A myth is something many people believe to be true, but it’s not. Sometimes if you believe a myth, you can get hurt. Compensation plan myths are especially dangerous because they can lead to poor business decisions that can kill or wound your company. In this video, I will share 6 of them…
Direct Selling: Yes Or No?
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….
It’s What You Don’t Know
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…
Good Communication
Communication with the field is one of many vital ingredients in the success formula for direct selling companies. It should start within minutes of receipt of a new representative’s application. An automated email from your company should be sent confirming acceptance of the application, along with some words of thanks and excitement. In the starter…
Tuning Your Company
Like an orchestra, a direct selling company is composed of many instruments, each of which must do its part to produce the desired result, a symphonic success! When one or more elements are in need of tuning, the performance of the whole company suffers. Are your company’s instruments tuned for success?
What About Sales Tax?
If you’re launching a new direct selling company, you should be asking this question! Collection and Remittance Most businesses register for sales tax collection authority, collect sales taxes, and remit collected taxes only in the states where the business has a physical presence (a store, an office, or a warehouse). However, direct selling companies are…
How to Survey a Direct Selling Sales Force
What are they thinking? If you’re not asking this question about your salesforce, you should be! While some of your representatives will share their concerns and compliments with you, most won’t. Unsolicited feedback is important, but you shouldn’t rely upon it as your only gauge of field attitudes.
Policies and Procedures: Sale or Inheritance of an Independent Representative’s Business
Introduction Policies and Procedures are the rules that govern the relationship between a direct selling company and its independent representatives. When fully completed, they comprise about 60 different topics. In this post, we will tackle one of the Policies and Procedures topics. That topic is “Sale or Inheritance”. Sale or Inheritance Most businesses with revenue streams…
12 Key Behaviors For Good Compensation Plans
A good compensation plan is one of the most important ingredients in the recipe for direct selling success, but what makes a compensation plan good? It is good if it financially and ethically fits your business while motivating and rewarding very specific behaviors from your sales force. What are these 12 key behaviors?
Measure and Take Action!
Operators of direct selling companies need an accurate set of gauges for measuring the business. We call these measurements “Key Operating Indicators.” Without them, you will be flying your business partly in the dark! Key Operating Indicators are the most important measurements of your business. Direct selling owners and executives use these metrics to run…
Top 10 Problems of Direct Selling Companies
Direct selling companies face and conquer many problems as they launch, grow, and become successful enterprises. As top MLM consultants, we have observed that there are 10 types of problems faced by network marketing, MLM, and party plan direct selling companies. In this post, we will not only list them for you but also provide…
Introducing New And Improved Products
Product development is not a task you should check off your list. That’s because it should never be completed! What’s New? Independent representatives and their customers expect you will offer new and improved products. Direct selling companies want their representatives to consume or use personally more of their products. Both network marketing and party plan…