What is the “golden rule” of direct selling? What are the other secrets of successful direct selling companies?
In all, we’ve identified twenty secrets.
In this article, we will give you the first five. In the next issues of our newsletter, we'll share the rest.
With an understanding of these secret elements, you can make your business stronger!
Secret #1
Follow the golden rule of direct selling:
Strive to make your income opportunity as easy, fun, and lucrative as possible.
While your representatives operate their own businesses, it is your responsibility to give them the tips and tools to make it as easy as possible for them.
People stick with things when they’re fun more so than when they’re not. You want your representatives to stay with you as long as possible. For that to happen, the business must be fun. You need to make it fun for them!
Lastly, the opportunity must be lucrative for its participants. Lucrative means representatives earn great money for the time they put into their businesses. For example, we like to see home party plan consultants earning at least $30 per hour for time spent at home parties.
Secret #2
All companies want to attract new customers and retain them for as long as possible.
Your customers are representatives who consume your products and consumers to whom representatives sell your products.
Successful direct selling companies are more than just companies. They have a greater purpose. Beyond offering products and/or services, direct selling companies are personal growth vehicles for their representatives while excelling at providing “added values” to all of their consumers.
Secret #3
Successful direct selling companies don’t sell products that are branded with the names of other companies. They promote their own brands!
Your company name, your logo, your products, your marketing materials and everything you do should be branded by you.
Your company name should fit who you are, what you sell today, and what you plan to sell tomorrow. For most companies, we recommend the use of a tagline that helps to explain what is sold and what the company stands for, if the company name is too broad to convey either directly.
Your logo should compliment your name. It should be simple enough so that when it’s printed small, it still looks crisp and clear and when it’s embroidered on logo clothing, your logo doesn’t require extra thousands of stitches.
Your products and marketing materials should be labeled similarly with your company name and logo and the fonts you use should be standardized.
When creating new products, marketing materials or tools, make sure they are worthy of your company’s brand.
“Protect and serve.” This is the stated mission of some police departments. You should protect and serve your brand.
Secret #4
Define your business model clearly. Are you a network marketing company or a home party plan company?
Network marketing companies sell products primarily on a one-to-one basis. For many, the distributors are the customers and there is very little retailing of product to non-participants in the income opportunity. For others, there is significant retailing of products to others; this happens only when there is a sufficient retail profit available; preferred customer programs are often used.
Home party plan companies offer their products in a group sales setting; their representatives personally consume or use a very small portion of the items sold.
Like network marketing companies, home party plan companies should make a clear decision on whether to enroll customers as representatives. Do you wish people to join your company primarily for product discounts, or do you wish to discourage this?
Secret #5
Set an appropriate barrier to entry for new representatives.
Will you charge no fee at all, a minimal fee ($1 to $49), a low fee ($50 to $99), an intermediate fee ($100 to $299), or a high fee ($300 or more)?
While the fee you charge will be determined in part by your cost of the items provided to new representatives, there are other factors to consider.
Low fees increase recruiting while decreasing the percentage of business builders. High fees impede recruiting while increasing the retention rate of representatives.
In setting your options for enrollment, be sure to consider these factors and others.
Conclusion