| Author’s Preface |
x |
| Preface |
xiii |
| Author’s Acknowledgements |
xvi |
| A Parable |
|
| A Direct Sales Parable |
1 |
| Conclusion |
10 |
|
| |
|
| Section
I: Introduction to the Direct Sales Industry |
11 |
|
| Chapter
One |
|
Direct Sales An Alternative Method of Distributing Products
and Services
|
14 |
|
Introduction
|
15 |
|
Standard Contemporary Retail Sales
|
17 |
|
Distribution of Products: Standard Contemporary Retail
Sales
|
18 |
|
Alternatives to Standard Contemporary Retail Sales
|
21 |
|
Direct Marketing
|
21 |
|
Alternative Contemporary Direct Sales Methods
|
26 |
|
Conclusion
|
31 |
|
Chapter One Questions
|
33 |
|
|
| Chapter
Two |
|
Direct Sales Compensation Structures and Compensation
Plans
|
37 |
|
Introduction
|
38 |
|
Becoming an Independent Representative: Enrolling and
Sponsoring
|
40 |
|
Purchases from Direct Sales Companies
|
42 |
|
Compensation Structures and Compensation Plans
|
44 |
|
Basic Elements and Components Common to Compensation
Structures and Compensation Plans
|
54 |
|
An Overview of the Basic Industry Compensation Structures
|
68 |
|
Similarities Between Companies That Use Network Compensation
Plans and Those That Use Multi-Level Compensation Plans
|
84 |
|
Some Basic Components of Compensation Plans
|
85 |
|
Similarities Between All Direct Selling Companies
|
89 |
|
Conclusion
|
90 |
|
Chapter Two Questions
|
92 |
|
|
| Chapter
Three |
|
Direct Sales: A Viable and Valuable Industry
|
95 |
|
Introduction
|
96 |
|
A Review of Direct Sales Compensation Systems
|
98 |
|
Basic Advantages of Becoming a Direct Sales Independent
Representative
|
105 |
|
Obstacles to Success in the Direct Sales Industry
|
119 |
|
Conclusion
|
124 |
|
Chapter Three Questions
|
126 |
|
|
| Chapter
Four |
|
Product A Foundation for Success
|
129 |
|
Introduction
|
130 |
|
The Four Foundational Elements of Success
|
132 |
|
The Role of Product
|
134 |
|
Direct Sales Product Life Cycle
|
138 |
|
Success is Based on Product Value
|
145 |
|
Illegal "Schemes" Which Are Not Legal/Legitimate
Direct Sales Companies
|
147 |
|
Conclusion
|
158 |
|
Chapter Four Questions
|
160 |
|
|
|
|
| |
|
| Section
II: History and Legal Environment of the Direct Sales Industry |
163 |
|
|
| Chapter
Five |
|
History of Direct Sales
|
165 |
|
Introduction
|
166 |
|
Legal Influences on the History of the Direct Sales Industry
|
170 |
|
Historical Stages of the Direct Sales Industry
|
|
|
• Stage One: Direct Sales Prior to a Direct Sales
Industry
|
172 |
|
• Stage Two (1910-1945): Earliest Stage of an
Organized Direct Sales Industry Begins
|
|
|
When the First Industry Association is Formed
|
176 |
|
• Stage Three (1945-1970): Network and Multi-Level
Compensation Structures are Introduced; Industry Growth
Accelerates
|
181 |
|
• Stage Four (1970-1980): Industry Self-Regulation
and Legal Challenges and Definitions Pave the Way for
Significant Growth in the Industry
|
194 |
|
• Stage Five (1980-1989): Rapid International
Expansion by U.S. Direct Sales Companies, Especially
Those Using Network and Multi-Level Compensation Structures
|
203 |
|
• Stage Six (1989-Present): Development of Global
Direct Sales Companies
|
209 |
|
Conclusion
|
214 |
|
Chapter Five Questions
|
216 |
|
|
| Chapter
Six |
|
The Legal Environment
|
219 |
|
Introduction
|
220 |
|
The Legal Environment for the Direct Sales Industry
|
222 |
|
Landmark Cases and Rulings Which Affect the Industry
|
223 |
|
Practical Effects of Legislation and the Legal Environment
on the Industry
|
235 |
|
Conclusion
|
244 |
|
Chapter Six Questions
|
246 |
|
|
|
|
| |
|
| Section
III: Marketing Methods |
249 |
|
|
| Chapter
Seven |
|
Personal Marketing Methods
|
251 |
|
Introduction
|
252 |
|
One-on-One Presentations
|
254 |
|
Home Meetings
|
255 |
|
Party Presentations
|
256 |
|
Opportunity Meetings
|
262 |
|
Reward for Enrollment… No! Reward for Sales/Purchases…
Yes!
