Direct selling businesses are so popular today that most of us would have had to encounter sales pitches to join a network. The decision to join a direct selling network should not be taken based on how attractive the sales pitch is or who is offering you the opportunity.
Here we will Take a Look at 10 Facts to Consider When Joining a Direct Selling Company:
1. The Product
The product is the most vital aspect of any business, whether it is direct selling or not. A quality product is required as a foundation for every direct selling company to succeed. Take a peek at Amway, Avon, Herbalife, and other major direct selling companies around the world. All of these businesses produce truly world-class products and services. The company you choose to join should offer a diverse range of products that are in high demand and that people are willing to purchase. It's also critical that you have a thorough understanding of the product. You may need to educate your customers about the goods on occasion. Above all, you must believe in the products you are promoting.
2. History of the Company
You'll want to join a firm that has been around and operating for some time so they don't have to constantly work out issues, have a tried-and-true product and procedure, and you'll be able to earn residual income rather than having to search for work elsewhere if the company folds. Keep in mind that 95% of direct selling businesses fail to last the long haul. Make sure that the company uses a direct selling software to manage their day to day operations.”Ground floor” may sound appealing, but stability is more preferable. The pre-momentum era, which lasts anywhere from 2 to 7 years and is when the most billionaires are made, is the best time to join a direct selling company.
3. Market Saturation
Always think about how saturated the market is. You don't want to work for a business that everyone already knows about. If you know a lot of individuals who work for that company, chances are that everyone else you'll be talking with does as well, making the competition that much tougher. Likely, your potential customers have already purchased from or teamed up with someone else. In a saturated market, it is feasible to develop a profitable firm, but it will be an uphill battle, and you will need to have a vast network already in place.
4. Compensation Plan
Before taking a decision, be sure you understand the compensation plan. Some of the compensation plans are a little confusing and don't provide you with a clear picture of what you're looking for. Companies, on the other hand, may simply be candid in spelling out the terms on the multi-page document. Finally, whatever plans you have for the future, you should find out how the payoff works. For example, if you paid an amount for a product, you should inquire about the commission that will be credited to your account. You should also consider what you need to do to meet your sales goals.
5. Start-Up Costs
The advantage of direct selling businesses is that it is a low-cost industry to get into. Typically, you'll need to buy a sales kit initially, which might cost around $100, depending on the company you are joining. However, in comparison to many other businesses, the costs are not much. Keep in mind, however, that the expenditures of starting a direct selling business extend beyond the initial sales kit. You may need to invest in some infrastructure for your company. Home office equipment, a mobile phone, a business phone, business cards, proper clothing, and product samples are just a few of the start-up costs you may incur.
6. Chance to Grow
Everyone joins MLM companies to make money. As a result, before opting to join a company, you must assess your chances of advancement. In firms that have been around for a long time, it might be difficult to attain significant success. All of the top jobs would be filled, and recruiting new members would be tough. If you look at the statistics of earnings in any MLM firm, you'll see that the lowest earners are the basic level members. Ideally, you should work for a startup that is just getting started. That's where you'll find the most opportunities for advancement.
7. Company Culture
Always inquire about the team's and company's culture. Are these people with whom you'd like to share a cup of coffee or a bottle of wine? Is this something you'd like to be a part of in the long run? These are people you'd see at events, interact with regularly, and so on. Is it all about business or are they having a good time? What are the company's core values? Is it in line with your mission and passion? Try to answer all these questions before making your decision.
To make a profit, how much product will you have to sell? Is the profit sufficient to cover the effort and money you've put into your direct sales company? Because you may not know how much time your business will demand upfront, the worth of your time may have to be assessed as you go. However, before you take the leap, you should have a good grasp of the costs, including any commissions taken by your upline.
9. Residual Income
One of the most appealing aspects of network marketing is that you get paid for the same actions over and over again. In addition to assessing the compensation plan, see if you can perform well without recruiting and still receive residual payouts. If the answer is yes to both questions, you've discovered a rare network marketing organization that pays people for selling things and not just recruitment.
Experts advise watching for scams and organizations with a bad reputation in the market. Before agreeing to the company's terms, it's a good idea to look over the website of the business bureau. Keep a lookout for boasts about earning with little work or buying a large number of things to get started. You're dealing with a Ponzi scheme if the direct selling company doesn't make money through sales and instead relies on the number of recruits.
Joining a direct selling business is one of the most important decisions you can take in your life. A lot can go wrong as there are many scams and fraudulent companies around. Always consider these 10 factors before joining any direct selling company.