Are you looking at network marketing or party plan selling as a possible sales channel for your company? This is direct selling.
Direct selling is the umbrella term often used to describe a business with independent representatives who can earn money on their personal sales as well as on the sales of others in their downline organization.
You have choices on how you will build and grow your business. As you evaluate your options, the most important questions to keep in front of you are:
- “How will you find your customers?”
- “What is the cost of customer acquisition?”
- “What is the fastest way to grow the number of customers?”
- “Which business model will help you to keep your customers as long as possible?”
- “Which approach lends itself best to selling existing customers additional services in the future?”
Direct Selling
The direct selling business model answers these questions very effectively.
Independent representatives (most of whom are customers themselves) will sell to customers and recruit other independent reps who will do the same. Unlike other marketing plans where the cost of customer acquisition is unknown, the cost of customer acquisition will be determined in advance and will paid through a multilevel compensation plan.
The fastest way to grow a customer base is do so using customers themselves. Most direct selling representatives are customers. The personal relationships that were built when a customer was acquired can be used again later to sell the customer additional products or services.
Having worked with hundreds of new and established network marketing and party plan companies, I am a fan of this business model.
If you like it, too, what do you like best about it?
Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving party plan and network marketing companies across the globe.
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