Avon calling!
If you’ve gone your whole life without hearing that knock at the door, you’d be one of few. Almost half a million Australians are involved in the direct selling industry, making an estimated two million home visits every month. Far from becoming outdated, direct selling continues to increase in popularity thanks to social media and a whole new generation of business-savvy consultants.
The younger Gen Y demographic have a tendency to want to be their own boss and want to be part of something where they can learn business skills,” explains Amway’s head of marketing Rod Taylor. With more than 100,000 Australian and New Zealand independent business operators (IBOs), the number of Amway representatives continues to increase, with the number of people joining the company this year up more than 15 per cent on last year.
The benefits of the direct-selling business model
Any company that utilises direct selling will praise this business model for having benefits for both the consumer and the budding entrepreneur, with one of the biggest advantages over traditional retail being the personalised experience it gives consumers. A customer gets a one-on-one service, they can trial products, and get advice on how to use them – with , a customer is not just another number,” says the brand’s head of business development, Shelly Warrington.
The winning combination, it seems, comes from matching a shopping experience with a social encounter. The consultants get to know their customers and are able to make product recommendations to meet their needs as well as follow up on new products and specials,” reiterates Paul Armstrong, managing director of , Australia and New Zealand. Also, our Nutrimetics parties create a fun atmosphere that customers can enjoy with their friends.”
For consultants, direct selling allows for personal business growth, but with the support and reassurance of being part of something bigger. independent beauty consultants are provided with extensive training to help start and grow their business and can earn income through selling products, sharing the business opportunity with others and building their own team,” says Jenny Bray, national education manager for Mary Kay Cosmetics.
Taylor says Amway consultants are rewarded financial incentives for their efforts. We pay bonuses and other incentive rewards based on sales volumes IBOs achieve.”
We offer a flexible opportunity for [women] to develop and grow in confidence through having their own business,” says Armstrong. Whether they choose to have a part-time business that gives them some extra income or choose to turn it into a career, it is up to them. And we provide the training and support to do this.”
Who’s the new consumer?
Rather than technology sounding the death knock for direct-selling, technology and social-media platforms have allowed companies such as Amway, Nutrimetics, Avon and Mary Kary to reach a new audience of representatives and consumers. Technology has been the biggest change in the industry in the last decade or so,” says Armstrong. It not only gives our consultants new tools to run their business, but new ways of communicating to and attracting customers.”
Taylor agrees, Amway has adopted social media platforms Facebook, You Tube and Twitter to generate greater brand awareness and create two-way engagement with our IBOs and their customers.”
The Australian market
While still far from reaching the popularity it has in South America – where there are reportedly more Avon representatives in Brazil than there are members of the armed forces – the direct-selling industry in Australia continues to produce promising results. Avon alone delivers over a million brochures with each campaign in Australia, which happens every three weeks,” says Warrington.
The great thing about direct selling is that it has been hugely successful in any region that it has entered. There would appear to be universal appeal in people embracing free enterprise,” explains Taylor. Those people, it seems, are an increasingly younger breed.
We are seeing an increase in younger consultants,” agrees Bray. The May Kay business is an attractive income opportunity, particularly for young mothers returning to work with family commitments, and are looking for that work/life balance and flexibility.”
Gen Y is increasingly embracing starting their own business and has become an important audience for Amway,” says Taylor. Currently 50 per cent of our new recruits are under the age of 30.”
One entrepreneur who fits into that category is Kirsty Hilton, who became a Nutrimetics consultant when she was 25. My mum was a consultant and I’d seen all the great work she’d been doing,” Hilton, now 30, recalls. I was moving out of home and wanted to continue using Nutrimetics products as well as earn a little money part-time.” After selling products straight from brochures in the beginning, Hilton eventually worked her way up to parties to eventually become and executive sales manager. I now earn more than I was earning in my full-time marketing job and the best thing is that I’m working for myself,” says Hilton.
What’s the future of direct selling?
With a new generation of consultants and consumers, and an increasing number of ways to reach them, the future of direct selling in Australia looks bright. Personal relationships are something we crave as human beings and this is a key part of direct selling,” says Armstrong. As all our consultants work for themselves, they can also add their own personal touch – something that is very limited or non-existent in online and retail selling.”