study applies predictive analytics to data from the 2018 National Salesforce Survey commissioned by the Direct Selling Association. It identifies key factors in salesforce motivation and performance theories studied within Expectancy Theory (Vroom 1964), Herzberg’s (1959) Two Factor Theory, and the job demands and resources model (JD-R) (Bakker and Demerouti 2007). Academic researchers dedicate substantial efforts to studying salesforce motivation and performance, but the power of machine learning has not been applied to direct sellers as independent representatives until now.

By employing supervised learning algorithms for predictive analytics to create models for (1) recruits and (2) existing independent representatives, the study finds that the most crucial factors align with Vroom’s Expectancy Theory (1964), which posits that motivation is influenced by the belief that effort will lead to desired outcomes. For recruits, the key predictors of selling success include allocated time for direct selling, ability to find new customers, gender, and adopting direct selling as a career. Time invested, experience of direct selling, recruitment, tenure, and use of technology are most predictive for top-producing direct sellers. Direct Selling Organizations (DSO) can customize their recruitment, training, and incentives to maximize sales performance by having such analysis for their organizations. This work has the potential to improve the landscape for recruitment, retention, and success.

Literature

DSOs foster an entrepreneurial culture and mindset through entrepreneurial training, tools, and professional networking (Peterson and Wotruba 1996). Crittenden, Crittenden, and Ajjan (2019) state, “Independent distributors are backed by established brands who provide them…quality products, marketing tools, business education, and a wealth of digital resources for professional and personal development.”

Representatives are DSOs’ go-to-market strategy and channel, and revenues depend on successful recruitment, retention, and performance. Because no sales experience is required and recruitment occurs primarily through an independent contractor salesforce, successful selection is essential. With a low entry cost for starter kits (average of $199 per Gamse, 2016), training, mentoring, and performance incentives matter.

DSOs focus on fostering entrepreneurial cultures and offering transparency in the company-distributor-customer dynamic (Fleming 2017). Traditional attitudinal variables like organizational commitment, expectations, satisfaction, and motivation matter (Kim and Machanda 2021). Non-pecuniary benefits, income, personal networks, and autonomy and others influence sellers (Coughlan et al. 2016, Wotruba and Tyagi 1992). These add to the broader sales performance literature.

DSOs have unique brands and cultures, which they share with sellers. This collaborative culture supports networks and promotes teamwork, coaching, and mentoring, rather than fostering competitive sales environments (Bhattacharya and Mehta 2000; Biggart 1989; Crittenden and Crittenden 2004; Lan 2016; Merrilees and Miller 1999). Representatives’ lives are intertwined with the brand and company, finding more than just a job but a community and worldview (Biggart, 1989). They often join for the products and stay for the supportive environment (Coughlan et al. 2016). Research suggests that meeting realistic expectations is more important than overselling for job satisfaction (Wotruba and Tyagi 1992).

The factors identified are like those for salesforces and entrepreneurs. This is logical, considering that direct selling representatives operate as self-employed micro-entrepreneurs with intricately linked relationships to their direct selling companies.

The underlying theoretical frameworks on needs, motivations, and expectations in the literature suggest determinants to examine. While machine learning remains agnostic to theory, classic research continues to add value to the discussion and is incorporated into the framework.

Sales Performance Determinants

We developed a taxonomy to identify key factors influencing direct selling representative performance, such as education, tenure, and experience. Without forming specific hypotheses, our evidence-driven approach highlights determinants like expectations, social benefits, commitment, organizational traits, and personal factors that impact salesforce motivation and performance. See Figure 1 for details.

Figure 1
Salesforce Performance Determinants from the Literature

 

 

Methodology

We created two classification models (Model I and Model II) to predict the sales performance of direct selling salespeople based on the predictors with the highest degree of accuracy (see also Glackin and Adivar 2023). Sales performance is assessed by the salesperson’s reported annual direct selling business net income.

A supervised learning approach in which the outcome is the independent sales representative’s financial performance, dependent on some direct seller-specific inputs is the least biased, strongest method available (Glackin and Adivar 2023; Habel et al. 2024). To attain the goal using supervised learning, we employ the 2018 DSA Salesforce Survey dataset of 6,941 direct selling representatives, including a range of personal factors, experiences, attitudes, and interests. DSOs among the 122 members of the Direct Selling Association distributed the survey. The survey queries on the respondent’s gender, desire to dedicate time to direct selling, capacity to find new clients, motives to become and remain representatives, and numerous other topics. The sample for this study is a subset of the entire dataset of 8,714 entries to incorporate active sales representatives who answered the question regarding net income from direct selling and did not respond “don’t know.”

