direct sales business plan

How to Start a Direct Sales Business

Main Sections In This Post Steps To Starting A Direct Sales Business Points to Consider Resources Knowledge Is Power Featured Video

Discover the ins and outs of running a direct sales business with this comprehensive guide. Uncover a step-by-step roadmap and a wealth of resources to support you from startup to full-fledged operation.

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Let’s get started with the steps.

Steps to Starting a Direct Sales Business

Below are the steps to starting a direct sales business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

An Overview of What You’re Getting Into
Direct Sales Business Overview
Researching Your Direct Sales Business
Looking at Financials
Choosing A Business Location
Creating Your Mission Statement
Creating A Unique Selling Proposition (USP)
Choose a Direct Sales Business Name
Register Your Company
Create Your Corporate Identity
Writing a Business Plan
Banking Considerations
Getting the Funds for Your Operation
Software Setup
Business Insurance Considerations
Supplier Considerations
Physical Setup
Creating a Website
Create an External Support Team
Hiring Employees

1. An Overview of What You’re Getting Into

Is Starting a Direct Sales Business the Right Step for You?

Passion: The Driving Force to Succeed

When running a direct sales business, one factor stands out above all – your passion! Your feelings towards this venture are paramount for success.

Passion fuels your determination to find solutions during challenges, preventing you from seeking an easy way out. So, ask yourself: How passionate are you about starting your direct sales business?

An Intriguing Perspective

Imagine being granted five unrestricted wishes. Would you use one to start a direct sales business?

If your answer is a resounding yes, you’re on the right track, driven by genuine enthusiasm.
But if it’s a no, it’s time to ponder what truly captivates you and consider following that path.

To increase your odds of success, the key lies in your passion for the business you’re about to embark upon.

Without it, you might face an uphill battle. Discover your true driving force and soar towards a fulfilling direct sales journey.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Direct Sales Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Direct Sales Business

A direct sales business involves selling products or services directly to consumers, bypassing traditional retail stores or other middlemen.

Representatives of such businesses often sell their products in person, using one-on-one meetings, home parties, or online platforms.

This model allows businesses to have a more personal connection with their customers and often leads to building trust and long-lasting relationships.

Daily Tasks in Running a Direct Sales Business

Product Knowledge representatives must deeply understand the products or services they’re selling.

This means staying updated with product features, benefits, and associated training.

Customer Outreach Direct sales thrive on personal connections. Key tasks are regularly contacting potential clients, setting up meetings, or hosting events.

Keeping in touch with past customers is crucial to maintaining relationships and encouraging repeat business.

Order Processing includes taking orders, ensuring timely delivery, and handling returns or exchanges. Maintaining an organized system helps streamline this process.

Inventory Management For businesses that deal with physical products, it’s necessary to keep track of inventory levels, reorder products when necessary, and ensure there’s enough stock to meet demand.

Financial Management This involves monitoring the inflow and outflow of money.

Keeping accurate sales, expenses, and profits records helps understand the business’s financial health and planning for future growth.

Training and Development As the business grows, there might be a need to train new team members.

Regular training sessions ensure everyone is on the same page and equipped with the necessary skills.

Feedback Collection Listening to customers is vital.

A direct sales business can improve its products, services, and overall customer experience by collecting and reviewing feedback.

In conclusion, running a direct sales business requires attention to various aspects, from product knowledge to customer relationship management.

Business owners can build a successful and sustainable model by staying organized and dedicated.

b.) A Key Points To Succeeding in a Direct Sales Business

Points To Succeed in Operating a Direct Sales Business

Building a Solid Customer Base During the startup phase, establishing a customer base can be challenging.

However, persistence, consistent outreach, and offering quality products or services will gradually grow your clientele.

Cultivating Strong Relationships Success in direct sales revolves around connections.

This means fostering positive relationships with customers, suppliers, and employees. These relationships are the backbone of your business.

Understanding Customer Needs Offer products and services that resonate with your target audience.

Being in tune with their preferences ensures that you meet their expectations.

Acting on Customer Feedback Regularly gathering customer feedback is essential.

Addressing credible concerns and making improvements that benefit the majority can set your business apart from competitors.

Prioritizing Customer Service Always remember: your customers are the essence of your business. Ensuring they have a positive experience every time they interact with your brand is essential.

Consistently Providing Value Beyond the product or service you sell, consider how you can offer additional value to your customers.

This could be through loyalty programs, educational content, or exclusive deals.

Hiring the Right Team The success of a direct sales business isn’t solely on the owner’s shoulders.

Recruiting individuals who fit your company’s ethos and have the necessary skills is crucial.

Effective Team Management, A cohesive and motivated team is more productive. By treating staff with respect and promoting a team-centric environment, you can foster loyalty and reduce turnover.

Managing Finances Keep a close eye on your cash flow. Ensure you have reserves for lean periods and can cover all expenses while investing in growth opportunities.

Cost Management Operate efficiently. Find ways to reduce expenses without compromising the quality of products or the level of service you provide.

Staying Updated Whether it’s shifts in the industry, new technologies, or evolving business processes, change is inevitable. Staying abreast of these changes and adapting is essential.

Navigating Revenue Fluctuations Direct sales can have peaks and troughs. Preparing for and managing these fluctuations ensures stability.

Addressing Competition Be aware of both new entrants and established competitors. Understanding their strategies allows you to differentiate your business and maintain a competitive edge.

Effective Marketing Strategies Whether you handle marketing internally or outsource it, creating awareness is vital. Investing in impactful advertising campaigns can significantly boost your business’s visibility and reach.

In summary, operating a successful direct sales business requires a blend of relationship-building, keen financial management, and a proactive approach to change and competition.

With dedication and the right strategies, success is within reach.

c.) Making Your Direct Sales Business stand out

Unique Selling Proposition (USP) Every business should have a USP that distinguishes it from competitors. Pinpoint what makes your product or service unique and emphasize that in all your messaging.

Engaging Brand Story People connect with stories. Craft a compelling narrative about how your business started, its mission, and the problems it solves. This can create an emotional bond with customers.

Loyalty Programs Reward your regular customers. By giving incentives for repeat purchases, you retain existing clients and encourage more sales.

Educational Workshops Host workshops or webinars related to your product. This positions your business as a thought leader and adds value beyond just the product you sell.

Collaborations Partner with complementary businesses or influencers. This can introduce your products to a new audience and give your brand more credibility.

High-Quality Visuals Invest in professional photos and videos. Quality imagery can significantly elevate your brand perception and make marketing efforts more effective.

Community Engagement Get involved in local community events or charities. This builds brand awareness, fosters trust and showcases your business’s values.

d.) Add on Ideas for a Direct Sales Business

Subscription Boxes Introduce monthly or quarterly subscription boxes. Curate a selection of your best-sellers or introduce new products this way, ensuring a steady revenue stream.

Personalized Consultations Offer personalized consultations to help customers choose products best suited to their needs. This can enhance the shopping experience and boost sales.

Gift Wrapping Especially during the holiday season, offer premium gift wrapping services. This adds convenience for your customers and can increase the perceived value of your products.

Exclusive Member Events Host events exclusively for members or long-time customers. This can include early access to sales, product launches, or educational sessions.

Bundled Products Group related products together at a discounted rate. This encourages customers to purchase more and increases the average order value.

Referral Programs Encourage your loyal customers to bring in friends or family by rewarding them for every referral.

Incorporating these add-ons and distinctive strategies can elevate your direct sales business and provide more avenues for revenue and growth.

e.) Direct Sales Business Models

Types of Direct Sales Business Setups and Their Business Models

Party Plan Model In this setup, sales representatives host events or parties, often at an individual’s home. The host invites friends or acquaintances, and the representative showcases and sells products during the gathering.

The host typically receives rewards or discounts based on sales made during the party.

One-on-One Sales Model Here, the salesperson sells products directly to the customer in a personalized setting. This can be face-to-face meetings, over the phone, or even through video calls.

This model thrives on building strong individual relationships and offering personalized solutions.

Multi-Level Marketing (MLM) Model In MLM, individuals sell products to the public and recruit others to do the same.

Those who join under them become their ‘downline.’ Salespeople earn commissions on their sales and a percentage of sales made by their downline.

This model encourages recruitment and team building.

Catalog Sales Model With this approach, representatives distribute catalogs to potential customers.

Orders can be placed directly through the representative or sometimes online.

The focus is on various products showcased through printed or digital catalogs.

Online Direct Sales Model Leveraging the power of the internet, this model allows representatives to sell products via websites, social media platforms, or other online channels.

It combines direct sales principles with e-commerce, allowing for broader reach and convenience.

Hybrid Model Some businesses combine features of multiple models mentioned above.

For example, a representative might use party planning and online sales techniques to cater to different audiences and situations.

In conclusion, choosing the right business model from the beginning is crucial, as switching your model later is more challenging.

Identifying a profitable and high-demand niche for your direct sales business is essential.

f.) Questions You Need to Consider for Your Direct Sales Business

Preparation Questions for Starting Your Direct Sales Business

Business Model Selection What type of direct sales business model are you considering?

This will lay the foundation for your business and determine many of your operational decisions.

Work Distribution Will you handle all the tasks, or do you intend to hire employees?

Understanding your role and the need for additional help will guide staffing decisions.

Management Decisions Do you plan to oversee the daily operations of your direct sales business, or are you contemplating hiring a manager?

This decision can influence the business’s overall direction and efficiency.

Partnership and Funding Considerations Are you keen on seeking partners or investors for your venture?

Partners can provide additional skills, perspectives, and funds but will also have a say in decision-making.

Operational Location Do you envision starting a home-based direct sales business, or are you leaning towards operating from a commercial space? T

his affects overhead costs, visibility, and potentially your target audience.

Physical vs. Online Presence If applicable, are you thinking of a physical brick-and-mortar setup, or is your inclination to operate mainly online?

An online presence can widen your reach, while a physical location can establish local credibility.

Growth and Vision Have you given thought to the future growth of your business?

What are your long-term aspirations and goals? Understanding this can influence your initial business decisions and planning.

Product Source Where will you source your products? Will you produce them, buy them wholesale, or use dropshipping?

Target Audience Who is your ideal customer? What demographics are you targeting, and what are their purchasing habits?

Budgeting and Finance How will you manage your finances, and have you set aside a budget for the initial setup, marketing, and unforeseen expenses?

Regulatory Compliance Are there any legal or regulatory considerations specific to your product or service?

Do you need licenses or certifications?

Marketing and Outreach How do you plan to market your products?

Which channels and strategies will be most effective in reaching your target audience?

In summary, diving into direct sales requires thorough preparation and understanding. Addressing these questions can provide clarity, ensuring a smooth transition from idea to execution.

g.) Pros and Cons of Owning a Direct Sales Business

Pros of Running a Direct Sales Business

Be Your Own Boss Running a direct sales business means you’re in the driver’s seat. This independence can be liberating.

Decision-making Autonomy You can call the shots and shape the business according to your vision.

Freedom to Innovate Being in charge means you’re free to be creative, innovate, and introduce new products or marketing strategies without waiting for approvals.

Potential for High Revenue If executed well, a direct sales business can be lucrative, providing a significant income stream.

Flexible Work Schedule Once your business is on its feet and you have a reliable team, you can enjoy the luxury of setting your work hours.

Control Over Work Environment You can set up your workspace as you prefer, ensuring it aligns with your comfort and productivity needs.

Personal Growth and Development Running a business offers countless learning opportunities, pushing you to acquire new skills and knowledge.

Direct Customer Interaction You get firsthand insights into customer needs and preferences, enabling better product or service offerings.

Cons of Running a Direct Sales Business

Personal Accountability Any issues or challenges? They land squarely on your shoulders. Problems are your responsibility to solve.

Irregular Income Unlike a fixed monthly salary, your earnings might fluctuate, and there might be periods you don’t get paid.

Challenging Initial Phases Starting up requires patience and resilience. It might be a while before you see profits.

Customer Retention Hurdles Attracting customers is one challenge; retaining them is another. Loyalty in direct sales isn’t guaranteed.

Long Working Hours Especially during the early phases, be prepared to work longer and harder than usual.

Success Pressure As a business owner, you are pressured to ensure the venture succeeds.

Initial Investments Starting a business usually requires a significant outlay, from stocking products to marketing.

Constant Evolution The business landscape is ever-changing. You’ll need to adapt, which can be both time-consuming and costly.

Inherent Business Risks Every business comes with risks, be it market fluctuations, new competitors, or changing regulations.

High Competition The direct sales arena is competitive. Standing out and ensuring your brand remains top-of-mind can be taxing.

In essence, while a direct sales business offers autonomy and potential financial rewards, it also demands resilience, adaptability, and significant time investment.

Balancing the challenges with the benefits is key to long-term success.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Direct sales business research.

Research: The Foundation of Your Direct Sales Business

Before diving into your direct sales venture, conducting thorough research is paramount. Quality information will unveil what lies ahead, preventing unexpected surprises.

Learn from the Pros

Gaining insights from experienced direct sales business owners is invaluable. Their knowledge and years of experience can offer priceless guidance.

Connecting with the Right People

In an article I’ve written, discover effective ways to find and approach these seasoned individuals. Follow the link below to explore the steps beyond this post and better understand your new journey.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience is crucial in a direct sales business.

Knowing your target market well allows you to tailor your offers to resonate with potential customers. By providing products and services that genuinely interest them, you increase the likelihood of attracting and retaining loyal clients.

Target Market Ideas:

Stay-at-home parents seeking flexible income opportunities
Individuals interested in health and wellness products
Social media influencers with engaged followings
Retirees looking for supplemental income
College students seeking part-time work
Beauty enthusiasts interested in skincare and cosmetics
Eco-conscious consumers seeking sustainable products
Fitness enthusiasts interested in workout gear and supplements
Young professionals looking for career growth opportunities
Fashion-forward individuals seeking trendy clothing and accessories.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Understanding the Financial Aspects of Your Direct Sales Business

Startup Costs:

Before launching your direct sales venture, a clear understanding of startup costs is essential. Accurate estimation ensures a smooth process, from planning to opening.

Underestimating may lead to financial strain, hindering the business launch, while overestimating may deter potential investors.

Factors like operation size, location, employee hiring, equipment purchase, and rental agreements influence your costs.

Create a comprehensive list of necessities and research their prices, including unforeseen expenses that may arise during the process.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

Sales are influenced by product popularity, demand, and targeted marketing efforts.

However, true profitability requires prudent management of expenses, such as rent, payroll, and overhead costs.

Your monthly sales must cover expenses and provide a salary for a successful venture.

For More, See Estimating Profitability and Revenue

Simple Sample: Financial Lists to Consider As a Starting Point

Note: Focus on the issues more than the numbers. The numbers are samples. Your estimates will differ due to how you set up your business, location, expenses, and revenues.

Sample Financial Lists As a Starting Point

Start with something like this: Below are three overly simplified sample financial lists to give you a broad overview of the areas to focus on.

Sample Estimated Costs to Start a New Direct Sales Business in the USA:

Product Inventory: $5,000 – $10,000
Marketing and Advertising: $1,000 – $3,000
Website Development and Design: $500 – $1,500
Business Registration and Licensing: $300 – $800
Initial Training and Education: $200 – $500
Packaging and Shipping Supplies: $100 – $300
Miscellaneous Expenses: $200 – $500

Total Startup Costs: $7,300 – $16,600

Sample Estimated Monthly Expenses for a Direct Sales Business in the USA:

Rent/Utilities: $800 – $1,500
Product Restocking: $1,000 – $2,500
Marketing and Promotions: $500 – $1,000
Payroll (if applicable): $1,500 – $3,000
Insurance: $200 – $500
Loan Payments: $300 – $600
Office Supplies: $100 – $300
Travel and Transportation: $200 – $400

Total Monthly Expenses: $4,600 – $9,800

Sample Sales and Profit Outline (Moderately Profitable):

Assumptions:

Average product price: $50
Average monthly sales: 500 units
Gross profit margin: 40%
Monthly loan payment: $500

Monthly Revenue: 500 units x $50 = $25,000

Gross Profit: $25,000 x 40% = $10,000

Net Profit (Before Loan Payment): $10,000 – $4,600 (Total Monthly Expenses) = $5,400

Net Profit (After Loan Payment): $5,400 – $500 (Monthly Loan Payment) = $4,900

Disclaimer: These fictitious examples illustrate considerations when planning a direct sales business.

Your figures will vary, and success may take time due to customer base building, reputation establishment, and operational fine-tuning.

Seek professional advice and conduct thorough research to accurately calculate startup costs, expenses, and potential revenues and profits.

5. Choosing The Right Business Location

Choosing the Right Location for Your Direct Sales Business

Location: The Key to Success

The choice of location can significantly impact the success or failure of your direct sales business.

Demand and Competition

Operating where there’s no demand for your products spells failure before you even begin. Similarly, facing fierce competition in an area can hinder market share acquisition.

Striking the Balance

Opt for a location with demand and reasonable competition for your products or services.

Financial Considerations

Affordability is vital. While a highly populated area offers exposure, ensures profitability amidst the higher expenses. Conversely, a low-cost location must generate sufficient sales.

Consider Home-Based Options

For certain business models, operating from home proves viable. It works well for online businesses or those with limited customer interaction.

Start from home and later transition to a commercial location as your business expands.

Success through Careful Research

Selecting the right location is crucial to your direct sales business’s success. Thorough research is essential to make an informed decision.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement is a valuable tool for defining your business’s purpose.

It keeps you focused and reminds you of your primary value to customers and the community.

Examples of Mission Statements for Direct Sales Business:

“Empowering individuals to embrace a healthier lifestyle through our premium wellness products.”
“Enriching lives by offering exquisite handcrafted accessories sourced sustainably from global artisans.”
“Inspiring confidence and self-expression through our trendy and affordable fashion collection.”
“Enhancing homes with eco-friendly and innovative household solutions for a greener future.”
“Bringing joy to families with our curated selection of educational toys and games.”

For more, see, How To Create a Mission Statement.

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) plays a pivotal role in identifying and crafting distinctiveness for your business.

Examples of USP for Direct Sales Business:

“Our direct sales business offers exclusive, handcrafted jewelry pieces sourced directly from artisans worldwide, guaranteeing one-of-a-kind accessories for our customers.”
“As a direct sales company, we specialize in premium, organic skincare products, providing customers with natural, cruelty-free solutions for their beauty needs.”
“We stand out as a direct sales business by offering personalized and expertly curated home décor solutions, transforming spaces into unique and inviting sanctuaries.”

8. Choose a Business Name

Selecting a Memorable Name for Your Direct Sales Business

Choosing a captivating and fitting business name is crucial for your direct sales venture.

The name should be easy to remember and pronounce, as it will likely remain unchanged throughout your ownership.

Securing a matching domain name for your online presence is essential, ensuring another business does not already register it.

Here are 30 creative ideas to spark your imagination for an original business name:

GloballyCrafted
EcoEssentials
TrendyTrinkets
ArtisanAvenue
NaturalsGalore
JoyfulJewels
WholesomeHome
StylishSolutions
WanderlustWares
BeautyInnovate
VibrantVisions
InspireYourSpace
SustainableSelects
ElegantExpressions
FamilyFunFinds
WellnessRealm
CraftersCorner
GlowingGems
PoshPresents
CharmingChoices
HappyHomestead
FancyFusion
ElevatedEssence
UniqueUniverse
HarmonyHaven
OrganicOrigins
TreasureTrail
EnchantingElements

Remember, the perfect business name should resonate with your brand’s essence and values while captivating your target audience.

For more, see the following articles:

How To Register a Business Name
Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Your Direct Sales Business is Legally Compliant

Legalizing your direct sales business is a crucial step towards sustainable success.

Compliance with regulations and proper documentation safeguards your business and enhances credibility.

Consult a professional to ensure your business structure aligns with tax benefits and liability protection.

Professional Guidance for Legal Compliance

Engaging a legal or financial professional can be beneficial, providing expert insights into structuring your business to optimize tax benefits while minimizing liability risks.

Common Types of Registrations for Direct Sales Business

Sole Proprietorship: A straightforward, individual-owned business with no legal distinction between the owner and the business.
Limited Liability Company (LLC): A flexible business structure offering personal liability protection for owners while maintaining ease of operation.
Corporation: A separate legal entity that offers limited liability protection but with more formalities in terms of governance and reporting.

Permits and Licenses for Direct Sales Business

Ensure compliance by obtaining the necessary permits and licenses, which may vary based on your location and the nature of your products or services:

Business License: A general requirement for operating legally.
Sales Tax Permit: Necessary for collecting sales tax on taxable goods.
Home Occupation Permit: This permit may be necessary if operating from a home-based business.
Vendor Permits: Required for selling products at public events or markets.
Health Department Permits: Essential for businesses selling consumable goods, such as food or cosmetics.
Resale Permit: Needed for purchasing products wholesale without paying sales tax.
Zoning Permits: Ensuring your business location complies with local zoning laws.

Understanding and adhering to legal requirements lays the foundation for your direct sales business’s long-term prosperity, establishing a trustworthy reputation and promoting growth.

Seeking professional advice can guide you toward the most advantageous setup and compliance for your specific business needs.

