The MLM business model has faced significant challenges in recent years, with iconic companies like Avon and Tupperware experiencing sharp declines in stock value and profitability due to unsustainable recruitment-driven strategies.

During the COVID-19 pandemic, MLMs saw a surge in popularity as economic uncertainty and job losses made their promises of flexible work and 'unlimited income' appealing to vulnerable groups.

Companies like Herbalife and Amway benefited from heightened interest in health and wellness products during the pandemic, leveraging digital platforms to expand their reach globally.

However, post-pandemic economic challenges, including rising living costs and stagnant wages, have eroded MLMs' ability to recruit and retain participants, contributing to declining popularity.

Some companies, such as Tupperware, have shifted away from MLM models by partnering with retail stores like Target, while others like Avon have transitioned to hybrid models to adapt to changing market dynamics.

Despite these adaptations, major MLM players like Herbalife, Nu Skin, and Medifast have reported significant stock value declines, reflecting waning investor confidence and market saturation.

The inherent flaws in MLM structures, such as reliance on recruitment and high churn rates, have led to financial struggles and closures for many companies, including warnings of bankruptcy for Tupperware.

Regulatory scrutiny has also intensified, with countries like Taiwan implementing stricter controls to curb deceptive practices and protect consumer rights.

MLMs continue to attract specific demographics, such as women over 40 and younger generations like Millennials and Gen Z, by emphasizing autonomy, flexibility, and entrepreneurial opportunities.

The rise of social media and influencer marketing has further enabled MLMs to target younger audiences, leveraging platforms like Instagram and TikTok to amplify recruitment efforts.

The MLM business model has faced significant challenges in recent years, with iconic companies like Avon and Tupperware experiencing sharp declines in stock value and profitability due to unsustainable recruitment-driven strategies.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

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During the COVID-19 pandemic, MLMs saw a surge in popularity as economic uncertainty and job losses made their promises of flexible work and 'unlimited income' appealing to vulnerable groups.

Companies like Herbalife and Amway benefited from heightened interest in health and wellness products during the pandemic, leveraging digital platforms to expand their reach globally.

However, post-pandemic economic challenges, including rising living costs and stagnant wages, have eroded MLMs' ability to recruit and retain participants, contributing to declining popularity.

Title:

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HR professionals explore future of post-pandemic workplace

BUSINESS
By Wainaina Wambu | May 29th 2022 | 3 min read
By Wainaina Wambu | May 29th 2022
BUSINESS

Since 2020, the world of work has never been the same. The workspace has become more flexible and dynamic.

Models such as remote and hybrid working are now the norm in even developing markets like Kenya. This is amid the acceleration of technology and automation.

Liaison Group Chief Executive Tom Mulwa noted that in the early days of the pandemic, it was hard to measure workers’ productivity as systems were not in place yet.

But now it is better and companies have since embraced the new normal of work.

“In the last two years, we’ve had tools good enough to measure production. And if you look at the results coming from the sectors of the economy, even in terms of GDP (gross domestic product), the production levels have actually improved,” he said.

Mr Mulwa was speaking on Thursday during an engagement forum with human resource professionals exploring the future of work post-pandemic.

The forum, convened by the financial services firm, discussed priorities and existing challenges in the revolutionised workplace.

Mr Mulwa pointed out that the labour demands of the modern talent space had reshaped the thinking of organisations.

“Some of the policies adopted to ensure a conducive workplace post-pandemic include investing in employee wellness programmes, policies on remote and hybrid working and regularly checking in on employees,” he said.

The HR industry, he added, had reshaped its role and helped employees quickly adapt to a transformed workplace.

Economy recovers

He said the workplace transformation is amid a tough reality for workers owing to a rising cost of living and stagnant wages.

This is even as the economy recovers, growing by 7.5 per cent last year compared to a negative growth of 0.3 per cent in 2020, according to the Economic Survey 2022.

“The inflation rate last year was at 6.3 per cent while the average earnings for workers rose at a slower pace. For the last two years, the average worker’s purchasing power has been eroded by over five per cent,” Mr Mulwa said.

He said challenges that were cropping up in the post-pandemic workplace include an increase in screen time for workers as the focus for organisations shifted to digital.

This led to emerging trends such as digital exhaustion.

Safaricom Chief Human Resource Officer Paul Kasimu said employees were now at the centre of everything that drives an organisation.

He said even with the increased automation, human beings were far from being replaced in the workplace and job roles could only keep evolving.

“Individuals will still be required to do more engagements ensuring that they drive strategy (and) add value to what the machines are doing,” he said.

Mr Kasimu said challenges with models such as hybrid was difficult to build a company culture.

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Some companies, such as Tupperware, have shifted away from MLM models by partnering with retail stores like Target, while others like Avon have transitioned to hybrid models to adapt to changing market dynamics.

