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"Creating Fortunes in the New Economy," by Paul Zane Pilzer, Success From Home Magazine, September 2005.

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   page 2 of 7
     This was the era of the “distribution millionaires.” Although we are still in that era, we have now entered a new phase. 

The New Era of Distribution
    
There are two critical aspects to distribution: education and delivery. That is, teaching consumers about new products and services, and then physically putting those items into their hands. In times long gone, the simple peddler used to fulfill both functions at once. The door-to-door salesman would come to your house, teach you about an encyclopedia that could contribute to your children’s education, and if you purchased it, come back and physically deliver the actual books. The old-fashioned general store and mom-and-pop shops of bygone eras did much the same thing.
     Not any more.
     The distribution fortunes of the 1990s were made by people who found
cheaper, faster and more efficient vehicles of physical delivery. But there
is nothing in the model of a Wal-Mart, Home Depot or Target that provides
the other critical element of distribution—education. That is the
bottleneck, the major missing link in today’s economy—and it is a place
of extraordinary opportunity.
    
The Power of One-to-One Marketing
     The fortunes to be made in the years ahead will not be predominantly in physical delivery but in education—not in physical distribution, but in intellectual distribution: educating consumers about products and services that will improve their lives, but that they either don’t yet know about or don’t yet know are now affordable.
     And because technology is advancing so rapidly and making so many new products, that gap is huge and growing larger every day—which means that the opportunity of intellectual distribution is continually increasing.
     I am often asked, “Doesn’t the Internet fulfill that function?” Surprisingly, the answer is “No, not at all!” The Internet is a great place to go to get educated about products and services you already know you want to learn about—but it cannot fulfill the education function of the peddler or general store proprietor any more than the infomercials of the 80s and 90s could.
     The Internet, television and magazines are all passive media. The only place where we actually learn something new, where we engage with new information to the extent that we may actually change our minds and try something new, is in a live, one-to-one conversation.
     The Internet is rapidly taking over the information function of teaching
people things they already know they want to learn. But the vital sales function of teaching people about things they don’t yet know about will always be an educational model that

  functions best person-to-person.
     And that is what has given rise to the vehicle of distribution known as direct selling, or one-to-one marketing.
     Direct selling has grown steadily over the past 20 years, increasing more than 91 percent in just the past ten years. With over 13 million Americans and 53 million people worldwide involved, it is now a $100 billion global industry.
     Yet as impressive as that is, it’s not hard to see why the real growth has barely begun.
     For one thing, the demand is increasing exponentially. Because of the ever-accelerating pace of technological advancement, there
is a growing flood of new products and services that desperately need their story told in the marketplace—stories which no amount of screaming TV ads or sprawling Internet pop-ups and banner ads can effectively tell.
     Today, fewer than one percent of the population is involved in direct selling, yet people are pouring into the profession at the rate of 175,000 new people per week in the United States alone. According to Neil Offen, President of the Direct Selling Association, at the current rate of increase, some 200 million people will enter this industry over the next ten years, effectively quadrupling its current population.
     One-to-one marketing is already a force to be reckoned with—but there is an explosion ahead.

The Wellness Industry
     A similar situation exists in a brand new health-related industry that has grown so quickly that it already does more than a third of a trillion dollars per year—and yet, relatively few people even recognize that it exists as an industry.
     Wellness is not the same thing as “health care.” What we call the “health care” business is not really the health business but the sickness
business. Our medical industry today has very little, if anything, to do with health. The $2 trillion we spend on medical care, which represents one-sixth of the U.S. economy, is concerned with treating the symptoms of illness. It has very little to do with preventing illnesses or with making
people feel stronger or healthier.
     Today, however, there’s a brand new industry that has nothing to do with sickness but is all about creating wellness. Wellness doesn’t treat people who are sick or address illness. Wellness is for people who are already well and who want to stay well, slow down the aging process, or keep from becoming customers of the sickness
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