Registration:

How to Register Your Business
How To Register a DBA
How to Register a Trademark
How to Get a Business License

Business Structures:

How to Choose a Business Structure
Pros & Cons of a Sole Proprietorship
How To Form an LLC
How To Register a Business Partnership
How To Form a Corporation
How To Choose a Business Registration Service

10. Create Your Corporate Identity

In direct sales, a Corporate ID, or Corporate Identity, is a crucial visual representation of your business.

It encompasses several components, including your logo, business cards, website, business sign, stationary, and promotional items.

Consistency in your Corporate ID is vital, as it leaves a lasting impression on potential and existing customers, showcasing a professional and reliable image.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

The Importance of a Business Plan in Direct Sales

Why a Business Plan Matters

A business plan is vital for securing funding and attracting investors in your direct sales venture. It is a guiding beacon throughout the startup phase and beyond, ensuring you stay on course.

Crafting a Vision

Creating a business plan demands time and effort as you envision your future enterprise. Delve into the details, meticulously planning and expressing your ideas.

The Fruit of Your Labor

The dedication pays off once your business plan is complete. You’ll get the essentials needed to kickstart your business and obtain a clear vision of effective operations.

Tailoring Your Approach

Multiple options exist when crafting your business plan: write from scratch, hire a professional, use a template, or employ business plan software.

Active Involvement is Key

Regardless of the approach, active participation is crucial, especially if you seek professional help. A distinctive plan effectively conveys your business’s nature and management strategy.

Embrace Flexibility

Your business plan can evolve and optimize with experience. Periodically review and adjust the document to reflect changes in your operation for continued success.

Simple Sample: A Fictitious Business Plan Example for a Direct Sales

Note: The sample below offers an overview of a business plan. A professional plan will consist of multiple pages and detailed information and analysis.

Executive Summary

Our direct sales business, “Global Treasures,” aims to provide premium handcrafted jewelry sourced from artisans worldwide.

Focusing on sustainable and ethically-sourced materials, we strive to create a diverse product line that appeals to fashion-conscious customers seeking unique and eco-friendly accessories.

Our business model emphasizes online sales, supported by social media marketing and influencer collaborations.

Company Description

Global Treasures is a direct-to-consumer jewelry brand headquartered in New York City.

We have partnered with skilled artisans across the globe, ensuring our products showcase unique cultural influences while adhering to fair trade practices.

Market Analysis

We cater to fashion-forward individuals aged 25 to 45 seeking high-quality, artisanal jewelry.

The global ethical and sustainable fashion market is rapidly growing, presenting a significant opportunity for Global Treasures.

With increasing consumer awareness of eco-conscious choices, we anticipate a receptive audience.

Sales and Marketing Strategy

Our marketing efforts will focus on social media platforms, collaborations with influencers, and building an engaging brand presence.

We aim to generate word-of-mouth referrals and repeat purchases by nurturing a loyal customer base.

Product Line

Global Treasures offers a diverse range of handcrafted jewelry, including earrings, necklaces, bracelets, and rings.

Each piece showcases the artistry and cultural heritage of the artisans involved. We will introduce seasonal collections to maintain customer interest.

Operations and Logistics

We will maintain a lean and efficient supply chain to ensure smooth operations, establishing strong relationships with artisan partners.

Inventory management will be monitored through a robust digital platform, minimizing excess stock.

Financial Projections

Based on conservative estimates, we anticipate steady growth in the first three years, with revenues reaching $500,000 by the end of Year 3.

Initial funding requirements of $100,000 will cover inventory, marketing, and operational expenses.

Risk Analysis

Challenges may arise, including supply chain disruptions, changing consumer preferences, and increased competition.

We will diversify our artisan partnerships to mitigate risks, stay abreast of industry trends, and maintain a nimble marketing approach.

Global Treasures is poised to seize the growing demand for ethical and sustainable jewelry.

Our dedication to cultural authenticity and eco-consciousness will attract discerning customers seeking unique, socially responsible accessories.

With strategic planning and an unwavering commitment to quality, we envision a successful and impactful journey ahead.

Disclaimer:

This business plan is purely fictitious and created for illustrative purposes. The characters, company, and details presented are entirely fictional.

This sample aims to showcase the essential components of a direct sales business plan and is not based on any real entity or market analysis.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

For your direct sales business, it’s beneficial to opt for a nearby bank that understands the needs of business owners.

Opening a separate account ensures clear segregation of business and personal expenses, simplifying expense tracking and bookkeeping. Additionally, it provides essential documentation for tax audits.

Cultivating a professional relationship with your banker is advantageous. They can offer valuable advice and financial services, streamlining the application process.

Furthermore, consider applying for a merchant account or a similar setup to accept credit and debit card payments, enhancing convenience for your customers.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Getting Funding for Your Direct Sales Business

If you need a loan to kickstart your direct sales business, this section offers valuable tips to secure funding.

Starting and operating a direct sales venture requires adequate financial support, and various funding options are available.

Funding Options for Your Direct Sales Business

Consider these funding sources to fuel your direct sales business:

Traditional Lenders: Banks and credit unions provide business loans with established terms and interest rates.
Private Loans: Personal loans from friends or family can offer flexible repayment options.
Investors: Seek investors interested in supporting your business in exchange for equity or a share of profits.
Selling Assets: Liquidate any non-essential assets to generate capital.
Using Collateral: Secure loans using valuable assets as collateral.

Considerations When Meeting with a Loan Officer:

Clearly present your business plan and revenue projections.
Be prepared to discuss your experience and expertise in the direct sales industry.
Demonstrate how you intend to use the loan for business growth.
Highlight your strategy for repaying the loan.

Sample List of Documents for Applying for a Business Loan (NEW Direct Sales Business):

Business plan outlining your direct sales model and financial projections.
Personal and business credit history.
Financial statements, including income, balance sheet, and cash flow projections.
Valid identification and proof of business registration.
Tax returns for the previous three years (if applicable).
Collateral documentation if offering assets as security.

Securing adequate funding is essential for your direct sales business’s success. Diligently prepare for loan applications and explore suitable funding options to fuel your venture’s growth.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Direct Sales Business

Researching and selecting the right software is crucial for smooth operations in your direct sales business. Implementing a program from the beginning saves time and effort compared to switching systems once data is already in another program.

Before finalizing your choice, explore these aspects:

Demo Availability: Check if the software offers a demo version to evaluate its features firsthand.
User Reviews and Forums: Gather insights from reviews and forums to understand others’ experiences with the software.
Accounting Software: Research options for tracking expenses and preparing financial documents for tax filing. Seek guidance from your bookkeeper or accountant for the best fit.

Software Options to Consider for Direct Sales Business:

Customer Relationship Management (CRM) Software: Helps manage customer interactions, sales, and marketing campaigns efficiently.
E-commerce Platform: Enables easy online selling and managing product inventories.
Accounting Software: Facilitates bookkeeping, expense tracking, and financial reporting.
Social Media Management Tools: Streamline social media marketing and engagement.
Inventory Management Software: Efficiently tracks inventory levels and order processing.
Email Marketing Software: Supports targeted email campaigns and customer communication.
Virtual Meeting Software: Facilitates remote team meetings and virtual presentations.
Expense Tracking Apps: Helps monitor business expenses on-the-go.

Carefully assess your direct sales business needs and evaluate each software’s suitability to make informed decisions for streamlined operations and overall business efficiency.

Check out Google’s latest search results for software packages for a direct sales business.

15. Get The Right Business Insurance

Insurance Considerations for Your Direct Sales Business

Incidents can occur anytime, making proper insurance coverage essential before commencing any business activity.

Protection for All Aspects

Consider insurance coverage to safeguard various aspects of your direct sales business, including:

Visitors on the premises
Business property

Professional Liability Coverage

Invest in professional liability insurance to protect against potential lawsuits.

Operating from Home

If your business operates or is managed from your home, inform your home insurance agent to avoid nullifying your existing home insurance policy.

Expert Guidance

Utilize the expertise of a competent insurance broker to navigate the complexities of insurance policies and ensure you have adequate coverage for your direct sales business.

Concerns When Seeking Insurance for a Direct Sales Business:

Liability Coverage: Ensure comprehensive coverage to protect against potential liability claims from customers, employees, or third parties.
Product Liability: If your business involves selling products, seek coverage for product liability to safeguard against claims arising from product defects or damages.
Home-Based Business Coverage: Confirm if your existing home insurance extends coverage to your business activities if operating from home.
Business Property Coverage: Insure your business property, including inventory and equipment, against loss or damage.
General Liability Insurance: Consider general liability coverage for protection against accidents or injuries on your business premises.
Cyber Liability Insurance: If conducting online sales or handling customer data, consider cyber liability insurance to safeguard against data breaches or cyberattacks.
Workers’ Compensation: If you have employees, ensure compliance with workers’ compensation requirements.
Business Interruption Insurance: Seek coverage for business interruption, protecting against income loss due to unforeseen disruptions.
Product Recall Insurance: For businesses dealing with product sales, consider product recall insurance to manage expenses related to product recalls.
Professional Indemnity Insurance: If providing professional services, consider professional indemnity insurance to protect against errors, omissions, or negligence claims.

By addressing these concerns and securing appropriate insurance coverage, your direct sales business gains essential protection, minimizing financial risks and ensuring a smooth operation.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for direct sales business insurance .

16. Suppliers & Inventory

Selecting Suppliers for Your Direct Sales Business

Establishing a reliable supplier network is crucial for your direct sales business. Your supplier list may include various items and services essential for smooth operations.

Items and Services from Suppliers:

Inventory of products for resale
Packaging materials
Marketing materials and promotional items
Shipping and delivery services
Business tools and software
Training and support services

Importance of Strong Supplier Relationships

Building a strong rapport with suppliers is vital for business success. A trustworthy and dependable supplier enables you to offer competitive prices, benefiting you and your customers.

Enhancing the Working Relationship

Respectful treatment of suppliers and ensuring fair financial arrangements improve your working relationship. Collaborative partnerships ensure consistent stock availability, enabling seamless business operations.

Managing Inventory for Success

Effective inventory management is critical for your direct sales business.

Customer-Centric Approach

Focus on products that cater to your customer’s preferences and desires.

Variety and Value

Offer a diverse product range to appeal to a broader customer base and add value to your offerings.

Balancing Inventory Levels

Maintain optimal inventory levels to avoid tying up excessive funds while ensuring you meet customer demands and avoid lost sales.

Expiry Dates

Manage stock for products with expiration dates to avoid carrying items close to expiration.

By carefully selecting suppliers, maintaining strong relationships, and implementing effective inventory management, your direct sales business can thrive, ensuring satisfied customers and sustainable profitability.

For More See, How To Choose a Supplier.

17. Physical Setup

Ensure a well-organized layout that allows easy access for customers and representatives.

Consider product display areas, checkout counters, and comfortable customer interaction zones.

Setting up appropriate signage is essential for guiding customers and enhancing professionalism.

Apart from the main business sign, place signs strategically in relevant locations like parking lots, exits, and special areas.

Thoughtfully designed signs not only direct people but also reflect the professionalism of your operation.

Office Setup:

An efficiently organized office is vital for effective business management. As most of your time will be spent in the office, ensure it is fully equipped with all the necessary tools and resources.

A well-set-up office increases productivity and allows you to seamlessly manage your direct sales business.

Prioritize essential elements such as communication tools, administrative supplies, and a comfortable workspace.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

The Benefits of Having a Website for Your Direct Sales Business

Having a website offers numerous advantages for your direct sales business.

It serves as a digital storefront accessible to potential customers anytime, anywhere. Your website can showcase your products and services, providing crucial information to interested buyers.

Moreover, it is a powerful marketing tool, enabling you to establish yourself as an industry expert through informative blogging and valuable insights tailored to your customers’ needs.

By building trust and credibility, your website can lead to increased sales and foster long-term customer relationships.

Embracing a well-designed website enhances your online presence, broadens your reach, and elevates your direct sales business to new heights.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building an External Support Team for Your Direct Sales Business

An external support team of professionals comprises individuals you can rely on for advice and services without them being on your payroll.

Utilize their services on a per-project, contract, or hourly basis. While you may already collaborate with some professionals, assembling them into a team fosters a deeper understanding of their significance and allows for adding more members.

It’s not necessary to have all team members in place from the start; building strong professional relationships takes time. However, consistently working on this aspect proves beneficial.

Your support team may include an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, consultants, and others.

With a dependable team, you have valuable assistance whenever needed, contributing to the success and growth of your direct sales business.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Staffing Considerations for Your Direct Sales Business

At the initial stages, handling all aspects of your direct sales business might seem feasible to avoid the expense of hiring employees.

However, as your business expands, managing everything on your own becomes overwhelming, making it necessary to consider hiring employees to enhance productivity.

List of Jobs Needed to Run a Direct Sales Business:

The following are job positions or outsourced services you may want to consider as your direct sales business grows and becomes successful:

Sales Representatives: Responsible for promoting and selling products to customers.
Customer Support: Providing excellent customer service and handling inquiries and complaints.
Marketing Specialist: Creating and executing marketing strategies to boost sales and brand visibility.
Inventory Manager: Overseeing stock levels and coordinating replenishment orders.
Social Media Manager: Managing online presence and engagement on social media platforms.
Accountant: Handling financial transactions, budgeting, and tax preparation.
Web Developer: Maintaining and updating your website for optimal functionality.
Logistics Coordinator: Organizing shipping and delivery processes for timely order fulfillment.
Graphic Designer: Creating eye-catching visuals for marketing materials and product promotions.

As your direct sales business thrives, consider these job positions or outsourced services to efficiently manage various aspects of your operation and maintain sustainable growth.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

The hours of operation for a direct sales business can vary depending on the nature of the business and its target market. However, here are some common hours of operation to consider:

Regular Business Hours typically include weekdays from Monday to Friday, starting from early morning (e.g., 9:00 AM) and ending in the evening (e.g., 6:00 PM).
Extended Business Hours: Some direct sales businesses may choose to extend their hours of operation, staying open until later in the evening (e.g., 8:00 PM) or even operating on weekends.
Weekend Hours: If your target audience includes those with limited availability during weekdays, consider opening on weekends, such as Saturday and Sunday, to cater to their needs.
Event-Based Hours: For direct sales businesses participating in events, trade shows, or fairs, the hours of operation may vary based on the event schedule.
Online Hours: Customers may expect 24/7 access to your website or customer support if your direct sales business operates primarily online.
Seasonal Hours: Depending on the industry and the demand for your products, you may adjust your hours of operation during peak seasons or holidays.
Appointment-Only Hours: Some direct sales businesses, especially those offering personalized services, may operate on an appointment-only basis to better manage customer interactions.

When determining the hours of operation for your direct sales business, it’s essential to consider your target audience’s preferences, local regulations, competition, and the workload required to maintain efficient operations.

Flexibility and responsiveness to customer needs can also contribute to the success of your business.

A List of Equipment and Supplies to Consider for a Direct Sales Business:

Office Equipment:

Desk and Chair: An ergonomic setup to ensure comfort during work hours.
Computer: Essential for managing orders, customer data, communication, and other administrative tasks.
Printer & Scanner: For printing invoices, scanning documents, and other administrative duties.
Phone: Dedicated business line or smartphone for calls with suppliers, customers, and team members.
POS System: If processing payments in person, a point-of-sale system might be required.
Filing Cabinets: For storing important business documents, customer orders, and other paperwork.
Shredder: For securely disposing of sensitive documents.

Product Management:

Storage Shelves & Racks: To organize and store products in an accessible manner.
Inventory Management Software: Helps in tracking stock levels, sales, orders, and deliveries.
Packaging Materials: Boxes, bubble wrap, tape, and other packaging essentials for shipping or delivering products to customers.
Label Printer: For printing product labels and shipping labels.

Sales and Display Equipment:

Display Stands/Racks: Useful for showcasing products during sales parties or events.
Product Samples: Demonstration units or samples for customers to try before buying.
Catalogs & Brochures: Printed materials showcasing the range of products on offer.
Product Information Sheets: Detailed sheets for products with specifications, benefits, and usage instructions.

Travel and On-the-Go Equipment:

Vehicle: If delivering products or traveling for sales events, a reliable vehicle might be necessary.
Travel Bags: Durable bags to carry and present products during sales meetings or parties.
Portable Payment Processor: Devices that connect to a phone or tablet, allowing credit card payments on the go.

Marketing and Promotion:

Camera: For product photography and promotional content.
Signage & Banners: For branding during events or parties.
Promotional Materials: Business cards, flyers, and other handouts for potential customers.

Miscellaneous:

Safety Equipment: Fire extinguishers, first-aid kits, and other safety items for your workspace.
Cleaning Supplies: Keeping your workspace, storage, and products clean and presentable.
Backup Power: Uninterruptible power supplies (UPS) for protecting electronic equipment against power outages.

While not every direct sales business will need all of the above, this list serves as a comprehensive starting point. Tailoring the list to your specific needs and product niche is crucial for operational efficiency.

Marketing Considerations

In a direct sales business, customers are the lifeline, and attracting them is essential for success. Initially, it can be challenging as your operation is new, and awareness is limited.

However, building a good reputation over time makes customer attraction easier. As you gain marketing experience, you’ll become more adept at reaching your target audience.

Marketing your direct sales business is an ongoing effort. The more you invest in effective marketing techniques, the higher your revenue potential.

You don’t necessarily need a marketing agency or expert; you can handle it yourself.

Simplify the process by considering it as raising awareness about your business, and seizing opportunities to promote it at any chance.

You can grow your customer base and establish a thriving direct sales venture with consistent efforts.

See our article How To Get Customers Through the Door and See our marketing section for articles that will provide ideas to bring awareness to your business.

Overview: Focusing on your skill set is pivotal when considering running a direct sales business.

Evaluating your abilities ensures you’re prepared for the demands ahead.

If there’s a gap in essential skills, acquiring the knowledge or hiring someone who possesses it is feasible.

Essential Skills for a Direct Sales Business Owner:

Sales Skills: Ability to persuade and close deals.
Communication: Clear, effective interaction with customers, suppliers, and staff.
Networking: Building and maintaining beneficial business relationships.
Leadership: Guiding and motivating a team effectively.
Financial Management: Budgeting, forecasting, and understanding financial statements.
Marketing & Branding: Ability to promote your business and products.
Customer Service: Ensuring customer satisfaction and handling complaints.
Time Management: Balancing multiple tasks and priorities.
Strategic Planning: Setting and achieving long-term business goals.
Problem-solving: Identifying challenges and crafting solutions.
Negotiation: Striking beneficial deals with suppliers and partners.
Adaptability: Adjusting to market changes and customer preferences.
Technical Know-how: Understanding any technology or tools related to your products.
Inventory Management: Keeping track of stock and demand.
Training & Development: Ability to teach and train your team or learn new skills.

Mastering these skills, or having team members who do, sets the foundation for a successful direct sales business.

Expert Tips

Examining expert tips is beneficial for both seasoned experts and novices.

Experts can discover easier methods or gain new perspectives, while novices can glean numerous tips to enhance their skills and knowledge.

Embracing expert advice fosters continuous improvement in your skill set, regardless of your expertise level.

See the latest search results for expert direct sales tips to gain tips and insights.

In this section, you’ll find valuable resources that lead to search results offering the latest and most popular information for your direct sales business.

You can use these resources during the startup phase and when your business is fully operational.

These helpful tools and information sources will enhance your understanding of the industry and provide valuable tips to improve your direct sales business.

Trends and Statistics

Examining industry trends and statistics offers significant benefits for a direct sales business. It provides valuable insights into market demands, consumer preferences, and competitor strategies.

Utilizing this data enables informed decision-making and strategic planning to stay competitive and achieve success.

See the latest search results for trends and statistics related to the direct sales industry.

Direct Sales Associations

Trade associations provide various advantages for businesses, including access to industry news and valuable networking opportunities.

These benefits are particularly evident during events organized by the associations, fostering collaboration and staying up-to-date with the latest developments.

See the search results related to direct sales associations.

Top Direct Sales Business

Examining established direct sales businesses can spark ideas for identifying gaps in the industry that you can address in your own business.

It also helps identify areas you might have overlooked, leading to valuable improvements for your business.

See the latest search results for the top direct sales businesses.

The Future of the Direct Sales Industry

Researching the industry’s future provides valuable insights for aspiring direct sales business owners.

It helps understand market trends, opportunities, and challenges, enabling better preparation and strategic decision-making for a successful venture.

See the search results for the future of the direct sales industry.

Direct Sales Businesses for Sale

There are pros and cons when considering buying an existing direct sales business.

The benefits include immediate revenue, bypassing the startup phase, a proven business model, known financials, and an existing customer base and reputation.

However, the higher cost and potential challenges of changing operations must also be considered. Exploring available businesses in the same industry using relevant links can provide valuable insights.

Businesses for sale: See the latest results for a direct sales business and others related to this business model.

Franchise Opportunities Related to Direct Sales

Purchasing a direct sales franchise has advantages and disadvantages, making it essential to assess before starting your business.

The benefits include a proven business model, existing brand reputation, comprehensive knowledge of the business, and corporate support.

