When a friend of a friend talked to a friend (sound familiar!), about joining a network marketing company, someone said, “He makes it sound so easy, but I know it’s not that simple.” He knew from experience, the many evenings spent on the phone talking to prospects, training, and attending conferences, that building a direct sales business takes time and talking to a lot of people. Despite what many direct sales people would have you believe, it doesn’t take only 6 or 8 or 10 people to make you rich... And it takes way longer than you’d think to get those 6 to 10 people.
However, no is against legitimate direct sales and multi-level marketing companies. There are a great many people who are successful and love their business. It is a viable way to start a home based business, if you go in with the right attitude, knowledge and willingness to work. Here are my tips for achieving success in direct sales and MLM.
1) Understand that it’s a business like any other business.
Direct sales marketers have the tendency to water down the plan so that it’s easy to understand, but can also give the impression that it’s easy to do. “Help five people get eight people, and you’ll get a free car.” What they don’t tell you is that you’ll need to talk to at least 50 people to get the five people, and help them talk to at least 80 people each to get their eight.
Success in direct sales comes from the same things that make any other business a success; know your market, find them, deliver a message that appeals to them, and service them well.
2) Use your company’s products and services.
The best direct sales reps use and love their products. They can talk about them with enthusiasm, which is what helps sell them. Using your products and services also gives you personal experience and information so you can discuss them honestly and accurately with potential customers.
3) Read and understand your company’s marketing and compensation plan, and policies.
Some companies forbid you to use their name in your marketing. Others don’t allow you to get a phone book ad until you reach a certain level (although, I wouldn’t recommend phone book ads). The point is, buying into a business means there may be rules and restrictions you need to abide by. Further, to maximize your income, you need to know the best way to make money. Which products are the most popular and earn you the most income? How can you earn bonuses? What are the overrides by helping others start a business?
4) Determine the best market for your products, services and business plan.
In direct sales, there is a tendency to focus on targeting people who want to make money, and that’s not bad, but you’re better off focusing on people who want to make money AND would like your products and services. People aren’t going to be successful selling something they can’t get behind. Further, retail sales is a part of how money is made, but you can't sell products to people who don't want or need them. So figure out who wants and needs what you're selling.
5) Figure out where you can find your target market.
General advertising and promotion doesn’t work as well as sending your message directly to your market. What websites do they surf, what magazines do they read, what organizations do they belong to, etc.?
6) Determine how your market can benefit from your products, services and business plan.
Will they gain energy, become smarter, cook better, feel confident? Reframe all the great things about your product and business into benefits. If you’re products are non-toxic, what does that mean? Fewer asthma spells? Less allergies? Poor marketing strategies are one of the top reasons home businesses fail, so develop a marketing plan that highlights your company's benefits to your target market.
7) Differentiate yourself from the thousands of other people who are working with the same company.
Why should people buy from you rather than that other rep who lives next door? You can offer a higher level of service, give discounts or freebies, set up a loyalty program, etc. The key is to find a way to stand out from all the others selling the same thing you are.
8) Develop your own website and marketing tools, if allowed by your company.
This is another way you can differentiate yourself and customize what you offer. For example, on your own website you can offer a newsletter with tips and helpful hints. Print business cards with an offer, such as a free consultation or a discount.
9) Network to find your market.
Most direct sales companies recommend making a list of 100 people, which can be a good place to start, except if none of those 100 people need your product or business. Instead, use your network to help you find people in your target market.
10) Make appointments.
Direct sales works because it’s people to people. Whether you’re showing a product or introducing the business plan, you have to do it in front of people. The direct sales people who make the most presentations in direct sales are usually the ones who win.
11) Develop a system for staying in touch with prospects, clients and new business builders.
The fortune is in the follow up! Too often, direct sales consultants give up after the first ‘no.' But that ‘no’ may actually mean 'it’s not a good time.' Newsletters are a great way to keep your name in front of people, so if the time becomes right, they can contact you. Good customer service and contact goes a long way to getting repeat and referral business (for all types of businesses, not just direct sales). Finally, if you’ve helped someone start their business, it’s your job to train, mentor and support them. Your success depends partly on their success.
12) Make a commitment to not quit.
