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You are here: Home / Startups / It’s What You Don’t Know

It’s What You Don’t Know

June 12, 2021 By admin Leave a Comment

I began my career in direct selling in 1986 when I went to work for a company that develops and sells network marketing software.  My previous background was software development, so I was hired as a programmer/analyst.

Within a few months, I was promoted to project leader.  In those days, project leaders did everything for their clients.  They responded to requests to support specific business initiatives, determined whether the software could support the specific business need, proposed solutions, wrote specification documents, programmed, and tested their clients’ compensation plans, mapped and converted their data, trained users, and answered all support questions.  To do a good job, it was essential that the project leader learned everything about their clients and their businesses.

I saw firsthand how companies like Nu Skin and Usana grew from small businesses into large multinational corporations.  I also saw many companies launch and struggle to grow, some of whom exited their businesses.

Later, as a business analyst, I reviewed and documented the business processes and operations of large direct selling companies to provide project leaders with information they needed for successful implementations.

During my 13 years of employment with the software company, I learned a tremendous amount from my experience visiting and working with over 100 network marketing and home party plan companies.

What Did I Learn?

I learned that direct selling companies are often launched by people who had not previously worked inside another direct selling company and that what often harms a company is a lack of knowledge of what to do when to do it, and what not to do.

In 1999, I launched Sylvina Consulting.  Since then, we have helped emerging direct selling companies worldwide to launch, and established direct selling companies to grow, their businesses successfully.  Our clients include startup businesses, young companies, new direct selling divisions of companies, and large multinational corporations.

While creating and operating a direct selling company is a complex endeavor, there are do’s and don’ts that everyone should know.  Here are 10 of them:

  1. The products or services you sell are critical to your success.  Make sure that your products can be sold by your sales reps to non-participants in your income opportunity.
  2. The income opportunity is your second product.  It needs to be branded and marketed like any other product.
  3. Your compensation plan is an important ingredient in your success recipe.  It must encourage and reward 12 compensation plan behaviors.  If your plan is weak, your income opportunity will be less attractive and as a result, your business will grow more slowly.  It will also fail to attract and retain strong business builders, who are vital to your success and longevity.
  4. Follow what I call the “golden rule” of direct selling.  Create an income opportunity that is as easy, fun, and lucrative as possible for your sales representatives.  This is just one of the 20 secrets of successful direct selling companies.
  5. Direct selling companies need good margins.  Without them, this business model will not work.
  6. Recognize that your company has a responsibility to recruit alongside your sales reps until the business has enough momentum where this is no longer necessary.  Sharing leads with others is important, but follow-up and review of results are equally essential.
  7. Watch your cash carefully.  Use financial budgets and cash-flow management religiously.
  8. Set targets for growth and monitor your progress with a good set of key operating indicators.  Whether you are ahead of plan or behind it, you will need to adjust your spending in response to where you are.
  9. Take the time to nurture the business.  You can’t run a direct selling company successfully as an absentee landlord or part-time while you focus on other businesses.
  10. If you don’t have all the answers (or know all the questions you should be asking), get help.

 

Filed Under: Startups Tagged With: direct sales, direct selling

About Jay Leisner

P15Jay 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 network marketing, party plan and referral marketing companies across the globe.

Direct Selling Startup GuideJay Leisner and Victoria Dohr authored the top-rated book for new and young network marketing, referral marketing, and party plan companies, "Start Here: The Guide to Building and Growing Your Direct Selling Company".

Available in English and Spanish. This startup guide contains 250 pages of wisdom that will guide you through the right steps to start and continue on your journey to build a successful direct selling company.

You will save thousands of dollars and hundreds of hours of your time using the information you will read in our book.

In 1986, Jay began his career in direct selling by working for a major direct selling software provider. First as a software developer and later as a project leader and a business analyst, Jay worked closely with new and established network marketing and party direct selling companies to provide them with software solutions to meet their unique requirements.

Jay contributed in many ways to the success of large implementation projects for many companies. Jay also worked with dozens of smaller companies to assist each of them in various capacities to provide them with the systems they needed to help their businesses to grow faster.

Along the way while working with them, he learned the secrets of successful direct selling companies and the challenges faced by them. In true entrepreneurial spirit, Jay’s decision in 1999 to start Sylvina Consulting as a direct selling consulting company was driven by what he saw was a need for answers, advice, and solutions.

In 2004, 2006, 2009, 2014, and 2018, Jay gave presentations on compensation plans, recognition, and field leadership development at conferences held by the US Direct Selling Association.

He traveled to South Africa in 2015, 2016, and 2017 to conduct workshops on compensation plan design and recognition programs for member companies of the South African Direct Selling Association.

In 2017, Jay spoke at the Canadian Direct Sellers Association Meeting on the importance of recognition.

More than just a compensation plan expert, Jay is exceptionally skilled at advising new and established companies on business strategies. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals.

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