However, drawbacks such as costs, limited autonomy, and ongoing franchise fees should be considered.

Exploring related franchise opportunities in the same industry using relevant links can provide valuable insights.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

In the world of direct sales, knowledge empowers you to take action!

You can access abundant industry information online.

Follow the links in the following sections to gather valuable insights for your business’s research, startup, and full operation phases.

Equip yourself with the right information to make informed decisions and drive your direct sales venture toward success.

Direct Sales Business Insights

Looking at tips and insights is instrumental in generating great ideas, avoiding potential issues, and increasing industry knowledge for your direct sales business.

This valuable resource aids in making informed decisions and enhances your expertise, ultimately contributing to the success and growth of your venture.

See the latest search results leading to resources about Direct Sales Business Insights.

Direct Marketing Publications

Publications are an excellent means to stay updated with the latest information about a direct sales business.

They provide valuable insights, industry trends, and essential updates, helping business owners make informed decisions and stay competitive.

See the search results for Direct Marketing publications.

Direct Marketing Forums

Participating in direct sales forums offers the opportunity to engage in hot-topic discussions and build relationships within the industry.

Additionally, forums provide insights into customer perspectives, offering valuable information for business growth and improved customer interactions.

See the latest search results related to Direct Marketing forums.

Courses provide an excellent opportunity to learn, enhance skills, and stay updated with industry trends.

Enrolling in relevant courses empowers individuals to acquire new knowledge and expertise, contributing to professional growth and success.

See the latest courses related to Direct Marketing and our management articles to provide insights and tips on managing Your business.

Direct Sales Blogs

Subscribing to direct sales blogs offers many ideas and informs you about industry updates.

You can subscribe to multiple blogs and filter out inactive or less valuable ones, creating a valuable collection that provides a constant flow of relevant information to aid your business endeavors.

Look at the latest search results for direct sales blogs to follow.

Direct Marketing News

Keeping an eye on the news is a great way to stay updated with the Direct Marketing industry.

Set up alerts for media coverage to receive timely notifications about new developments.

Watching videos about the direct sales industry provides valuable tips and insights.

Additionally, exploring related videos suggested by YouTube can introduce new and relevant topics that you may not have considered before.

See the links to YouTube Videos Below.

Videos related to starting a direct sales business can be found here.

Privacy Overview

Small Business Trends

Direct sales: a detailed guide for small businesses.

A cog in the wheel of small business oprations is direct sales. As an entrepreneurial strategy that has stood the test of time, direct selling plays a an important role in fueling economic growth.

What are Direct Sales?

Direct sales refer to a business model that enables products or services to be sold directly to customers, eliminating the need for intermediaries such as wholesalers or retailers. It hinges on direct sellers reaching out to prospective customers in a non-retail environment, often in the customers’ homes or workplaces. It can also be used with cold calling or reaching out virtually using a cold email template .

Products sold through direct selling span a variety of categories, from wellness supplements to home decor. The process involves direct sellers presenting the products to individuals or groups, often using demos or presentations to showcase the product benefits.

Direct selling businesses rely heavily on relationship marketing. Building trust with their customer base is paramount, as personal interactions and testimonials often influence purchases.

Amway Global Chief Sales Officer offers a little more information about direct selling in this video:

The History of The Direct Selling Industry

The roots of the direct selling business stretch back to the 19th century when door-to-door salesmen were the norm. Companies like Avon and Amway pioneered this business model, and over time, it has evolved to include party plan selling, single-level marketing, and multi-level marketing.

Direct Selling Vs. Traditional Selling

In the simplest terms, direct selling involves businesses selling products directly to customers without needing middlemen. On the other hand, traditional selling utilizes a chain of retailers, wholesalers, and distributors to bring products to the market.

Customer Interaction : Direct selling promotes personalized interactions. Direct sellers meet customers one-on-one, often leading to tailored product suggestions and a deeper connection. Traditional selling involves impersonal interactions, often limited to the point of purchase.
Cost Implications : With direct selling, eliminating the middleman could mean cost savings for customers. In contrast, traditional selling features intermediaries, leading to an increase in the final product price.
Entrepreneurship : Direct selling can be your gateway to owning a business with a modest initial investment. However, traditional selling typically demands substantial capital to set up a physical or online store.
Venue of Sales : Direct sales can occur anywhere – homes, workplaces, or even over social media. Traditional selling largely happens in brick-and-mortar stores or through e-commerce platforms.

Analyzing the Direct Sales Business Model

The direct sales model revolves around personal interaction. The direct seller showcases products directly to consumers in a non-retail environment, often leading to an intimate and personalized selling experience.

Benefits of the Direct Sales Model:

Potential for building loyal customers for your own business through personalized interactions.
Flexibility in terms of working hours and sales locations.
Reduced cost, as there are no intermediaries.
Opportunity to earn based on sales performance.

Challenges of the Direct Sales Model:

Building a customer base can be time-consuming.
Potential for income fluctuation based on sales.
Direct selling is often associated with pyramid schemes, impacting its reputation.

Understanding Single-Level and Multi-Level Marketing in Direct Sales

Single and multi-level marketing are two key structures within the direct selling sector.

Single-Level Marketing (SLM): In SLM, direct sellers make money by buying products from a parent company and selling them directly to consumers. The profit comes from the difference between the wholesale and retail prices.

Multi-Level Marketing (MLM): MLM, also known as network marketing, operates differently. Here, direct vendors can earn in two ways: selling products directly to consumers and recruiting new sellers into their “downline.” Earnings from MLM come from personal sales and a percentage of the sales made by their downline.

The Role of Network Marketing in Direct Sales

Network marketing, another name for multi-level marketing, is a key component of the direct sales industry. It leverages the power of personal networks to expand a business. Direct vendors sell the products and recruit other sellers, building a network or a “downline.”

Network marketing allows the potential for passive income; direct vendors can earn from their own sales as well as a percentage from their recruits’ sales. It also provides a platform for exponential growth; as each recruit brings in more sellers, the network expands, potentially increasing profits. However, it’s important to note that network marketing’s success heavily depends on the dedication and performance of each individual within the network.

Direct-to-Consumer: A Vital Component of Direct Sales

Direct-to-Consumer (D2C) is an approach where companies sell products straight to the customer, bypassing any middlemen. This method is a key component of direct sales, offering numerous advantages:

Stronger Customer Relationships : Companies can build stronger relationships and foster customer loyalty by interacting directly with customers.
Better Margins : By cutting out the middleman, businesses can often secure better profit margins.
Customer Data : Selling directly allows businesses to collect valuable customer data, enabling them to personalize offerings and improve their marketing efforts.

Federal Trade Commission and Direct Sales

The Federal Trade Commission (FTC) is instrumental in regulating direct sales and multi-level marketing companies. The FTC ensures that companies are transparent, honest, and not running pyramid schemes disguised as legitimate businesses. Compliance with FTC guidelines is essential to operate ethically and avoid heavy penalties.

Components of a Successful Direct Sales Business Model

Here are some key components of a successful direct sales business.

Product Quality : A high-quality product that meets consumer needs is crucial.
Training : Comprehensive training for direct retailers and vendors to ensure they understand the product and sales tactics.
Customer Service : Excellent customer service to address queries and complaints promptly.
Strong Network : Building a robust network of sellers and customers is vital for growth.

Common Pitfalls in the Direct Sales Business Model

Some of the common mistakes businesses make when operating a direct sales model include:

Misrepresentation of Earnings : Overpromising income potential can lead to disillusioned sellers and tarnish the company’s reputation.
Poor Quality Products : Inferior products can lead to customer dissatisfaction and negatively affect repeat business.
Lack of Support and Training : Sellers might struggle to make sales without proper support and training.
Pyramid Scheme : Any model focusing more on recruiting new sellers rather than product sales may be a pyramid scheme, which is illegal and unethical.

A Closer Look at Direct Selling Companies

Direct selling companies rely on individual sellers to move products directly to consumers. These companies range from large international corporations to small local businesses, and their products span across categories like health, beauty, home goods, and more.

Their structure typically includes a large base of individual sellers who buy products from the company and sell them directly to the consumer. These sellers are usually considered independent business owners rather than company employees.

Characteristics of Successful Direct Selling Companies

Are there common characteristics that successful direct-selling companies share? Here are some of them:

Quality Products : Successful companies offer high-quality products that consumers trust and love.
Excellent Training Programs : They provide thorough training for their sellers, equipping them with the skills and knowledge necessary for success.
Strong Leadership and Management : Successful companies have visionary leadership and effective management practices.
Clear Compensation Structure : They have a transparent and fair compensation structure that motivates their sellers.
Ethical Business Practices : Adherence to ethical practices and compliance with regulations, including FTC guidelines, is a hallmark of successful direct-selling businesses.
Good Customer Service : Prioritizing customer satisfaction and establishing strong customer service practices help retain and grow the customer size.
Robust Support System : They provide continuous support and resources to their sellers, assisting them in their business journey.
Innovation : Successful companies stay competitive by continuously innovating their products and sales methods.
Community Engagement : They foster community among their sellers, creating a supportive and motivational environment.

Case Study: Successful Direct Selling Companies

The companies below have revolutionized the industry, captivating customers and sellers alike. From kitchen storage to beauty and wellness, each case study unveils a unique approach that propelled these companies to the top.

Tupperware: A leader in the kitchen storage industry, Tupperware has utilized direct sales to reach homes around the globe. Their home party-based selling strategy allows them to build personal relationships with customers. Tupperware’s commitment to product quality, stellar customer service, and thorough seller support contributes to its enduring success.

Amway: A global giant in health, beauty, and home care products, Amway operates a vast network of direct sellers. Their success hinges on a fusion of high-quality products, committed sellers, and ethical business practices. Amway’s extensive training and support empower their sellers, driving the company’s growth.

Mary Kay: This beauty product company has thrived in the direct selling sector. The brand’s emphasis on empowering women, providing top-tier training, and recognizing the achievements of its direct sellers has cemented its success. They are known for their pink Cadillac incentive, rewarding top sellers with a signature pink car.

Herbalife: This nutrition company operates a successful direct-selling model spanning over 90 countries. They offer high-quality nutrition products, training programs for sellers, and a supportive community. Herbalife focuses on promoting a healthy lifestyle, which resonates with global customers seeking wellness solutions.

The Curious Mind also covers some additional successful direct-selling companies in their video:

The Role and Importance of Direct Sellers

Direct sellers are the lifeblood of the direct sales business model and are often integral to a business’s one page marketing plan . They act as the primary link between the company and its target market , playing a vital role in promoting products and generating sales. Direct sellers often work in a non-retail environment, sharing and selling products within their personal networks. They help businesses extend their reach and connect with customers more personally. The success of a direct-selling company often hinges on the skill and dedication of its direct sellers.

Skills and Qualities of Effective Direct Sellers

Successful direct sellers often share a set of skills and qualities that enable them to excel:

Communication Skills : Being able to clearly convey the benefits of a product is crucial.
Interpersonal Skills : Building relationships with customers helps establish trust.
Motivation : Successful sellers are self-starters, driven to achieve their sales goals.
Persistence : Sales often involve facing rejections. Persistence is key to finding success.
Organizational Skills : Managing orders, customers, and schedules requires good organizational capabilities.
Customer Service : Providing excellent service can encourage repeat business and referrals.

Building a Career in Direct Selling

Building a successful career in direct selling involves strategy, dedication, and consistent efforts. Here are some tips for those embarking on this journey:

Choose the Right Company : Do thorough research before joining a company. Look for one that sells high-quality products you’re passionate about, offers good support and training, and has a fair compensation plan.
Leverage Training Programs : Make the most of the training programs provided by the company. This will equip you with the necessary product knowledge and sales techniques.
Build a Network : Start with your personal network and gradually expand. The wider your network, the greater your reach.
Focus on Customer Service : Prioritize your customers’ needs. Happy customers can lead to repeat sales and referrals.
Be Consistent : Success in direct sales doesn’t usually come overnight. Consistency in your efforts can lead to steady growth over time.
Stay Ethical : Adhere to ethical business practices and follow the guidelines set by organizations like the Federal Trade Commission.

Direct Sales Software: An Essential Tool for Success

In the current business environment, leveraging technology is not just an advantage, it’s a necessity. Direct sales software is a powerful tool for managing and optimizing business operations. These tools can be instrumental in a business’s success by automating various tasks, providing valuable insights, and enhancing seller-customer interactions. Many programs include various features or can be paired with additional tools like sales forecasting software .

Benefits of using direct sales software include:

Efficiency : Streamlines administrative tasks, freeing up time for more strategic work.
Scalability : Supports business growth without overwhelming existing processes.
Insights : Offers data-driven insights to inform better business decisions.
Seller Support : Provides tools to assist sellers in tracking sales, managing customers, and more.

How Direct Sales Software Enhances Business Operations

Direct sales software can bring about significant improvements in business operations:

Sales Tracking : Track sales in real-time, providing instant updates and insights.
Inventory Management : Keep an accurate product inventory count, preventing overstocking or understocking issues.
Customer Relationship Management : Enhance customer engagement by tracking customer interactions and preferences.
Reporting : Generate comprehensive reports on sales, profits, and trends to aid decision-making.
Seller Tools : Offer tools to help sellers manage their own businesses effectively.

The Direct Sales Model: Is It Right for Your Business?

How much control does your company have over its sales? How much direct contact does your company have with your customers?

The way you treat your customers can define your brand—and it can make or break your reputation.

If you’re not in direct contact with customers, how do you know they’re seeing your best side?

This is where the direct sales model comes in. With this sales model, your company is in direct contact with its customers, either through your website or through your sales reps.

Let’s discuss:

What is the direct sales model?
How the direct sales model works
4 direct sales model examples
Direct sales model advantages and disadvantages
How to master the direct sales model at your company

What is the Direct Sales Model?

In the direct sales model, the product or service can’t be found by other means. So, the salesperson is a customer’s only connection to the product they want to purchase.

For example, if you’re a SaaS company selling a software product to other companies, their connection to your product will be through your website or your sales team.

Direct sales gives companies more control over how their products are being sold and by whom.

What is the Indirect Sales Model?

With indirect sales, the company doesn’t have to think about getting their product to the masses—they let a third party take care of that. This means they have less worries about sales and marketing, but it also gives them less control over the price of the product, how it’s being sold, as well as their own brand image.

For example, a clothing company may produce quality products and ship them to retailers and distributors. Those stores then market and sell the clothes to get people into their stores.

What’s the Main Difference Between the Direct Sales Model & the Indirect Sales Methodology?

While direct and indirect sales have some overlap, the main difference is the control your company has over the actual sales.

The direct sales model gives companies closer control over the work of salespeople, while indirect sales means the company relinquishes direct control over the sale of their product.

‎How the Direct Sales Model Works

While the actual sales process will vary from business to business, here is a general overview of how the direct sales model works in 4 steps:

First, the company produces a product. This could be a physical product, software, or SaaS product, or services like insurance policies or real estate .

Second, the company chooses who will distribute and sell that product. In the case of a SaaS product, this could be an inside sales team run by a sales manager or Director of Sales. In other cases, independent agents might run their own sales machine (like real estate and insurance agents).

Next, those salespeople hustle to sell the product you’ve given them. An inside sales team at a B2B SaaS company works through the sales playbook you’ve put together, collecting new leads from marketing or their own prospecting efforts and then working with them to close the sale. Independent sales agents in the direct sales model work independently to drum up business and create their own playbooks to close deals.

Finally, sales are reported back to the company, and the salespeople earn commissions from their closed deals. The company decides when to increase or decrease efforts, whether to pivot their sales process or target audience, and how much commission its salespeople earn for each sale.

4 Direct Sales Model Examples & Types

The direct sales model can look very different depending on the company, the product, and the sales team running down new deals.

To give you a better idea of how this model works, here are four standard direct sales model examples you’ll see in the real world:

1. B2B Sales

B2B companies that use an inside sales team to sell their products or services are one form of the direct sales model.

Whether the company is selling physical products like paper and pens , or they’re selling SaaS products like marketing or data warehousing software, their sales team is the only way for new leads and customers to purchase from the company.

‎2. Real Estate Sales

Real estate is an interesting form of direct sales since the main company doesn’t actually produce any product. In this case, the product is a building or piece of land, and it’s the company’s job to sell it.

Real estate companies often work with independent sales consultants (i.e. real estate agents) to sell for them. Real estate agents generate sale s by either attracting their own clientele or employing their own strategies for successful selling, such as effective real estate marketing . But they still earn based on commissions coming down from the main company after every sale.

3. Insurance Sales

Insurance sales uses the direct sales model in a very similar way to real estate: both use independent sales agents to work with prospects and customers and close deals.

The interesting part about insurance is that the sales are recurring. So, an insurance agent earns a commission off their sales, but each new sale can earn them more over time as they develop and maintain a relationship with the customer.

4. Host Sales

If you’ve ever been invited to a party where your friend tried to get you to buy something you may or may not have needed, then you know what host sales are.

In this direct sales model example, the company works with many brand advocates (not necessarily salespeople by profession) who try to sell the product within their network of friends and acquaintances.

5. D2C Companies

D2C, or direct-to-consumer , is becoming more popular with retail brands worldwide with a solid online presence. In this type of direct sales model, customers go directly to the companies to purchase the products they want rather than having their products available through distributors or stores.

Brands like Warby Parker, Stitch Fix, and Dollar Shave Club are examples of DTC brands killing this model.

Direct Sales Model Advantages and Disadvantages

Every sales model has its pros and cons. So, how do you know if the direct sales model is right for your business?

Take a look at these two lists, and then determine for yourself whether the benefits outweigh the challenges:

Benefits & Advantages of the Direct Sales Model

When the direct sales model works for your brand, here are the benefits you’ll see:

Better control over your brand image: You’re in control of sales, so you’re in control of how customers see you.
Ability to build relationships with customers: When you’re selling through another distributor, the customer isn’t loyal to you—they’ll be loyal to where they found your product. Direct sales offers the ability to form direct, deeper relationships with your customers.
Easier collaboration across different teams: If you’re looking for better alignment between marketing, sales , product development, and other customer-facing teams, you’ll want to keep sales directly under your control.
A more targeted approach to customers: Direct sales means direct access to your customers. That means you don’t need to rely on a distributor’s sales data to tell you how your product is being received by the market. You can take your own data and use it to adjust and adapt to target the right customers.
Ability to pivot faster to meet market needs: With real-time updates on customer data, you can make faster decisions in your sales process (and your product) to meet the needs of your customers.

Challenges & Disadvantages of the Direct Sales Model

The direct sales model gives you control but also entails a hefty load of responsibility. Here are some of the disadvantages you’ll need to consider:

Increased responsibility for distribution: When you rely on a distributor, marketing, and sales fall under their umbrella. With direct sales, you need to build separate teams for marketing, lead generation , and sales, as well as organize strategies for each.
Extra costs for recruiting and retaining top talent: Hiring can be fierce. If you plan on developing a direct sales model for your business, you need to be willing to fight to keep top talent in your company.
More leadership roles necessary: In addition to building marketing and sales teams, you’ll need leadership for these teams. That means hiring a full-time sales director and someone who can handle operations for both of these teams.
Extra time spent developing and using a brand voice: A strong brand voice is key to success in direct sales. While it’s a great advantage when you can pull it off, it does require effort to do it right.

‎Is the Direct Sales Model Right for Your Business?

So you’re an entrepreneur wondering which direction to take with your startup or company. The direct sales model takes more time and effort—so can it work for a startup?

In short, absolutely. Here are some clear signs that your business is a good fit for the direct sales model:

Your product can easily be discovered and purchased online
You have marketing and sales experts in your founding team (or you can add them easily)
Your company already has a strong brand voice
Your product already has a solid following
You, as the startup founder, are ready to get your hands dirty and sell your product directly to customers (and if you're an early-stage founder, we absolutely do recommend that you get involved in selling your product)

While it may be slightly more intimidating, direct sales can reap rich results for entrepreneurs who hustle to get things done.

Are you a startup founder wondering how to break into sales? Check out the Startup Sales Playbook, with insider tips from Steli Efti, CEO & Founder of Close.

Discover our latest free sales tools powered by AI

Learn from the sales pros with our free sales guides.

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How to Make Your Direct Sales Business Explode in No Time

Are you a direct sales consultant struggling to get your business off the ground? These tips and strategies can help.

You’ve signed up as a direct sales agent for a company whose product or service you love. But believing in a product isn’t enough to generate sales. You need a marketing plan that gets interested eyes on your business. The good news is that even consultants without a sizable marketing budget can build an incredibly profitable business.

Here are tips and best practices for growing your direct sales business.

How to grow your direct sales business

The company you signed up with likely has training programs and resources to help you start your business. Your team leader will also likely share their tips, best practices and ideas.

To get a head start on your training and set yourself up for success, implement the following tips to help your direct sales business explode.

1. Establish credibility and expertise in your direct sales channel.

What makes you different? With thousands of consultants around the country selling the same products or services, differentiation is critical. Create a list of the things about you that make you unique compared to all the other consultants out there.