Despite what the nay-sayers will tell you, the failure rate in network marketing and direct sales isn’t any more than any other home business opportunity. Just as many people give up selling on eBay, freelancing their skills, blogging and more. What differentiates success from failure in any home business is commitment to never quit.
However, no is against legitimate direct sales and multi-level marketing companies. There are a great many people who are successful and love their business. It is a viable way to start a home based business, if you go in with the right attitude, knowledge and willingness to work. Here are my tips for achieving success in direct sales and MLM.
1) Understand that it’s a business like any other business.
Direct sales marketers have the tendency to water down the plan so that it’s easy to understand, but can also give the impression that it’s easy to do. “Help five people get eight people, and you’ll get a free car.” What they don’t tell you is that you’ll need to talk to at least 50 people to get the five people, and help them talk to at least 80 people each to get their eight.
Success in direct sales comes from the same things that make any other business a success; know your market, find them, deliver a message that appeals to them, and service them well.
2) Use your company’s products and services.
The best direct sales reps use and love their products. They can talk about them with enthusiasm, which is what helps sell them. Using your products and services also gives you personal experience and information so you can discuss them honestly and accurately with potential customers.
3) Read and understand your company’s marketing and compensation plan, and policies.
Some companies forbid you to use their name in your marketing. Others don’t allow you to get a phone book ad until you reach a certain level (although, I wouldn’t recommend phone book ads). The point is, buying into a business means there may be rules and restrictions you need to abide by. Further, to maximize your income, you need to know the best way to make money. Which products are the most popular and earn you the most income? How can you earn bonuses? What are the overrides by helping others start a business?
4) Determine the best market for your products, services and business plan.
In direct sales, there is a tendency to focus on targeting people who want to make money, and that’s not bad, but you’re better off focusing on people who want to make money AND would like your products and services. People aren’t going to be successful selling something they can’t get behind. Further, retail sales is a part of how money is made, but you can't sell products to people who don't want or need them. So figure out who wants and needs what you're selling.
5) Figure out where you can find your target market.
General advertising and promotion doesn’t work as well as sending your message directly to your market. What websites do they surf, what magazines do they read, what organizations do they belong to, etc.?
6) Determine how your market can benefit from your products, services and business plan.
Will they gain energy, become smarter, cook better, feel confident? Reframe all the great things about your product and business into benefits. If you’re products are non-toxic, what does that mean? Fewer asthma spells? Less allergies? Poor marketing strategies are one of the top reasons home businesses fail, so develop a marketing plan that highlights your company's benefits to your target market.
7) Differentiate yourself from the thousands of other people who are working with the same company.
Why should people buy from you rather than that other rep who lives next door? You can offer a higher level of service, give discounts or freebies, set up a loyalty program, etc. The key is to find a way to stand out from all the others selling the same thing you are.
8) Develop your own website and marketing tools, if allowed by your company.
This is another way you can differentiate yourself and customize what you offer. For example, on your own website you can offer a newsletter with tips and helpful hints. Print business cards with an offer, such as a free consultation or a discount.
9) Network to find your market.
Most direct sales companies recommend making a list of 100 people, which can be a good place to start, except if none of those 100 people need your product or business. Instead, use your network to help you find people in your target market.
10) Make appointments.
Direct sales works because it’s people to people. Whether you’re showing a product or introducing the business plan, you have to do it in front of people. The direct sales people who make the most presentations in direct sales are usually the ones who win.
11) Develop a system for staying in touch with prospects, clients and new business builders.
The fortune is in the follow up! Too often, direct sales consultants give up after the first ‘no.' But that ‘no’ may actually mean 'it’s not a good time.' Newsletters are a great way to keep your name in front of people, so if the time becomes right, they can contact you. Good customer service and contact goes a long way to getting repeat and referral business (for all types of businesses, not just direct sales). Finally, if you’ve helped someone start their business, it’s your job to train, mentor and support them. Your success depends partly on their success.
12) Make a commitment to not quit.
Despite what the nay-sayers will tell you, the failure rate in network marketing and direct sales isn’t any more than any other home business opportunity. Just as many people give up selling on eBay, freelancing their skills, blogging and more. What differentiates success from failure in any home business is commitment to never quit.