The survey question regarding net income from direct selling is crucial, as it is used to gauge the direct seller’s financial success (performance) of direct sellers. This question in the survey could be answered with one of 15 income levels between $0 and $400,000. Our exploratory analysis indicates that DSOs should identify the characteristics of direct sellers who earn more than $10,000 annually in net income, which results from data clustering and as the accepted norm for “business builders” in direct selling. Even though this is a modest annual net income for a salesperson, it is a crucial level of productivity for the channel. The direct selling channel generated more than $30 billion in annual revenue, according to an approximate extrapolation of industry sales statistics predicting $40.1 billion in revenue in 2020 from the DSA 2021 Growth and Outlook Report. We construct our target response (“Above$10,000”) as a binary variable by combining 15 levels of the categorical variable.

Utilizing domain expertise and current literature, we tested variables that are readily available to DSOs and can predict the financial success of independent salesforces before and after recruitment. Using the variable selection and dimension reduction tools of our data analytics platform, we excluded the tested predictors that had no measured effect on the models’ precision. We combined the recorded states of the dependent variable into two levels as another dimension reduction strategy. Using best practices, we divided the dataset into training and validation sets, compared machine learning methods on the validation set, and raised the target-level accuracy of the selected classification algorithm by adjusting the classification probability threshold.

In this study, we utilize supervised learning to predict high-performing independent sales representatives before and after recruitment. Our supervised learning task is building classification models that predict the class of categorical responses. The data analysis platform is JMP Pro (by SAS) and requires the selection of suitable machine learning algorithms for classification. We employ the following classification techniques and evaluate probable independent variables to build two classification models: Decision Trees, Boosted Tree, Bootstrap Forest, Logistic Regression, and K-Nearest Neighbors. For superior performance in models, the independent variables with the strongest predictive contribution are employed as predictor variables.

Model I – Classification Model for Recruits

We used multiple supervised learning approaches (i.e., Decision Trees, Logistic Regression, Naive Bayes, K-Nearest Neighbors, and Bootstrap Forest) to identify the optimal model for predicting the success of an applicant based on data knowable at recruitment. We explored 16 independent and 14 underlying variables for model building. Model I intended to predict the direct seller recruits that were most likely to earn an annual net income of more than $10,000 from their efforts. Decision (classification) Trees with a particular profit matrix (connected with the goal response) produced the highest classification accuracy. In this study, 78% of validation data at the target level “Above10K=1” were correctly categorized by Model I with the set probability threshold value of 0.21.

These values can be interpreted as follows: In a scenario where a DSO employs this classification model to choose the top 20% of new representatives expected to net more than $10,000 annually from direct selling, the organization will receive 2.5 more target-level applicants than with “no model baseline.”

Table 1
Model I – Recruitment

Variable Survey Question/Predetermined Response Number of Splits G^2(*) Portion
HOURS_DS How many hours per week do/did you spend on your direct selling business? 6 789.1447 0.6744
ATTEMPT_SELL In a typical month, how many new potential customers do you attempt to sell to? 9 153.5405 0.1312
CAREER Direct selling is a career for me 6 71.2069 0.0609
GENDER Please indicate your gender 6 S1.2537 0.0438
DISCOUNT I get the products at a discount 6 37.5171 0.0321
SOCIAL To meet new people/expand my social circle 4 35.9346 0.0307
SUPP_INC Long-term supplemental income 9 31.487 0.0269

*In the report, G2 (likelihood-ratio chi-square) is twice the [natural log] entropy or twice the change in entropy. In classification trees, the largest G2 value is the dividing criteria. The portion column indicates die percentage of G2 or the sum of squares attributable to the variable (i.e.. portion column shows the contribution of the variable to the model)

Model II: Classification Model – Active Sales Representatives

In this part, we create a prediction model and identify the most relevant elements influencing the financial performance of current (active) direct salespeople utilizing determinants that are only available once a representative is an active independent representative. This model included 35 independent variables with their comprehensive underlying variables.

The outputs are described in Table 2.