Ask yourself the following questions:

What extra value can I add that other consultants don’t offer? Perhaps you offer free local delivery or have an email newsletter that provides tips customers can use.
What makes me more qualified to sell these products? Consider your unique qualifications. For example, are you a personal chef who sells kitchen products? Or are you a talented home cook willing to share recipes?
What made me love this business as much as I do? Understand what appeals to you. Does the company offer all-natural products? Do the products have an excellent reputation?

Remember the answers to these questions as you craft your sales and marketing messages and build social engagement with your audience.

2. Start a blog to add value for direct sales customers.

If you haven’t already, start a blog that complements your direct sales business. Be sure to check the terms and conditions of your consultant agreement for rules about how to do this. Many companies don’t allow you to use their name in your domain. Choose a domain name that relates to the product but doesn’t violate your contract.

To be effective, the blog must stand on its own as a valuable supplementary marketing tool. Write high-quality blog posts that include tips and tricks to enhance the customer experience. Adding value for your customers is a way to generate even more sales.

For example, if you’re a direct sales consultant for an organic makeup company, blog topics could include “How to Create a Smokey Eye,” “The Benefits of All-Natural Makeup” or “How to Choose the Right Color Palettes for Your Face.”

Your blog should demonstrate that you understand what your customers want while establishing yourself as the solution.

3. Use social media marketing to promote your direct sales business.

One of the first lessons you’ll learn as a direct sales consultant is to use social media platforms to promote your business.

Facebook: To build engagement, consider hosting live Facebook Q&A sessions to interact with viewers. Also, use Facebook’s business tools to gain audience insights and see how you’re doing. To generate more Facebook engagement for your business, post frequently and consistently, ask users questions, and share user-generated content.
Instagram: Create an Instagram business profile to promote your direct sales business and interact with customers via posts and Instagram stories for business. You can even sell on Instagram if it’s OK with your company.
Twitter: Twitter is another excellent way to promote your business and interact with customers who have questions about your products. If your budget and company rules allow them, promoted tweets can increase sales and boost engagement.

4. Create eye-catching graphics.

Thanks to tools like Canva, you don’t have to be a professional graphic designer to look like one. Your direct sales company will likely supply approved marketing graphics for you to use. It may have rules about creating your own graphics, so pay close attention to your consultant agreement.

Eye-catching graphics complement your blog posts and website content, and Canva makes it easy. With a variety of free image elements and a simple web-based tool, you can make a professional-quality graphic in minutes.

5. Develop a content marketing strategy for your direct sales business.

Content marketing involves providing customers with information without asking them to spend money. You can post this content on your social media accounts, website or blog. It’s crucial to make your social media content easy for loyal customers to share to create a word-of-mouth marketing campaign.

Content marketing is crucial to direct sales businesses because many parent companies don’t allow paid search advertising.

When developing your content marketing strategy, don’t make everything you write or share about the sale. Though there’s no golden rule, experts recommend following the 5:3:2 rule for social media . For every 10 posts, consider this category distribution.

Curation: Five posts should be curated – content relevant to your audience used with permission from other sources.
Creation: Three posts should be your original content that appeals to your audience.
Humanization: Two posts should be personal, fun content that makes you more relatable.

To assist your direct sales business’s content marketing strategy, consider using third-party tools to make things easier. Here are two examples:

Scoop.it is a platform for curating content and building links. You can share your content here and find content to share with your readers. Create a free account, enter keywords related to your business and you’re ready to get started. Search for pages in your niche with a high following. Follow those “Scoops” and connect with the “Scoopers” on social media platforms. Suggest your content, and when the page owner posts it to their page, your content is in front of the eyes of thousands of readers.
Sniply lets you take a piece of content written by an influencer in your niche and use it to build traffic to your website. Find a piece of popular content related to what you just posted about. Use Snip.ly to create a call to action directing people to your site, and share the URL on all your social media channels. Include the source with a relevant hashtag, and then reach out to the influencer to tell them you’ve shared their content for an extra boost.

What not to do with your direct sales business

Sometimes, consumers put up a wall if you mention direct sales, because of past experience with pushy consultants. It’s crucial to avoid the pitfalls of the industry.

Not planning enough events: Start with at least six parties or events right out of the gate. Build momentum with each party, and offer incentives for those throwing a party.
Being afraid to ask for a party or appointment: While you may be afraid of a no, many people are happy to help you build your business. Focus on service rather than sales, and you’ll turn some nos into yeses.
Being too sales-oriented: Many direct salespeople seem to be in constant sales mode, which can turn off prospects. Be solutions-oriented and try to help people rather than sell to them.
Failing to set goals: It’s hard to move toward success when you don’t know what success looks like. Set challenging but attainable goals to give you something to work toward.
Prejudging prospects: Don’t make assumptions about who will be a customer or even a business affiliate. Take the time to explain what you do to all who express curiosity.
Skipping training: While you might not feel like another meeting, training and development workshops help you refine your sales pitch and learn more about your products, the company and the opportunity. This knowledge can only help you sell more.

What is direct sales, and how does it compare to other business types?

A direct sales business sells products or services outside a retail environment. Direct sales representatives often work from home and online, making connections, hosting parties and building a client base.

Direct sales differs from a retail sales model, where consumers walk into a store to learn about and buy products. Generally, consumers seek out retail establishments when they need something. Direct sales representatives must build credibility and trust to have consumers see them as a go-to for specific products and services.

Kimberlee Leonard contributed to the writing and research in this article.

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Direct Sales Model: Business Model Canvas Explained

The Direct Sales Model is a crucial component of the Business Model Canvas, a strategic management and entrepreneurial tool that allows businesses to describe, design, challenge, invent, and pivot their business model. This model, which focuses on selling products directly to consumers , bypasses the traditional retail environment and can lead to substantial revenue growth and innovation.

It's important to understand that the Direct Sales Model is not a one-size-fits-all solution. It requires a deep understanding of your target market, a well-crafted product or service, and a strong sales strategy. This article aims to provide a comprehensive explanation of the Direct Sales Model as it fits within the Business Model Canvas.

Understanding the Direct Sales Model

The Direct Sales Model is a business strategy that involves selling products or services directly to consumers, bypassing the traditional retail or wholesale environment . This model can be implemented in various ways, such as through direct mail, telemarketing, direct-response advertising, online sales, and face-to-face sales presentations .

Direct sales can be advantageous for businesses as it allows them to have complete control over their sales process , customer experience, and brand image . It can also result in higher profit margins as there are no middlemen involved in the transaction.

Types of Direct Sales

There are three main types of direct sales: single-level direct sales, host or party-plan sales, and multi-level marketing (MLM). Single-level direct sales involve one-on-one sales, either in person, over the phone, or online. Host or party-plan sales involve sales presentations done at group events. MLM, also known as network marketing, involves not only selling products but also recruiting others to sell products.

Each type of direct sales has its own set of advantages and challenges. Single-level direct sales allow for personalized customer interactions, but may require a significant time investment. Host or party-plan sales can reach a larger audience in a single event, but depend heavily on the host's network. MLM can potentially provide passive income, but it often requires a large initial investment and ongoing recruitment efforts.

Key Components of a Successful Direct Sales Model

A successful Direct Sales Model requires several key components. First, a high-quality product or service that meets a specific consumer need or desire. Second, a well-defined target market. Third, a compelling sales presentation that effectively communicates the value of the product or service. Fourth, a strong sales team with the skills and motivation to sell.

Additionally, the business must have a clear understanding of the legal and ethical considerations associated with direct sales. This includes complying with consumer protection laws, providing accurate product information, and treating customers and salespeople fairly.

Direct Sales Model in the Business Model Canvas

The Business Model Canvas is a visual chart with nine elements describing a firm's value proposition, infrastructure, customers, and finances. The Direct Sales Model primarily falls under the 'Channels' and 'Customer Relationships' sections of the canvas.

'Channels' refers to how a company delivers its value proposition to its customers. In a Direct Sales Model, the channel is direct interaction between the company and the consumer. 'Customer Relationships' refers to the type of relationship a company establishes with its customers. In a Direct Sales Model, this relationship is typically personal and interactive.

Channels in the Direct Sales Model

In the Direct Sales Model, the channels of distribution are direct and personal. This means that the company interacts directly with the consumer, without the need for intermediaries. This can be done through various means, such as face-to-face meetings, online sales, direct mail, telemarketing, or direct-response advertising.

Direct channels allow for personalized communication and can help build strong relationships with customers. They also give the company full control over the customer experience, from the initial sales pitch to after-sales service. However, they require a significant investment in time and resources, and success depends heavily on the skills and efforts of the sales team.

Customer Relationships in the Direct Sales Model

In the Direct Sales Model, customer relationships are typically personal and interactive. The company establishes a direct relationship with each customer, often through one-on-one interactions. This allows the company to understand the customer's needs and preferences, provide personalized service, and build customer loyalty.

However, maintaining personal customer relationships can be resource-intensive. It requires ongoing communication and follow-up, and the quality of the relationship heavily depends on the skills and efforts of the salesperson. Therefore, companies using the Direct Sales Model need to invest in training and supporting their sales team.

Advantages and Disadvantages of the Direct Sales Model

The Direct Sales Model has several advantages. It allows for personalized customer interactions, which can lead to higher customer satisfaction and loyalty. It gives the company full control over the sales process and customer experience. It can also result in higher profit margins, as there are no middlemen involved in the transaction.

However, the Direct Sales Model also has its disadvantages. It requires a significant investment in time and resources. The success of the model depends heavily on the skills and efforts of the sales team. There is also the risk of negative customer experiences if the sales process is not handled properly. Furthermore, the company must navigate the legal and ethical considerations associated with direct sales.

Advantages of the Direct Sales Model

The main advantage of the Direct Sales Model is the ability to have direct and personal interactions with customers. This allows the company to understand the customer's needs and preferences, provide personalized service, and build customer loyalty. It also gives the company full control over the sales process and customer experience, which can lead to higher customer satisfaction and loyalty.

Another advantage is the potential for higher profit margins. Because there are no middlemen involved in the transaction, the company can keep a larger portion of the sales revenue. This can be particularly beneficial for companies with high-value products or services.

Disadvantages of the Direct Sales Model

The main disadvantage of the Direct Sales Model is the significant investment in time and resources it requires. The company needs to build and train a sales team, develop a compelling sales presentation, and manage the sales process. This can be particularly challenging for small businesses or startups with limited resources.

Another disadvantage is the dependence on the skills and efforts of the sales team. If the sales team is not effective, the company may struggle to make sales and build customer relationships. There is also the risk of negative customer experiences if the sales process is not handled properly. Furthermore, the company must navigate the legal and ethical considerations associated with direct sales, which can be complex and vary by region.

Implementing the Direct Sales Model

Implementing the Direct Sales Model requires careful planning and execution. The company needs to develop a high-quality product or service, identify a target market, create a compelling sales presentation, build and train a sales team, and manage the sales process. It also needs to understand and comply with the legal and ethical considerations associated with direct sales.

The success of the Direct Sales Model depends heavily on the skills and efforts of the sales team. Therefore, companies using this model need to invest in training and supporting their sales team. They also need to monitor and adjust their sales strategy as needed to respond to changes in the market or customer behavior.

Developing a Product or Service

The first step in implementing the Direct Sales Model is to develop a high-quality product or service that meets a specific consumer need or desire. The product or service should be unique and offer clear benefits to the consumer. It should also be priced appropriately for the target market.

Product development involves researching the market, identifying consumer needs and preferences, designing the product or service, testing it, and refining it based on feedback. This process requires a deep understanding of the target market and a commitment to quality and innovation.

Identifying a Target Market

The next step is to identify a target market for the product or service. The target market is the group of consumers who are most likely to buy the product or service. This can be defined in terms of demographics, psychographics, behavior, or geography.

Identifying a target market involves researching the market, analyzing consumer behavior, and segmenting the market based on relevant characteristics. The company needs to understand who the target consumers are, what they want and need, how they make purchasing decisions, and how they can be reached.

Creating a Sales Presentation

Once the product or service and target market have been identified, the company needs to create a compelling sales presentation. The sales presentation should effectively communicate the value of the product or service, engage the consumer's interest, and motivate them to buy.

Creating a sales presentation involves understanding the consumer's needs and preferences, crafting a compelling value proposition, and developing a persuasive sales pitch. The presentation should be tailored to the target market and reflect the company's brand and values.

Building and Training a Sales Team

The success of the Direct Sales Model depends heavily on the skills and efforts of the sales team. Therefore, the company needs to build and train a sales team that can effectively sell the product or service and build strong customer relationships.

Building a sales team involves recruiting, selecting, and hiring salespeople with the right skills and attributes. Training a sales team involves teaching them about the product or service, the target market, the sales process, and the company's values and expectations. The company also needs to motivate and support the sales team to ensure they are committed and effective.

Managing the Sales Process

Finally, the company needs to manage the sales process. This involves setting sales goals, tracking sales performance, adjusting the sales strategy as needed, and managing the customer experience.

Managing the sales process requires a clear sales strategy, effective sales management systems, and a commitment to customer satisfaction. The company needs to monitor and adjust the sales process as needed to respond to changes in the market or customer behavior, and to ensure that the sales team is performing effectively.

Legal and Ethical Considerations

Companies using the Direct Sales Model must navigate the legal and ethical considerations associated with direct sales. This includes complying with consumer protection laws, providing accurate product information, treating customers and salespeople fairly, and maintaining ethical business practices.

Legal and ethical considerations can be complex and vary by region, so companies need to understand and comply with the laws and regulations in the markets where they operate. They also need to uphold high ethical standards to maintain their reputation and customer trust.

Consumer Protection Laws

Consumer protection laws are designed to protect consumers from unfair or deceptive business practices. These laws vary by region, but generally require companies to provide accurate product information, honor their contracts and warranties, and handle customer complaints fairly and promptly.

Companies using the Direct Sales Model need to understand and comply with the consumer protection laws in the markets where they operate. This includes providing accurate and complete product information, honoring their sales agreements, and handling customer complaints in a fair and timely manner.

Ethical Business Practices

Companies using the Direct Sales Model also need to maintain ethical business practices. This includes treating customers and salespeople fairly, respecting privacy and confidentiality, avoiding deceptive sales practices, and maintaining a commitment to quality and customer satisfaction.

Maintaining ethical business practices is not only the right thing to do, but it can also benefit the company by building customer trust, enhancing the company's reputation, and reducing the risk of legal issues.

The Direct Sales Model is a powerful business strategy that can lead to substantial revenue growth and innovation. It allows companies to have direct and personal interactions with customers, control the sales process and customer experience, and potentially achieve higher profit margins. However, it requires a significant investment in time and resources, depends heavily on the skills and efforts of the sales team, and involves navigating complex legal and ethical considerations.

Companies considering the Direct Sales Model need to understand its advantages and disadvantages, and carefully plan and execute their sales strategy. They need to develop a high-quality product or service, identify a target market, create a compelling sales presentation, build and train a sales team, and manage the sales process. They also need to understand and comply with the legal and ethical considerations associated with direct sales.

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How to Build a Direct Sales Business In 2024 [23 Experts Say]

Everything you've been told about how to build a successful direct sales business has been wrong.

Just kidding. Because I don't know what you've been taught!

That said, the tactics are always changing, and what once worked, may not work today.

Furthermore, what works for your amazingly charismatic, super-glam-upline...

Might not work for you.

One thing so many leaders neglect (unintentionally) when teaching is to clarify that the tactics THEY use to grow their business might not necessarily be duplicatable for everyone.

Everyone is different, so you have to find what works for you, and what plays into your unique strengths.

With that in mind...

Today, I want to share with you what 23 successful business owners say is working NOW, in 2018 for growing massive direct sales business.

I approached these entrepreneurs and asked them to answer the following question:

If you suddenly had to start over and build your business from scratch today, how would you begin?

Check out their answers (which they so graciously offered) below.

You'll see a lot of similar advice, but also a lot of different advice.

Do NOT! I repeat...

Do NOT feel like you have to do EVERYTHING each of these experts recommends.

As I said above, everyone is different, and has different strengths. Plus, if you try and do everything, you'll be overwhelmed, and won't make any progress.

Instead, read what each has to say, and then determine what is most appealing to you, and what fits best with your strengths and personality, and then focus on that.

Without further ado...

Here are 23 great tips on how to go about building your direct sales business in 2024, straight from the minds of those who are already crushing it!

Implement a Prospecting & Marketing Plan

Owner of an Inc 5,000 Company

RayHigdon.com

Ray Higdon is a two time best selling author and a former #1 income earner in a network marketing company that he joined while he was in foreclosure. He has shared the stage with Tony Robbins, Bob Proctor, Les Brown, Robert Kiyosaki and many more. Ray and his wife no longer build a network marketing company so they can better serve the profession as coaches, speakers and trainers.

I would look at my options when it comes to the two categories of building your business.

The two categories of building your business are prospecting and marketing.

Prospecting

That’s you reaching out to an individual online or offline. To cold market (strangers) and warm market (friends & family members). That’s pretty straightforward. I would reach out to my existing resources, and see who’s open. Those who are open get them on a company video. Follow-up with them on the company video, see if they liked it or if they absolutely hated it.

If they hated it, I would see if I can get some referrals.

With marketing you want to attract leads to you. I would pick a category and become the authority in it. The category could be network marketing, could be health and wellness, could be getting six pack abs, could be power lifting, could be hair care, skin care, getting rid of love handles, could be whatever.

I would pick what is the category in my marketing that I want to become the authority of it. How? Right now in the short term it’s Facebook Live.

In the longterm it’s still blogging, and it’s been blogging since blogging existed.

If you’re a short term person and you want to get some leads faster, then Facebook Live is a great strategy.

If you want to get ongoing leads that never end then blogging is your best strategy.

If you want to get ongoing leads that never end then blogging is your best strategy. @rayhigdon

Live Life & Provide Value

Founder of MLM Nation

MLMNation.Net

Simon Chan is a follower of Jesus Christ, a husband, a father, the Founder of MLM Nation: including the #1 MLM training on iTunes. He got started in network marketing in 2003 and used Online Duplication strategies to build a 7 figure MLM business. In 2013, he retired from building MLM to become a full time business coach, speaker and online marketer who helps network marketing distributors with Online Duplication.

"Do Life. I like baseball. At this stage in my life, I'm very active in Little League baseball with my sons.

So I would go and be in a league, baseball camps, and literally be involved helping out, and through that, you meet lots of people.

Even just being an assistant coach of my son's team right now, I meet awesome parents, meeting the kids, and almost meeting other coaches involved...

All expanding that database..."

To hear the rest of Simon's fantastic response, check out his video below.

Post on Facebook 3 times a day, with one of those times being a Facebook Live. @simonwchan

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Ferney Ceballos

Co-owner of elite marketing pro.

Attraction Marketing Formula Bootcamp

Ferny Ceballos is a graduate from the Massachusetts Institute of Technology (MIT) and the University of Southern California, in Computer Science and Electrical Engineering, respectively. After working for 5 years as an aerospace engineer, his entrepreneurial aspirations motivated him to turn to the network marketing and internet marketing industry to escape the rat race. Since leaving Aerospace in 2008, he has personally been responsible for over 11 million dollars in sales online over 10 years in his personal business, and helped countless clients produce six-figure and seven-figure incomes promoting their businesses using the internet.

I would start using FB paid advertising to rebuild my following in the network marketing niche, add value to that following, and promote training programs to that list as an affiliate...

Like EMP's products.

For technology, I'd use kartra since it's an all in one solution for building sales funnels, email lists and membership sites.

I would start using FB paid advertising to rebuild my following in the network marketing niche, add value to that following, and promote training programs to that list as an affiliate... @therealelitem

Build up your network

John Melton

One half of network marketing guru-duo, john & nadya melton.

MyLifeStyleAcademy.com

John and Nadya Melton are 7-figure earners, 15-year Network Marketing veterans, and are currently at the top position in their company. They built a following on Facebook of over 75,000, and have personally recruited over 1,500 people in their career.

If I had to start all over, I would focus on building up my network as quickly as possible by providing value and doing live videos leveraging social media platforms.

I would also focus on identifying ideal prospects to share my business and product with every single day to start getting some good exposures.

I would probably find these people on Facebook as that’s been my number one resource for prospecting purposes and building my audience.

[Facebook has] been my number one resource for prospecting purposes and building my audience. @RealJohnMelton

Drop The Employee Mindset

Kate McShea

Network marketing trainer.

KateMcShea.com

Kate's a previous Second Grade Teacher turned entrepreneur. After leaving her teaching career and failing in her business for her first 12 months, Kate and her husband Andrew went from sitting front row at the No Excuses Summit in 2013 to generating a 6 figure income in less than 12 months and being asked to speak on stage the following year. Kate is now a sought-after speaker and trainer on the topic of online lead generation, video marketing, and closing autopilot sales.

There are two things I would have done differently in my first 12 Months

1. I would have dropped the "employee mindset".

The first thing that I would have done is I would have dropped the "employee mindset"...

And understood immediately from the beginning that, especially when you're first starting out, instant revenue, residual income, it will not be something that is a consistent in the beginning.

Let's just set that expectation!

This is now a business.

2. I would have Tracked my progress

To hear the rest of Kate's awesome advice, watch her video below...

