Monday, September 22, 2014

3 Tips to Assessing a New Direct Selling Business Opportunity

Every day you see brand new direct selling, network marketing business opportunities launch. In fact, I was recently invited to join a pre-launch of a brand new jewelry party plan by the company's field recruiter. That's just one example of "pre-launch invites" that periodically comes my way. There are already thousands of established companies in existence yet more new companies launching. And if you're looking for a new company to join how do you assess an opportunity?

There are many factors that turn a brand new company into a huge success but here are three tips that will help you get started:

#1 Products

"All the experts stress that a passion for the product you're selling will be crucial to your success in direct sales". source: http://www.inc.com/guides/2010/07/how-to-assess-a-direct-selling-opportunity.html

No matter how phenomenal the compensation plan is the company won't last if the product line can't stand on its own. The most successful method of attracting new distributors/consultants to a direct selling company is passion for products. There are countless stories of successful consultants that got started because they fell in love with the products. Plus, it's a lot easier to tell others about your business when you love the products and use them daily. 

#2 Compensation Plan

There will always be people that join companies because of the compensation plan first then products.

Ideally, you want to look for great products and a competitive pay plan that is realistically attainable. You're not going to get 100% of what you're looking for but I believe it has to be a fair plan with minimal restrictions. Plans that have high auto-ship requirements, high personal sales requirements monthly to stay active or earn money from your team can be challenging for most people to have any success.

#3 Leadership

Corporate leadership is very important and sets the tone for potential growth especially if you're a brand new company. In direct selling, some founders/leaders have that all star personality such as Jeff Olson or Rita Davenport to name a couple that command respect and die hard followers.

Likability and the ability to engage and attract experienced leaders to join your business is key to big time growth. Conversely, some companies are slow to grow or don't seem to make much progress because lack of leadership. If you want to be successful, it's important if you care about the company, products, leadership and the team you're on. 

These are only a few ways to assess a brand new company. After you've done your research sometimes it's a matter of going with your gut and taking a chance on a new opportunity. Too much analyzing can deter you from getting started. I always tell people on the fence that if you love the products you've sampled so far and have done some research, give it a go. Especially in direct sales with minimal start up cost around $99, you're not really out much money.

Many companies offer hundreds of dollars worth of products for $99 and even a free website so there's really very little risks, if any. Just be careful of opportunities have high start up costs or sponsors talking you into buying more expensive start up kits especially if you're not comfortable with it.

Best,

Janette

Resources:

Here's a terrific article -> How to Assess a Direct Selling Opportunity by Inc.com