Why does Direct Selling have such a bad name?

Direct Selling / Network Marketing definition:

Direct selling is a type of retail where products and services are marketed directly to consumers.

This generally takes place one to one, in a group setting or party or with the current global climate, more and more online.

The personal component is what makes this channel unique.

It is best known for party plan, network marketing and affiliate marketing.

The industry is about connecting people and building relationships while offering personal attention and quality service.

A key characteristic of direct selling is the role of independent contractors in the distribution of products and services.

Independent contractors are variously described as distributors, consultants, representatives, agents, stylists and so on.

The direct selling industry generally operates with independent salespeople contracted to these direct selling companies to market and sell their goods and services, being remunerated by reselling margins or commissions on the sales made.

Independent salespeople in direct selling are small and micro-business people seeking supplementary income for their families and flexibility in the way they earn this income.

Myths, Truths & More

Talking all things about the industry that I love and how it changed me.

Ass you can see, we’re going back to talking about the myths, truths and everything about the industry because I feel that there’s so many myths going out there, there’s so many untruths going around.

I wanted to really dispel a lot of what’s going on in the industry from the Association’s point of view.

The fact that people keep claiming it’s a pyramid or a Ponzi scheme. The only way it can be either a pyramid or a Ponzi scheme is if you don’t actually have a product or a service that you have retail customers for, or customers that have VIP accounts.

You’re talking about things they are doing is just recruiting and you’re not doing anything else. That’s not what an actual direct selling model is all about.

You need to have customers and team to be actually get residual income from what you’re doing (selling).

And it gets a bad name for a lot of reasons. So I wanted to dispel that whole thing about it being a pyramid or Ponzi scheme.

Not being transparent

The other thing that might give it a bad name is that they’re not the finding out about you and just copy/paste their business to you. They treat you like a number, wanting you to watch a video or get on a webinar.

Then wanting you to join but don’t tell you much else.

Also not explaining that the joining fee could be $0 or anything upto $5k. To earn any money in direct selling you need to invest either time or money. (this isn’t explained very well most of the time).

It really depends on which company you go with to start your journey.

Our advice as the Association is to:

  • Do some research
  • Ask lots of questions
  • Check out Direct Selling Association
  • If it is too good to be true, RUN…
  • This is a 3-5 year strategy not a get rich quick

If you opened your own bricks and mortar in your own shop, that’s going to set you back about $200k, you’ve got to sign a lease which could be anywhere between 3 to 5 years.

You need to outfit the whole shop, you need to market it everything, have products or services to help.

The Direct Selling Model:

It’s very, very different to bricks & mortar, because they’ve (the company) already invested in the research and development side of it.

So you don’t have to worry the products are tested and tried, all that sort of jazz. They’ve come up with an income or compensation plan for you that you can just follow and not have an issue with because it’s straightforward (well most of the time).

You do this (sell), you get this (commission), you do this (recruit), you get this (commission on your team). They’ve also put in there a career plan (ladder of success etc).

So we can look at it and go, Oh, they’ve ticked off one money. How are you going to earn your income? They’ve ticked off recognition because you move up the different ranks, you’re getting recognized.

They’ve ticked off self-confidence because it is the best form of personal development on the job that I have ever done.

Then there’s choices, you have different choices, you have the flexibility to work when you want to work and have flexibility, when you don’t want to work.

If it’s advancement you want that can happen too. You can advance it at any all the levels you want.

Lastly you are the boss, business owner or entrepreneur so you get to run your business how you want.

Where to next?

You are a Marketing Machine

The company has the compensation plan, the products/service and you are the actual marketer. They don’t do any television advertising, they’re not doing any print media, nothing, because you’re the one that’s doing that.

You’re the testimonial, you’re the reviews.

It’s a business, Did you know that!

