The appearance of social media breathed new life into the Quebec multi-level advertising and marketing (MLM) business, however the pandemic induced the business to blow up.
“Between 2019 and 2020, gross sales have elevated by 26 per cent,” mentioned Direct Promoting Affiliation of Canada (DSA) presdient Peter Maddox, in a phone interview.
He expects 2021 numbers to resemble these of 2020.
The DSA estimates that the variety of girls distributors has elevated by 19 per cent, an indication of renewed curiosity.
That will not essentially translate into market growth, Maddox cautioned, as some individuals might discover it is not for them, and others might enroll solely to qualify for reductions.
“When COVID-19 hit, individuals who have been already distributors had a bit of extra time to spend on this enterprise, as a result of their 9-to-5 jobs weren’t as busy, or have been even suspended by restrictions,” he mentioned.
A 2021 Abacus survey for the DSA concluded that “through the pandemic, one in three Canadians took alternatives to generate extra revenue outdoors of their main job.”
The well being disaster additionally accelerated the shift to on-line buying, a boon for Charlotte, who’s a distributor for the clothes MLM Silver Icing.
“I by no means actually offered that firm earlier than the pandemic as a result of individuals weren’t prepared (to order on-line) till that they had no alternative,” she mentioned. “I feel the pandemic has helped quite a bit when it comes to individuals being extra on social media, extra on-line.”
The DSA calculates that there are 1.39 million impartial distributors in Canada. Most are girls (84 per cent) and between the ages of 18 and 54.
The affiliation additionally says that greater than 200 corporations share $4.15 billion in annual gross sales, together with $830 million in Quebec.
Nonetheless, the Abacus survey additionally confirmed that at least 28 per cent of Canadians have a detrimental impression of the business. Compared, 38 per cent have a constructive impression and 34 per cent are undecided.
THE INSTAGRAM EFFECT
Direct promoting was round in Quebec lengthy earlier than the web period, Maddox mentioned.
“It was individuals going door-to-door promoting merchandise and incomes commissions on what they offered,” he mentioned.
Product strains from Tupperware or Avon turned frequent objects in households throughout this period.
“Traditionally, there was no downline,” mentioned Maddox.
The primary transformation in MLM was adopted by a second revolution, the social media revolution.
“(Earlier than) all the pieces was completed by phrase of mouth,” mentioned Laval College advertising and marketing professor Georges-Alexandre Rodrigue. “Now, it is fairly often changing into a type of affect advertising and marketing,” the place “corporations, increasingly more, strategy influencers, even micro-influencers.
“It is now not simply in our direct community of associates with 10, 20 associates that we may contact,” he mentioned. “On social media networks, somebody who has 1,000, 2,000 associates or a community of two,000 followers, clearly it is a lot simpler for them to achieve individuals simply, and that is why there are increasingly more people who find themselves uncovered to that mannequin.”
Nonetheless, Rodrigue recommends moderating revenue expectations.
“If you take a look at the details, there are only a few contributors who make more cash than they spend in this sort of system,” he mentioned.
Maddox added that the Web additionally means you do not have to place up cash to construct stock, for the reason that transaction might be completed immediately by means of a web-based retailer. “(Some sellers) do not need to make so many gross sales, they only have common prospects who will purchase from their website,” he mentioned.
— This report by The Canadian Press was first printed in French on April 23, 2022.