Thursday, March 27, 2014

Direct Selling Companies Competing with Consultants for Sales and Recruiting

Some companies start out as a retail business and decides to turn to the direct selling business model. Pangea Organics is one of them however it no longer sells through retail outlets. Others operate both retail and using the direct selling business model.

To me, companies that sell directly to anyone who visits the company's online store without having to go through a consultant poses an unfair disadvantage to the hardworking consultants that are building the brand name for the company.

If you're a consultant, you know how challenging it can be to grow your business. To be fair, I don't think these direct sales companies are trying to compete with their consultants directly. My understanding with some of these companies is that they want to offer multiple options for customers to buy products. Some customers don't want to deal directly with a consultant. They don't want to be bothered with "opportunity spiels" for fear of being recruited. Some just want to shop anonymously. I understand companies don't want to lose sales.

However, when a company sells through retail stores as well as online, they're compromising their consultants' sales and recruiting efforts. Every time a consultant is promoting the brand of the company, she risks sending someone to the corporate website and can potentially lose the business to the company especially if the company does not assign corporate leads to an existing consultant.

Nearly all direct sales, party plan, and network marketing companies have the look up a consultant option so that the company itself isn't profiting from the sales or recruiting generated from the corporate website.

Maybe some consultants don't think it's a big deal that their companies allow customers and potential consultants to sign up and buy directly on the company website but I believe this takes away business from hardworking consultants that are out in the field actively promoting the business thus helping to build the brand name for the company.

Every time you're out in the field branding your company name, you're potentially sending a lead to company, without you benefiting from it or another consultant, especially when the company keeps the sales or recruiting to itself.

What makes the direct selling industry unique from traditional business is that customers can only buy products exclusively through consultants. It's another reason why most companies do not allow reps to sell on third party sites such as Ebay or Amazon.

I personally would not join a company that allows customers to buy or sign up to be a consultant directly on the company website unless the business is assigned to an existing consultant.

If you're going to be a direct sales company then make your products exclusively available only through your consultants.

Your thoughts on why some companies allow people to buy and/or sign up directly on the company website? What are the pros and cons to you as a consultant, if any?

Best,

Janette
#1 Direct Sales Leader
campopfan@gmail.com

P.S.  Would you like to learn my tips on how to start a home-based business selling natural/organic products online without having to do parties? Email me and let me share my tips with you.

Tuesday, March 11, 2014

Skin Care/Beauty Direct Selling Getting Saturated?

Skin care and beauty products are everywhere, in retail stores and online, which would make people think it's a saturated market right? Makes you wonder why people would start a skin care business but the fact is skin care and beauty is hugely successful. Even the direct sales/network marketing companies that didn't start out as a skin care business such as Xango eventually added skin care and beauty products.

Other examples are Scentsy which started out as a wickless candle but branched out by adding bath, body, and personal care products as well as Gold Canyon Candles. These are just two examples. As many companies as there are offering beauty products you'd think it's saturated but it's definitely not the case and here's why.

The first reason is that skin care and beauty isn't a one-size-fits-all as there are many different types of products and price points. One product might get rave reviews by one person but the opposite from another. I've used products that some people rave about and they didn't impress me or products that I can't use because it makes my skin itchy, the smell wasn't right for me, I didn't care for the packaging, and various other reasons.

There are also people that will only use certain types such non toxic skin care, natural, certified organic products, or whatever is the cheapest. There's something for everyone so if you're in this business or thinking about starting one, you'll need to reach people that are interested in giving your products a try. Knowing your audience is key to your success.

If you've been thinking about starting a home-based business in the skin care/beauty area, there's a lot of room for growth! But before you join a company, here are some things to consider:

Products

Since there are different types of skin care and beauty products, what type of products interest you the most? For me, it's all about the ingredients, regardless of what the marketing says on the packaging. Natural, organic and even certified organic are only important if the ingredients are non-toxic and aren't filled with green washing ingredients. The company I would start a business with would have to be truly natural which is more important than the labels "natural" or "organic". So the ingredients matter a great deal to me. How important are the ingredients and quality of products to you?

Price Points? 

How important are price points to you? Would you be a customer even if the company does not offer a business opportunity? No one wants to pay for overpriced products because who doesn't want quality products at a great value. When you see those fancy packaging and marketing, you can bet those overhead costs are built into the price points. I love representing a company that offers high quality, non-toxic products at real prices that fits everyone's budget.

The Business

When it comes to the business and compensation plan, you'll find how you'll get paid varies across many different skin care companies. Network marketing is slightly different than a party plan. Both offer incentives for sponsoring a team of consultants but the compensation plan varies a great deal. Do a careful research and decide what's going to work best for you.

For example, it's common to see auto-ship requirements with network marketing and many of them can be as high as $100-$200 a month that you're required to be on auto-ship if you want to earn a team commission.

Compared to a party plan which typically does not require an auto-ship but many of them have high personal requirement to earn from your team. You can expect to see anywhere from $300 and upward.

One isn't better than other but finding a plan that is the best for you matters. So, if a company requires that you sell $500 each month before you can earn from your team sales, are you prepared to get out and achieve the required sales volume?

Best,

Janette

P.S.  Do you love natural/organic skin care and beauty products? Would you be interested in hearing about a young company that's already getting lots of rave reviews? Email me if you're interested: campopfan@gmail.com.