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MLM 4.0: It’s a New Era

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Look no further than the buzzing mobile device in your purse or pocket to see that we’re living in a different world than thirty, twenty and even ten years ago. With access to information at our fingertips and tools to connect with people around the globe, recent technology has reshaped our world.

The direct selling industry is no stranger to this wave of change; we’ve adapted to and benefited from evolving technology since our beginning. In the early days, distributors built up what amounted to mini warehouses of products in their own homes and delivered products to customers themselves. That era, the MLM 1.0 of years past, gave way to a new generation in the 1970s and 1980s, when phone calls became cheaper and computers more prevalent. It was then that shipping services like Federal Express sped up mail orders and allowed distributors to focus less on handing out products and more on building teams. MLM 2.0 shifted to 3.0 upon the advent of the internet in the 90s and its growth in the early 2000s, when direct selling companies took advantage of the web as a new platform to provide resources, connect to customers and promote products.

It’s clear that our industry has adapted significantly in the past decades. However, recent technological changes in the past few years have taken the potential for growth to a whole new level. This is not just another step in the process of evolving—it’s the beginning of an industry revolution.

Welcome to MLM 4.0.

Opportunities for growth

As the internet weaves seamlessly into our day-to-day lives, direct selling companies are judged based on an entirely new set of criteria than in the past. Three developments in commerce and culture in particular are changing the way MLM companies can and should do business, providing opportunities for new growth:

1. Social networking and personal interaction

An estimated six out of ten people worldwide currently log in to a social networking site at least once per day, and approximately 1.5 billion people total around the globe use social networks, according to 2012 research by InSites Consulting. Although Facebook has diluted the term “friend” and quantified social interaction with comments and “likes,” we are really only beginning to understand the impact social media has on relationships and how we interact with each other. Can social media compensate for the credibility and trust of relationships built face-to-face? That’s the question of the hour.

One thing is certain: it is now easier than ever to bridge the gap between time and space and reach out to people online. MLM leaders are tapping into this distinct internet power to build teams and provide leadership to their organizations. Companies have new options to connect with customers around the world like never before.

2. E-commerce and consumer behavior

E-commerce is booming, and consumers continue to actively seek out information and product reviews online before committing to purchases. According to 2012 research by InSites Consulting, 53% of smartphone owners use their device to compare prices when shopping, and 63% of internet users say they consider positive product reviews before making a purchase. The internet has made it easy to be a savvy, informed customer.

Direct selling companies can meet customers’ thirst for information and help guide their decisions by providing resources, testimonials, and customer reviews on their own websites and through social media outlets. Creative loyalty and reward programs and strategies such as gamification are powerful modern incentives to keep customers coming back.

On the process end, direct selling companies must have e-commerce systems that are efficient, secure, and streamlined to establish consumer trust and keep pace with how even the most elite e-commerce companies do business online.

3. Mobile devices and information access

According to 2012 research by the Pew Internet Project, approximately 45% of American adults use smartphones. Mobile web browsing is on the rise: from 2010 to 2012 alone, mobile share of total web traffic increased by an estimated 162% worldwide, according to research by tech company Pingdom.

Mobile access to the web has changed the immediacy of business and the ease of information flow. Direct selling companies have the unprecedented ability today to put valuable content into the palms of customers’ hands, thereby merging its products, opportunity, and company culture with customers’ day-to-day lives.

As companies compete for consumer attention, a strong web presence is essential—and that includes more than just the company’s own content. Because anyone can have a voice online and published criticism dies hard, direct selling companies must be finely tuned into customer concerns and address negative feedback.

Looking forward

Many MLM companies have responded to these and other technology and consumer changes by building better websites, beefing up information access online, and adjusting e-commerce shopping systems to be more efficient. Yet this is only scratching the surface of the potential strategies and innovations MLM companies can undertake to grow in this new era.

Here at MLM.com, we are turning our attention to the unique opportunities facing direct selling today, and the implications for the future of the industry. Join the revolution as we explore how to usher in a new generation of MLM 4.0 success.

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