The first thing that I would have done is I would have dropped the "employee mindset" @KateMMcShea

Clearly define your vision

Lynn Bardowski

Founder of million dollar party girl.

MillionDollarPartyGirl.com

Lynn Bardowski is the founder of Million Dollar Party Girl, but don’t let the name fool you. It’s more about a working Mom who discovered her inner visionista when she was least expecting it – overcoming fear, failure, and mommy-guilt to follow her passion and purpose, building a multi-million dollar direct sales organization.

I would start by clearly defining my vision...

And then launch with a grand opening (both in-person and virtual via Facebook Live) to communicate who I am and where I’m going.

All aboard!

Next, I’d use social media in smart ways to attract my ideal client and create lead funnels for customers, hostesses and leaders.

Then, I’d use tools and systems to scale quickly.

I'd launch with a grand opening (both in-person and virtual via Facebook Live) to communicate who I am and where I’m going. @LynnBardowski

Find a mentor ASAP

Whit & Cari Higham

Network marketing leaders.

WhitAndCariHigham.com

Whit and Cari help network marketers generate more leads and recruit more reps by leveraging social media and traditional business building strategies.

We would start with Attraction Marketing using Social Media right out of the gate instead of "cold calling" our friends and family or sending random messages to strangers on Social Media.

And we never would cold prospect at malls like we used to! lol

We would have found a mentor a lot sooner that could teach us attraction marketing...

Then we would model, mimic, and make it our own.

We would have found a mentor a lot sooner that could teach us attraction marketing... @CariHigham

Be a tour guide

Brady Sher Shaver

Network marketing trainer & coach.

BrandySherShaver.com

Brandy specializes in helping network marketers attract more prospects and recruit more reps by leveraging social media and using traditional business building strategies.

I would begin by finding an affiliate company and become the tour guide. Using it as an exposure agent, I would create results as I funnel those people that are ready now, into my team. Those that are not yet ready, continue to build value for them; finding a need and filling a need, establishing myself as an authority. Then I would start to mimic that affiliate company, moving out in my own more and more and then finally making it my own. Creating systems that create another income from the system, making money from the affiliate, and finally residual income from my network marketing company. Active, passive, and residual income creates freedom.

I would begin by finding an affiliate company and become the tour guide. @brandyshershavr

Use LinkedIn

Gloria MacDonald

Professional coach and trainer.

GloriaMacDonald.com

For over 20 years Gloria MacDonald has worked with organizations and individuals, helping them build their dreams, accelerate their results, and create richer, more fulfilling lives. MacDonald is a creative business woman who has built a successful brand with multiple line extensions. She hosted her own weekly TV show and radio show and has been featured in numerous national newspapers and magazines.

This is a great question, and not just a hypothetical one for me.

After having built a multiple 7-figure business which I started about 15 years ago, I lost the business, every dime of my retirement savings, and I had hundreds of thousands of dollars of debt due to the loss of the business.

My husband also cashed in every dime of his retirement savings, we were forced to sell our house, and...

W e came extremely close to having to declare bankruptcy.

It took me several years to figure it all out, but now I have reinvented myself and I'm on my way to creating my second multiple 7-figure business. So having started all over again from scratch, I would tell anyone to use LinkedIn to build your business and grow your downline.

It's an untapped gold mine. BUT... you have to know how to use it correctly. I wish the internet and LinkedIn had existed almost 40 years ago when I started in network marketing. What a different life experience it would have been! To find out more, go here.

Having started all over again from scratch, I would tell anyone to use LinkedIn to build your business and grow your downline. @GloriaMacDonald

Tap into the genius of others in your industry

Author, Speaker, High-Performance Strategist

FlyWithJT.com

Mission Accomplishment Expert, award-winning author of Flight Plan To Success, and founder of the F.L.I.G.H.T. School To Success™ system that empowers leaders, entrepreneurs and High-Altitude people to live their greatest potential in business and life.

Having had to rebuild from scratch more than once, I can say that it all begins with putting the ego aside and exposing the blindspots that likely got me stuck by seeking clarity on what I don’t know.

One of the most effective ways I have found to do this is to reach out to people far smarter and more talented than me (especially in the industry in which I was rebuilding) to tap their genius.

I believe in the “power of the collective”, meaning we can all learn more and grow faster by working together.

Even though it may be me in rebuild stage, I like to ask the amazing people in my network what they are working on and how I might assist or support them.

Sometimes there is nothing they need, but usually there is something.

But what never surprises me is how much I learn about the journey of success by observing others and contributing to their mission without agenda or any hopes of getting anything in return.

In fact, I gain so much by learning from the leaders that it catapults the rebuild process and accelerates momentum.

It has helped me bounce back faster and stronger every time I’ve found myself rebuilding from scratch.”

I believe in the “power of the collective”, meaning we can all learn more and grow faster by working together. @JTDeBolt

Get clear on what you want to be known for

Courtney Hackman

CourtneyHackman.com

Courtney has made it her mission to mentor and support women who want to bring their businesses online. She specializes in teaching social media strategies, traffic generation (Facebook ads specifically) in order to have prospects and leads flowing through your business everyday.

If I had to start my business again, here is what I would do differently.

1 I would have been very clear about what I wanted to be known for and I would have created offers aroun d that focus.
2 Then I would have built my social media following so that my audience had a clear understanding of what I specifically bring to the marketplace and how I can help them solve a clear problem.
3 I would have built demand for my products by building social equity or the value of my name on social media.
4 I would have started with private coaching as soon as I had results.

I would have started with private coaching as soon as I had results.

Focus on your email list

Caroline Allen

Founder of the modest mom blog and deborah & co..

TheModestMomBlog

Caroline founded The Modest Mom Blog and Deborah & Co to help women live a modest lifestyle, both inside and out.

I've been juggling a clothing business , a blog , and a direct sales business for 7 years now.

If I had to start over from scratch, the first thing I would focus on is my email list!

I deeply regret not focusing on this sooner.

I would nurture my list by not just emailing them whenever sales came out, but by giving helpful information, tips on how to use the items I sell, freebies, etc.

I want to truly be a friend to those on my list, not just another sales person bugging them to buy my product.

It's a fine line to walk, but I think it can be done very successfully. Try to think of giving 75% of the time and only selling 25% of the time. The other thing I would focus on from the start would be doing more videos.

It's much easier to build a relationship with people online if they see you and hear your voice. They start to trust you more if they feel like they can relate to you. Finally, be careful with social media!

For years, I spent more time trying to grow my social media following than I did my email list.

I own my email list and that won't go away, but social media changes constantly and the reach you have goes up and down.

It's still an excellent way to get exposure, but it can take so much of your precious time. Use online schedules (like Tailwind for Pinterest) and guard the time you spend online.

Some very successful bloggers that I know of spend zero time on social media for their personal lives and only dedicate their time online for business. I'm not that dedicated but it's an inspiring idea!

I want to truly be a friend to those on my list, not just another sales person bugging them to buy my product. @TheModestMom

Consistency Matters

Renee Harris

Founder of madeon lotion.

HardLotion.com

A stay-at-home mom of 9 sought relief for her dry skin, produced a "bar" of lotion containing 3 all-natural ingredients, tested the product at local farmers markets and this produced a healthy following of happy customers. The family has made and shipped tens of thousands of lotion bars since they started the business in 2009.

If I were to start my business from scratch, I would much of the same as I did with MadeOn:

We started small, assuming it would be a small contribution to my husband's income. Therefore our expectations weren't too lofty and it wasn't dependent on feeding our large family (that would be stressful to work under those conditions!)

We did plenty of R&D (research and development) by selling at a local farmer's market first. I got to talk directly to customers and explain a product that 9 out of 10 people had never heard of.

I had to learn in those early days that consistency matters...

With everything from making sure our products were made with the same recipe each and every time (unless we needed to improve on it), to consistently showing up when it came to serving customers.

You have to fight the "I don't feel like it" temptation or the Shiny Object Syndrome.

Everything we made the first two years cash-wise went right back into the business to build it.

We still operate on learning as we grow and investing in that process, but now that we're a full-time family business, we do pay our income from it as well.

It's a lot of hard work, but the benefits of both my husband and I being able to be with our family 24/7, homeschool full-time, and raise entrepreneurial children has been 100% worth it.

Don't underestimate your own skills, knowledge, or experience.

You have the ability to learn what the experts want to charge you plenty of money to implement for you.

I wouldn't outsource work until you have the cash from the business to pay for it, and I'd rather learn many of the skills myself before automatically outsourcing, because you need to always keep your eyes on your business.

Count the business blessings every day because you have to know that you're making a difference with your product or service.

It's like raising children... it takes a lot of hard work but if you don't notice the pay-off, you'll only see the work.

Don't underestimate your own skills, knowledge, or experience. @hardlotion

Develop a clear plan of action

If we had to start to build our businesses all over again, we would do exactly what we have done before:

Tony & Grazyna Pajunen

Mother/son network marketing coaching duo.

TonyAndGrazynaPajunen.com

Tony & Grazyna have both built 5 and 6 figure network marketing businesses in just 2 years, utilizing both online and offline strategies. They're the authors of Entrepreneur’s Guide to Social Marketing Success – Beat the Odds - 7 Step Formula to generate a 6 Figure Income , as well as speakers, trainers, and coaches to people from many different companies in the network marketing industry. They specialize in helping network marketers move their offline recruiting tactics to an online recruiting strategy. They also teach how to duplicate through your team using our proven online prospect and recruiting system.

1 Set up 3 realistic goals (1 month, 2 months and 3 months) and find out what exactly we need to do to achieve them (reverse engineering).
2 Make sure we know why our product and/or business is unique.
3 Make a commitment to how many hours a week we can work on our business and block time.
4 Read personal development books everyday.
5 Learn how to overcome the objections.
6 Make a prospecting plan -Warm market - organize a home meeting -Cold market - determine the local avatar and how are you planing to contact them participate in networking events and trade shows -Social Media prospecting -Develop an automatic prospecting system taught by EMP
7 Learn how to start a new customer and a new distributor and help them with the steps 1 - 4.

"Read personal development books every day." - Tony & Grazyna Pajunan

Blog Often & Write A book

Karen Clark

Author, social media for direct selling.

SMDSBook.com

Working with direct selling companies as an event speaker/trainer and social media corporate consultant, Karen uses her nearly 20 years' online marketing and direct selling expertise to teach audiences exactly where, when, and how to establish an ethical and effective online presence with social media, while remaining true to their principles and personal direct sales business. She shows them how to bring the high tech new world and high touch traditional business together.

If I were starting again I would blog often so that I could build up enough content and expertise to write a book after my first year.

My books have opened doorways for my business that I never expected.

I think everyone has a message the world needs to hear whether it is directly related to your business or not.

Maybe it's time to get it out there to those for whom it can make a difference?

Plan & Build systems

Kristi Davis

Fashion, cosmetics, and rv lifestyle blogger.

FlawlessBlueRV.com

After 4 years in the teaching profession, she moved from Kentucky to Las Vegas to become a corporate trainer. She learned the world of business by working with companies such as Hilton Hotels, Barclays Bank and Honeywell to name a few. She returned to Kentucky and using her teaching skills combined with her knowledge of business and marketing, she has quickly applied these skills in growing a successful business (team) within SeneGence International.

If I had to start over today, I would say:

Plan my work and work my plan.

The last year happened so fast and I was just all over the place. Now I want to make a plan, build systems and make these duplicatable.

If I had to start over today, I would say: Plan my work and work my plan.

Do amazing follow-up

Jen Fitzgerald

Creator of the client angel.

TheClientAngel.com

Jen is a relationship-building and follow-up pro, with a passion for teaching her strategies to entrepreneurs all over the world. She is the founder and owner of The Client Angel, a too used worldwide by business owners, helping them to attract and retain more customers. Her mission is to help people build & maintain great customer follow-up so that they may build relationships that sustain their business.

If I had to start my direct sales business over again, I would set up vendor booths multiple times a month and then make sure I collected names at each and...

Do amazing follow-up.

I would use a mix of personal and sales follow-up to grow their trust in me and ask for referrals.

Do amazing follow-up. @theclientangel

Serve and Encourage

Charlotte Siems

Founder of this lovely place.

CharlotteSiems.com

Charlotte is a grateful wife & mom of 12 amazing persons. She has reached the top rank of her favorite network marketing company and loves to inspire & teach busy women to find beauty in everyday life by caring for themselves, creating comfortable homes with their families, and living out ordinary days with grace and gratitude.

I would actually continue to do what I do now...

Serve and encourage through my blog and Social Media.

Take my eyes off myself and my fears by thinking “who won’t get helped if I don’t get over myself?” and keep my “why” fresh and compelling by intentionally thinking about it and envisioning it every day.

I would work closely with new team members to launch their business effectively with excitement. Most of all, I would ask God for His strategies and favor and increase!

Think: “who won’t get helped if I don’t get over myself?” @CharlotteSiems

Create valuable content

Eva Marie Taylor

Multipreneur.

EvaMarieTaylor.com

For the last 3 years, Eva has been building her art business and has had the fortunate opportunity to become a 2 time published illustrator and seasoned chalk artist and hand lettering professional. To say she's a multipreneur or serial entrepreneur is an understatement, because creative ideas are always running through her blood. She's always looking for a side hustle to add another income stream to her brand.

Starting any business with momentum, you need an audience who knows, loves and trusts you.

If I was starting over from scratch, I would begin creating video and written content with value for the people I want to connect with and use curiosity and attraction marketing to get people reaching out to me.

Business is all about building relationships...

And when you show people you care and can really be a solution to their problems through your free content, the Law of Reciprocity comes into effect and people want to buy from and partner with you.

Business is all about building relationships.

Create a duplicatable System

Fernando Loaiza

Network marketing coach.

FernandoLoaiza.com

Fernando Has worked with over 1500 network marketing clients across 30 Countries and over 40 different network marketing companies helping them break through mental barriers as well as developing their personal brand using social media strategies to attract more qualified prospects to share their business opportunity with.

I would begin by creating a 100% online duplication and transformation system that each new team member can follow predictably no matter how many levels deep the are.

I would begin by creating a 100% online duplication and transformation system that each new team member can follow predictably no matter how many levels deep the are. @FernandoLoaiza_

Keep doing what works

Shannon Ferraby

Author; speaker.

ShannonFerraby.com

Homeschooling Mommy to 5. Top consultant in her direct sales company. Certified Go-Giver speaker, trainer and coach. Author of “Success Unwrapped.” Kicking People in the Pants!

Do more of what works and get off the hamster wheel!

Stop wasting time doing the same things (that aren’t working), over and over, hoping to get a better result. 3 things that spin the wheel but get you nowhere:

An “I” focus. “I” need orders. “I” need a team. “I” need to get that incentive!
Whining, negativity and asking people to do you favors. As Dale Carnegie said, “Ultimately people will do things for their reasons, not ours.”
Waiting. Waiting for the perfect time or until you have enough time. Waiting until you think you know enough or are good enough. Waiting for customers, hostesses and team members to come to you. (spoiler alert: those times never come).

3 things that get you off the wheel and on the path to unwrapping your success:

An “others” focus. Providing excellent, consistent, attentive, empathetic and appreciative value to others. Focus on serving them and helping them get what they want, need and desire.
Chase the sun! Look for, focus on and communicate about the positive in every person and situation. Expect to fall and commit to always get back up. Learn from mistakes.
Plan, schedule and get to work! You do know enough, and you are enough to get started! Learn and grow more by surrounding yourself with people who believe in you, will encourage you, and want the best for you! Tell the lies in your head to “go spin on a hamster wheel!” because you’ve got work to do, people to help and success to unwrap!

"Stop wasting time doing the same things (that aren’t working), over and over, hoping to get a better result." - Shannon Ferraby

Find where Passion, Knowledge, and Need overlap

Reagan & Haley Ramm

Creative entrepreneurs.

OrpheusAudioAcademy.com

Reagan & Haley are creative entrepreneurs who specialize in helping artists create better art, and generate income from their creative pursuits.

Regardless of what company we were with, we would examine where our passions and expertise overlapped, and then research to see if there was a market need.

From there, we would determine who we want to help in that market. What are their biggest struggles and needs?

Next, we establish ourselves as authorities in that niche by teaching and providing value, solving the problems of those in that area. We would use Facebook Live, blogging, and email to serve our audience, and to build a relationship. We would also use Facebook ads and Influencer Marketing to drive traffic, and generate leads.

Within our content, we would then naturally recommend our company's products or opportunity, and let them know that they can reach out to us if they want more information.

That way, we can get people reaching out to us, rather than constantly having to chase people. We would also have a solid brand and business built that was completely separate from our company, which would give us the flexibility to sell other products that we thought would help our audience.

Establish yourself as an authority in any niche by teaching and providing value, solving the problems of those in that market. @Andromeda_Coast

Leverage Influencer marketing

Direct Sales Top Earner

Influencer marketing quickstart guide.

A homeschooling mom of 7, living in the sunny state of Florida. She's been in direct sales since 2010, and managed to build a team that has enrolled over 10,000 amazing consultants, and generated over 32 million dollars in revenue.

If I had to start my direct sales business from scratch, I would:

1 Jump right back in to Influencer Marketing

This would allow me to get influential leaders to promote my products to their huge loyal followings for me, mainly through Review & Giveaways.

I still firmly believe that it is one of the best and fastest ways to grow your business online.

2 Get contact info (specifically email addresses) for Every. Single. Person. who enters one of my R&G’s Every. Single. Time.

I kick myself today for the thousands of leads and potential lifetime customers I missed out on by not doing this earlier.

Implementing Google Forms for my giveaways this past year has been a total game-changer.

3 Start my email list right from the start.

It is one of the most valuable assets in your business.

Then provide value to my subscribers so that I can become an influencer myself, by becoming someone that my potential lifetime customer knows, likes, and trusts.

Get every single contact from every single giveaway or promotion you run.

Wow! Is your mind swimming with ideas, or what?

It was so amazing to get all of these incredible responses from each of these fabulous business owners.

I'm so appreciative to all who contributed!

Now if you're anything like me, you're going to want to...

DO ALL THE THINGS!

But don't fall into that trap!

You can only do so much, and it's best if you only focus on a few things, and do those exceptionally well.

If you're not sure where to start, and you're looking for a strategy that allows you to build your business 100% from home in an introvert-friendly way, then check out my free guide below on Influencer Marketing.

Influencer Marketing Quickstart Guide.

How You Can Get HIGHLY INFLUENTIAL Leaders to Gladly Promote Your Direct Sales Products to Their Online Followers!

Never leave your home or children ever again!

This will be especially beneficial if you never want to do another vendor show or home party ever again!

I hope you found this post on, how to get started building your direct sales business from scratch, helpful!

Please feel free to share if you got value, and let me know in the comments below...

What strategy above did you find the most helpful? What are the next steps you're going to take to grow your business?

I’m a homeschooling mom of 7, living in the sunny state of Florida. I've been in direct sales since 2010, and have been blessed with an awesome team that has enrolled over 12,000 amazing consultants, and generated over 33 million dollars in revenue. I love to help other ladies build their own thriving businesses from home, so they can spend more time with their families and be able to focus on the truly important things in life.

Discover What You Need To Focus On Right NOW (And What You Need To Ignore) So You Can Take Your Business To The Next Level, And Become A Top Earner

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22 Best Sales Strategies, Plans, & Initiatives for Success [Templates]

Discover sales strategy examples, templates, and plans used by top sales teams worldwide.

FREE SALES PLAN TEMPLATE

Outline your company's sales strategy in one simple, coherent plan.

sales strategies initiatives and templates to plan your quarter

Updated: 03/07/24

Published: 03/07/24

A strong sales strategy plan creates the foundation for a cohesive and successful sales organization.

Sales strategies and initiatives also align salespeople on shared goals and empower them to do their best work — keeping them happy and successful, too.

In this guide, I’ll dig into some sales strategies and initiatives that I’ve found can help you generate more leads and close more deals. But first, let’s define what a sales strategy is.

Table of Contents

What is a sales strategy?

Why is a sales strategy important, the most effective sales strategies, sales strategy types, sales planning: how to build a sales strategy plan, sales initiatives, sales strategy examples from successful sales teams.

A sales strategy is a set of decisions, actions, and goals that inform how your sales team positions the organization and its products to close new customers. It acts as a guide for sales reps to follow, with clear goals for sales processes, product positioning, and competitive analysis.

A clear sales strategy serves as a map for the growth of your business. Your sales strategy is key to future planning, problem-solving, goal-setting, and management.

An effective sales strategy can help you:

Give your team direction and focus. Strategic clarity can help your sales reps and managers understand which goals and activities to prioritize. This can lead to improved productivity and outcomes.
Ensure consistent messaging. Your sales strategy can help your team deliver a consistent message to prospects, partners, and customers. This can increase both trust and effectiveness.
Optimize opportunities. Strong sales strategies will help you target the right prospects and customize your approach. This can help your team make the most of every sales opportunity.
Improve resource allocation. Your sales strategy outlines your priorities and resources. In turn, this can help your sales team use their time, effort, and other resources more efficiently, boosting your team’s ability to focus on high-potential deals.

Next, let’s cover some of the sales strategies that I’ve found can be most effective.