  • They join to get their products/services cheaper or for free
  • Then see the bigger picture and learn more about how to build
  • People join but they know nothing about running a business
  • Some start off growing it slowly & having another job too
  • Others want to earn more than they are in their day job
  • They want more than they have now (holiday, new car, house)

Do you have the Entrepreneur spirit?

Meaning do you want to serve others in your own business?

Always on the look-out for new and exciting things?

Open to what is around?

There’s so much more to it than then what’s first thought of right?

Rumours abound and this leads to negative stories coming out about the industry.

Yes people lose money, and they lose money in bricks & mortar businesses too.

When investigating a company some things to look for:

  • Who are the owners
  • How long have they been in business
  • How long has the company been around
  • Are they are member of the Direct Selling Association
  • Is the company debt free
  • Have they conducted independent research on the products
  • Google them and see the positive & negative reviews
  • Is the company in just one country or global

If you find you can’t see information straight away then it isn’t the right fit for you. It shouldn’t be hard to find out the owners.

If they are secretive and aren’t open with information then what do they have to hide!!

Do you want product? or service?

Okay, well, I want to go down the product route?

Do I want to have a product that’s consumable?

Or do I want to have a product that you know is high end price wise, and get one off sales.

Once you decide on that it makes it so much easier to find your right fit. In Australia we have over 300 direct selling companies and check out Direct Selling Association.

Have a look at the members because they have to go through hoops to become members of the Direct Selling Association.

There’s over 14,000 choices worldwide and there’s over 121 million people in our industry therefore, you can see that there’s always going to be a model for you.

Consumable? or Not?

If you’re looking at consumable products, eg: I always went for skincare, because people once they’ve got the right skincare and their skin looks amazing.

They’re going to continually keep buying it. I did that for a long time with a few different companies.

I always stuck with skincare, because I knew skincare and I was a makeup artist for a long time as well (20 years mmm)

Who are your customers?

Really determined on who you want to have as customers.

What sort of qualities do you want in those people as customers?

Who are your team?

Who do you want to hang around with? What are their qualities?

Who are your leaders?

Are they people who you want to have relationships with? Go on holiday with?

These are the big three things to look at when looking for companies.

Having a consumable product means that you’re going to have people ordering all the time, you’re going to have what I usually call your bread and butter money.

So there’s money coming through all the time, right? then the rest of it is jam and cream money (from team) which pays for your holiday pay, sick pay, superannuation, life insurance, wealth planning.

What to look for in your new team members:

Are they coachable?

Want to get their products cheap or free?

Earning part-time income?

Do they want a lifestyle income?

Willing to back themselves?

on boarding team

Use your authentic voice

Yes doing the scripts that are fed to you from your upline (person who you joined with) doesn’t have your personal touch on it. Copy/Paste crap doesn’t work in the long run, as people can see through that.

By using the products this makes it easier for you to build Know/Like/Trust (KLT). This in turn gives you credibility and stops you being “Spammy Pammy”.

People want to buy from people they like, people they know and people they trust. They don’t want you to ram it down their throats constantly.

Represent the industry well

There’s so many people in the industry that we know are setting the world on fire with their values and integrity in tact.

Others that aren’t using their values or integrity for the good of others.

What are your values? Personally and Professionally?

Live your life by it

From the Associations point of view

We realise that the industry has a bad now, however we are here to make a difference.

People in the industry aren’t bad they are human just like you and me, they just need education, awareness and training.

Our Association has a code of ethics which every member needs to say yes to before they are accepted as a members.

It is just a basic code which is taken from our expertise in the industry.

What’s next?

Join our group for more resources: https://bit.ly/FBEthicalAssnGroup

Download our FREE book for your abundance thinking: https://bit.ly/RetireYourHubbyV1

Download our blog: https://bit.ly/BuildingYourTeamtoGreatness

See what our membership can do for your business: https://bit.ly/EthicalMembership

Or you can book a FREE strategy session with our mentor: http://bit.ly/AppointmentWithEDSA

Categories: Tips and Info

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