The Next Millionaires, by Paul Zane Pilzer, Success from Home Magazine, published March 2005. 

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Watch the Signs
The Formula for Wealth
Four Predictions for the Next Five Years



More on
The Next Millionaires:

A vast amount of wealth is being created over the next ten years. Here's why--and how you can be a part of it.

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"A Tale of Two Industries," by Paul Zane Pilzer, Success From Home Magazine, November 2005.

"The Perfect Storm of Opportunity," by Paul Zane Pilzer, Success From Home Magazine, December 2005.

The Next Millionaires, by Paul Zane Pilzer, Direct Selling News Magazine, June 2005.


   page 3 of 9
much of the world with rapid, guaranteed delivery service; and Ross Perot, founder of Electronic Data Systems (EDS), a pioneer in the computer storage of business and government records, which is to say, the distribution of information.
     You might think this suggests that the big money in distribution has already been made. Not so! Despite a massive lowering of distribution costs by Wal-Mart and others, distribution costs today still make up approximately 80 percent of total retail prices. Why? The advent of new manufacturing methods and the emergence of China as the “world’s manufacturer” have been lowering the cost of manufactured goods!

THE #1 BUSINESS OPPORTUNITY:
“INTELLECTUAL” DISTRIBUTION

     The success of Wal-Mart and other mass merchants has created new opportunities—particularly for those individuals seeking a part-time or full-time home-based business—that could exceed the opportunity seized by the distribution billionaires of the last three decades. Ironically, this opportunity was created by the very success of the mass merchants themselves—and it is tailor-made for direct sellers to exploit.
     For 100 years, prior to the emergence of Wal-Mart, Target and Costco, retailing in the United States was dominated by department stores like Macy’s, Filene’s and Marshall Fields. These distribution giants of their time simultaneously performed the two critical functions of distribution:
     (1) Intellectual Distribution—Teaching consumers about products and services that will improve their lives, typically items that they either

  don’t know exist or don’t know are now affordable; and
     (2) Physical Distribution—Physically
delivering to consumers the products and services they already know they want.
     Then consumers started spending a smaller proportion of their money on “durable” goods such as major appliances and televisions, and more on “consumable” goods like cleaners, paper towels and batteries. Consumers who buy supplies just want to get them and go. For this purpose, the one-story, big-box stores, with their focus on convenience and speed, decimated the multi-story department stores.
     However, to be convenient and fast, the mass merchants left out a critical aspect of the buying transaction. Mass merchants ignored the intellectual distribution part of the equation. Mass merchants don’t take the time to teach anyone about new products. They sell their customers exactly what they already knew they wanted before they walked in the store.
     Educating people on new products and services is now the #1 business opportunity for those who are looking to create long-term wealth. Manufacturers in virtually every field create new products on an hourly basis—often products that can deliver great benefits, lower prices or both to consumers. But in today’s mass-communications world, there is no efficient way to teach consumers about these newer and better products. The mass merchants don’t do it and the department stores of yesteryear are no longer in business. This creates an enormous opportunity, especially for people looking to start a home-based business.
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