Table 2
Model II – Active Sales Representatives

Variable Survey Question/Predetermined Response Number of Splits G^2(*) Portion (* *)
DOWNLIINE q55: What is the total number of independent representatives in your downline? 2214 391.8158 0.2493
HOURS_DS q13: how many hours per week do/did you spend on your direct selling business? 1504 216.9524 0.1380
SALESQUAL q14r4: I have developed a sales team of my own – Please answer the questions below based on your current direct selling experience. 546 176.9932 0.1126
TENURE q19: How long have you represented your company? 2029 130.2316 0.0828
SALESTYPE q38r1: Sales to your customers- Of all the orders you place per month, what percentage are: 1952 128.7537 0.0819
SATIS_DS q2I: How do you rate your actual experience in direct selling? Has it been…? 1389 124.1606 0.0790
MET_EXPECT q20: Now, please think about your expectations when you started direct selling. Has your experience… 1116 90.3898 0.0575
VIDEOCONF q65r5: I use Zoom, Skype, Google Hangouts (or other video conferencing) for business 1184 69.4189 0.0442
CAREER q23r1c2: Direct selling is a career for me 1072 67,2371 0.0428
INC_SATIS q78: How satisfied are you with the amount of money earned for the amount of time you spend on your direct selling business? 1303 62.7765 0.0399
SUCCESS_RCRT q52: In a typical month, how many people do you SUCCESSFULLY recruit? 958 45.0898 0.0287
AGE_GR Age Group 1550 39.6218 0.0252
LATINX q16 (Ethnicity): Are you of Hispanic or Latino origin? 858 28.5079 0.0181

(* *) Portion column shows the contribution of the variable to the model

The indication column “Above10K” is the response to which our analysis is directed. The estimation of the model’s accuracy is based on the misclassification rate across the validation set. Bootstrap Forest and Boosted Tree outperform other supervised learning algorithms with an 88% overall accuracy value. Nevertheless, in terms of target-level accuracy using the default classification probability threshold (i.e., 0.5), Bootstrap Forests performed best with a classification accuracy rate of 50.4% at the target level. We refer to this Bootstrap Model as Model II.

By applying such a model, the direct selling company will have a 3.66 times greater probability of predicting candidates at the desired level than if there were no model.

To interpret these numbers, assume that a DSO uses this model to estimate the top 20% of existing representatives anticipated to net more than $10,000 annually through direct selling. In this situation, the company will have a 3.66 times greater probability of predicting candidates at the desired level than if there were no model.

Results

Recruitment

Using individual data that DSOs may secure before and at recruitment, Predictive Model-I can generate the probability that a new candidate is a preferred prospect because they are appropriate to the target audience of direct sellers who can generate more than $10,000 net annual income from a direct selling business.

Deploying the predictive Model I on a new population can correctly classify almost 78% of candidates to generate a $10,000 annual net income from direct selling. DSOs can apply such a model to identify and recruit the most productive candidates. Even though 88.3% of representatives are part-time, the top performers are interested in devoting their sales time and view direct selling as a career. While only 11% of direct sellers are male, they are more likely to become top performers (34% versus 15%).

We show that if a direct selling company uses Predictive Model I to select the top 20% of new representatives who are predicted to be most likely to generate more than $10,000 annual net income, the company will get 2.5 times more productive candidates than “no model baseline.” Here, no model baseline classifies everybody as belonging to the majority class (e.g., not likely to make more than $10K) in the historical data. While DSOs do not screen recruits, they could use this data to determine the best prospects and design recruitment materials, campaigns, and support systems to optimize performance, as well as creating adaptive learning systems to support incoming recruit success.

If a direct selling company uses Predictive Model I to select the top 20% of new representatives who are predicted to be most likely to generate more than $10,000 annual net income, the company will get 2.5 times more productive candidates than “no model baseline.”

Retention, Growth, and Performance

By using determinants available only after the recruitment of an independent representative, we calculated the likelihood of financial success in Predictive Model II.

This can assist companies to focus on factors that most significantly contribute to the financial success of direct selling representatives to lead to increased company growth and performance. By using a Bootstrap Forest technique, we show that Predictive Model-II can correctly classify 84% of representatives who are more likely to generate more than $10,000 a year. DSOs can develop organizational training and support based on this knowledge.

Predictive Model-II can correctly classify 84% of representatives who are more likely to generate more than $10,000 a year.

Impacts/Discussion

Study outcomes suggest DSOs prioritize recruiting sellers dedicated to building careers (business builders), earning long-term income, and expanding networks. This involves revamping recruitment materials to attract high-quality prospects instead of a broad range of recruits. This approach aims to reduce turnover and resources spent. While ensuring inclusivity, incorporating more male and Latinx representation may enhance sales performance.

DSOs are responsible for retaining and growing their representatives. They must set realistic expectations, create a satisfying environment, encourage product sales, and foster positive experiences within the sales team. Managers should focus on career prospects, recruit customers, grow downlines, and use videoconferencing.

DSOs differ in business models, size, reach, customers, products, missions, and cultures. They can benefit from firm-level predictive analytics and channel-level data insights. However, they should consider the research limitations and improve them with advanced methods.

