Debunking the Myth of Direct Selling’s 90% Failure Rate
Over the years, direct selling has demonstrated its value to individuals, communities, and even national economies. Recent periods of flux have caused the industry to boom, and analysts are predicting exponential global growth in the next five years.
Despite this, critics continue to spread the misconception that achieving success in direct selling is almost impossible. Some claim that 90% of individuals who enter the industry are doomed to fail. There are numerous reasons why this claim is invalid, and it is crucial to have a better understanding of direct selling and business in general to debunk this wildly exaggerated myth.
Success and Failure: The Reality of Every Job
To begin with, there is no such thing as a guarantee in any business or line of work. Across various industries and for various reasons, businesses fail all the time, with only about 25% making it to the 15-year mark. Therefore, direct selling’s so-called “failure rate” is not an outlier.
It’s worth noting that statistics are never straightforward. There are always variables at play that can affect any situation’s outcome. As such, success and failure can be influenced by a wide range of factors, whether one is a direct seller, restaurateur, or construction worker.
For example, technological changes and new government policies can significantly impact the job market, and unexpected events like pandemics and geopolitical tensions can create challenging economic conditions.
To illustrate this further, consider: Only 30% of small businesses can survive a decade; in the height of the Covid-19 pandemic, 60% of temporarily closed restaurants in the US eventually could not reopen. Meanwhile, less than 1% of aspiring authors ever see their work published, approximately 40% of new teachers leave the profession early, and only 2% of actors are able to earn a decent living.
Hard Work and Patience: The Basic Requirements in Direct Selling
Direct selling is not a shortcut to getting rich quickly, nor is it an investment scheme or any guaranteed path to success. If you enter this business expecting to make much money fast, you will likely be disappointed. While direct selling eliminates many barriers to traditional entrepreneurship, it is like any other sales business. Only hard work and patience in making sales can bring financial returns.
It is possible to achieve financial success through direct selling, which is why many individuals do. However, it is crucial to understand that direct selling is not a lottery ticket. The biggest hurdle to success is the belief that it can be obtained overnight with little effort.
Success Requires a Mindset Shift
Direct selling allows anyone, regardless of background or experience, to become a business owner and succeed. Still, it requires a significant shift in mindset, particularly for those accustomed to receiving a regular paycheck as employees.
To succeed in direct selling, one must adopt a growth mindset, continuously learn, develop short and long-term plans, build, and invest in a team, and work patiently towards holistic achievements. The focus should be on building a sustainable business rather than simply seeking comfort or quick financial gains.
Defining Success for Direct Selling Entrepreneurs
Small businesses led by entrepreneurs have a different definition of success compared to publicly traded companies, whose focus is on maximising shareholder value. Success can be perceived differently depending on the individual.
While financial gains are crucial, some entrepreneurs are motivated by the idea that profits are just one step in creating lasting change. Along with a focus on the bottom line, business owners are driven to empower others and help them take control of their lives. This is why many choose direct selling, as it offers personal and professional enrichment opportunities often provided by the company. Through these, entrepreneurs can acquire business skills and knowledge while calling all the shots for their businesses.
It is important to remember that the path to success is never easy. Direct selling entrepreneurs face many twists and turns in their journey, which contribute to making their lives richer. There is immense value in people’s ability to navigate the ups and downs of their entrepreneurial pursuits. Success is what one makes of it, not wildly inflated statistics.