What is Direct Selling?
If starting your own Bricks & Mortar small business is not right for you, a direct-selling, home-based micro-business makes a great choice for folks who want to work from the comforts of their own home. Although the MLM and other direct sales companies would have you believe that direct sales is entirely within their domain – and that you must sell for them if you want to succeed – I assure you, that is definitely NOT the case… or the truth.
There are very many independents that sell consumer-direct in their own micro-enterprises, buying their products directly from the makers and suppliers and/or providing their services on a completely independent basis. You only have to look around you with clear enough vision to “see” these independents in action every day. Millions of small businesses are operated either partly or completely from the confines of their owners own homes as sole proprietors.
Did you know that over 22 million people in the United States alone have income-producing home-offices – and that fully 25% of home-based businesses today provide 100% of the household income? In fact, there are currently over 44 million people world-wide that are involved with just direct-sales of products alone.
While millions of people are successfully working at home, millions more are struggling through the overwhelming amount of information out there about working at home.
What’s real? What works? What’s legal? What’s risk-free? How do I start? … and many more good and valid questions… Most of what’s commonly available as “biz-info” is either flat-out wrong, unworkable, or just a scam in one way or another… and it’s darn hard to tell what’s good and what’s bad.
The solution?
Start and operate an independent product sales or service business that YOU create on your own, from scratch, using a known-good business model. Have a good business architect design it for you, or copy a business you know is working for it’s owner… and most important of all, get a good mentor.
Here are some questions for you to consider before you start:
• What kinds of products or services do you want to offer? Are these products that you will enjoy selling – and can really get behind? Can you financially afford the price of admission?
• What kind of skills training and additional education will you need? You can get video & audio tapes, books & manuals, and training courses for all or part of these necessities. Try to get personal mentoring – if at all possible – because – having someone with extensive business experience to ‘show you the ropes’ can really make all the difference in your successful business venture.
• What kind of income can you expect? Look into (research) what typical independent sales persons and service providers make when just starting out – and what kind of potential there is for additional income as you grow your business.
• Will you be able to return any unsold inventory to your suppliers? If for some reason you need to make a return on unsold inventory, will the supplier take it back or exchange the products?
• What costs can you expect in starting & running your new business? Will you have to buy catalogs and sales literature? Is there a start up kit (sales sample case) you can buy or have your supplier put together for you? A typical sales sample case may well cost under $100, although that depends entirely upon what products you decide to sell. For example: If you choose to sell expensive jewelry, you might invest many 10′s of thousands to have the samples needed. On the other side of the coin, if you choose to sell lower-cost products, samples might run well under the $100 line. When deciding what to sell, consider what you can afford for a first line of products to offer. You can always move up to bigger, better, more expensive later.
• What additional cost-items can you expect as one-time and on-going, regular expenses? There are many expenses that are not readily apparent, but must be purchased (or leased) or paid for with your start-up funds. Business cards, letterheads, envelopes, additional phones and lines, new business equipment and/or tools, motor fuel, insurance, assorted business supplies and so on… Carefully plan the financing of your new start-up, and what on-going expenses will be incurred as you operate.
Seriously consider starting your business with quality, affordable and commonly-used consumer products or regular services. It is a lot easier to sell what’s already selling than it is to pay for the consumer education needed to sell things that have no known market as yet. Save introducing new, revolutionary and untried products for when you have more sales and money than you have good, common sense.
The truth is, working from home is not all that difficult – if you do your research – and find a do-able system, a marketable product, or common service-based home business to build that has an already proven record of success for others. If you do all that, and have a sufficiently sized market to sell into – the only way you won’t succeed is if you don’t work hard at it and give it your very best shot.
Success in Direct Sales:
No one is born a top sales-person… ever. Because, to be successful, you must learn not only the basics of sales techniques and business operations, but also how to apply those new-found skills and techniques in the proper way for maximum effect.
Top earning sellers in direct sales will tell you that success takes consistent effort, a vision, drive and focus! No one is born a sales-person any more than one is born a doctor or lawyer or sports champion. In order to be successful, you must not only learn the basic techniques, but also practice how to professionally apply those techniques with skill and finesse. Among the critical sales skills you will need to learn and practice are prospecting, qualifying, presenting, handling objections, closing the deal, and asking for referrals & more business.
