Direct Sales Is Our Past, Present and Future

Written by Rolf Sorg, Founder and Chief Executive Officer of PM-International, a German-born direct selling company with US$3 billion annual retail sales and operations in more than 40 countries.

Direct Sales Is Our Past, Present and Future

“Direct selling is facing the biggest shift in its history” – This is a statement I heard a lot in the previous weeks and months. Yes, the entire industry is changing, amplified by the Covid pandemic. Some big players vanish from the market due to the lack of commercial success. Under pressure from retail online giants, many are starting to question the relevance of direct selling. I remain convinced that direct selling is more powerful than ever. When I think about our industry, I see a business model that is as dynamic as it is personal – and a big chance. As I see it, companies that are positioned correctly will actually benefit from the current shift.

My journey began as a networker with nothing except for the burning desire to achieve something. It taught me to build something from nothing, to work through setbacks, and to keep pushing. For me, direct sales has always been about creating opportunities. This industry can empower people, and that’s why PM-International is so strongly committed to this business model.

I wanted my own company to be a reliable business partner that not only grows for itself, it also helps others grow with it. It worked out: PM-International has been recognized as one the fastest-growing international companies by one of our industry rankings multiple times, and I’m proud of what we achieved together. However, it hasn’t happened by chance. It’s the result of staying focused on our goals and committed to our vision. We’ve adapted to change while holding onto our core values, and that’s what’s made us successful.

Lately, I see a lot of companies starting to undermine their direct selling business model. It’s not the first time though. I remember the Binary business-model hype starting about 15 years ago, where many companies were booming and just as fast as they grew they imploded. Nowadays some companies started moving toward omni-channel models, competing with their own sales teams, which for me means stabbing their own distribution partners in the back. This is a total no-go for PM-International.

Direct sales only works when the sales channel remains exclusive. PM-International markets its products through our distribution partners, and that’s how it’s been for the last 30+ years. That’s not going to change. If you want our products, you get them through a PM-International distribution partner. It’s that simple: Direct sales is not just a part of our past in PM-International; it’s our present and our future.

We’ve also been careful with how we approach things like affiliate marketing. This can only work if it’s taken into account in the compensation plan of the distribution partner and all customers are assigned to them. At the end of the day, our success is tied to their success. That’s why we’re always working hand in hand with our distributors, to find solutions together that lead to common growth.

There’s no doubt the direct sales industry is facing big changes, and some companies are struggling to keep up. There are two main reasons why some companies cannot compete on the market: Firstly, a lack of innovation and secondly, they cannot or do not want to adapt to the faster and faster changing circumstances.

I am convinced that any company, that has solid, future-oriented hybrid and digital solutions, will continue to thrive. Of course, this is not easy. Everyone would do it if it would be. Throughout my journey, I’ve learned that success lies outside the comfort zone. This is where the adventure begins. My father always told me, “Never make a decision out of fear.” That advice has stuck with me. When challenges arise, whether it’s new competition or a shift in the market, it’s an opportunity to grow.

One example: We went through the beginning of Covid, then lived through it by focusing on a fully online business. Eventually we came out of it, moving towards hybrid solutions while making the most of the opportunities to meet in person again. In all these phases, some companies struggled because they weren’t willing to adapt to the ever-shifting circumstances, while others came out stronger.

I can tell you that new leaders are rising, while some old giants are fading. I believe that PM-International is paving the way to the future of the direct sales industry. We aim to set a positive example and are working towards a bright future.

In practical terms this means listening closely to our distribution partners and providing them with the most innovative solutions to their challenges. Because our business is based on people, and at the end of the day customer satisfaction is the most valuable thing we have. Let’s ask ourselves: “What does our customer need today, or tomorrow, and how can we continue to make their experience even better?”

Looking forward, I see big opportunities. The challenge will always be staying relevant and competitive, and that’s something we’re prepared for. We’ve never stopped innovating, whether it’s developing new products or embracing the latest digital tools. We’re investing millions into our research and development as well as our digital infrastructure because we know that’s what it takes to stay ahead. In the end it’s as simple as asking yourself: “What can we do better?”

While I believe in the power of digital tools and social media, I also know that they will never replace the personal relationships that are at the heart of direct sales. This business is built on people connecting with people. That’s why I’m confident about the future of PM-International and the industry of direct sales.

We’ve learned from our challenges, and we’ve grown stronger because of them. Our vision is bigger than what we’ve achieved so far. We see tremendous potential in the market, with billions in untapped revenue and millions of potential customers around the world still waiting to learn about direct selling and its opportunities.

There is a huge opportunity if you do it right, and we are ready to roll up our sleeves and keep pushing forward. At the end of the day, this business isn’t just about selling products; it’s about empowering people. That’s what has driven us from the beginning, and it’s what will continue to drive us as we move into the future.

Let’s keep moving forward – together.

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