Despite these adaptations, major MLM players like Herbalife, Nu Skin, and Medifast have reported significant stock value declines, reflecting waning investor confidence and market saturation.

The inherent flaws in MLM structures, such as reliance on recruitment and high churn rates, have led to financial struggles and closures for many companies, including warnings of bankruptcy for Tupperware.

Regulatory scrutiny has also intensified, with countries like Taiwan implementing stricter controls to curb deceptive practices and protect consumer rights.

Title:

Content: Free Speech "Marketing industry from the reporting system to the licensing system violates the principle of proportion
Fan Wenqing
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
In other words, under the provisions of the current law, the marketing industry shall report to the competent authority the basic information of the multi-level marketing business and the business establishment, the marketing system and the conditions for the participation of the distributors, the content of the contract of participation, the items of goods or services, prices and sources.
However, the amendment seeks to amend the above two provisions and change the above items to a permit system.
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
(Photo of this newspaper)
Changing from a reporting system to a licensing system is to increase the regulatory density of the marketing industry.
Maintaining market competition order is the task of the state, the state itself to a certain degree of control of the market.
However, if the regulatory density exceeds the nature of the market, the improper high-intensity regulation will be illegal or even unconstitutional because it violates the principle of proportionality.
First of all, the licensing system is before the start of the business of the marketing industry, the prior review whether to comply with the various requirements of the law, which is for the marketing industry to take the prior control measures.
However, Taiwan has adopted a reporting control method for the distribution industry for decades, and there are no major shortcomings.
Of course, there are inevitably a small number of illegal and improper operators in the distribution industry, but this should be mainly through the strengthening of the quality of the distribution management in Article 18 of the Act and other post-event supervision and management means to eliminate a small number of unscrupulous distributors who do not sell goods but illegally attract gold.
This kind of post-event supervision cannot be achieved by means of prior control measures.
Mandatory adoption of a prior authorization system would violate the "suitability principle".
The change from a reporting system to a licensing system is to increase the regulatory density of the marketing industry. However, if the regulatory density exceeds the nature of the market, the improper high-intensity control will be illegal and even unconstitutional due to the violation of the principle of proportion. (Photo: Internet)
Second, the administrative authorities shall control the rights of the people by the means that infringe the least on the people.
The permissions in the revised draft are actually the same as the original reporting.
The original reporting system has been in operation for many years, and the reporting system itself has not caused any drawbacks.
The management of the marketing industry under the reporting system is generally on track, and the number of government administrative investigations and judicial decisions is small.
From this, it can be seen that it is not necessary to amend the permit system to increase the density of control. If the people are unreasonably increased in the density of control, it will cause many troubles to the industry.
For example, there may be delays in business opportunities due to waiting for permission.
In addition, because the regulatory standards were raised to the same licensing system as the financial insurance industry or the eight major industries, in order to meet this high standard of review, the operating costs of marketing operators increased.
However, the distributors are generally cosmetics, health food and other general goods, not only do not specifically strengthen the reason for the control, especially strengthen the control will also make the marketing industry in a more disadvantaged competitive position than the general channel or e-commerce channel, thus harmful to the development of the marketing industry, or even survival.
The draft amendment is not to take the least invasive measures against the marketing industry, but to adopt control measures that are easy to kill the vitality of the marketing industry, contrary to the "principle of necessity".
Third, the regulatory measures adopted by public power acts must be commensurate with the regulatory objectives expected to be achieved. A closer examination of the draft amendments does not reveal the specific objectives to be achieved.
Thus, there is no review of the "narrow proportionality principle".
In retrospect, if you think that the reason for the revision of the law is "multi-level marketing has done a very transparent large company, but there are also many cases of being injured by unscrupulous operators", then the correct direction of the amendment should be to require the competent authority to strengthen the inspection and punishment of such unscrupulous operators, rather than dragging down the legitimate operators in the same direction, and destroying the efficiency and flexibility of the legitimate operators.
"When pouring the bath water, do not pour out the baby together." If you think that the number of families joining the association in the marketing industry is limited and does not conform to the principle of "return to the association", then the focus of the amendment should be on counseling or even compulsory membership of the association.
This has nothing to do with licensing.
In summary, the distribution industry from the reporting system amendment to the licensing system, in the principle of proportionality review, in line with article 23 of the Constitution and article 7 of the Administrative Procedure Law, the draft amendment has a major unconstitutional suspicion.
It is expected that the Legislative Council can carefully consider the business reality of the marketing industry, and the basic structure of our country's legal system, which is the blessing of the whole people.
(The author is a full-time associate professor of law at Soochow University, and a Juris Doctor from the University of Göttingen, Germany)
Free Speech is an electronic forum that provides public dialogue. Whether it is political, economic, social, cultural and other news issues, you are welcome to express your opinions and express your opinions.
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MLMs continue to attract specific demographics, such as women over 40 and younger generations like Millennials and Gen Z, by emphasizing autonomy, flexibility, and entrepreneurial opportunities.