50+ for Social Selling on LinkedIn and Beyond

Use this guide to improve your social selling efforts and close more deals from platforms like...

You're all set!

Click this link to access this resource at any time.

2. Become a thought leader.

Sharing your advice, tried-and-true best practices, and niche expertise are some of the most long-lasting ways to build your personal brand and lend more credibility to your organization. After all, nobody wants to feel like they’re being sold to. Instead, it’s better to help people by offering solutions to their problems.

That’s what thought leaders do. Indeed, a recent report found that “Thought leadership is one of the most effective tools an organization can use to demonstrate its value to customers during a tough economy — even more so than traditional advertising or product marketing, according to B2B buyers.”

According to the study, 61% of decision-makers believed that thought leadership could be moderately or very effective in demonstrating the value of a company’s products. Moreover, more than half of C-suite executives in the study believed that thought leadership has a greater impact on purchases during an economic downturn, making this an even more important element of a sales strategy in today’s uncertain economic times.

So what’s the catch?

Not all thought leadership content is created equal.

When done right, thought leadership can have a huge positive impact, but poor thought leadership can be devastating to a company’s sales goals. So, before you plan a spree of LinkedIn posts to drive leads, consider who your audience is, what they need to know, and how your organization can help.

Also, it may not hurt to have a second set of eyes from your marketing, communication, and PR departments review your plan first to make sure everything is on-brand (and trackable!).

3. Prioritize inbound sales calls as hot leads.

There’s an age-old question in sales: “Should I discuss product pricing with a prospect on the first sales call?” The honest answer is: It depends.

You and your sales team know your process better than anyone. So take it from me — if you’ve seen success with pitching with pricing first, last, or somewhere in between, stick with what’s working for you.

But beyond that, your team should always prioritize the prospects who come to you. These hot leads are definitely interested in what you have to sell, and before they make a decision, they want to get the information they need about how it will benefit them.

By prioritizing talking to these prospects as soon as they call in or send an email, you’re putting your best foot forward and showing them that you’re helpful, solutions-oriented, and considerate of their time. And if that means closing a deal on the first call, there’s nothing wrong with that — as long as the customer has the information they need to make an informed decision.

4. Properly research and qualify prospects.

I’ve personally discovered that even the strongest sales strategy can’t compensate for targeting the wrong customers. To ensure your team is selling to the right type of customer, encourage reps to research and qualify prospects before attempting to discuss your product. Indeed, throughout my career, I’ve found that more work on the front end can lead to smoother closing conversations later on.

Outline the criteria a prospect needs to meet to be qualified as a high-probability potential customer. These criteria will depend on your unique business and target audience, but they should generally be based on a prospect’s engagement history and demographics.

Free Guide: 101 Sales Qualification Questions

101 Questions to Ask Contacts When Qualifying, Closing, Negotiating, and Upselling.

Budget Questions
Business Impact Questions
Competitor Questions

5. Implement a free trial.

Offering a free trial or freemium version of your product can be a highly effective way to convert prospects. In fact, HubSpot’s sales strategy report found that 76% of sales professionals feel that free trials are effective in converting prospects into paying customers, while 69% of professionals believe that freemium offerings are effective.

Keeping a list of proven, go-to closing techniques will help salespeople routinely win deals. Some of my favorite techniques include the ‘now or never close’ — i.e., “If you commit now, I can get you a 20% discount” — or the ‘question close,’ i.e., “In your opinion, does what I am offering solve your problem?”

Free Sales Closing Guide

An easy-to-use sales closing guide with three tactics you can use right away.

Using an ROI calculator for your prospects
How to ask confirmation questions
Sales question templates you can use today

To further improve your closing techniques and learn to close deals with confidence, check out this free, downloadable Sales Closing Guide .

11. Nurture existing accounts for future selling opportunities.

Once a deal is done, there’s no need for a sales strategy, right? Wrong.

Account management is an incredibly important part of the sales process, as this is how you foster loyal, happy customers and identify cross-selling and upselling opportunities.

So, after your sales team sees success with its sales strategy, it’s vital to form a partnership between the sales team and customer service/success teams.

Remember: Ensuring customers’ continued satisfaction with your product or service will make them more likely to do business with your company again. You may even inspire them to advocate for it proactively.

Free Sales Plan Template

Outline your company's sales strategy in one simple, coherent sales plan.

Target Market
Prospecting Strategy

Inbound Sales Strategy

In contrast, inbound sales strategies are the modern methodology for sales teams. Companies following an inbound approach base their sales processes on buyer actions.

These organizations automatically capture seller and buyer data to monitor their pipelines and coach their salespeople. Inbound sales strategies connect reps’ activities to the three stages of the buyer journey — awareness, consideration, and decision — encouraging sales teams to map their tactics to the right step in the customer journey.

The inbound methodology also aligns sales and marketing, creating a seamless experience for buyers. Check out this post to learn more about inbound sales and how to develop an inbound sales process.

In addition, many popular sales strategies take a customer-centric approach, including:

Account-based selling .
SPIN selling .
Value-based selling .
Consultative selling .

You can learn more about these approaches in this post about customer-centric selling systems .

Inbound vs. Outbound Sales Methodology

In the past, buyers were often forced to suffer through evaluating a product and deciding whether to buy it using only the information offered to them by the seller. But today, much of the information needed to evaluate a product is available online — meaning that buyers are no longer nearly as dependent on the seller.

That means that if sales teams don’t align with the modern buyer’s process. If they fail to add value beyond the information already available online, then buyers will have no reason to engage with a sales team.

As mentioned above, inbound sales benefits buyers at each stage of the buyer process, including:

Consideration.

Inbound sales teams help buyers become aware of potential problems or opportunities and discover strategies to solve those problems.

Then, buyers evaluate whether the salesperson can help with their problem, and if the buyer thinks they can, they’ll purchase a solution to their problem. Inbound sales reps are helpful and trustworthy, creating partnerships rather than power struggles.

Not sure how to get started with inbound selling? Every sales team should have a sales strategy plan outlining its goals, best practices, and processes designed to align the team and create consistency.

Below, I’ll walk through how to create a sales strategy plan for your team.

Now that you have the template you need, let’s go over how you can build a sales strategy.

How to Build a Sales Strategy

Develop organizational goals.
Create a customer profile that is tailored to a specific product offering.
Hire, onboard, and compensate sales team members adequately.
Create a plan to generate demand.
Measure individual and team performance.
Track sales activities.

To build a comprehensive sales plan, I’d recommend starting with the following activities:

1. Develop organizational goals.

Setting goals is a no-brainer for most sales teams. Otherwise, how will you know whether you’re executing the right activities or achieving the best results? There are three strategies that I’ve found can be particularly helpful in developing clear organizational goals for a sales strategy.

Involve cross-departmental stakeholders.

Avoid developing sales goals in a silo. Instead, be sure to get input from stakeholders across the organization, since every department is held accountable to the company’s bottom line.

Create SMART goals.

SMART stands for specific, measurable, attainable, relevant, and time-bound. Setting SMART goals can help your team simplify and track complex, long-term sales goals .

For example, a specific, measurable, and time-bound goal could be to sell 150% of the projected sales quota in Q2. Your internal team can propose this goal and then decide whether it is both relevant and attainable (attainability is particularly important because setting unrealistic goals can harm team motivation).

At the end of the day, SMART goals help reduce confusion when it’s time to review your strategy, helping to ensure you know what worked and what didn’t.

Connect individual goals to organizational goals.

Finally, if you’re creating a team-specific strategy, you may also want to set goals for individual team members. Building ownership and accountability into sales goals can help keep your team aligned, and it also makes your sales strategy more cohesive.

2. Create a customer profile that is tailored to a specific product offering.

A detailed profile of your target customer — a buyer persona — is an essential component of an effective sales strategy. Below, I’ve outlined the key steps to take when creating a buyer persona to ensure you come up with a useful profile:

Find target markets and segments.

First, look at your industry as a whole. Get a sense of your ideal customer’s company size, psychographics, and buying process. You may want to look at industry trends, too.

Conduct market research to understand customer needs and preferences.

Next, do some market research. This template can help you streamline the process and understand which types of research will be best for your business.

You may also want to do some competitor analysis at this stage. Once you know the strengths and weaknesses of competing brands, you can more easily find gaps that you can fill for specific customers.

Create a clear value proposition to attract your ideal customer to your product or service.

Finally, make sure your product offering outlines the benefits of your product for your target customer. It’s important to use insights from your customer profile to emphasize features that solve your target customer’s pain points.

Your business may already have a clear value proposition — but if not, you can use these free value proposition templates to draft one.

Quick tip : Be sure to schedule time to update and refine your buyer persona to make sure it stays aligned with current customer trends and expectations.

3. Hire, onboard, and compensate sales team members adequately.

To develop an effective sales strategy, you need to have a powerful sales team in place. That means investing in hiring, onboarding, and retaining top talent. Specifically, I have learned that there are three key components of building (and keeping) a supportive, successful sales team:

Create great processes for hiring new members of your sales team.

First and foremost, create a list of criteria for sales managers to screen for when interviewing candidates. A well-defined job description and competency framework are also useful. These tools can help your team recruit and retain top talent.

Develop sales onboarding, training, and development programs.

Your training and onboarding program should prepare your sales team to sell effectively and efficiently. It should also help sales reps build advanced skills and industry knowledge.

But what if you don’t have the resources to develop comprehensive training in-house? In these situations, it may be worth considering combining organization-specific training with online sales training programs .

Create a motivational compensation and rewards plan.

Finally, once you’ve built a strong team, it’s vital to ensure your compensation plan is set up to motivate and retain them.

Many organizations connect sales compensation to organizational sales goals, but regardless of the specific compensation plan you choose, make sure that it meets or exceeds industry expectations. It should also inspire your team to celebrate individual and team achievements.

4. Create a plan to generate demand.

Now, it’s time to put together a detailed plan for how to target potential customers and increase their awareness of your offering. This may include using paid social acquisition channels, creating e-books, hosting webinars, and the many other strategies laid out in this article.

Featured Resource: Sales Plan Template

Get HubSpot's Free CRM

4. Listen to your prospects.

Just because prospects aren’t customers yet doesn’t mean they don’t have valuable feedback to offer.

As you move prospects through the sales funnel (and especially when they drop off), ask for candid feedback about their experience with your team and products. Even if they’ve lost interest, you may learn something that can help you convert your next prospect.

5. Invest in sales development and team-building.

The best sales teams align not only with their customers but also with their coworkers.

Sales is a difficult career, and without proper encouragement and camaraderie, people can easily become burned out. So, to keep your sales team feeling satisfied and supported, don’t forget to invest in sales development and team-building activities.

Don't forget to share this post!

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How to Start a Direct Sales Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Wholesale and Retail Industry

Do you want to start a direct sales company from scratch? Or you need a sample direct sales business plan template? If YES, then i advice you read on. Direct sales company also known as Multi Level Marketing or Networking Business is a business or company that sells products and also pay people to invite others to sell products for the company.

A Direct sales company does not directly pay their sales men or women salary or wages per say, they make them earn based on commission. The Direct sales industry is a billion dollar industry as people as making huge financial successes on direct sales commission from Multi Level Marketing companies.

One reason why people like to join direct sales companies is because you don’t necessarily need a college degree or experience to work for a direct sales company. As long as you can convince people to buy products from you and also to get people join the network under you, you can make good money from the industry.

But you can take it a step further by starting your own direct sales company and grow it into a multi-million dollar company. This may sound impossible to achieve but I will lead you through the steps and provide you a direct sales company business plan for getting started.

How to Start a Network Marketing Company

Starting a Direct Sales Company – Sample Business Plan Template

1. choose a line of product.

The main purpose of the direct sales business is to make sales and recruit other people to also make sales. So you need a product to sell. It is important you try to choose a product that you like and have sufficient knowledge of because it is easier to sell products you know and like.

If you are good at making instant coffee and can tell the difference between a good coffee and bad coffee, you can choose coffee with some additional healthy ingredient added, as the product for your direct sales company. If you are good at weight loss, you can produce green tea and slimming tea or slimming belt as the product for your company.

2. Find Manufacturer or Wholesalers

After you have chosen a product for your company, it is time to look for a manufacturer who can manufacture the product to your exact specification in very large quantity or you can find a wholesaler that can supply you your required product at wholesale price.

But you must make sure that you let your manufacturer know this thing is a long term project and you will need larger quantities of the products as the company grows. You can also get them to make a drop shipping deal; that is to supply to other countries on behalf of your company when on demand. You can look up manufacturers on sites like Alibaba.com. But you must try to certify your products with as many standard organizations as possible.

3. Register the Company

You have chosen a product for your direct sales company, and found manufacturers for the product. It is time to register your business to function as a company. Depending on the country you are starting the business; there are different requirements for the registration of company in different countries.

Find out what the requirements are in your country and register the business as a company. Don’t register it as a Business Name or sole proprietorship company; make it a limited liability company or public limited company as you will need to include partners and shareholders in the company as you expand.

4. Structure Your Networking and Reward System

As a direct sales company or Multi Level Marketing company, you need to work out a structure for reward system for networking. Let it be motivating enough to motivate people to invite others into the company. It can look like this: when A registers with the company and invites B to register under him, he will be paid 20% of B’s earnings and if B get’s C to register under him, A makes 10% of C’s earning and so on.

5. Host Your First Company’s Seminar

Everything is ready for your company to kick off, and it is time to hold your first company’s seminar or business meeting to recruit the first set of networking team for your business. To host the business meeting, you have to do the following;

Choose a Venue

You have to choose a venue for the meeting. The venue space should be big enough to contain many people, as you need as many people as possible to launch your networking company. Remember to go to the venue the day before the main event to ascertain that everything is in order for the event.

Send Out Invitations

Design larger number of invitation and share to as many people as possible. The invitation can be a flier that contains all the details of the program including date, time, venue, your company’s name and a hint of the agenda of the meeting. Remember to send out the I.V as early as you can to allow people clear up their agenda for that day. Invite your friends, relatives, phone and email contacts business colleagues and investors; encourage them to come with their own friends.

On the Day of the Event

On the day of the event, after the necessary introduction has been made, you must go straight to the agenda of the meeting and tell your guests the agenda for the meeting. Tell them about your company, the products your company offer, what they stand to gain as members of the company, and what it takes to become a member of the company. After that, you can share a registration bullet for people interested to join the company. You can also lecture on how to convince other people to join the company under them.

6. Subsequent Meetings

After a successful first meeting, you can organize subsequent meetings; the aim of these meetings will be to motivate others with the success stories of people who are already making progress in the company and how they achieved their success. You can also bring guest speakers who are well known in the direct sales industry to talk to them on success strategies in the business.

I have taken you through on top 10 tips that will help you start out your own direct sales company and grow it to a multi million dollar company within a short space of time. It is time to take the first step and find your own footpath.

How to Start a Direct Selling Business
7 Easy Steps Make Money Buying and Selling Used Furniture
How to Start a Custom Lanyards Company – Sample Business Plan Template
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6 Steps to Create a Successful Sales Business Plan

Written By Michelle Richardson

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What Should I Sell? A HUGE List of Direct Sales Companies

Find out how to work from home with a career in the direct sales industry. If you're a self-starter, outgoing, and truly passionate about the products you're selling - this may be the perfect home business for you! Learn more here! #workfromhome #business #directsales via @theworkathomewoman

If you grew up in the 70s, you probably remember the Avon lady coming to your door saying … “Avon calling!” Or maybe your mom hosted a Tupperware Party when you were younger. The direct sales industry has come along since then, and it can be a great way to earn money from home. If you’re not familiar with this business model, here’s the gist of it.

What is a Direct Sales Business?

Direct sales is the process of selling products face-to-face away from a retail store location. Many times this is done through in-home shopping parties, presentations, and catalog sales. For a minimal fee, companies give you a starter kit that includes everything that you need to start your own business.

Often your first prospects and buyers will be friends, family, and co-workers, you will then build your customer base by getting referrals and marketing your business. Some direct sales companies will even give you a few leads to get started.

As a sales consultant, you will be paid a commission for each product that you sell. Some direct sales companies will also pay you a commission on product sales from consultants who you referred to the program. Besides being able to work from home, you will also be able to choose your working hours and the type of products that you sell. Many moms opt to do their home shopping parties at night or on the weekends when dad can watch the kiddos.

How Much Money Can You Make as a Direct Sales Consultant?

The average commission for a direct sales consultant is 20-35%, so if you sold $500 in products and your commission rate was 25%, you’d earn $125 for a few hours of work. With this said, many direct sales companies offer a tiered commission plan based on your monthly sales (The more you sell, the higher your commission is).

If you’re outgoing, confident, and genuinely excited and passionate about the products you are selling, a career in direct sales may be the perfect work-at-home opportunity for you! Check out the resources below to get started.

Helpful Direct Sales Articles:

Best Products to Sell from Home
What Do You Do When Your Direct Sales Company Closes its Doors?
Do You Have the Right Personality for a Direct Sales Position?
Direct Sales Consultants: Are You Losing Customers by Doing These 6 Acts?
Is Feeling Pushy Keeping You From Getting Bookings? Here’s the Remedy…
What to Look for in a Home Party Business Opportunity
Where Can I Find Direct Sales Training and Tips?

Direct Sales Resources:

CEO of Me – Direct Sales and Party Plan Training
Create a Cash Flow Show – Deb Bixler, Direct Sales Coach
Direct Sales Aid
Direct Selling Association
Direct Selling News
Julie Anne Jones – Direct Sales Coach
Party Plan Divas
World Federation of Direct Selling Associates

Huge List of Direct Sales Companies:

Please be aware that these companies have not been researched by me. As is always the case, please do your due diligence before enrolling in any business opportunity.

4Life Research, LLC sells nutritional products and supplements.

AdvoCare International sells nutritional and skincare products.

Aloette Cosmetics, Inc. sells scientifically advanced skincare and makeup with good-for-your-skin ingredients.

Amway-Quixtar sells health and wellness products.

Arbonne International sells botanical-based beauty and healthcare products.

Artsy sells paint party experiences.

Avon – sells bath and beauty products, clothing, jewelry, and a lot more.

Barefoot Books sells award-winning children’s books, CDs, and gifts.

BeachBody sells workout videos and home fitness programs.

Beauty Counter sells chic, safe, and effective beauty products.

Beauty Society is the only skincare line offering the treasure, not trash, refill program, where refillable items are sold at a 15-30% savings.

Bedroom Kandi sells adult products for the bedroom.

Bellame sells skincare-infused makeup, body, wellness, and skincare products.

Boisset Collection sells wine, jewelry, accessories, and gifts.

cabi sells high-end, stylish clothing by Carol Anderson.

Carico sells fine china, cutlery, tableware, and crystal.

Carlisle Collection sells high-end fashion for women.

Chalky & Company sells all-natural chalk paint.

Close To My Heart sells scrapbooking supplies and products.

Color Street sells nail designs and applications.

Creative Memories sells scrapbooking products and supplies.

Crimson Pallets sells art experiences creating painted pallets.

Crowned Free is a Christian-based company that sells women’s clothing, accessories, and jewelry.

CUTCO sells fine cutlery.

Damsel in Defense sells self-defense products for women.

Discovery Toys sells educational toys.

doTERRA sells essential oils.

Dudley Beauty Corp, LLC sells hair care, cosmetics, skincare, products for men, and gifts.

Epicure sells food, cookware, and meal plans.

Essential Bodywear sells bras, panties, and shapewear.

ETCETERA sells woman’s clothing.

Fifth Avenue Collection sells beautiful jewelry – an international company.

Forever Living sells health, wellness, and weight loss products, as well as essential oils.

Forever Green sells natural energy drinks.

Gallery On The Go sells art experiences through paint parties.

Grace & Heart sells faith-inspired jewelry.

Handmarks sells jewelry and charms.

Harpers Love sells trendy, personalized jewelry.

Hello Pink sells clothing for women, kids, maternity, and men.

Heritage Makers sells scrapbooking supplies and products.

I Thought of You sells fair trade jewelry and handmade goods.

In a Pikle sells compact organizers for essential convenience items, needed for life’s emergencies.

Initials, Inc. sells monogrammed totes, bags, purses, wallets, luggage, and storage containers.

Isagenix sells healthy weight loss products.

It Works sells weight loss body wraps.

J. Hilburn sells stylish men’s clothing.

Jafra sells cosmetics and beauty products.

JBloom sells jewelry and gifts.

Java Momma sells organic fairtrade coffee, flavored coffee, loose leaf tea, cocoa, and accessories in a variety of yummy flavors like Sea Salt Caramel Mocha and Pumpkin Muffin.

Jeunesse Global sells wellness products.

Jewel Scent sells candles and bath bombs with hidden jewelry inside.

Jordan Essentials sells bath and body products for adults and children.

Kaeser & Blair sells promotional products.

Kirby sells vacuums and bags, replacement parts, and cleaning products.

Kyani sells a superfood juice.

Labella Baskets sells gift baskets.

L’BRI Pure N’ Natural sells natural aloe vera skincare products.

Lemongrass Spa sells bath and body products.

Le-Vel sells wellness supplements.

Life Force sells nutritional supplements.

LOVEWINX sells adult products for the bedroom.

