Direct Sales on a One-Horse Open Sleigh

by Dave Christiansen
Oct 15, 2004

Once again, this busy time of year has descended upon us. As most other red-blooded American males, a shiver goes down my spine just envisioning the long lines, traffic, bad weather, parking, and the like that go hand in hand with the holiday season—namely the dreaded ritual of 'holiday shopping'.

I will say that I don't mind the occasional hour or so of shopping (once every other month)—that is to say when I know exactly what I need to purchase. For instance, new athletic shoes, perhaps power tools, maybe even a dress shirt or tie.

Though during the holidays, I would trudge through the frozen tundra, weather the massive crowd of rabid bargain-seekers, and return home having accomplished only a portion of what I set out to do. Surely there had to be a better way.

An answer to my prayers came actually some time ago. Flash back to 1993 when Mosaic, the first web browser, was introduced to the Internet allowing e-commerce to commence. Flash forward to 1997 and 1998, many retailers became equipped to conduct e-commerce. Retailers even began to offer incentives to those who made purchases online with promotions like free shipping, 25% off, free gift wrap--and in some cases, a combination of these.

And now, over half a decade later, I can honestly say that at least 75% of my holiday shopping is done from the comfort of my own home, online. Many of my friends and associates have also migrated to shopping online over the past few years. Doing so has allowed us the luxury to focus on the more important things in life, like spending time with the wife and kids and enjoying the holiday season.

Choosing the right wrapping paper

So how does this article have anything to do with the direct sales industry? It's no great mystery that retail sales boom during the holiday season. However, it appears not every direct sales and network marketing company selling products today is fully capitalizing on this trend.

Below are a few examples of companies that have taken advantage with effective online holiday promos:

Chef's Catalog

Chef's catalog suggests an assortment of their products in order to form a creative gift set, excellent way to get shoppers imaginations going.
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Overstock.com

Overstock uses a clever play on words to call attention to their holiday shipping promo.
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Tupperware

Tupperware gets festive with this product offering, tailoring their product appearance to suggest the perfect functional holiday gift.
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If you're thinking, "Well that's just great for Overstock.com, but this doesn't apply to me or my company necessarily," please read on.

Online holiday spending totaled $18.5 billion in the US in 2003, noting a 35% rise over online spending in 2002 (eSpending Report, 01/2004). Online shoppers spent $2.95 billion during the second week of December, up 48 percent from last year. Excluding travel, consumers nationwide spent an estimated $13 billion this holiday season through the second week of December. This represented an increase of 46 percent from the same period a year ago (Goldman Sachs & Co., Harris Interactive and Nielsen//NetRatings, 12/24/2003).

Making your list, and checking it twice

How many network marketing and direct sales companies have access to a 'captive audience' of consumers? Rather, the question should be to the contrary it seems, since most of you have access to thousands of consumers via your distributor sales force. If you aren't taking full advantage of this goldmine during the holiday season, perhaps this year is as good a time as any to start. So how can you take advantage of the holidays? A general outline consists of at least the following:

1. Formulate your promotions: You may choose a simple or more complex promotion, as long as it's attractive. The underlying goal here is to make people feel like they're getting in on a deal that others are not, and to have the promotion in place by November.
2. Promote your promotions: First and foremost, inform and sell your sales force on the promotion. Next, enabling your sales force to 'promote your promotions' is mandatory. Mediums such as email, splash links, and announcements, are just a few examples.
3. Analyze and adjust your promotions: Find out what's working, what isn't, and tweak your promos for optimal results. Maybe it's free shipping, lower pricing, product bundling, etc.

The beauty of e-commerce is that it's easily and quickly modified in comparison with brick and mortar outfits, and much easier to track effectively as well. (See here for details.)

I submit to you a personal example to illustrate my point. My wife currently participates, to some extent, in a program selling a leading cosmetic brand. It just so happens that the holiday season is the most successful time for her because of her genius.

A few years ago, she began purchasing several affordable cosmetic items and forming them into a gift bag with assorted candies, chocolates, and other Christmas nick-nacks. My wife gave them as gifts and stocking stuffers to friends and family. Now, every year she is inundated with product orders beginning as early as October. The gift bags had become so popular, the demand for them increased exponentially. My wife has hooked these people to the point that they may be strung out on gift bags the rest of their lives. Not a bad way to increase business ten-fold for at least one quarter—don't you think?

The bonus for network marketing companies here is the fact that product-purchasing customers have the potential to become product-selling distributors.

Crack the whip on your elves

Make improving your Q4 promotions a holiday tradition starting this year.

Save Santa some mileage, and cash in on your product sales during this holiday season.