Abstract

This research argues that direct sellers can be conceptualized as independent agents who are constrained entrepreneurs, in that they are gig workers with the option to be entrepreneurial and who have only partial control over how they run their businesses. This contrasts with more familiar independent economic agents such as non-entrepreneurial gig workers and unconstrained entrepreneurs. We identify three key challenges that constrained entrepreneurs such as direct sellers face then address how they mitigate these challenges so as to be sufficiently satisfied to continue to engage in this sales channel. Theoretical insights are developed through the analysis of a large set of qualitative data. The research extends our theoretical and conceptual understanding of direct selling and constrained entrepreneurship in general. We find that sellers are rational, independent agents who maximize their overall well being by (1) dynamically prioritizing their personal and economic objectives and time resources, (2) avoid unaffordable losses, are “means oriented,” collaborate with personal and peer networks, and (3) grow their revenues by using direct sales skills and products to add value to extant income streams or create revenue opportunities beyond their direct selling business.  We offer practical guidance to individuals who face the challenges associated with direct selling.

Please contact dip.mkt@unibocconi.it if you wish to attend.