Title:

Content: Consumer Brands Are Leaving Trillions of Dollars Behind by Ignoring Women Over 40

This demo falls off of marketers’ radars and media plans entirely—at least until it’s time to sell you Prevagen

Introducing the Adweek Podcast Network. Access infinite inspiration in your pocket on everything from career advice and creativity to metaverse marketing and more. Browse all podcasts.

In 2021, when I was 37, I became a first-time car owner, first-time homeowner and first-time parent within a three-month span. After nearly two decades spent living in wildly expensive cities and focusing on my education and career, a global pandemic ushered in the rise of remote work and allowed me to move out of New York City while keeping a job in media. Under these new circumstances, I—and many people in my peer set—finally found myself with the time, resources and appetite to enter the life stages that my parents’ generation entered a decade younger.

As I met these milestones, I was struck by how much there was to buy to support this drastic lifestyle shift. After relying on public transportation to get around since I was 17, what type of car would I purchase, and who would insure it? After 20 years of only looking as far ahead as each 12-month lease, what kind of home would I buy, and where? What real estate agency would assist me? What bank would handle the loan? Where would I go for renovations, furnishings and upkeep? And in the transition from a “double income, no kids” household to a family of three, the spending opportunities were endless—from prenatal vitamins and maternity clothes to nursery fixtures, kids’ clothes and college funds. And that was before I hit a spendy, post-partum self-image reckoning, with its accompanying skin care, wardrobe, health tech and fitness expenses.

All of that spending should have been easy. Because I was not in my twenties, with its professional and financial precarity, and instead in my late 30s—15 years into a stable career and well-compensated—I had real money to spend in all these new categories. But as I went to choose a car, furnish a home and prepare for a baby with that cash burning a hole in my pocket (metaphorically speaking—I don’t carry cash, I’m not that old), I realized all the brands that should have been competing for my dollars didn’t seem to care all that much about winning my business.

Working in media, I know that the demographics of a publication’s audience are an incredibly important consideration when wooing advertisers to spend their marketing budgets with you. Media execs are incentivized to pursue a younger generation of users, trying to bolster the percentage of 18- to 34-year-olds in their audience so advertising partners know they’ve captured the trendsetters that marketers are so eager to get their products in front of. Older audiences are thought to be less influential and more set in their ways, not as susceptible to building affinities for or joining fandoms around new products. The (false) thinking goes that these consumers don’t have as much sway over others’ purchasing decisions as 20-somethings do and that they already know what product they’re going to buy and what brand they’re going to buy it from now until the end of time, goodbye.

When you turn 40 (which I recently did), you fall off of marketers’ radars and media plans entirely, into an abyss of invisibility—at least until it’s time to sell you Prevagen.

But what if brands rethought their approach (or lack of approach) to these audiences? What if they examined the fallacy that elder millennial and Gen X women have limited influence, unremarkable spending power, and entrenched brand preferences and, therefore, are no longer worth marketing to—and instead realized that we are among the most valuable audiences out there? These women are entering key spending categories later in life. They are extremely influential culturally and financially, and they are largely ignored by marketers—leaving a huge opportunity for the consumer brands that are smart enough to pay attention to them.

While the way college-educated knowledge workers like myself reacted to Covid-19 reshaped the housing market and created a subtle baby boom, the trend of meeting life stages later is detached from, and predates, these pandemic shifts. In 1980, the average woman married at 22; today, it’s 28, and the midlife first marriage rate among women has increased by 75% since 1990. In 1980, the median first-time homeowner was 29; now they are 35. In the last 30 years, birthrates among women in their 20s have declined, while they’ve risen for women in their late 30s and early 40s—a trend that is especially prevalent among college-educated, city-dwelling women with high household incomes. The idea that you have to reach women in their 20s in order to capture their entry into new life stages—and therefore their influence in new spending categories—is a dated one.

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Three of 2023’s most economically powerful people (Beyoncé, Kim Kardashian and Greta Gerwig) are women in their 40s, and Taylor Swift will age out of that coveted 18-34 demo this year—and their power is echoed by this demographic as a whole. When elder millennial and midlife women are ready to spend—whether on entertainment, tech, beauty, travel, groceries, auto or in areas like early parenthood that used to only be the province of younger women—they show up with influence and money. Women drive 70-80% of all consumer purchasing, either through buying power or influence, and women older than 50 drive $15 trillion in spending power—which is 27% of all consumer spending in the U.S. By 2030, women are expected to control much of the $30 trillion in wealth that is soon to transfer from baby boomers to younger generations—namely millennials, who will all be in their mid-30s to late-40s by then.

