The Billion Dollar Club of SDI Companies

AND The SDI (Self Directed Income) Industry Will Come Of Age With The “SDI University”

By Tom J. Kennedy

Though we are experiencing a failing and faltering economy by design, the SDI (Self Directed Income) industry which was birthed in the mid-20th Century, continues to flourish as we progress into this 21stCentruy. Various SDI companies are experiencing record-breaking years as annual, retail sales revenues steadily increase.

Research indicates that numerous SDI companies are making significant gains in a challenging economy where the conventional, Trans-national, retail corporations are struggling to maintain market share.

Without a doubt, the secret to the ongoing success of multiple SDI companies is (a) their quality product lines at reasonable and fair prices (b) personalized service for preferred customers and (c) creative sales and marketing plans that fairly reward SDI entrepreneurs for their sales and marketing efforts.

A growing selection of health and wellness products are surfacing within the SDI industry. Melaleuca, founded in 1985, assumed a leadership role in 2011 with the unique achievement of $1 billion in retail sales. Melaleuca refers to its marketing strategy/plan as a “consumer-direct” marketing model.

Melaleuca joined the Billion Dollar Club of SDI companies which includes: Avon, Amway, Vorwerk, Herbalife, Mary Kay, Primerica, Tupperware, Forever Living. Oriflame, Natura, Nuskin – and perhaps other noteworthy billion dollar SDI companies that I am not yet aware of.

Additionally, there are countless other successful SDI companies that have not yet achieved the Billion dollar landmark, but just as the billion dollar SDI companies, they are well-respected corporations that pride themselves in marketing selected, quality products directly to consumers who are enrolled in the respective company networks of SDI entrepreneurs.

It is common for all successful, SDI companies to have sales and marketing plans that offer residual income(s) through various levels to active SDI entrepreneurs who maintain the minimum monthly purchases as outlined in the company policy.

Residual income is defined as: “income that continues to come in month after month and year after year because of the repeat purchases of products by loyal consumers.”

It is the sales and marketing efforts as well as the personal purchases of all the enrolled SDI entrepreneurs (in their respective SDI companies) that creates and increases the residual income(s) of all those who choose to participate by operating a part-time or full enterprise.

Indeed, the concept of ongoing residual income is the foundation of any successful SDI enterprise and new customers are commonly enrolled as SDI entrepreneurs to offset the previous customers (SDI entrepreneurs) who are lost due to attrition.

The questions arises: “Why is attrition so high in the SDI industry?" The term “attrition” is applied to SDI entrepreneurs who terminate or do not renew their annual membership with their chosen SDI business opportunity.

Historically, the rate of attrition in the SDI industry has been an ongoing concern since this unique sales and marketing industry was birthed in the 1950’s. Research indicates that most newly enrolled SDI entrepreneurs have little or no knowledge about how to launch and operate a home-based enterprise.

Before being exposed to the SDI industry, most people have been conditioned with an employee mentality where they expect a higher authority (boss) to tell them what to do when they report for work each day.

Initially, potential SDI entrepreneurs are commonly enrolled by a friend or family member who has been introduced to the business opportunity. The enroller rarely has any previous experience in sales and marketing but the emotional connection is sufficient for the new prospect to also enroll.

Together as a newly created team, these newest SDI entrepreneurs approach family, friends, neighbours and working colleagues with sketchy details of their (often accidentally) chosen SDI opportunity and the products and/or services offered. After a few rejections, novice SDI entrepreneurs routinely quit and decide that s/he will not pursue the chosen SDI opportunity.

Since formal education teaches little or nothing about “entrepreneurism” it is really no surprise that the rate of attrition within the SDI industry is alarmingly high. What is needed is a concept such as an “SDI University.” Way back in the mid-20th Century when McDonald’s was expanding, potential employees were schooled in the fast-food business at “Hamburger University.” It was Fred Turner, Ray Kroc’s first grillman who founded “Hamburger University” – a “Centre of Training Excellence” - in the basement of a McDonald’s restaurant in Elk Grove, Illinois in 1961.

Likewise, if the SDI industry is to mature and become the leading sales and marketing model of the 21st Century, I daresay that an “SDI University” is needed to properly school potential SDI entrepreneurs.

In this regard, I offer the SDI Eye Opener as a starting point where newly enrolled SDI entrepreneurs are invited to read the posts and become familiar with the SDI industry and some of the resources that are now available. I have also made a page at Facebook for the “UsuryFree SDI University.”

Historically, many SDI companies have been including in the fine print of their respective contracts, details that limit what the newly enrolled SDI entrepreneur can do or not do. Too often a high profile SDI entrepreneur has been terminated by the SDI home office company because s/he decided to build an SDI Portfolio to guarantee monthly earnings from more than one source.

While I understand the rational why SDI home office companies selfishly restrict their SDI entrepreneurs to marketing products and/or services from their selected SDI opportunity, I point out that such restrictions are not favourable to fostering unfettered free enterprise.

It is my observation that just as mom and pop retail stores in our local communities market more than one company’s products and/or services, so too, should SDI entrepreneurs be permitted to market more than one SDI company’s products and/or services – once they become familiar with the structure of the SDI industry.

Too often, I hear the over-worked pitch that SDI entrepreneurs can effectively market products and/or services from only one selected SDI company. This concept could be addressed and debated at the SDI University along with other sales and marketing ideas.

The SDI University could also take a leadership role in teaching SDI entrepreneurs how to negotiate trades with prospective consumers whereby the consumers would pay the wholesale portion of any purchase with federal cash and the retail mark-up portion with a local, usuryfree community currency – preferably a usuryfree time currency.

The growing awareness of accepting any usuryfree community currency for partial payment of any negotiated sales is a natural twin for any SDI enterprise. The key to maximizing this creative element is to treat any paper notes of usuryfree community currency as having a value equivalent to paper notes of federal cash or electronic blips of federal money.

For example, a product that retails for $50.00 probably has a wholesale cost of approximately $30.00. Therefore, the SDI entrepreneur could offer this product for sale and accept $30.00 federal cash and accept the equivalent of $20.00 of any usuryfree time currency. This idea would help re-build the spirit of local community and everyone who participates would be a winner.

Readers are invited to offer other ideas/concept which could be taught at SDI university such as how having a part-time, home-based enterprise offers many additional tax benefits not readily available to salaried or employees on an hourly wage.

NOTE: Introducing The UsuryFree SDI (Self Directed Income) University