 


Dr. Caroline Glackin is the Thomas Family Distinguished Professor of Entrepreneurship at the University of North Carolina Pembroke.

Dr. Murat Adivar is a Professor of Management at Fayetteville State University

References

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What Drives Income, Advocacy, and Retention in Direct Selling? Identity, Fit, and the Role of Age

By Suzanne Altobello, PhD, Caroline Glackin, PhD, and William G. Collier, PhD

Introduction

Direct selling depends on independent representatives who choose to stay, advocate for the opportunity, and help grow the salesforce. Because representatives are not traditional employees, direct selling organizations (DSOs) often win or lose on perceived fit and meaning between the representative and the company, rather than formal supervision. We examined whether identity-related perceptions, such as commitment, shared values, identification, brand meaning and long-term orientation, help to explain three practical outcomes of income, willingness to recommend the DSO/direct selling to others, and likelihood of continuing as a representative.

This research explores how independent sales representatives integrate into the brand and company, and how to strengthen these relationships. Previous studies in the sales literature have examined salesperson/brand identification with the organization and the congruence between personal values and perceived values of the organization, but have not addressed these factors for contract salespeople. This survey was designed for replication and extension of Gammoh et al. (2014) and engaged direct sellers from two organizations.

We modeled three outcomes that matter to DSOs: gross income from sales of products or services by their independent salesforce to consumers (performance), a direct seller’s likelihood of recommending the opportunity to one’s network (advocacy), and a direct seller’s likelihood of continuing to represent the company over the next year (retention). We tested whether these outcomes were predicted by Social Identity Theory constructs including: organizational commitment, salesperson–DSO values congruence, brand distinctiveness, brand attractiveness, salesperson–brand identification, along with long-term orientation (individual planning; respect for tradition). Figure 1 provides brief definitions of our predictors and outcomes.

Figure 1
Predictors and Outcomes in Research Models

Theory and Hypotheses

Social Identity Theory

In practical terms, Social Identity Theory (SIT) helps explain why people work harder and stay longer when they feel they truly belong to a group or organization. Originating in social psychology, SIT argues that individuals define part of who they are through their membership in social groups, such as a company, a brand community, or a sales team (Fiske and Taylor, 1991; Tajfel, 1978; Tajfel and Turner, 1986; Ashforth and Mael, 2024). People tend to see their own group (the ingroup) more positively than other groups (outgroups) (Tajfel et al., 1971). When they believe their group has distinctive and attractive qualities, that pride in membership can boost self esteem and strengthen their desire to stay connected to the group (Fiske and Taylor, 1991). In sales and service settings, this logic underpins related ideas such as organizational identity (Karanika-Murray et al., 2015), moral identity (Itani and Chaker, 2022), perceived inclusion (Chen and Tang, 2018), salesperson brand identification, and salesperson company identification (Gammoh et al., 2014). All of these constructs capture how strongly people feel that “this organization or brand is part of who I am.”

For practitioners, the implication is straightforward: when representatives feel that “this company stands for what I stand for” and “this brand fits who I am,” they are more likely to stay, to advocate for the organization, and to deliver better performance.

Gammoh et al. (2014) and van Dick (2001) describe social identity as having cognitive, evaluative, emotional, and behavioral components. Cognitively, individuals see themselves as part of the group. Evaluatively and emotionally, they feel pride and positive regard for that membership. Behaviorally, they support the ingroup through actions that help and benefit it, such as going the extra mile for customers or defending the brand when it is criticized.

Gammoh et al. (2014) applied SIT to company employed salespeople and showed how these ideas translate into day-to-day performance. They found that when salespeople perceived strong value congruence (e.g., when their personal values matched the values of the brand and the company), they reported higher identification with both. This stronger sense of identity was linked to greater job satisfaction and organizational commitment. In turn, these attitudes were associated with more effective behavioral and outcome performance, including clearer communication and stronger sales results. For practitioners, the implication is straightforward: when representatives feel that “this company stands for what I stand for” and “this brand fits who I am,” they are more likely to stay, to advocate for the organization, and to deliver better performance.

Long-Term Orientation

Long-term orientation in selling captures whether a salesperson is focused on near-term transactions or on the future consequences of today’s behaviors for customer relationships and business outcomes. In sales settings, research suggests that a stronger consideration of future sales consequences, paired with customer-oriented selling, helps explain a salesperson’s long-term relationship orientation and related preferences such as favoring longer-term compensation approaches (Schultz & Good, 2000). Work on salespeople’s “relational time perspective” similarly argues that representatives with longer time horizons tend to set goals differently and rely more on cooperative, problem-solving approaches that support relationship development over time (Macintosh, 2006). More recent sales research also connects salesperson time orientation to outcomes such as sustained effort during a new product launch and customers’ willingness to pay more, highlighting that future-focused selling can matter for both salesperson behavior and customer responses (Agnihotri et al., 2019; Beuk et al., 2014).

