It has been this way since jobs were a thing: You do a day’s work, you get a day’s pay.
This is how most people live. They grind out a living by trading a chunk of their time for a chunk of someone else’s money.
They may not be thrilled about it, but they’re probably grateful to have a “gig”—a reliable means of supporting themselves.
Of course, not everybody lives this way. Those who own the right tools and assets can generate income repeatedly after performing some up-front work.
For example, landlords buy houses once and then charge monthly rent countless times. Savvy investors pay up front for stocks that will generate dividends for years to come.
Who wouldn’t want to be able to generate a theoretically limitless income that’s not tied to the number of hours they worked that week?
Call it leverage, residual income or cash on demand. There’s no doubt that this concept appeals to just about everyone.
But most people who join your direct selling business don’t think you can help them achieve it. So why do you keep promising it?
The Two Big Problems with Promising Big Money
If we’re speaking in abstraction, then yes, most people who join your company would probably love to achieve a hefty residual monthly income after putting in some initial footwork. But at DirecTech Labs, we’ve come to learn that that’s not the primary reason most people join direct selling firms.
Why do they join? Believe it or not, many of them are just looking for a gig. And so rather than (or perhaps in addition to) becoming an Uber driver or Amazon Prime delivery person, they figure they’ll supplement their income by sharing products they love.
Nevertheless, too many direct selling companies continue to assume that people are signing up with dollar signs in their eyes. So they keep making big promises to potential distributors. To be fair, most companies do a good job of supporting distributors who are thinking big.
But there are a couple of problems with waving huge dollar figures in front of distributors’ faces. The first problem is that only a tiny percentage of distributors ever reach those lofty heights. It’s verifiable through public income disclosure statements that most distributors don’t even come close.
The bigger problem is that, again, a huge residual income isn’t even what our target audience wants most. As we learned in a workshop at the recent DSA Annual Meeting, the millennials who are quickly entering the workforce today value the flexibility to work when and how they want, the freedom to be their own bosses, and the choice to be able to work on the things they’re passionate about.
Sounds a lot like what your direct selling business can offer them, right? So avoid telling them about the potential to pull in five or six figures per month—even if your top distributor has gone on record saying that she routinely hits this mark. These promises do extraordinary damage to your brand and reputation in the medium and long-term. And on top of that, it’s no longer a message that resonates with the desires of today’s market of potential recruits.
The Answers Are Out There. Here’s How to Find Them
So, is the answer as simple as going out to your target audience with a message of flexibility, freedom, and passion? Not quite.
Within the large audience of future distributors you hope to attract, there will be a few who want the big bucks. And there will be a much larger number who simply want a fun and flexible way of earning their student loan payment for the month.
But there’s also everyone in between.
Before you can reach each of these audiences with the right messaging, you must first understand them more deeply than almost every company and executive does today.. We’ll share more about how to do that in our next article.
Check this article to see how DISTRO® can reduce attrition by segmenting your Field.