Monday, April 1, 2013

Why Some Direct Sales/Party Plan Companies Never Make it Big

A friend of mine and I were chatting the other day about "what's out there" in terms of natural direct sales/party plan companies and she was surprised at the number of companies that have been in business for years yet she has never heard of them. Daisy Blue and Lemongrass are two natural companies that have been around for 10 years yet these companies have around 1000 consultants nationwide.

In the business of direct selling, this is tiny and virtually unheard of. Then there are new comers that seem to explode off the charts. Perfectly Posh is one with 3000 consultants (or more) in about 1 year in business.

Of course, it's not a race and some companies grow slowly, yet steady. But some companies have that wow factor and it takes off quickly attracting attention and inspire others to jump on board. People want to be part of something exciting. This was the case with Thirty-One Gifts when it launched years ago attracting thousands of people.

So why do some companies explode while others mentioned above remain small even after a decade in business? 

Randy Gage, who is well known in network marketing, and considered an expert by many, said in one of his articles that some companies will always stay small because they don't have that wow factor. I'm not saying Daisy or Lemongrass don't have that wow factor because what one person loves the other might not.

One of the reasons some companies stay small could be due to the perception of it being a "mom and pop" business. It doesn't have the stellar leadership or savvy marketing or capital to go viral.

The fact is great products are everywhere. For a company to explode and be a top player in the crowded field of direct selling, success depends on more than just great products.

Think of some recent companies that exploded in recent times. These companies have exceptional marketing, branding, leadership, capital and training to be multi-millionaire dollar companies.

These companies know how to launch by doing event blitzes in major cities and using social media/internet marketing to spread the word. It's impossible to roll out the red carpet when launching a new company unless you have the capital to do it in a way that attracts people on a national level.

Does your company have the wow factor to go big? Direct selling is a competitive and crowded field. If you don't have stellar leadership, products, savvy marketing, branding, training, and capital ... the odds of making it big in direct sales is dismal.

Your thoughts on why some direct sales/party plan companies never make it big or even make it at all?



P.S.  In my follow up post, I will let you in on the hottest, new clean/natural company that's already growing like crazy. I know, I'd roll my eyes too if I were to hear about some new company, but believe me ... you'll be impressed when you see the products and the stellar leadership! Stay tuned ... :)

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