|
264 |
|
Conclusion
|
266 |
|
Chapter Seven Questions
|
268 |
|
|
| Chapter
Eight |
|
Telephone and Mail Solicitations
|
271 |
|
Introduction
|
272 |
|
Sources for Telephone and Mail Solicitation
|
274 |
|
Telephone Solicitation
|
276 |
|
Direct Mail Solicitation
|
285 |
|
Conclusion
|
291 |
|
Chapter Eight Questions
|
292 |
|
|
| Chapter
Nine |
|
Mass Media
|
295 |
|
Introduction
|
296 |
|
Use of the Media
|
298 |
|
Radio & Television
|
311 |
|
Enhancing the Industry’s Image and Acceptance
|
314 |
|
Conclusion
|
315 |
|
Chapter Nine Questions
|
316 |
|
|
| Chapter
Ten |
|
Direct Sales & Technology
|
|
|
Modern Marketing & Management Methods, and Consumer
Products
|
319 |
|
Introduction
|
320 |
|
Technology and the Direct Sales Industry: An Overview
|
322 |
|
The Technology and Technological Tools
|
327 |
|
The Virtual Office
|
334 |
|
Integrated Marketing:
|
|
|
Technology as a Tool for Direct Sales Companies and Independent
Representatives
|
335 |
|
Conclusion
|
340 |
|
Chapter Ten Questions
|
342 |
|
|
| Chapter
Eleven |
|
Customer Service and Follow-Up Keys to Success
|
345 |
|
Introduction
|
346 |
|
Customer Service and Follow-Up
|
347 |
|
Direct Sales Companies and Independent Representatives
Share Customer Service
|
|
|
and Follow-Up Responsibilities
|
348 |
|
Customer Service and Follow-Up: The Value of a Duplicable
System
|
|
|
in Creating a Successful PSO
|
350 |
|
Customer Service and Follow-Up: Creating Successful Relationships
|
|
|
with Product Purchasers
|
357 |
|
Conclusion
|
360 |
|
Chapter Eleven Questions
|
362 |
|
|
|
|
| |
|
| Section
IV: Compensation Plans |
365 |
|
|
| Chapter
Twelve |
|
Traditional Direct Sales Compensation Plans
|
369 |
|
Introduction
|
370 |
|
A Review
|
372 |
|
Traditional Direct Sales Compensation Plans
|
374 |
|
The "Simple" Traditional Direct Sales Compensation
Plan
|
377 |
|
The "Basic" Traditional Direct Sales Compensation
Plan
|
378 |
|
Disadvantages and Advantages of Traditional Direct Sales
Compensation Plans
|
396 |
|
The Future of Traditional Direct Sales Compensation Plans
|
401 |
|
Conclusion
|
402 |
|
Chapter Twelve Questions
|
404 |
|
|
| Chapter
Thirteen |
|
Uni-Level Compensation Plans
|
407 |
|
Introduction
|
408 |
|
The Distinguishing Feature of Uni-Level Compensation
Plans
|
410 |
|
The Basic or "Simple" Uni-Level Compensation
Plan
|
411 |
|
Modified or "Weighted" Uni-Level Compensation
Plans
|
414 |
|
Representative Drop Out
|
421 |
|
Company Practices Regarding Representative Vacancies:
Rolling Up
|
422 |
|
Compression
|
425 |
|
Representative Strategies Regarding Downline Vacancies:
|
|
|
Expanding Beyond Span of Control
|
427 |
|
MLCPs and Exponential Growth Potential
|
428 |
|
Differences in Uni-Level Compensation Plans
|
430 |
|
Infinity Bonuses
|
431 |
|
Average Monthly Purchase and/or Sale and Income Potential
|
433 |
|
Disadvantages and Advantages to Modified Uni-Level Compensation
Plans
|
434 |
|
Conclusion
|
437 |
|
Chapter Thirteen Questions
|
438 |
|
|
| Chapter
Fourteen |
|
Matrix Compensation Plans
|
441 |
|
Introduction
|
442 |
|
Pyramidal Management Structure:
|
|
|
The Common Element of All Matrix Compensation Plans
|
444 |
|
Width and Depth: The Two Elements of Every Matrix
|
446 |
|
Closed (or Forced) Matrix Compensation Plans
|
451 |
|
Small, and Shallow, Matrices
|
458 |
|
Stacking
|
460 |
|
Expandable Matrix Compensation Plans
|
462 |
|
Rollover Matrix Compensation Plans
|
468 |
|
Combining Compensation Plans: "Front Ends"
and "Back Ends"
|
479 |
|
Conclusion
|
480 |
|
Chapter Fourteen Questions
|
482 |
|
|
| Chapter
Fifteen |
|
Stairstep/Breakaway Compensation Plans
|
485 |
|
Introduction
|
486 |
|
Ranks, or "Stairsteps"
|
488 |
|
Breakaway Generations, or "Breakaways"
|
489 |
|
An Example of a Stairstep/Breakaway Compensation Plan:
Clean & Green, Inc.
