Are you one of those people that love new business opportunities from a direct selling industry? The good news is that there are new companies launching all the time from skin care, jewelry, fashion to nutrition and fitness. Sometimes I wonder if the direct sales/network marketing industry isn't already saturated. The bad news is that most of the new companies will start and close before you'll even hear about them.
So, if you're one of those people seeking a new company to partner with there are definitely pros and cons Here are some things to consider and see if it's right for you.
First, all established companies in existence all started out as a brand new company at one point. I recently heard a direct sales consultant commented on the hype of new companies and how they weren't worth the effort but you have to consider the source. She's with a 10 year-old handbag company which was a brand new company when she joined.
Now imagine if someone had said to her 10 years ago when the handbag company was a brand new company not to take the chance. It's easier to dub new companies as "hype" (plenty are, no doubt) when yours is 10 years old.
In hindsight things are always 20/20 but new companies definitely offer plenty of perks such as an opportunity to be an early adopter which can have a significant impact on your business when it comes to recruiting and selling. People love to be the first consultant in their area!
Anyone who's attracted to direct sales/network marketing can't help but dream of the possibilities and imagining what it's like to be an early adopter and watch your new company grow into an Arbonne, Mary Kay, Rodan and Fields, Scentsy, Thirty-One Gifts, etc.
But why do people love getting in at the beginning? Saturation is a factor. Let's say you're interested in joining a well established company and you decide to Google to get more info. Chances are you'll see hundreds and thousands of early adopters/consultants that got online when the company started years and years ago.
If you're looking to join, let's say, Arbonne or Scentsy, you'll have more competition compared to a newer company with less consultants.
For direct sales/party plan companies the saturation is even more of a concern than network marketing because doing parties and vendor events are the best avenues for earning money and also for maintaining a higher personal sales requirements as a team builder. You can supplement with online sales but it's called a "party plan" for a reason and those that are at the highest in these companies schedule a lot of parties to maintain their businesses.
If you're considering a new company and one that you'll need to have parties having fewer consultants in your area means less competition in getting parties booked which makes more sense as to why being the first consultant is so desirable.
One of the most common questions I get asked is "how many consultants in my area?" And not surprisingly, a lot of these potential consultants joined companies that already have thousands of reps in place.
Does this mean established companies that have thousands of consultants such as Rodan and Fields (around 50,000) or Thirty-One Gifts (over 100,000) aren't able to sponsor new reps? Hardly. The ability to sponsor people is not only the opportunity itself but the consultant's ability to sell people on the opportunity.
A savvy and experienced sponsor can attract people to join their established companies. And a highly motivated person will be out there to get parties booked. But from a number's perspective, a new company simply has fewer consultants and less competition.
The downside of new companies? Uncertainty and the growing pains can be unnerving. The growing pains of a new company can be challenging to get through but some people don't mind as long as the company is progressing.
There are companies that launch and never seem to look back and keep on growing (Origami Owl and Nerium). Sometimes you just don't know which one is going to take off and it comes down to taking a chance and going for it.
At the end of the day, most direct sales companies offer such a small start up fee (around $99 or less) and network marketing can be higher if you buy the "bigger kits". It's not like you're out thousands of dollars such as opening a retail or regular business. But I'd be mindful of all the costs.
Perhaps because of this small investment that offers potentially huge upsides is the main reason why people love new companies. Why take a chance and miss out when it's such a small investment to get started? At least that's the mind-set with most people.
Your thoughts? Are new companies worth it?
P.S. Are you looking for a ground floor company to partner with that offers great products, real price points, with a truly flexible and achievable compensation plan to achieve success? Contact me for more info.