Age as a moderator

For direct selling organizations, age is more than a demographic label; it can shape how representatives think about their role, how they relate to the company, and how they behave toward others. DSOs routinely attract people at very different stages of life, from young adults looking for a side income to older adults seeking flexible work in semi-retirement. Although research on how Social Identity Theory operates by age is still limited, several studies suggest meaningful age differences in the behavior component. Matsumoto et al. (2016) find that older individuals tend to engage in more prosocial behaviors, while Lockwood et al. (2021) report that adults aged 55 to 84 are more willing to help others than adults aged 18 to 36. Cutler et al. (2021) show that older adults are especially likely to direct prosocial behaviors toward people they see as members of their own group. In sales contexts, Day (1993) also finds that older salespeople set higher annual sales goals and achieve them just as well as younger colleagues. For DSOs, recognizing these age-related patterns can support more precise recruitment messages and motivational strategies that align with representatives’ life stage and long-term orientation, rather than using a single approach for all age groups.

Method

A quantitative survey was sent via email to independent representatives of two established member companies of the Direct Selling Association. Both companies were similar in product characteristics but differed in overall revenues. All participant responses were anonymous and went directly to the research team. Companies did not have access to any raw, individual-level data.

Measures

The dependent variables in the analysis are each respondent’s gross income from direct selling in the previous year, the likelihood of recommending becoming an independent sales representative to a friend or family member, and the likelihood of continuing to represent the company over the next year. The independent predictor variables included: salesperson/company identification, salesperson/company values congruence, salesperson/brand identification, brand distinctiveness, brand attractiveness, organizational commitment, and long-term orientation. All SIT predictors were measured using established scales from Gammoh et al. (2014). Long-term orientation was measured using the Bearden et al. (2006) scale, which operationalizes long-term orientation at the individual level as two related factors: planning and tradition.

Sample profile

A total of 592 representatives started the survey; 295 respondents had complete data across all predictor and outcome measures. The ages of all current independent sales representatives ranged from 18 to 74, with a mean of 45.81 (SD = 11.24) years, with no significant differences in age between the companies.

Most respondents were between 40 and 50 years old (39.5%) and female (88.3%).

Almost 70% are married, with approximately equal percentages of single (8.2%) and divorced/separated (9.5%) respondents. Most representatives had no children under 18 at home (40.8%), with equal percentages having one (17.4%) or two children (20.8%). Most respondents were not of Hispanic or Latino origin (84.8%) and had attained an associate’s degree or some college (29.9%) or were college graduates (30.6%).

Results

We first estimated separate stepwise regression models for each of the three outcomes.

We used all respondents in these initial analyses and did not separate by age group.

For sales performance (as measured by the respondent’s reported gross income from direct selling), organizational commitment was the only predictor that showed a statistically significant relationship. Representatives who reported higher organizational commitment also tended to report higher gross income from direct selling. None of the other predictors added meaningful explanatory power once commitment was taken into account.

For the advocacy outcome (as measured by the likelihood of recommending the DSO), organizational commitment and salesperson/company values congruence were the only significant predictors. Representatives who felt more committed to the organization and who perceived a stronger match between their personal values and the DSO’s values reported a higher likelihood of recommending the opportunity to others.

For the retention outcome (as measured by the likelihood of continuing as a representative over the next year), salesperson/company values congruence and brand distinctiveness emerged as significant predictors. Representatives who saw a stronger match between their own values and the values of the DSO, and who viewed the brand as meaningfully different from alternatives, were more likely to say that they intended to continue representing the company.

Table 1
Significant Predictors of Direct Selling Outcomes for all Representatives

Outcome Model Fit Significant Predictors β t Sig.
Performance R2 = .018, F (1, 282) = 5.114, p < .025 Organizational
Commitment
.133 2.261 .024
Advocacy R2 = .344, F (2, 281) = 73.69, p < .001 Organizational
Commitment
.405 6.597 <.001
Salesperson/DSO Values Congruence .242 3.935 <.001
Retention R2 = .325, F (2, 281) = 40.858, p < .001 Salesperson/DSO Values Congruence .378 6.195 <.001
Brand Distinctiveness .153 2.500 .013


Age as a Moderator

We then examined whether the patterns just described varied by age group.

