Should You Start Direct Selling Company Now? Considering the times we are in, is it worth it? Before these challenging times, there were house or office parties for you to hear about the goodness of some products. But, how can you Start Direct Selling Company Now and make money? Point is that many companies have virtual meetings these days.
That means you can still sign up for this business model if you are passionate about selling the products. At the virtual meeting, you’ll still hear about the earning potential. And the importance of joining the team. Not to mention recruiting people to start building your team.
After trying these companies, I didn’t earn any money. Friends and family had no interest whatsoever. Imagine that, and I still tried Organo Gold. Certainly, it’s all out of curiosity and the desire to earn extra income. Important to realize that this business model is really not for everyone.
Related: Can You Make Money With The Pampered Chef Products Online
Should You Start Direct Selling Company Now? (Is It Worth It)?
Despite the fact that some people fail at direct selling, the business method is still doing well. According to the statistics-insights/fact sheets from Direct Selling Association (DSA), “Direct selling is seen as an attractive option for entrepreneurial opportunities.”
Because of the “broad, diverse appeal in the U.S,” consumers remain positive about direct selling, with perceptions toward direct selling remaining stable at about 80% over the past 10 years.” (source: dsa.org/docs/)
Evidently, direct selling is very much appealing for entrepreneurs. No doubt, it’s likely to continue for a long time. Only take a look at the economic impact of direct selling in the different areas of the United States.
Why People Join A Direct Selling Company
Coupled with the success rates, and the failure rates you can discover more in this article. In addition, there is also a study from AARP which details why people join direct selling companies and if it is profitable. Naturally, most people join a business to make money.
Out of 10, the response from 9 participants wants to make money. (91%) Either from their sales/services or by recruiting other people to join the company. While 4 participants out of 10 join to get discounts on products, only one in 10 actually purchase products at a discount. (see source)
How Can You Promote Direct Selling Companies?
Literally, there are hundreds of direct selling companies. Moreover, new ones are always in the making. Similar to all the companies, the recruitment procedure starts with the following:
- An Invitation
Most likely, a friend, a family member, a neighbor, or a co-worker will invite you to the business opportunity party/meeting. Chances are that many people will go out of curiosity. Plus to ask questions.
- Presentation Of Products/Services And Business Model
At the meeting, you will not just present the products, but also introduce the business model. With assistance from one or two senior team members, they’ll explain how the business works.
Needless to say, how you can earn an income if you sign up. The introduction of the presenter is usually quite upbeat with lots of music, cheering, and excitement.
Recruit To Build Your Downline And Earn More
Apart from selling the products, direct selling companies always encourage their independent distributors to recruit others. Simply doing this can be a great income booster. Some claim that recruiting will ultimately define your success with any direct selling company.
Basically, you are building your downline. Getting as many people to join as possible should be your goal. And that means family, friends, neighbors, co-workers, and possibly from your social media network. Key point is that you can generate more income when everyone recruits others.
Usually, the encouragement is to make a list of all the people you know. Try to recruit at least 5 of them. Encourage those 5 to make their list and they should also try to recruit 5 others. Seemingly, 5 is the magic number in this business.
New recruits should continue to sign up people at all times. Your team needs to grow and grow with several layers. Possibly with hundreds of people. Can you see the potential if you grow your downline like this?
Train, Lead, Purchase
Various titles like independent distributors, sales representatives, or consultants are generally given when you are in the direct sales business. Other than selling the products yourself, and referring new customers, the company expects you to provide “training and leadership.” Moreover, purchasing the products/services for your personal use.
Be that as it may, there is a strong belief that this business model takes the middleman out of the picture. Therefore, that is making it better for you to earn more money. Keep in mind that direct selling means exactly what it says. Directly, the business model offers “entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services.”
Typically, you will operate your business through one-to-one selling. Whether it is in a home or office setting, or online, you’ll do product demonstrations. Most important is the presentation of how people can earn an income by joining the company.
Together with the sales that you make and the people you recruit, you can expect your compensation. Generally, you get a percentage from all those sales from your downline.
Can You Succeed With Direct Selling?
Realistically, you’ll hear how you don’t have to be a salesperson to be good at direct selling. Besides, the usual saying: “Anyone can do it.” Let’s face it though, everyone is different. So not everyone will have success with this business model.
Although the products are usually quite good, you may still find it challenging to sell them. Due to the fact that these products are often pricier, and they are not on the shelves of a supermarket/store. Nevertheless, they’ll sell if they are helping customers.
Personally, I have used some products from Amway and Herbalife, from Melaleuca and Organo Gold. Admittedly, they are good and of course, they really help. Time and time again, you’ll hear testimonials of how the products offer solutions especially for people with a medical problem.
