Direct selling is one of the fastest growing home-based business opportunities. With the rapid growth of this business opportunity, many people wonder what it really takes to be successful in direct selling. What are the skills a person needs to become successful in direct selling? What type of sales training do I need to be successful? In this article, we will answer these questions.
Direct selling is made up of two basic business models: independent direct selling, where a direct seller earns commissions on the sale of products to consumers, and multi-level marketing selling, where a direct seller earns commissions as a distributor or manager of an affiliated multi-level selling company. In direct selling, a direct seller can earn commissions on the sale of individual products, but not on the sale of goods in bulk to consumers. In multi-level marketing (MLM), however, you earn commissions regardless of whether or not you sell the product to any consumers. Direct selling and MLM both require people to have certain skills, such as Persuasive Communication and Persuasive Selling abilities.
Persuasive communication is essential to getting the customer’s attention and convincing him or her to take a particular action. This can be done through email marketing, telephone calls, direct mail, and even snail mail. Persuasive marketing also requires that the direct seller has a winning attitude and a genuine concern about the prospective buyer. This attitude and concern can be communicated through email, phone calls, or a face-to-face meeting.
Another important skill required in direct selling is Spin Selling. A salesperson must be skilled at using marketing techniques that spin prospects into purchasing a product or service. One popular spin selling technique is to offer a free “pre-launch” sample of the product or service to a prospect. The salesperson may then suggest that the prospect purchase the product or service after completing the pre-launch sample. In this way, the salesperson earns commission on the sale, even though the prospective consumer has not actually purchased the product.
Salespeople who are successful in direct selling often belong to a network marketing or multilevel marketing (MLM) group. In order to be accepted into a group, which many consider to be a real business opportunity, potential members need to make a significant financial investment. Joining a group also provides a sense of security. Marketing to just a single group, let alone a network of consumers, can be challenging. By joining a network marketing or MLM group, a person can become more confident and knowledgeable about direct selling and be able to pass this information onto others within the group.
In summary, although there are similarities between direct selling and mlm opportunities, they differ greatly in their compensation plan and focus. In direct selling, the direct seller earns a commission on each sale; however, in an MLM opportunity, the distributors earn a percentage of the money the recruits sell to the company. The organization that recruits new distributors generally does not pay a distributor a salary. Distributors are paid on a performance-based scale that has been designed to meet the needs of the company. This structure allows the company to control costs and ensure that distributors are paid according to their performance.