Respondents were grouped into three categories: under 40, 40 to 50, and 51 and older, and the regression models were re-estimated within each group. For performance, no variables remained significant once the sample was split by age, so age related differences in income are not interpreted further.

For the likelihood of recommending the DSO, the predictors differed by age group.

Among representatives under 40, those who saw the brand as attractive and who felt strongly committed to the organization were more likely to say they would recommend the opportunity. For representatives aged 40 to 50, recommendation was highest when three elements coincided: they felt that their personal values matched the DSO’s values, they viewed the brand as attractive, and they reported strong organizational commitment. Among representatives 51 and older, a different pattern emerged. In this group, advocacy was higher when they perceived a strong values be match with the DSO, saw the brand as clearly distinctive from others in the market, and the sales rep had a stronger long-term, tradition-oriented outlook. At the same time, those over 50 who perceived the brand as highly attractive were actually less likely to recommend it.

Table 2
Positive and Negative Patterns of Predictors for Advocacy Outcome by Age Groups

Predictor Under 40 40–50 51+
Organizational commitment + +
Salesperson–DSO values congruence + +
Brand attractiveness + +
Brand distinctiveness +
Long-term orientation: respect for tradition +
Long-term orientation: individual planning
Salesperson–brand identification

 

For the likelihood of continuing with the DSO, a similar pattern of age specific drivers emerged, as shown in Table 3. Among representatives under 40, salesperson or DSO value congruence and brand attractiveness were significant positive predictors of continuation intentions. In the 40 to 50 group, brand attractiveness and the long-term orientation dimension capturing individual planning were significant and positive. Retention again looked different for the oldest group of representatives (51+). For older representatives, a strong values match and a clear sense that the brand is unique went together with stronger continuation intentions.

However, in this same age group, those who said that the brand felt very much like “me” and those who saw the brand as very attractive were less likely to say they planned to continue.

Table 3
Positive and Negative Patterns of Predictors for Retention Outcome by Age Groups

Predictor Under 40 40–50 51+
Salesperson–DSO values congruence + +
Brand attractiveness + +
Brand distinctiveness +
Salesperson–brand identification
Long-term orientation: individual planning +
Long-term orientation: respect for tradition
Organizational commitment

Discussion

For performance, organizational commitment was the only consistent driver in the full sample. When the sample was split into age groups, the income patterns were less stable and did not yield clear age-specific drivers. For independent sales representatives in this dataset, sales performance is tied most closely to whether representatives felt a durable bond with the organization.

For the advocacy outcome, across the full sample, recommending the DSO was higher if representatives were committed to the organization and their sense that the DSO’s values matched their own. When we examined advocacy by age groups, organizational commitment mattered for younger and midlife representatives, and values congruence mattered strongly for older representatives (notably, though, brand attractiveness moved in the opposite direction for this group).

For the retention outcome, for all representatives, the strongest pattern for continuing with the DSO was a values match with the DSO plus a belief that the brand is meaningfully distinctive. When separated by age, values congruence remained important for the youngest and oldest groups, while brand attractiveness mattered for the younger and midlife groups. The older representatives in this sample appeared less likely to continue when the brand felt highly attractive or when the representative reported that the brand felt very much like “me.”

Practical Implications and Conclusions

Our results can be applied to existing independent sales representatives and extend to recruitment and onboarding new representatives. The DSO should begin with a shared core that strengthens organizational commitment and clarifies the organization’s values in observable, day-to-day terms; these two levers showed up repeatedly across this study’s three outcomes, and they are also the easiest to standardize across the salesforce.

Figure 2
Age-based Recommendations for Company Training and Onboarding

In Figure 2, we illustrate how the DSO can layer age-guided emphasis without changing the company’s fundamentals. Under 40 messaging and training could lean more heavily on brand attractiveness while quickly converting interest into commitment through early wins for the sales representative, belonging cues, and visible support through their upline. For ages 40–50, training might intentionally combine values fit, attractiveness, and commitment, then reinforce consistency through planning routines that keep the opportunity feasible alongside work and family obligations. For 51 and older, the emphasis could shift toward values congruence and brand distinctiveness, using concrete proof points and a trust-forward message; in this group, leaders should be careful about overreliance on hype or purely aspirational branding because it can work against advocacy and retention.