Magnabilities sells customized magnetic jewelry.

Mannatech sells nutritional supplements.

Martha and Mary is a Christian-inspired direct sales company that offers a unique blend of business and ministry, selling home decor items and gifts.

Mary Kay sells cosmetics, skin, and body products.

Maskcara Beauty sells makeup that enhances your skin tone, camouflages blemishes and dark circles, and sculpts features on your face.

Matilda Jane Clothing sells children’s and women’s clothing.

Melaleuca sells personal care, cosmetics, cleaning, and wellness products.

MIG Living sells pure and clean beauty and bath products.

Modicare sells laundry, auto, and personal and home care products.

MONAT Global sells all-natural hair care products.

Morinda sells essential oils, noni juice, skincare products, and lip products.

Nature’s Sunshine sells health and wellness products.

Neora sells a line of skincare products.

NéVetica sells wellness products for pets.

Nikken sells wellness products.

Noevir sells skincare, haircare, body care, and cosmetics.

Noonday Collections sells jewelry and accessories.

NuSkin sells skin-care products.

NYR Organic sells organic haircare, body, cosmetics, aromatherapy, herbal remedies, and more.

One Hope sells wine, gifts, and other gourmet products while providing built-in donations for each product to various charities.

Opulenza Designs sells handcrafted sterling silver jewelry.

Origami Owl sells personalized charm jewelry.

Pampered Chef sells high-quality kitchenware and gifts.

Paparazzi Jewelry sells fun and fabulous jewelry for five bucks.

Park Lane Jewelry sells jewelry.

PartyLite sells candles, home décor, and gifts.

pawTree sells pet food seasonings, food, treats, supplements, and accessories.

Pink Zebra sells candles and home fragrances.

Perfectly Posh sells pampering products.

Pierre Lang sells designer jewelry.

P!PHANY sells leggings, dresses, skirts, tunics, cardigans, pants, and tees for women.

Plexus sells all-natural, healthy solutions to help individuals lose weight.

Plunder sells vintage-style jewelry at savvy prices.

Princess House sells products for your home.

Pure Romance sells relationship enhancement products and in-the-bedroom toys.

Purely sells essential oils, beauty products, products for men, and jewelry.

Rainbow sells home cleaning systems.

Red Aspen sells silk and faux mink lashes, as well as lip and nail products.

Regal Ware Worldwide sells cookware.

Reliv sells nutritional products.

Rena Ware sells cookware, juicers, and water purifiers.

Rodan + Fields sells dermatology-based skincare treatments for men, women, and teens. Formulated by the doctors who created Proactiv©.

Royal Prestige sells cookware.

Ruby Ribbon sells clothes with built-in shapewear.

Saba sells appetite, control, and energy supplements.

Saladmaster sells complete cooking systems.

Scent-Sations Inc. sells Mia Bella’s premium scented candles.

Scentsy independent consultant sells wickless candles.

Scout & Cellar sells wine.

SeneGence International sells long-lasting cosmetics.

Shaklee.com sells wellness products.

Signature Homestyles sells home decor.

Silver Icing sells chic and comfy clothes in Canada.

Soul Purpose sells bath and body products.

Stampin’ Up! sells high-quality rubber stamps and accessories.

Steeped Tea sells loose-leaf tea, gourmet mixes, and other kitchen and food accessories.

Style Dots sells jewelry.

Sunrider sells health and beauty products.

Sunset Gourmet sells food mixes and sauces.

Sweet Minerals sells all-natural, mineral-based makeup and skincare products.

Tastefully Simple sells gourmet foods and gifts.

The Gourmet Cupboard sells gourmet food mixes and coffee.

Thirty-One is a Christian-inspired company that sells bags, totes, purses, and backpacks.

Threads Worldwide sells Fair Trade, handcrafted jewelry, and accessories

Thrive Life sells food, seasonings, sauces, snacks, beverages, and more.

Tocara sells an exclusive line of fine jewelry.

Tori Belle sells magnetic eyeliner, lashes, and makeup.

Total Life Changes sells wellness products.

Touchstone Crystal sells Swarovski crystal-embellished jewelry.

Traci Lynn Skin sells skincare regimens.

Trades of Hope sells fair trade jewelry made by artisans from around the world.

Tiber River sells bath and body, hair, hand soap, face, and home and lifestyle products.

TruAura sells makeup.

TriVita sells herbs and nutritional supplements.

Tula Xii sells customizable lifestyle organizers

Tupperware sells storage solutions.

Unicity International sells nutritional, personal care, and wellness products.

USANA sells quality nutritional and personal care products.

Usborne Books and More sells children’s books.

Valentus sells health and vitality supplements and drinks.

Vantel Pearls in the Oyster sells pearls.

VIC Cosmetics sells makeup.

VOXXLife sells socks with Voxx HPT technology.

Watkins Online sells home care and personal care items.

Willing Beauty is a direct sales company for young girls. They sell healthy skincare products and makeup.

WineShop at Home sells wine, gift baskets, and stemware.

Wink Kitten sells fake eyelashes.

Yanbal sells makeup, skincare products, and jewelry.

YOR Health sells nutritional products and supplements.

Young Living sells essential oils.

Youngevity sells wellness and health products, beauty and care products, and food and beverage products.

Younique sells makeup and accessories.

Zermat International, LLC sells skincare, body care, and makeup.

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10 Do’s and Don’ts for How to Make Money in Direct Sales

Direct sales can be an amazing way to earn extra money, meet new people, or even replace your income. All those things can happen, and they’ve happened for my wife. I want to share some things I’ve seen over the past 10+ years and teach you how to make money in direct sales.

I must admit that this article is a passion piece for me and something I’ve wanted to write about for a long time after seeing some of our customers succeed while others have lost thousands of dollars.

While reading below, you may shake your head in agreement with me, or you may get upset because I am calling out some things you may currently be doing or have done in the past.

That’s 100% OK.

The direct sales industry needs a better image. It needs YOU to succeed.

After reading this article, I hope you can implement as many of these tips as possible.

I don’t want to see you with thousands and thousands of dollars in inventory sitting in your home office, collecting dust, or wasting away.

That’s a huge waste of money.

I don’t want to see you spend thousands of dollars on this shiny new thing or that new training you may never get to and never get value out of it.

If you find value in this post, here’s my big ask: please share it with as many people as possible in the direct sales and network marketing industries.

The more successful we all are, the better it is for everyone.

Direct sales tips for success #1 – Focus on generating sales first

Direct sales tips for success #2 – know your roi before spending money, direct sales tips for success #3 – if your goal is to earn money; treat it like a business., direct sales tips for success #4 – serve your customers first, direct sales tips for success #5 – know what you want to achieve and what it takes to achieve it, direct sales tips for success #6 – earn lifelong loyal clients with consistent customer follow-up, tips for direct sales success #7 – don’t be spammy, tips for direct sales success #8 – do not give your discount/commission away., tips for direct sales success #9 – do not recruit your best customers, tips for direct sales success #10 – don’t buy inventory unless you have a plan to sell it, how to be successful in direct sales..

I’ve spoken with many of our customers over the years. I enjoy it. Selfishly, I love learning about their businesses. Probably more than they enjoy talking to me.

I love helping our customers with their questions about using our program and just general business as well.

You see, many direct sellers have never run a business before.

That’s one of the fantastic things about this industry.

Anyone can do it!

I’ll always remember the time I spoke with a new direct seller who was excited about the new company she joined.

Instead of asking me about systems to save time, how to sell, this thing called “follow-up” she’d heard about from her team or any other revenue-generating activity, she asked me about spending thousands of dollars on building a new home office for her direct sales business. She wanted to know if she could write it off from her taxes.

Now, I’m all about maximizing your deductions, and not that this question is bad; it’s just the wrong focus for someone new.

Your first focus should be on generating sales. If you don’t have sales, you don’t have a business.

All the other stuff is meaningless if you don’t have sales.

Tax deductions, the software to help with this or that, and the training courses all come AFTER you generate sales.

There are many strategies for generating sales.

Sell at vendor events .
Host a party.
Host an open house.
Host an online party .
Do a mystery party .
Connect with your target market online or offline.
Create content and share it on social media.
Start your own blog.
Start a customer buyer’s club.

It doesn’t matter where you start (although some are much quicker than others) as long as you focus on generating sales first.

And if you are concerned about recruiting, building a customer base solves that problem for you.

Networking with your target market and being seen as a kind, knowledgeable solution solver with great products and a great opportunity solves that too.

If you spend money on anything for your business, you need to know that you’re going to return multiple times the amount you’ll spend in either time savings or additional earnings BEFORE spending that money.

If you won’t earn multiple times that amount, don’t spend the money.

In case you’re wondering, ROI stands for return on investment. A return on investment can be saving hours of time or generating extra sales or commissions.

One thing I love about Direct Sidekick is that it’s easy to see the ROI from using our program. If you save even a couple of hours per year on your accounting and inventory management, you’ve got a positive ROI!

Now, if you’re like many of our customers who tell us before using Direct Sidekick, they spent weeks before tax time, estimated at 40 – 60 hours, and now they can finish their accounting for the year in a few hours.

Now that’s an AMAZING ROI!

Would you pay $60 a year to save 40 hours?

Yep, no-brainer, right?

What are you spending money on for your business?

Are you paying for a service and not earning your money back in time savings or sales? Time to cancel.

If you’ve done a vendor event that didn’t have much traffic and sales were tough to come by, it’s best not to do that one again. Don’t get me wrong; I’m a huge fan of selling at vendor events.

But, if the organizer didn’t do enough to generate steady traffic so you can generate good sales, it’s time to find a different one.

The point is, know BEFORE you spend your money that it’s worth it.

If you can’t be sure because you’re testing a new software/process/event, start small and see if you get a positive return. If you do, great! Double down and keep doing it.

People join direct sales for different reasons.

Some join for community and new friendships. If that’s you, then enjoy the community. Generate some sales and plug into your new community.

If your goal is to earn enough to cover groceries and your mortgage or to replace your full-time income, then you need to treat your business like a business.

That means being consistent with working your business. Whether that means scheduling a couple of nights per week or even just one, you schedule it and stick to it.

That means knowing how much money you have coming in and going out of your business.

That means setting up a plan for your business and sticking to it.

If you work for someone else, do they let you skip because it’s nice out? Or because you’re tired?

Don’t skip your scheduled work time for your business, either.

Set up a plan, schedule your time, and work diligently towards your goals.

Want to know the quickest way to lose a customer?

Reach out to them constantly, trying to sell to them.

Now, if instead of only reaching out to your customers when you want to sell them something, you CONSISTENTLY provide value to them, you’ll earn customers for life.

What does this look like?

One thing we do at Direct Sidekick is we offer a free course (free as in no cost, no obligation to use our accounting program, systems you can implement with or without our program).

Why do we do this?

It’s the same reason we wrote this article; we want you to succeed!

If you follow the systems in the free course and this article, you’re much more likely to succeed in your business than if you don’t.

If you succeed in your business, it helps you (obviously), but it also helps the industry.

What if, instead of hearing stories about people losing money when they joined the direct sales industry, we heard people talk about how they earned enough money to cover their mortgage?

Don’t get me wrong, we’d love to have you as a customer, but if you don’t need Direct Sidekick yet, we still want you to succeed.

How can you provide value to your customers?

If your company offers green cleaning products, what about sending your customers tips for living “greener” or providing them with a monthly cleaning calendar?

If your company offers supplements, what if you set up a free challenge or training program to get the most out of using your product?

If your company offers clean makeup, what about if you provide free tutorials on how to use the products and change with the season?

You get the idea. Find ways to provide value to your customers, and they will be customers for life!

Bonus, who do you think they will call when they need your green cleaning products or supplements or clean makeup?

You, of course!

That second part is the key that many overlook. It’s easy to say, “Know your why,” and create amazing vision boards so you are always reminded of why you’re in your business.

I agree that these are essential things to do. It sure helps when you’re having a bad day or when you feel like nothing is going right. But the next step is equally or more important.

Having a goal is good, but it’s just a wish without knowing how to achieve it and without a PLAN to achieve it.

Figure out what you want to achieve, then spend time setting up a plan to succeed.

And when I say a plan, I mean a detailed written plan.

For my wife, that meant knowing how much she earned at an average party or vendor event.

Knowing how much she wanted to earn each month. Then, doing the math.

When she started growing her team, she was able to figure out what she earned, on average, bringing on new recruits.

This allowed her to increase her monthly income goal, continue to host parties, sell at vendor events, and train her new teammates.

If you don’t know what your goal is, or you don’t have a plan to achieve it, start figuring those two things out ASAP.

Did you notice I didn’t say to list your top five or ten goals?

Start with one goal that will make a difference in your life, and do whatever it takes to achieve that one thing.

If you don’t know where to start, sign up for our free course or reach out to us personally, and we’ll be happy to help.

This is one of the quickest and easiest ways to grow your business. We’ve already covered this topic in depth before , but take what you’re earning monthly in your business today and multiply it by 1.5.

So, if you’re earning $500 per month, how does $750 sound?

Or, if you’re earning $2,000 per month, how does $3,000 per month sound?

$5,000 per month, how about $7,500 per month instead?

By implanting this one thing , you will be able to earn this new number while solidifying your relationship with your customers .

Things NOT to do if you want to succeed in direct sales

Do not reach out to people you went to high school with, being vague, offering them this “amazing opportunity that has changed your life.”

If someone reached out to you like that, how would you respond?

Do not comment on their posts, DM them, and then quickly try to sell from them.

That’s spammy, and it’s easy to see.

It’s part of the reason why some people believe the industry has a bad reputation.

If you reach out to someone, be genuine. Have a real interest in them.

Don’t try to sell to them.

Provide real value and over time, you’ll earn a customer for life.

I’ve said that line a few times in this article.

You see, that’s how you build a real business.

THIS IS ONE OF THE MAIN WAYS YOU EARN MONEY. If you have a friend or family member who owns a business in another industry, ask them if they will give you their best-selling product or service at their cost.

Occasionally, someone may say yes, but the point I’m making is that most of the time, in business, nobody is giving their income away.

So, why would you?

Why would you work hard to teach others about your product, show them how to use it best, provide amazing customer service, and field their questions and complaints … FOR NOTHING?

You shouldn’t.

You don’t want to give your discount away or always be running a sale so as to train your customers to expect your discount or wait to buy from you until your next sale, do you?

You’re not going to earn anything for your time.

You don’t want to find out when filing your taxes that all the time you spent on your business earned you nothing or even cost you money after your expenses.

Sell your products for what they are worth and earn your income!

We get asked all the time how we calculate our inventory costs in Direct Sidekick. I’ve found out that we’re getting asked this because some direct sellers want to price their products based on their costs.

If you got a great deal on some of your products, great! You can sell them and earn MORE on them.

Don’t give your income away.

This one may go against what your company is telling you.

This doesn’t mean not to offer your opportunity to your customers. You can, and should, share your opportunity.

What this means is if you have a loyal customer who has no intention of selling your products , that you’ve invested time into them with great follow-up and customer service and is consistently buying from you, do not push them into becoming a “casual consultant” or “discount customer” or whatever your company calls it.

If you’re currently earning 20% – 40% (whatever your sales commission is) on their sales and you’ve built a great relationship with your customer, why would you change that to doing the same amount of work and earning 3-5% on their sales?

I say the same amount of work because do you really believe this casual consultant is going to log in and place their own orders, learn all about your products and do it on their own?

Sometimes. Maybe.

But most of the time, you’re still doing this for them. You’re still sending them information on promotions and new products, just like when you earned 20% – 40% on their orders.

Again, this is not to say never let them know about your opportunity or answer their questions if they ask you about joining your team.

I’m just saying, why give that commission away for nothing?

As an accounting and inventory management software company, I can tell you that some direct sellers have a ton of inventory.

Having inventory is not necessarily a bad thing. If you can get good deals on your products and sell them to earn more than you would by placing your customer’s order directly through your company, great.

If you plan on selling at vendor events to generate more sales, new customers and leads to follow up with, and more bookings, great!

My family loves doing vendor events.

I always say, “Where else are you going to go where hundreds or thousands of potential customers walk up to you and ask about your product?”

Nowhere right?

Do not buy inventory without a plan to sell it.

Don’t have thousands and thousands of dollars of inventory sitting in your home office.

It could go bad, it could get damaged, the packaging could change. Any number of things could happen.

Also, why spend money on something that isn’t going to make you money for a long time? That’s what happens when you don’t have a plan to sell it.

If you do have inventory, it’s time to contact your local customers about porch pickup orders, sign up for lower-cost vendor events, or start an inventory sale.

In business, inventory is meant to be sold to earn income, not to be accumulated.

As I mentioned at the beginning of this article, I see many direct sellers succeed and unfortunately many who have not. The difference is what is written above.

If you have any tips that have been great for your business, please share them in the comments section below.

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One comment.

I loved this article! Each one was something to remind me of what I am doing and why I am doing it. Sure there are things that I need to brush up on, but knowing I have a plan and where I want to be is so important. Thank you for reminding me of the important things!

Direct selling

Last updated: 14 November, 2023

What is direct selling?

Types of direct selling, single-level direct sales, host or party-plan sales.

Multi-level marketing

Tips and pieces of advice

Advantages and disadvantages of direct sales, checkout our sales pipeline templates freebies.

Direct selling can be an effective way to build a flexible, low-cost business. It allows you to reduce advertising costs, avoid overhead expenses, and build long-lasting customer relationships.

Direct selling is the selling of products in a non-retail setting, for example, at home, online, or other venues that are not a store. It eliminates middlemen who are involved in distribution, such as wholesalers and regional distribution centers. Instead, products are sent directly from the manufacturer to the sales company, then to the rep or distributor, and finally to the consumer.

Products sold via direct sales are not typically found in traditional retail locations. This means that finding a distributor or rep is the only way to buy them.

Direct selling is usually associated with party-plan and network marketing businesses. But they aren’t the only ones using direct sales. Many B2B companies use direct selling to target and sell to their end customers. For instance, many businesses that sell office supplies will send their reps directly into the stores that can use their services.

It’s important to note that direct selling doesn’t equal direct marketing . In the first case, individual distributors or reps reach out to customers directly. Meanwhile, in the second case, a company markets directly to clients. Some direct marketing examples include emails, flyers, promotional letters, outdoor advertising, ads, phone calls, websites, and others.

Sometimes, these methods of direct selling are used in combination. They are not mutually exclusive.

This type of direct selling is usually done face-to-face, e.g., through door-to-door or one-on-one presentations. Still, it can also take place online. As a result, salespeople earn their income from commission sales and occasional bonuses from the company they get their products from. They do not recruit other sales reps to receive more income.

This type of sales takes place in a group setting. The primary method of generating sales leads is by hosting a social event and offering products for sale. Salespeople then use the party-plan sales model as a source for future business by asking customers if they would like to host such selling parties, too. Think of Mary Kay as one of the classic direct selling examples, as they often host social events to sell goods and find recruits when they aren’t making one-on-one sales.

Multi-level marketing (MLM)

If you’re a multi-level business salesperson, your primary focus is on recruiting members, not the actual product itself. What makes MLM different from other types of direct selling is that income earned through it is based on sales commissions and the sales made by other business partners recruited into the company.

MLMs are popular with people who want to work from home, but they can be risky to participate in due to hefty upfront fees, difficult-to-meet quotas, and pay dependent on one’s recruits. Most MLMs are generally not looked upon as a good thing. The examples of such direct sales companies are Scentsy, Mary Kay, LuLaRoe, Arbonne, and many others. They also use the party-plan model, but to recruit new salespeople while selling products.

If you want to get into direct sales, here are some recommendations to follow:

Focus on building relationships first, not making sales. Your first priority should be getting your clients to give you their attention and time. Establish a rapport and determine their pain points and needs so that you can offer a solution. Always follow-up on new prospects quickly to build new relationships.
Keep consistent and detailed customer records . A thorough customer database allows building and tracking your networks, communicating periodically with clients, and distributing different marketing materials, such as product updates or email newsletters.
Be passionate and knowledgeable about your products. Salespeople who have confidence in their products and their ability to meet clients’ needs sell more.
Build and maintain your networks. Your network marketing strategies should be the core of your direct selling business. It’s important to have mutually beneficial relationships with your colleagues, communicate with them, and learn their selling tips.
Organize your sales environment. Every detail matters, so plan your presentation space and product display thoroughly, as well as make sure you arrive early. Maintain eye contact with your customers and consider ways to remove all possible distractions in the room.
Improve your sales skills. Your conversation and listening skills can help you build long-lasting customer relationships and grow a successful business.

You don’t need to have an extensive team supporting you to begin direct selling. All you need is one person to create marketing materials to reach out to potential customers.
Without middlemen, you control your image and message.
You are in business for yourself, which means you can work from home.
There are no prerequisites, so anyone can go into direct sales, regardless of education or job history.
There are no set hours, leading you to be able to work when it’s convenient for you, which is a big reason so many stay-at-home mothers become direct sellers.
If the seller has more incentive to recruit other sellers than to sell inventory, then it may be an illegal pyramid scheme.
Direct selling is built for outgoing individuals with several active networks who are willing to buy. The business is nonstop and requires significant output to expand the network and grow sales continually. This leaves the major downside as it limits networking for many people.
Direct selling is often uninvited. Many times the experience (whether over the phone , in person, or over social media) feels like you’re trying to talk the prospect into buying something that they don’t want.