Being clear about what your short- and long-term goals are – and why they are important to you – will keep you motivated. In fact, planning is actually one of the most important activities you will spend your time doing. By creating and using an annually updated business plan, an evolving marketing plan, setting both long- and short-term goals, and breaking your goals down into smaller goals – with milestones & deadlines – you will find yourself moving ahead, and setting yourself up for an excellent record of achievement.
They say ‘when you love what you do, you’ll never work a day in your life.’ The same is true in direct sales. You must honestly believe in what you are selling, yourself, and your ability to sell it. When you are selling something you are passionate about, people feel your excitement. Suddenly you aren’t “selling” – just offering whole-heartedly something that you honestly believe will benefit the customer. By truly caring about your customer’s and acting in their best interests, you’ll close more sales – and build a group of loyal, life-long customers.
Direct Sales Hints & Tips:
Ask and most business-persons will tell you… one key to their success is up-selling. It is one thing to get the sale… it is far better to super-size that sale. Real profits come when you get the customer to buy a larger, more expensive, or more comprehensive product or service. Up-selling is easy – if you think of your main business as helping customers. Think about the problems your customers come to you with… What does it REALLY take to solve their problems?
Do you have any ‘sales helpers’? Brochures, info-booklets, sales aids, PR reprints, articles about your products or services… etcetera. Use any or all of these to help you position your business as the solution to their problem, whatever that might be.
Do you make in-person sales calls? If you do – do you have a set calling schedule? Can your customers contact you easily? If they need you in a hurry, how hard is it for them to get you to respond? Simply – be predictable, reliable, punctual, and there when they need you. Back-end and repeat sales ARE the most profitable sales you can make… period. Make ‘em happen for you.
How well and often do you keep in contact with your customers? Newsletters, personal notes, occasion cards, phone calls, and ‘dropping by, just to see how it’s going’ are just a few of the ways for you to insure that you become “top of the mind” whenever your customers (or their family & friends & associates & so on…) might need your products or services.
The biggest un-tapped goldmine for any business is their ‘old/former customer’ and client contact lists. Re-establish contact and bring them back into the fold. Making new back-end sales from these folks is the easiest and least expensive sales you’ll ever make.
Do you have a “network” that helps you promote you, your business and whatever you are selling? Keep track of everyone that has even the slightest chance of helping you, or buying from you, or knows others than might do either of these. Keeping, regularly reviewing, and using a contact information log can be one of the most valuable things you can do – and can be the single, most cash-worthy asset you can own as a business person.
Do what you say you will, when you said you would do it, and deliver more value than you receive in payment. And…
Always thank your customer for their business – and – ask for more business.
While you’re asking, ask for a referral or two as well… and for them to tell their friends about you and your business. Reward their loyalty.
Basic Rules for Business Success:
- Communicate regularly with your suppliers, customers & any staff you might have
- Be passionate about your business & show your passion
- Network within your marketplace – and outside of it – and attend all relevant exhibitions, events and other opportunities
- Be proactive – not reactive
- Give to get – and give first
- Have a Plan (1 year, 3 years & 5 years)
- Measure and test everything – so you can improve it!
- Develop systems for every task that’s needs doing more than once
- Embrace change – and lead changes
- Never stop learning
- Have fun running your business
- Just do it! Today.
A Final Dose of Reality:
You cannot have it all…!
Although many business folk would hope for it, most people in a home-based sales business will not reach the $1,000,000 ‘super-duper sellers club’ while still being the president of the grade school PTA, singing in the church choir, being the Boy or Girl Scout Troop leader, having a ‘date night’ with your ‘special friend’ or spousal unit, and maintaining a spotless, well-kept home and bountiful garden where the ‘significant other’ comes home every night to a well-rested other-half, ready to meet their every want & need!
Just ain’t gonna’ happen… dream on.
However, even with a full life, you CAN make a nice additional income… and with really good help, planning & execution… maybe even turn your little endeavor into something grand – and VERY profitable. It’s happen before… Ask Mrs. Fields, Famous Amos, Bill Gates, Michael Dell, Bob Parsons, and many thousands of others that started in their garage or basement or at the kitchen table.
That’s something that CAN happen!
And… the next ‘home-made millionaire’ could be you.
“Old Nikko”
Business Architect & Mentor
