The United States is currently the leading market for direct selling, with an estimated $32 billion in retail sales during 2013. Here’s something that may shock you: Direct sales generates about one in every six dollars of retail sales, globally.
The direct sales model is definitely a powerhouse business model, though it differs in some ways from a traditional retail business model. Both models source products or services to sell to consumers. But a traditional retail business hires salespeople, gives them marketing materials, and tells each salesperson when and where to work. Even if the salesperson is on 100 percent commission, the company requires the salesperson to report to work at a specific time, sell a preset amount, and report to a supervisor. These salespeople receive pay increases and promotions based on their supervisors’ decisions.
Direct sales, on the other hand, is very different in terms of flexibility of time and work. When you start a direct sales business, you are in business for yourself. You determine how much you want to work and how much you want to get paid. You are recognized by your efforts when you achieve certain benchmarks in the company, such as achieving a certain level of sales and bringing on a certain number of new team members.
What to Consider When Choosing a Company
Nowadays, an extra stream of income, the lack of job security at a regular job, and the desire for additional tax breaks make a home-based business very appealing. And there are many great companies out there. You may like several of the product lines and could be well suited for any of them. So how do you choose?
Most people select a direct sales company that they’ve already heard about or had some contact with, whether as a customer or host. Another way that people become interested in a certain company is that a friend or family member joins and invites them to learn more about the opportunity.
Belief in your product, programs, and profits is important when deciding whether a company is right for you. You also need to be passionate about what you offer your clients. Many people discover this passion after they’ve sampled a product, become a loyal customer of a company, or hosted a party themselves.
If you are interested in learning more about what companies are available to join, aside from the ones you already know, the Direct Selling Association is a great resource. It offers a list of many different companies, organized by category. Visit www.dsa.org for more information.
It should deliver a quality product in a timely fashion. It should also support you as a representative with programs that train you, help you reach short-term goals, and build long-term habits for success. And of course, profit refers to compensation, and in direct selling, that’s more than just commission. Some of the profitable rewards are, for example, car incentives and trip incentives.
For profits, you should take incentives into account and choose based on what is important to you. Some companies pay a higher commission on personal sales, and if that's what you are looking for, then that will be appealing. Some focus on the rewards and have excellent trip incentives, which are easy to earn. Some may have a simple and easy car program, so if a car is desirable then this could be for you.
All companies use the exact same dollar; it’s how they choose to divide it that makes them different. Sometimes it comes down to the passion that you have for the company, their products and programs, and their profit focus. People always ask me, who has the best compensation program that works? I always respond: They all work if you work their program.
One of the key ingredients to success is enthusiasm. People are drawn to it – they want to be a part of it. When someone sees that you are enthusiastic or passionate, it piques their interest. So, it’s important that you are enthusiastic.
It can be very difficult to fake that excitement. I have heard people say over and over that you need to fake it till you make it. People can say that all day long, but it’s not an easy thing to do. Others see through it, and you may not feel as comfortable doing it. I like the statement honesty is the best policy, and I do believe that when people see that you are sincere and excited about your product, company, or opportunity, then they will naturally want to do business with you.
How I got started in direct sales
My start in direct sales was due to a combination of the season in my life and my enthusiasm about the product. I was 18 years old when I first started in the business. I was really just looking for a way to supplement my income as a musician. So when I was asked to have a crystal party to help someone out, I readily agreed.
Now I was single and in a rock and roll band and didn't really have a big need for crystal at that time. However, I really was drawn to the product. I loved it and even though I would later leave and choose another line of products, I still am drawn to beautiful glass. I love decorating with it and I love beautiful serving pieces for entertaining. (And nowadays I entertain more with crystal than I did when I was a drummer in a rock band.) I am still mesmerized by the beauty of crystal.
While I was hosting the party to help a friend, the consultant who did the party said to me, “You ought to do this! You would be really good at it.” It would have never been on my radar to seek out an opportunity to sell crystal, but because she believed in me and I liked the product, I did it.
After years of success, I fell in love with the industry, and I believed in the opportunities that it offered others. Eventually I decided to leave my crystal business and switch to jewelry. Though I didn’t love it, I did like it. I also realized that other people did love jewelry, and at that time I was very interested in building a team and achieving large profitability.
The Three P’s of Every Company
There are several factors to consider when choosing which direct selling company you want to launch your business from. It’s absolutely important to look at the “three Ps” mentioned in the last section. In fact, they’re so important that I’m going to look at them much more closely in their own section here.
It is extremely important for you to really like the product that you are going to represent, especially if it is your first time in direct selling.
Most people actually join a company because they really believe in the product. For others, they may have experienced great results from a product and have a great testimonial and really want others to have that same experience. And then there are those for whom it is a product they really need, will use, and want to be able to get at an ongoing discount. For others, it’s the season in their life, what their interests are, and what their circle of friends are into at that time. And for still others, it’s simply that someone believed in them and thought they would be good at doing something different combined with the idea of being able to make some extra income.
There is an incredible amount of variety in products and services in the direct selling industry. In fact, almost every product you can purchase through a retail outlet can be purchased through a direct seller. You can choose nutritional supplements, discount memberships, financial services, clothing,