Wrapping it up

There are a hundred more pros and cons to working in direct sales, but we would say those are some of the biggest ones. Either way, becoming a direct salesperson will require hard work, networking, and passion for what you are doing, plus research into whatever product you are trying to sell. Direct selling is business, and one has to run it like a business, or there will be little to no success.

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Salesforce is closed for new business in your area.

Robin’s Substack

Cloudflare took down our website after trying to force us to pay 120k$ within 24h

We've been on the Cloudflare Business plan ($250/month) for years. They suddenly contacted us and asked us to either pay them $120k up front for one year of Enterprise within 24 hours or they would take down all of our domains. While this escalated up our business we had 3 sales calls with them, trying to figure out what was happening and how to reach a reasonable contract in a week. When we told them we were also in talks with Fastly, they suddenly "purged" all our domains, causing huge downtime in our core business, sleepless nights migrating away from CF, irreparable loss in customer trust and weeks of ongoing downtime in our internal systems.

I'm a SysOps engineer at a fairly large online casino. (I think this article is relevant regardless of whether you think that in general casinos are ethical or not, I’m just mentioning it for context). We have around 4 million monthly active users. We had been happy Cloudflare customers since 2018 on the "Business" plan which has some neat features and costs $250/month for "unlimited" traffic.

Now admittedly, $250 is probably fairly low for the amount of traffic we were pushing through Cloudflare. We mainly use CF for the CDN (caching all our static content) and DDOS protection, for which it works pretty well. It’s easy to use and you don’t usually have to think about it much.

I had read a few articles on Hacker News about how at some point Cloudflare contacts you, asking you aggressively to move to "Enterprise" with custom pricing. But I wasn't expecting it to go this horribly.

April 19, 2024

In April, we received this email from Cloudflare:

This sounds like there's some issue with our website. We scheduled a call with their “Business Development” department. Turns out the meeting was with their Sales team, and they didn't have any “serious issues” to report at all. They asked us whether we would like to consider Enterprise. We politely declined, a bit confused as to the tone of the email.

May 3, 2024

Two weeks later, we received another email:

Now this needs a bit of context on what they are talking about. We do have multiple domains that mostly act as mirrors to our main domain. We have these for a few reasons. One is that since we are a casino, we have different regulatory requirements we need to comply with in many countries. For example, many games are only available in some countries. Some countries we block completely. Then we have a few different domains that remove certain game groups or site features - for example our social features (chat, user tipping / interaction) or our sportsbook. Another is that we use them to target different global user groups and affiliates and track conversions long-term. This also means that if a country DNS-blocks our main domain, a secondary domain may still be available. This could arguably be seen as a violation of the Cloudflare TOS, as they wrote above.

In any case, we receive >95% of our traffic through the main domain that’s been unchanged since our founding, and were happy to resolve this issue in whatever way, including by removing any affected secondary domains from Cloudflare.

We sent them info about our domains and tried to get more information from them about the issue and who from our team we should get involved, but they refused to give us anything apart from a date for a call.

May 7, 2024

So we scheduled another call, now with their "Trust and Safety" team. But it turns out, we were actually talking to Sales again .

They said they could offer us an amazing contract for $10k per month with all kinds of great features. We tried figuring out how exactly this was related to the TOS problem and how to resolve the situation. We asked them which domains were affected by their “rotation” concerns. They didn't give us an answer. We asked which of the Enterprise features we actually had to get.

They would not offer us anything apart from a full deal for $10k per month , which would magically resolve the issue. They were not interested in any other resolution.

They said we had 24h to sign their contract because they had to “get back to Trust & Safety". We asked to pay monthly. They said we need to sign a yearly commitment and pay the full year up front. It felt like extortion. Pay us $120k until tomorrow or we destroy your business.

After the call, they sent us this:

Note the email implies a monthly payment might be possible. When we asked for clarification, we were told we must pay the full year upfront.

We do not need most of those features they mention. I understand asking us to do BYOIP to remove their liability for our domains, but the rest is all things we don’t need or are purely “nice to have”.

We managed to buy a week of time by letting it escalate to our CEO and CTO and having them talk directly with Cloudflare.

But still, they didn't care about any other resolutions to the issue and refused to give us any other contract options. Finding numbers online is difficult, but if you squint your eye a bit (compare with this post: https://news.ycombinator.com/item?id=29333160 and this post https://news.ycombinator.com/item?id=31336515 ) 80TB of traffic might have a reasonable price of $150-$2000 per month. Note that 80TB is the number they tried to sell us, I don’t know if it is accurate since they removed all our access to historical analytics.

During this time we also looked into alternatives and set up a test domain and call with Fastly, since they seemed to be a reasonable competition.

May 16, 2024

In another call, trying to negotiate a reasonable contract, our CEO told Cloudflare Sales we were also talking with a competitor. I would have thought this is obvious, who wouldn't look for alternatives when getting slapped with a $120k invoice? But a few hours after the call, this happened:

Cloudflare had suddenly deleted all of our domains. All of our DNS records, caching setup, rate limits, whitelists, gone. Our public website, our incoming emails (including support emails from our customers) and our internal infrastructure, our authentication configuration on Cloudflare Access, down.

They also sent us this email:

The email says “this [...] does not impact current services”, so we frantically wrote them a support ticket but got no response. So we called in our SysOps team and started migrating our main site to Fastly. We had the basics after a few hours, but even then, a "NS" DNS entry change apparently takes a pretty arbitrary time to propagate everywhere, from 1h to 48 hours. We’re still recovering from the aftermath.

At some point, Cloudflare responded to our ticket with this:

“Trust and Safety” never reached out to us, and our account remains locked.

My tips for when Cloudflare reaches out to you

First of all, congrats! Your business must have become pretty successful. How exactly did CF decide to “ask” you to switch to Enterprise?

...you hit 10TB of traffic per month

...their lava lamps went into a specific astral alignment

...a sales rep realized that they haven't hit their quarterly quota yet

In the end, who knows? Cloudflare has absolutely no information on when they will force you into custom billing, but when they start "urgently" needing to talk to you you're probably not going to get out until you have a juicy custom contract with them. There's a reason why they have no public information anywhere on traffic limits or Enterprise pricing. Their Sales team will use anything (like having multiple domains) as fuel to force your whole account to Enterprise , no matter if it is fixable in a simple way.

The price they give you is going to be purely based on what they think you might pay, not on any measurable metric or feature set.

We tried asking how the price is going to be affected if we have less traffic, but they refused to say anything except 80TB is included (we have a large amount of callback traffic that uses IP whitelists and thus doesn’t actually need to go through a CDN, we just never spent time optimizing it since unlimited traffic was included).

We tried saying that we don't need any number of the 14 features that are included, they said all those amazing features are included whether we want them or not.

Numbers found on Hacker News threads (links above) suggest that the prices vary by at least one order of magnitude for the same services.

We tried saying our different domains (like internal ones) don't all need Enterprise, they said the whole account is Enterprise.

If they think you are flakey (maybe if you have alternatives?), they will give you an unreasonable deadline and force you into paying the year up front.

They will use any excuse as a reason for why you suddenly "need" enterprise, even if you're happy with the feature set of Business.

We're not the only ones that got their business threatened by CF’s aggressive sales tactics:

https://news.ycombinator.com/item?id=34235237

https://news.ycombinator.com/item?id=34639212

https://news.ycombinator.com/item?id=31573854

https://news.ycombinator.com/item?id=31336515

Just because you're paying $250/month, don't expect any kind of courtesy or (non-sale) responses to support mails. If you want CF to respond to you outside of Sales, the only way is apparently to give them negative press.

Be ready to move away from Cloudflare within 24 hours.

Never register domains directly on CF. If you do this and they block you, I have no idea how you can get your domain back in a reasonable time frame. Luckily we only had our NS pointed to CF and thus could move away with ~3-24h of downtime for most users.

Don't use any custom caching rules on CF. CF by default ignores most / all standard HTTP cache headers except for an arbitrary set of extensions and encourages you to create custom rules on CF. Instead, set CF to "Cache: Always" (this does not actually mean always) and "Respect Origin Headers". That way the rules will work for other caching proxies.

Don't use any proprietary Cloudflare products like Zero Access or Workers. We heavily used Zero Access for authentication in internal products, and now we have to rebuild all this infrastructure from scratch with massive downtimes. Only use their technology where it is compatible with third-party standards.

Make backups of your configuration on Cloudflare. It's an unexpectedly large pain to recreate all those configurations, including various sending email services (SPF, DKIM, …), site verification DNS entries, ip lists, rate limiting rules, etc.

Make sure you understand the impact of CF’s business model on you: Either you’re leeching off Cloudflare (customers on the free/business plan), or Cloudflare is leeching off you (intransparent Enterprise pricing). There is no in-between, and at some point the time comes to switch.

And: Consider whether you need Cloudflare at all.

CF only managed (for us) pretty large DDOS attacks. If you have some a bit more vulnerable attack surfaces (for example, an uncached unauthenticated API request that eats up 100ms of CPU time, and can thus use up your cores with just 10-100 requests per second), Cloudflare is not even going to detect it. Especially since all semi-professional “DDOS attack as a service” groups seem specifically specialized for Cloudflare-backed services, including “Under Attack Mode” workarounds etc.

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For a lot of people, buying car insurance is like buying sliced bread. It’s not the most exciting purchase, and the options all seem similar. So thrifty shoppers might simply reach for the cheapest thing on the shelf. But like cheap bread, cheap car insurance may leave you wishing you spent a little more on quality.

“The cheapest is not always the best,” warns Jessica McNally, an agency owner with Goosehead Insurance in Dallas. That’s because there are lots of factors that make up a car insurance company. And while price is one of them, it’s best to look at the bigger picture.

Here’s what to look for when picking the best car insurance company.

1. Choose a financially stable company

The best car insurance companies have plenty of money on hand to pay for customers’ claims. It’s important to check an insurer’s financial stability before buying a policy, especially if it’s a smaller insurer you’ve never heard of.

There are several independent agencies that evaluate the financial strength of insurance companies. One example is A.M. Best. You can use its online search tool to find an insurer’s financial strength rating. Companies with a rating of A or higher are considered to have an excellent ability to pay out customer claims.

2. Check customer satisfaction ratings and reviews

Not every insurer is customer-first. That’s why it’s important to research the customer satisfaction of insurers you’re considering.

You can turn to surveys from companies like J.D. Power to find insurers with the best customer satisfaction scores [0] J.D. Power . Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds . Accessed May 21, 2024. View all sources . Or, if you don’t mind doing a little detective work, you can compare customer complaints against insurers by using the National Association of Insurance Commissioners’ website . But take other people’s emotionally charged comments about companies or agents you might read online with a grain of salt, McNally advises.

3. Look for convenience

A great auto insurer should offer multiple ways to manage a policy. For example, some insurers allow customers to use a mobile app to file and track claims. But it’s hard to tell how simple it’ll be to file a claim or perform other essential tasks, like paying your premium, before becoming a customer.

Some telltale signs that an insurer will be easy to work with are high mobile app ratings, flexible customer service hours and an easy-to-use website with helpful content. Consider asking a company representative to walk you through the claims process to learn what you’ll need to do if you have to file a claim. And pay attention to how the company communicates with you. "If they don't properly communicate, well, that's a warning sign," says Michael DeLong, a research and advocacy associate for the nonprofit Consumer Federation of America.

4. Pick an affordable company

Car insurance premiums are stretching to record-breaking heights [0] U.S. BUREAU OF LABOR STATISTICS . Consumer Price Index for All Urban Consumers (CPI-U) . Accessed May 21, 2024. View all sources , and almost half of U.S. consumers shopped for a new car insurance policy in the past year, according to an April 2024 report by J.D. Power [0] J.D. Power . Half of Auto Insurance Customers Currently Shopping for New Policies, J.D. Power Finds . Accessed May 21, 2024. View all sources . The best car insurance companies offer competitive rates and a variety of potential discounts.

It’s not hard to get car insurance quotes online from many companies. Make sure you compare the same coverage options throughout the quote-gathering process. And don’t forget to look for car insurance discounts, like breaks for being a good driver, paying your premium in full or driving a new car.

More tips to find the best car insurance

When shopping for the best car insurance, keep the following tips in mind.

Assess your needs. Before buying car insurance, take a moment to reflect on what’s important to you and your family. For example, maybe you prioritize affordability and a well-polished mobile app, but don’t need accident forgiveness .

Consider small insurers. There are lots of small insurance companies you’ve probably never heard of. These regional insurers may provide lower rates and better customer service than the big companies you see advertised on TV.

Work with an independent agent. While it may be easy to get quotes yourself, independent car insurance agents and brokers can streamline the process. These experts vet companies and compile quotes from small and large insurers on your behalf. Independent agents and brokers can especially come in handy if you have a less-than-perfect driving record and can’t find insurance on your own.

Do your research. Search online for recent mentions of a company in the news before buying a policy, recommends DeLong. If you find a company has lots of recent lawsuits against it, you may want to think twice about signing on the dotted line. “And if they've had to pay out settlements, that's an even bigger red flag,” DeLong says.

Shop around once a year. Make a practice of shopping for car insurance every year — especially if price is important to you. Insurers adjust car insurance rates regularly, so what might have been the most affordable option last year may no longer be a bargain.

On a similar note...

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Election latest: 'You name it, Labour will tax it': Rishi Sunak goes on the attack as he faces Keir Starmer in first live head-to-head of election campaign

Follow live updates as Rishi Sunak and Sir Keir Starmer square off in a live TV debate ahead of the general election on 4 July.

Tuesday 4 June 2024 21:41, UK

General Election 2024

Pic:Sunak v Starmer: The ITV Debate – ITV1, ITVX, STV

Election news

Sunak facing Starmer in first TV debate - follow updates
Audience groans as PM partly blames strikes for state of NHS
But Starmer fails to explain how he would end dispute
Labour leader draws laugh with familiar anecdote
Explained: Inside the 'spin room' where we're covering debate
Be in the audience for our election leaders event
Farage has milkshake thrown over him in Clacton
Two arrests made | Tory candidate 'sorry to hear' about incident
Live reporting by Ben Bloch and (earlier) Faith Ridler

Expert analysis

Jon Craig: PM hits hard on tax | Starmer strikes back on NHS
Ed Conway: Why caps on migrant numbers don't really work
Matthew Thompson: The story behind Lib Dem battle bus icons

Election essentials

Trackers: Who's leading polls? | Is PM keeping promises?
Campaign Heritage: Memorable moments from elections gone by
Follow Sky's politics podcasts: Electoral Dysfunction | Politics At Jack And Sam's
Read more: Who is standing down? | Key seats to watch | How to register to vote | What counts as voter ID? | Check if your constituency is changing | Your essential guide to election lingo | Sky's election night plans

Rishi Sunak and Sir Keir Starmer are asked about illegal immigration.

The PM says "immigration is too high" and the "government will have to take bold action".

"We got the numbers down last year by a third and now we have a deterrent ready to go," he says.

"Migrants have been detained and the flights will go in July but only if I am elected."

The Labour leader says "the levels of migration are at record highs".

He says: "The PM says it is too high but who is in charge?"

He goes on to say Mr Sunak has "made a promise and failed to keep it".

Sir Keir gets applause from the studio audience when he spells out Labour's controversial plan for VAT on private schools.

He's applauded again when he talks about taxing non-doms.

But then Rishi Sunak comes out strongly again when he powerfully accuses Labour of planning to tax state pensions.

As half time approaches, So presenter Julie Etchingham is landing more blows on the PM than Sir Keir, with some tough questions to Mr Sunak on tax.

By Jennifer Scott, political reporter

Labour bods will be heaving a sigh of relief as one of their major policy pledges - charging VAT on private schools - gets a loud round of applause from the audience.

Starmer also gets a good reaction over his promise to close tax loopholes for non doms, and to increase the windfall tax on oil and gas companies.

Sunak, on the other hand, pushes hard on protecting pensioners, but doesn't get it over the line for audible praise.

However, the biggest reaction in the spin room comes from a simple exercise from presenter Julie Etchingham.

She asks the leaders to put their hands up if they would raise income tax, national insurance and VAT after weeks of speculation.

The two somewhat awkward looking souls keep their arms firmly by their sides.

"Thank you for that instructive moment," says the woman who is really in charge of tonight's proceedings.

Host Julie Etchingham moves to a quick-fire round on taxes, and where the two men agree.

They both say they would not raise income tax, not raise national insurance, and other than Labour on private schools, not raise VAT.

Continuing on from that point, the next question is "where is the money going to come from" to solve the challenges voters have raised.

Sir Keir Starmer answers first, saying Labour has been "really clear" that they will raise certain taxes, such as on private schools and ending the non-dom tax status on the rich - which wins the Labour leader applause from the audience.

He also says oil and gas companies "should be paying their fair share" in tax - which wins another round of applause.

They will not raise any others, he says.

Rishi Sunak says his party has already scrapped the non-dom tax regime and applied a windfall tax on oil and gas companies - and Sir Keir says there are "loopholes".

The PM then says Labour's plans would cost households £2,000 each - something the Labour leader says is "absolute nonsense".

He moves to pensioners, saying the Tories would never raise their taxes - something the Labour leader has not matched, which he is challenged to do by the PM.

Rather than address the point, however, Sir Keir says Mr Sunak has spent "the first two weeks of the campaign" unveiling "desperate gimmicks", pointing to the £46bn ambition to scrap national insurance entirely and get rid of inheritance tax.

Mr Sunak refuses to let the Labour leader finish his answer, accusing him of wanting to implement a "retirement tax".

Asked if they are being honest about the money required to keep public services running, the Labour leader says there will no return to austerity, and the PM says they will "continue to invest record sums".

The leaders are asked if they will have a fully-funded solution in their party's manifestos when it comes to health and social care.

Rishi Sunak says it is "important" to the party and criticises Labour's take on the health service.

Sir Keir Starmer says they have a plan to bring change, but doesn't go into detail.

Sir Keir Starmer and Rishi Sunak face questions from viewers on the state of schools and what they'll do for teachers.

The prime minister says "education is the most powerful way that you can transform people's lives", and adds that he's grateful for all the country's teachers.

He hails the "hard work of teachers and reforms of this Conservative government" as he says English schoolchildren are now the best readers "anywhere in the Western world".

Meanwhile, the Labour leader says schools "desperately need more teachers", and adds core topics such as maths are being taught by those who aren't trained in the subject.

Asked to explain why he is raising VAT on private schools to achieve the money Labour has pledged for 6,500 extra teachers, Sir Keir says "every child should have the teacher they need in core subjects".

"It's not a one-year problem, or a two-year-problem... it's for life."

This is better from Sir Keir Starmer.

But if this debate was a card game, the Labour leader would play his joker on health. It's his strongest suit.

And the Labour leader lands his first blow in a clash on NHS waiting lists when he says: "You're the guy who's supposed to be good at maths."

But then Rishi Sunak fights back strongly by challenging Sir Keir on how he'd solve the junior doctors' strikes.

He's aggressive again and Sir Keir defensive.

Mr Sunak may be a man who fasts at the beginning of the working week, but he's been on the gorilla biscuits today.

Julie Etchingham asks the party leaders whether they would use private health care as a last resort if they had loved ones on a long waiting list for surgery.

"Yes," Rishi Sunak replies simply.

Sir Keir Starmer says he would not use private health care as his wife works in the NHS.

"It runs through my DNA", he says.

Sir Keir Starmer is asked next how he would resolve the junior doctors strike.

He says for "months and months and months, the prime minister hasn't resolved them".

He says they need to get into the room to negotiate.

Rishi Sunak says while he's "grateful to everyone in the NHS for working so hard", it's only the junior doctors who have not reached a settlement with the government.

He says he wants to agree a deal with the junior doctors that is "fair and affordable", but criticises the demand for a 35% pay rise, which would require a tax rise that he does not want to implement - which the audience applauds.

Moving back to the Labour leader, he says they would not pay the 35% either as it is not affordable because "the government's already broken the economy".

Mr Sunak interrupts and repeatedly challenges the Labour leader on how he would resolve the strikes: "You want to be prime minister, how would resolve it?"

Sir Keir replies: "I wish he had as much to say when Liz Truss was crashing the economy."

That line gets a laugh from the audience.

On how he'd end the strikes, though, he repeats that he'd sit down and negotiate with the junior doctors.

As the NHS is mentioned, another snigger in the spin room - Rishi Sunak's mum was a pharmacist and dad was a GP, don't you know...

Sir Keir Starmer gets his first laugh of the evening from the audience too, questioning the PM's maths skills when it comes to his claims that waiting lists are coming down.

But the topic is a serious one and you can see the concentrated looks on the viewers' faces.

There is the first applause for Sunak when he refuses to use taxpayer's money to raise junior doctors pay by their demanded 35%.

But there is another giggle from the audience as Starmer pulls somewhat silly faces after being berated by Sunak over how he would stop the strikes.

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