6 Important Questions Before Joining Direct Selling Business
Direct selling is a business model where you are paid for selling products or services directly to customers. You can connect with customer in n-number of ways. There is no brick –or-mortar retail store. However, how do you know if direct selling is right for you?
Well here are 6 Important Questions Before Joining Direct Selling Business.
1. What Do You Have to Sell?
The services and products belong to a manufacturer, vendor or company. Almost anything imaginable can be sold via direct selling, such as clothing, personal care items, cosmetics, kitchen gadgets, household goods etc.
So question yourself What you love to sell? Remember its not just about selling, its about whether you like the product you are selling or not. If you love it you hold better position to sell it.
2. How Are You Paid?
You generally get a percentage of the amount of services or goods you sell. Thus, you earn commission in any of the two ways mentioned below:
- Single level compensation: Commission based on what you sell, there is no pay if you do not sell anything.
- Multilevel compensation: Commission based on what you sell and direct sales generated from your recruited representatives or distributors. These recruits are called downline representatives.
3. Does the Customer Network Ever Go Stagnant?
For many direct sellers, the first customers are usually former co-workers, family, acquaintances and friends. You may make occasional sales, but what when the existing customers do not want the service or product again?
To resolve this query, always look for new customers and ways to expand your customer network and do not just rely on the old customers.
4. How Do You Multiply Sales?
There are many strategies to help you with escalating sales than letting your customer pool dry up. You must have a plan. Try selling via online mediums such as website, social media connections or go traditional with newspaper advertisements, door-to-door calling, flea markets etc.
Launch interesting events, get-togethers and sign-up for exhibitions where you can connect with potential customers.
Some dealers actually do not provide any product for selling but involve you in a pyramid scheme, where you are paid to recruit others to sell an investment or business opportunity, which does not really exist. So, beware of such schemes.
5. Which Skills Do You Need?
While direct selling may seem a lucrative option and since it could be a home-based job, you may be attracted to it. However, you need to keep few things in mind to lose nothing outright.
- Generating sales is essential and even if you are involved in multi-level or single level compensation, you have to sell the product or service to earn the commission.
- Once you recruit downline representatives, you must assure that they are making more money on your hard work than you are.
- Arrange for inventory storage, if you have to keep the items that require selling out.
6. How Do You Identify a Scam?
Do watch out for scams, as there are some dealers or individuals who may get the products or services sold and but pay no commissions. These firms especially operate on the internet, but so do some of the genuine ones.
So how do you identify a fraud? The dealer may be asking too high a price for the start-up kit. The vendor may just have a website up without a valid physical address or a telephone number.
Thus, direct selling can reach you to pinnacle of success, if you know what it takes to break the ice and keep your customer circle active.