Thursday, January 31, 2013

Representing Multiple Direct Selling Companies Good Idea?

Representing more than one direct selling company is always a hot debate and whether you'll be successful or not depends on several factors which I'll discuss below. It's also up to the companies because some companies have certain policies. However, there are companies that have no problem with this such as Perfectly Posh and others. Only you know best what you can and can't handle and if you can handle two companies at a time, that's up to you, provided the companies you represent are okay with it. That said, I think there are important things to keep in mind:

The products should be non-competing. It doesn't make business sense to represent two jewelry companies or two skin care product lines. But I think some people can handle a jewelry business and a personal care products business because they are completely different and non-competing.

Resist cross recruiting and showcasing both companies at the same time. I think this can compromise the seriousness of your intentions. That said, if your goal is to sell every now and then, have some fun with your friends, and your pals know your intentions then I don't think you need to worry about it.

That is the beauty of the direct selling industry as it attracts all kinds of people with different goals and desires. Not everybody is in to get to the top. In fact, I have a casual friend who sells for Origami Owl Living Jewelry and she is always upfront and tells people she's only selling the products with no interest in building a team.

Know your goals upfront because if your goal is to build a team with two companies, it can be difficult, and potentially costly. Direct selling business is more than selling products but mentoring your team of consultants that chose you to mentor them. I don't think it's fair to bring people into your team and not be committed to helping them succeed.

On a financial level, every company requires a personal sales volume each month before you can earn from your team. This is not the same as being active. You can be active but if you don't sell x-amount a month you won't get a commission from your team. If you're building a team with two companies, be prepared to sell a lot of products to hit those requirements.

Bottom line is, if you're thinking of taking on two companies, give some thought to what your immediate and long term goals are and if you're planning on building a team with both. With my experience, I'd say you would have more success with building a team with one company and perhaps your second one as a "hobby" or as a "wholesale" option.

I have a long term goal with my natural products company because it is so do-able. There are no monthly auto-ships, monthly sales requirements other than for team leaders, and the products are consumable which means there are plenty of opportunities for repeat orders. 

If I were to take on a second company, it would be secondary and more as a "wholesale" to buy products I love at a discount.

With so many wonderful direct selling companies and fabulous products, I can see the temptation of wanting to represent multiple direct selling companies but whether it's good for you as a consultant or not all depends on your goals.

How about you? Do you represent more than one company? Share your story by leaving a comment below.

Best,

Janette Stoll
campopfan@gmail.com
805.712.0840

P.S.  Speaking of "wholesale" and discounts. If you love shopping at wholesale prices and love charms and lockets jewelry (Valentine's is coming up :)), this is where I get my wholesale unique charms and adorable lockets jewelry.

2 comments:

Anonymous said...

Hi - I am actually curious from the other side. I am an American designer / manufacturer living in Thailand with my own factory for the past seven years. I have several retail outlets and I want to launch some of my collections through direct sales marketing. I am searching for a way to find really motivated, successful "stylists" in the direct sales business to represent my company? That is why I am curious if people do represent non-competing lines. Anyone, that can point me in the right direction to find marketers or the best place to post and advertise the program? Thank you. I can be reached at girodlouisa@yahoo.com

Anonymous said...

I was a scentsy consultant and was in love with the products. I had to go inactive for the last 2 months due to family issues and found thirty one and decided to sign up purely for my own purchases. Now I am attempting to have my scentsy status reinstated. Both of the companies I joined solely for my own needs and I told my close friends that I had joined both companies at the time of enrollment and they expressed interest in seeing catalogs. Which led to them ordering but it is not something I signed up for to supplement an income, I am a stay at home/homeschooling mom, and I just wanted to earn enough in commission to purchase some products. I don't see a problem with that at all. I have had a few parties but they were intimate "girls night" parties that we usually had anyway and we put our orders together strictly to save on shipping and get qualifying orders. I don't see why the companies would care either way. They are still selling products!