In The Spotlight!

By Solomon McCluster  Jr.

The Death of Old-School Direct Selling Is the Birth of Something Better!

Rumor is, Direct Selling is Dying! Yes, Conventional Direct Selling & Network Marketing Companies are DYING!

In 2019, I began to notice a clear shift in the direct selling space: companies were moving away from overly complex compensation plans toward simpler models that didn’t require a math degree to understand. Increasingly, my new clients were no longer using traditional compensation structures.

Then came 2020—a year of disruption. But by 2021, there were signs of recovery. The pandemic had pushed many people who might never have considered direct selling to take a second look at the industry. However, what attracted them wasn’t traditional network marketing—it was Affiliate and Referral Marketing models that emphasized simplicity, transparency, and flexibility.

Looking at the broader industry data, two key trends emerge: only 40% of the top 100 domestic companies saw growth between 2019 and 2023, and just 40% experienced growth in the most recent year. Meanwhile, 60% of the industry faced decline in 2023—some even dipping below their 2019 performance.

The overall picture points to market stagnation. Despite early hopes for a post-pandemic rebound, the data suggests the industry is unlikely to return to pre-COVID levels. Instead, current trends indicate a continuing decline.

The reason isn’t as complicated as some might suggest.  Advancements in technology, mainly Web3, AI and Social-media.   The vast majority of existing Direct Selling Companies can’t make the required changes to move their business on to accommodate change. This would require a massive change in their existing technology platforms and their sales force to have some level of understanding of crypto wallets.

As these legacy companies fall, distributors simply move on to the next opportunity and large numbers of distributors are moving to blockchain based companies with instant payouts in cryptocurrency. The Blockchain is the new information super-highway with transparency where Smart Contracts pay when the sale takes place.

This new world of direct selling will be driven by Web3, or Web 3.0. It’s the next version of the internet. It’s built on blockchain technology to give distributors more control. In Web3, people own their data, manage their digital assets, and help shape online communities and projects. It’s all about making the internet more open, fair, and user-driven.

The truth is, direct selling isn’t dying—it’s evolving. The old guard may be fading, but a new generation of opportunity is rising in its place. Web3, blockchain, and real-time, transparent compensation models are not just the future—they're the now. Distributors are no longer waiting weeks for a paycheck or relying on outdated systems. They're embracing innovation, ownership, and empowerment. The companies that adapt will thrive; those that don't will be left behind. The next era of direct selling won’t look like the last—and that’s exactly why it’s full of promise.

If you're a company owner, leader, builder, or visionary in this space, the time to adapt is now. Embrace the tools of Web3, explore blockchain-based models, and become part of the next wave of direct selling innovation. The future belongs to those willing to build it.