|
492 |
|
Advantages and Disadvantages of Stairstep/Breakaway Compensation
Plans
|
499 |
|
Stairstep/Breakaway Compensation Plans: Commonalties
and Uniquenesses
|
503 |
|
Inventory Purchasing and Rank Attainment: Legal Regulation
and Self-Regulatioof Front-End Loading and Inventory Loadingn
|
505 |
|
Hybrid Compensation Plans
|
508 |
|
Conclusion
|
508 |
|
Chapter Fifteen Questions
|
510 |
|
|
| Chapter
Sixteen |
|
Binary Compensation Plans
|
513 |
|
Introduction
|
514 |
|
Binary Compensation Plans
|
516 |
|
Examples of Companies with a Basic BCP
|
519 |
|
Modifications to BCPs
|
524 |
|
Disadvantages and Advantages of BCPs
|
528 |
|
Conclusion
|
531 |
|
Chapter Sixteen Questions
|
534 |
|
|
|
|
| |
|
| Section
V: Practices, Ethics and Standards |
537 |
|
|
| Chapter
Seventeen |
|
Product Distribution Issues
|
539 |
|
Introduction
|
540 |
|
Evolution of Product Distribution Methods Within the
Industry
|
542 |
|
Difficulties Associated with Product Distribution
|
549 |
|
Legal and Industry Responses to Product Distribution
Abuses
|
554 |
|
Conclusion
|
562 |
|
Chapter Seventeen Questions
|
564 |
|
|
| Chapter
Eighteen |
|
Current Issues Affecting Direct Sales Companies and
|
|
|
Independent Representatives
|
567 |
|
Introduction
|
568 |
|
Standard Business Operations
|
570 |
|
Industry-Specific Business Operations
|
581 |
|
Personal Sales Organizations and Downline Genealogies
|
587 |
|
Conclusion
|
601 |
|
Chapter Eighteen Questions
|
604 |
|
|
| Chapter
Nineteen |
|
Industry Associations
|
607 |
|
Introduction
|
608 |
|
A Brief Historical Overview of Industry Associations
|
610 |
|
International Direct Sales Industry Associations
|
615 |
|
Short-Lived Attempts at Establishing Other Associations
|
617 |
|
A More In-Depth Look at the Most Prominent Industry Associations
|
618 |
|
Other Emerging Associations
|
630 |
|
Conclusion
|
634 |
|
Chapter Nineteen Questions
|
636 |
|
|
|
|
| |
|
| Section
VI: The Future of the Direct Sales Industry |
639 |
|
|
| Chapter
Twenty |
|
International Expansion and Acceptance
|
641 |
|
Introduction
|
642 |
|
The Pitfalls of International Expansion
|
644 |
|
Factors Associated with Successful International Expansion
|
659 |
|
Conclusion
|
664 |
|
Chapter Twenty Questions
|
666 |
|
|
| Chapter
Twenty-One |
|
Current and Future Trends
|
669 |
|
Introduction
|
670 |
|
Trends Observed by Future Analysts
|
672 |
|
Trends Which Bolster the Industry and Other Home-Based
Businesses
|
673 |
|
Conclusion
|
685 |
|
Chapter Twenty-One Questions
|
688 |
|
Appendix
|
|
|
Glossary of Industry Terms
|
691 |
|
|
| Appendix
II |
|
Sources, Resources and References
|
723 |
|
Index
|
727 |
Main Page