Thirty-One’s Final Chapter

Understanding the Unique Challenges of Direct Sales

There are milestone days in life that impact you, your family or a friend, and there milestone days that impact a lot of people you care about. Today is one of those days. December 16, 2024 will forever be known as the day the company Thirty-One ceased to exist.

It breaks my heart to see the sisterhood of Thirty-One going through this even through all that led up to this moment. I can’t say that I was all that surprised to hear the news back in October, the month Thirty-One celebrated 21 years in business. I have theories and thoughts about what led the business to go from peak annual sales of $750M just 10 years ago, only to be at the point of closing its doors with less than 2 months notice.

I left the company that I had put so much effort and passion into in June of 2023. The company had an amazing journey of growth over the first 10 years in business. Then there came years of decline and struggles. I can say the first 10 years were some of my favorite times and the next 10 years were more of a challenge for me personally. [This photo was taken in June, 2009, the month we moved our family to Columbus, Ohio for the sake of company growth and opportunity]

Don’t get me wrong, I loved a lot of the experiences I had and the relationships made are highly valued.  I won’t go into sharing my story since I have already written in detail about my entire 20 year journey as part of my blog.  Instead I am choosing to process this somber milestone with rational thinking and a little research.

The direct sales industry is fickle. There seems to be a pattern where popularity peaks for one company while another is lurking in the shadows, ready to hit the scene and steal the limelight. As much as consistency can be the lifeblood of a business, that is one thing that is never guaranteed with direct sales companies.

When a majority of the sales force consists of part-timers and hobbyists who sell (and buy) the products because they love them, they aren’t in it for a big payday. A significant portion of consultants earn little to no profit after the expenses incurred from running a business for themselves. For most consultants, the average income is often a few hundred dollars per year.

Those that make a decent income by recruiting others make up a minuscule percentage of the sales field. Typically, less than 1%-3% of direct sellers earn enough to be considered earning a full-time income. This includes almost exclusively those who hold higher-ranking leadership positions in the company.

Besides the love for the product and the brand, many are a part of direct sales because of the connection it allows. There are friendships built between consultants that become bonds stronger than blood. They live life alongside each other all because of a similar appreciation for a product and an independent business opportunity. They are part of a team led by a beloved leader who in many circumstances will stick it out no matter what with their team members.

When the business itself has challenges, the teams of individuals are tested, and many times they choose to stay no matter what. There are other times when the team is fractured by decisions made by a leader or other vocal consultant. There can be drama - in both a good way and sometimes a bad way. To say choosing direct sales is a smooth path to income and comfort is far from the truth. The uniqueness of the industry is led by a much more personal touch than most any other type of sales. No store front, no pushy sales people and no 9-5 either.

The direct sales industry can be secretive. The simple idea of someone being on the inside one day and on the outside the next applies to consultants in the sales field who choose to step a way for many reasons, or employees on the corporate side who leave, often times not at their own choosing. Being “in the know” one day and not the can be a source of fueled rumors and speculation and to what is happening in the business.

The inherent volatility of the direct sales model makes it challenging for even successful companies to sustain long-term growth. Below are some factors seen in declining direct sales businesses. These are not my personal assumptions but based on real circumstances.

1. Market Saturation and Product Fatigue

As direct sales companies grow, they often reach a point where their products become widely known and available. This can lead to market saturation, where there are simply too many sellers and not enough new customers to sustain growth. Additionally, if product lines don’t evolve to meet changing consumer needs, existing customers may lose interest, leading to declining sales.

2. Over-reliance on Recruitment vs. Sales

Many direct sales businesses emphasize recruitment over actual product sales. When too much of the revenue relies on signing up new distributors rather than selling products to customers, it creates an unsustainable business model. Once recruitment slows down, the entire structure can falter.

3. Economic Downturns and Shifting Priorities

External factors, like economic recessions, inflation, or shifts in consumer spending habits, can impact the success of direct sales companies. When families tighten their budgets, discretionary spending on items like bags, makeup, or home goods—common in direct sales—takes a backseat.

4. Digital Disruption and Competition

E-commerce platforms, social media influencers, and marketplaces like Amazon have revolutionized how people shop. Direct sales companies often struggle to compete with the convenience, competitive pricing, and vast selection offered online. Younger generations may also be less drawn to the traditional direct sales model, preferring modern purchasing methods.

5. Leadership and Vision Challenges

A company’s success often hinges on strong leadership and the ability to adapt to change. If leadership fails to innovate or mismanages resources, even the most beloved brands can decline. A lack of transparency or poor communication with consultants can also erode trust and loyalty within the sales force, further accelerating the downturn.

All this to say, I would like to wish the best of luck to all the wonderful people that shared the Thirty-One journey over these past several decades. I pray you will find your way and that there will be blessings along your path.

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