Despite this current and future financial power, most marketers are ignoring this demographic, and people like me are taking notice. Most women in this demo think consumer brands underestimate their spending power and intellect, and only 5-10% of marketing budgets are earmarked for an over-50 audience. Imagine the opportunity for brands that recognize and respect the power of these audiences and decide to enter this vacuum by marketing to us directly.

That includes earmarking bigger budgets to put ads in front of these audiences, but that’s not the only way to speak to this demo. Brands must make us feel more represented and supported in their creative campaigns and brand initiatives as well. When more than 90% of people over 40 can’t remember a brand using someone their age in marketing campaigns, casting midlife women can go a long way with customers (see: Bobbi Brown’s Jones Road Beauty). When three-quarters of millennial women say they want brands to speak about current realities with honesty and candor, those that avoid stereotypes and tropes by centering real customer voices and experiences will build trust and affinity (see: Dove’s beloved Real Beauty campaign). When the vast majority of millennial women believe that brands should actively make people’s lives better and hope to see brands advocate for policies that advance women’s rights, marketers should consider what advocacy campaigns align with both their brand value proposition and the pain points of the audience they wish to reach. (See: Bobbie’s Paid Leave For All partnership).

Initiatives designed to capture these audiences pay off. GM focuses on speaking to women’s concerns about car safety, and they’ve built a robust network of female car dealers. Buick has the highest female buyer representation in the U.S. of any automaker. L’Oreal has shifted to casting older models in its campaigns; the world’s biggest beauty company boasted sales up 9.4% in Q1 2024.

As my husband and I add a second child, a second car, and a new kitchen to our household, I have a lot of spending decisions to make, with few brand affinities that are fully entrenched in these areas and an interest in spending with brands that acknowledge my value. A challenge to marketers: Convince me to buy what you’re selling. I’m open to it.

The rise of social media and influencer marketing has further enabled MLMs to target younger audiences, leveraging platforms like Instagram and TikTok to amplify recruitment efforts.

Title:

Content: The Rise of Influencer Marketing: Power of Social Media

Instagram News TikTok YouTube

In the dynamic landscape of modern marketing, traditional advertising tactics are no longer the sole drivers of brand recognition. With the advent of social media platforms, a new form of promotion has emerged: influencer marketing. This innovative approach harnesses the power of social media influencers to reach vast audiences and deliver impactful brand messaging. It is an alluring strategy that has captivated both marketers and consumers alike.

Influencer marketing revolves around the collaboration between brands and popular social media influencers, who have amassed substantial followings across various platforms such as Instagram, YouTube, and TikTok. These influencers, with their engaging content and loyal fan bases, possess a unique ability to sway consumer perceptions and behaviors.

By partnering with influencers who align with their target demographics and brand values, companies can tap into an engaged audience that is receptive to their messaging. Unlike traditional advertising, influencer marketing feels more personal and organic, as it integrates seamlessly into the influencer’s content. This relatability and authenticity are the driving forces behind its success.

Notable influencers have the power to create trends, establish credibility, and influence purchase decisions. Their words carry weight, and their endorsements can have a profound impact on consumer behavior. This is particularly the case for Millennial and Gen Z consumers, who tend to be more receptive to influencer recommendations compared to traditional advertisements.

As influencer marketing gains momentum, industry experts agree that it is shaping the future of marketing. However, it is not without challenges. Ensuring transparency and authenticity in influencer-brand collaborations is of paramount importance. As a result, platforms and regulatory bodies are introducing guidelines to maintain ethical practices and protect consumers from misleading endorsements.

In conclusion, influencer marketing has revolutionized the way brands connect with consumers. By leveraging the power of social media influencers, companies can amplify their brand messaging, reach wider audiences, and nurture more meaningful connections with customers. As the marketing landscape continues to evolve, influencer marketing presents exciting opportunities for brands to tap into the power of social media and establish lasting relationships with their target audiences.

Frequently Asked Questions (FAQ)

What is influencer marketing?

Influencer marketing is a form of marketing that involves collaborating with popular social media influencers to promote brands and products. These influencers have built significant followings on platforms like Instagram, YouTube, and TikTok, and their endorsements have the ability to impact consumer behavior.

Why is influencer marketing effective?

Influencer marketing is effective because it feels more personal and relatable compared to traditional advertising. Influencers have a unique ability to connect with their audience and are seen as trustworthy figures. Their endorsements can influence purchasing decisions, especially among Millennial and Gen Z consumers.

What are the challenges of influencer marketing?

One of the challenges of influencer marketing is maintaining transparency and authenticity in influencer-brand collaborations. To address this, platforms and regulatory bodies are introducing guidelines to ensure ethical practices and protect consumers from misleading endorsements.