Such indications can make the products sell themselves. Markedly, that is how many distributors have success. Hearing the stories of success can no doubt be enticing to join the company.
Often, the stories are like the ones where people hit rock bottom. Miraculously this opportunity is now providing financial freedom. Just imagine when you see the amount of money you can make from your downline.
Furthermore, you hear that these folks are able to do it, so you can do the same too. Equally, you’ll also hear that now is the right time to join if you want to make your dreams a reality.
Not Everyone Reaps The Financial Benefits
Though some people lose money when they join these companies, others are reaping the financial benefits. The question is: How many? Given the structure of this compensation plan for instance, it’s probably not so easy to achieve.
By and large, the compensation plan that each direct selling company offers is quite similar. Correspondingly, there may be just a slight difference in the percentage commissions. Sounds like a deliberate structure?
Can’t help but believe that the design is to make it hard for independent distributors to make a profit. Noting the compelling nature of the compensation plan, here are a few similarities:
- Must meet the requirement for commission payouts
- Earn awards for purchasing products (usually in the form of discounts)
- Get extra income for recruiting and build downline
- Profit at the expense of members from your downline
- Meet personal volume quota to remain active
- Demand for the products don’t drive the sales (members do it)
- Up-line makes money only from others spending money
- High earners at the top earn from members who fall below them in the hierarchical structure (the bigger your downline, the bigger their income)
Make A Profit Or Take A Loss
According to an AARP Study of companies like these, a high percentage of independent distributors lose money (about 47%). Again, not many distributors break even. As seen, the study reveals it’s only about 27%.
- Remaining an active member
Much of the sales for direct selling companies actually come from members. Either for their personal use or just to make sure they are on target with the required volume quota.
- Incentives are on the negative side
Making money requires building a downline by recruiting others
An Alternative Method
Clearly, data indicate that direct selling is not for everyone. Aren’t the numbers enough to make you think of an alternative? Instead of direct sales, why not try affiliate marketing? Supporters of this business model suggest that the pros far outweigh the cons. Especially when you compare it with direct sales.
Beyond learning about affiliate marketing, the pros who offer this training can show you all the ins and outs of how to be successful. Right now, there appears to be an acceleration in the growth of the affiliate marketing alternative. Rest assured that it doesn’t have all the risks that come with direct sales.
“No” goes for all the following:
- Starter kits to pay for
- For recruitment
- Building downline
- Personal volume quota to meet
- Replicated website
- House/office parties to promote products
- Purchasing of products for presentations
- Carry inventory
“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”
(Franklin D. Roosevelt)
Creating Your Own Website
Seeing those direct selling companies only offer replicated websites, it’s time to think about building your own. Truly, a replicated website is not really yours because it has the company’s name in the URL. Everything on the website belongs to the company.
Why do this when you can create your own? Surely, this is not hard. Provided that you make use of this training, you can have your own website on the world wide web in just a few minutes. Watch this short video for a demonstration.
Shortly after you start the training, you’ll realize the possibility of taking your website to a higher level. Unlike direct selling, affiliate marketing does not restrict you to sell only one company’s products.
Building a website that is solely yours allows you to do more with it. Having your own website makes it possible for you to promote many products/services. Without delay, you can have your own niche idea promoting what you really love.
Almost a limitless number of affiliate programs are available. Only be wise in the ones you choose: Ones that offer real solutions to people’s problems. And you are passionate about the products.
“A year from now you may wish you had started today.” (Karen Lamb)
Central to your website is a niche that you feel comfortable with. By the way, you can think about the direct sales products that you like. Use that to help with your niche idea. Think about those for health and wellness for instance. Which area would you like to focus on?
- Losing weight
- Vitamins and supplements
- Vegetarian/Vegan diet
- Food/beverages (wine/chocolate/coffee)
- Kitchen gadgets
Remember, you can make your niche as specific as you want. Clothing and fashion for example can be very specific for men, women, and kids. Athleisure clothing men and for women are typical examples. Discover more about the best men’s clothing affiliate program in this post.
Specifically, if you have an interest in toys, you can create your website to focus on discovery toys to inspire kids to learn, and for play. Fashion spreads far and wide: Jewelry, shoes/sneakers?
Anything you have an interest in, you can create your own website from it. Do product reviews to help customers know more about the items before they make a purchase. Want to share your experience with a particular illness and how you overcome it? Amazingly, the possibilities for website ideas are endless.
“It’s not about ideas. It’s about making ideas happen.” (Scott Belsky)
Overall, Should You Start Direct Selling Company Now? Do you really think it’s worth it when there are cheaper and better alternatives? Undoubtedly, the sentiment that the top earners express in the direct selling business is to make you believe that you can enjoy a high income like them.
Unfortunately, evidence shows that the lack of earnings from most independent distributors does not support that argument.
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