Figure 3
Proposed DSO Toolkit Architecture

In Figure 3, we propose an overall toolkit architecture that DSO managers and leaders can use in coaching, communications, and recognition. The first toolkit could be a values fit toolkit that includes brief screening prompts during recruiting, a “values in action” onboarding module that shows how values appear in product claims and team norms, and mentor check-ins that surface misalignment early. The second toolkit could be a distinctiveness toolkit that gives representatives a one-sentence “why us” statement, compliant comparisons, and customer stories that make the brand’s difference easy to explain and hard to copy. The third toolkit could be a planning toolkit that provides weekly activity plans, 90-day goals, and pipeline tracking, especially for the 40–50 segment where planning aligned with continuation.


Dr. Suzanne Altobello is the William H. Belk Distinguished Chair of Business Administration and Professor of Marketing at University of North Carolina Pembroke.

Dr. Caroline Glackin is the Thomas Family Distinguished Professor of Entrepreneurship at the University of North Carolina Pembroke.

Dr. William Collier is an Associate Professor of Cognitive Psychology at the University of North Carolina Pembroke.

References

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Direct Selling Today: Storied Companies and Brands, Millions of Entrepreneurial Americans

By Monica Wood

Direct selling is a go-to-market strategy that is an alternative channel to retail. Individual independent distributors market and sell products and services to consumers in direct selling. The channel allows companies to reach customers through personalized interactions rather than relying on traditional storefronts. It also offers distributors flexible earning opportunities by building relationships and leveraging word-of-mouth marketing.

Some of the world’s most storied companies and recognizable brands market today’s leading-edge products through the direct selling channel – these include jewelry, cookware, nutritionals, cosmetics, housewares, energy, insurance, and much more. By leveraging direct selling, these companies create a more personalized customer experience that highlights product benefits in real-world settings. This approach also allows brands to expand their reach through trusted relationships and community-based engagement rather than traditional retail environments.

The direct selling channel differs from broader retail in how it gets great products and services into the hands of consumers. It’s an avenue where entrepreneurial-minded Americans can represent the products they love, while they work independently to build a business on their own terms. This personalized model allows consumers to engage with products through trusted, one-on-one interactions that traditional retail rarely provides. It also empowers individuals to turn their passion into income by building customer relationships and growing their business at their own pace.

Consultants forge strong personal relationships with prospective customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, direct selling is a strategy that many marketers of consumer products find more effective than traditional channels. By combining personal interaction with digital outreach, consultants can create a seamless customer experience that builds trust and engagement. This hybrid approach allows brands to reach consumers where they are—both online and in their communities—while maintaining the authenticity and connection that drive purchasing decisions.

Millions of Americans from every state, congressional district and community in the United States choose direct selling because they enjoy a company’s products or services and want to purchase them at a discount. Some decide to market the products they love to friends, family, and others and earn commissions from their sales. The most successful consultants may decide to expand their businesses by building a network of direct sellers. This model allows individuals to grow at their own pace, whether they simply want to save money or aspire to build a business. As a result, direct selling attracts a broad mix of people who value flexibility, community, and the ability to shape their own economic futures.

Ninety-two and a half percent of direct sellers decide to work part-time, offering busy parents, caregivers, military spouses, veterans, and others flexibility and work-life balance. As advancements in technology create a new American economy whose foundation is built upon the entrepreneurial spirit and independent work, historically, direct selling has been one of the oldest ways millions of Americans have chosen to work independently—long before the advent of the Internet. Direct selling has a long history of substantially contributing to the economy and supporting the millions of Americans involved.

Its adaptability has enabled the direct selling channel to remain relevant through changing economic conditions, technological evolutions, and shifting consumer behaviors. This longstanding resilience underscores the sector’s role as a reliable pathway for individuals seeking autonomy and economic opportunity.

$34.7 Billion in Retail Sales and 5.4 Million Direct Sellers
Salesforce make up: Direct Sellers, Discount buyers, preferred customers

5.4 million direct sellers have built a full-time business (30 or more hours/week) or part-time (fewer than 30 hours/week) representing a correction after the hypergrowth of the pandemic. These people sell products/services to consumers and may sponsor people to join their team.

34.3 Million Preferred Customers/Discount Buyers

6.8 million Discount Buyers are eligible to purchase, sell and sponsor but currently only purchasing products and services they personally enjoy and receive at a discount.

27.5 million Preferred Customers have signed a preferred customer agreement with a direct selling company where they may be entitled to pay wholesale prices for products and services but are not eligible to sell.

Demographics by gender-27% male and 73% female

Demographics in 2024: Women, Hispanic participation other highlights

The demographic data show that the direct selling population is predominantly female, with women representing 73% of participants, and most individuals fall within the 35–54 age range. Participation spans all age groups, indicating that direct selling appeals to both younger adults seeking flexibility and older adults pursuing supplemental income.

Demographics by raceWhen considering direct seller ethnicity, 19% of participants identify as Hispanic, reflecting meaningful engagement from a key and growing demographic segment.

