Do you have an existing business that you wish to grow in new directions?
If so, you may be considering starting a direct selling division of that business or perhaps changing to a direct selling business model.
For either approach, there are several important decisions that you’ll need to make. This article gives you many of them.
Add or Replace
Will you be starting a new direct selling division or will you be converting your existing business to use the direct selling marketing approach?
Branding
Will your direct selling business be named and branded with the same properties currently used or will you create a new name and/or a new brand?
Products/Services
Are you going to promote the same products or services offered by your existing company or will the direct selling division offer different products?
Network Marketing or Home Party Plan
Have you decided what type of direct selling company you will be creating… a home party plan company or a network marketing company? Do you know the differences?
Management
Have you determined the management team for your direct selling venture? Do any of your team members have direct selling experience?
Do It Yourself or Get Outside Help
Will you engage professional help to assist you in creating your new division or in remaking your company?
Staffing
Will you reassign existing employees to your direct selling venture or will you be hiring additional staff with or without experience working for other direct selling companies?
Joint Venture
Are you partnering with another company to launch the direct selling business? If so, have you ensure that everyone agrees on each party’s responsibilities?
Funding
Will your direct selling enterprise be funded by your existing business or by an outside lender?
Realistic Plan for Sales and Profitability
Have you established achievable goals for sales and profitability for your new direct selling division or for the company as a whole if direct selling will become the channel for all of your business?
Initial Representatives
What are your recruiting strategies for your initial representatives? Will you have a Founder’s Program?
Software Requirements
Do you have the software and systems in place that will fully meet the needs of a direct selling business?
Legal
Are you aware of the legal requirements for direct selling companies? Are you working with a competent attorney who is well-versed with the issues?
On Track
Are you aware of all of the tasks to be addressed to create a direct selling business? Do you have a solid plan to follow to minimize risks while maximizing opportunities for success?
Conclusion
Creating a new direct selling division or introducing direct selling as the primary marketing channel for your business is complex. Many important decisions need to be made.
To learn more, email Jay or Victoria or call 503.244.8787.