Sales by Category (2024)

The 2025 Growth & Outlook survey results indicate that service-based offerings have experienced substantial growth and now represent the largest share of sales, highlighting strong consumer interest in digitally enabled and value-added services. Wellness products continue to maintain a significant portion of the market, demonstrating their enduring appeal. Meanwhile, the gradual shifts in product-oriented categories—such as personal care, home and family care, clothing, and leisure—represent opportunities for companies to innovate, reposition their portfolios, and meet emerging consumer preferences more effectively.

State Breakdown of Retail Sales/Salespeople by State (2024)

12.2 million people in the U.S. signed or renewed independent contractor sales agreements with direct selling companies in 2024. Of these 12.2 million, 5.4 million worked to build businesses and 6.8 million were discount buyers who purchased products for their own use but chose not to build a business. These estimated direct sales and people-involved figures are extrapolated based on 2025 Growth & Outlook Survey data submitted directly from DSA members.

State/Territory People Involved in Direct Selling Retail Sales
Alabama 120,971 $446M
Alaska 69,150 $162M
Arizona 231,808 $620M
Arkansas 116,320 $362M
California 1,285,088 $3.9B
Colorado 276,515 $626M
Connecticut 96,649 $284M
Delaware 35,730 $127M
Florida 827,479 $2.2B
Georgia 396,711 $1.1B
Hawaii 53,605 $85M
Idaho 103,444 $246M
Illinois 425,529 $1.2B
Indiana 309,809 $857M
Iowa 204,866 $647M
Kansas 133,993 $353M
Kentucky 142,370 $404M
Louisiana 134,146 $465M
Maine 64,641 $187M
Maryland 195,114 $531M
Massachusetts 140,495 $434M
Michigan 359,404 $0.9B
Minnesota 266,638 $714M
Mississippi 130,921 $616M
Missouri 194,361 $492M
Montana 68,031 $160M
Nebraska 117,414 $344M
Nevada 107,862 $266M
New Hampshire 84,186 $226M
New Jersey 257,016 $762M
New Mexico 81,552 $213M
New York 591,642 $1.9B
North Carolina 410,045 $1.1B
North Dakota 61,152 $188M
Ohio 416,559 $1.0B
Oklahoma 191,781 $459M
Oregon 142,972 $418M
Pennsylvania 395,806 $1.0B
Rhode Island 35,506 $111M
South Carolina 182,085 $470M
South Dakota 66,977 $201M
Tennessee 248,566 $758M
Texas 1,219,347 $3.6B
Utah 190,869 $514M
Vermont 19,937 $72M
Virginia 282,753 $706M
Washington 226,305 $611M
West Virginia 62,501 $175M
Wisconsin 278,227 $816M
Wyoming 39,040 $90M
District of Columbia 8,464 $18M
Guam 7,006 $8M
Puerto Rico 63,550 $544M
U.S. Virgin Islands 1,458 $6M
N. Marian Islands 14 $15M
American Samoa 171 $0.2M
Overseas U.S. Military 4,421 $14M

Looking Forward: What Consumers Think

The direct selling channel remains a viable and strategically significant avenue for companies that prioritize innovation and align their offerings with contemporary consumer expectations. The increasing integration of artificial intelligence is improving the training, development, and empowerment of prospective sales representatives, thereby fostering heightened entrepreneurial engagement across the sector. The continued emphasis on product quality and meeting consumer needs is critical to establishing a strong foundation for sustainable growth. Additionally, as consumer preferences evolve in a dynamic marketplace, opportunities for long-term competitiveness within the direct selling landscape are likely to increase.

 

 

 

Key findings from DSEF 2024 Consumer Attitudes Study – trends moving in Direct Selling’s direction

Entrepreneurial trends show an increase in participation in activities like direct selling, gig work, and online selling. The number of respondents working as direct sellers has tripled since 2008, with 1 in 3 expressing specific interest in the direct selling opportunity.

Key attributes that draw consumers to direct selling include the opportunity to support local businesses, access to distinctive products, and engagement with knowledgeable sellers. Social media continues to serve as an important mechanism for direct sellers to reach prospective customers, despite a decline in its perceived usefulness for maintaining connections and staying informed.

Overall, the study reflects a growing interest in flexible work arrangements, including direct selling. In an effort to enhance its appeal, the channel might consider further leveraging its strengths—such as personalized service, unique product offerings, and a strong sense of community.


Monica Wood is the Vice President of Consumer and Member Insights at Herbalife and Chair of the DSEF Industry Research Committee.

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.