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The Basics of Direct Selling and Network Marketing
by Stephen Eastham
Introduction to Direct Sales
Known as network or multilevel marketing (MLM), direct selling is a lifestyle business. Companies such as Mary Kay Cosmetics, AVON, Melaleuca, Amway Global, LifePath Unlimited, and many others, all promote direct sales and provide the potential for their independent agents to make significant incomes. The benefits include a high-income potential, increased personal freedom and lifestyle and the ability to work from almost anywhere you can bring a laptop and cell phone. Our focus in this article is to provide you with an overview of the the industry and provide you with information needed to enter into this arena and potentially increase your current income.
Sales Model
A direct sale is exactly what it says; selling directly to the potential customer or business partner (in the case of Network Marketing). It is a "people-to-people" business. It is a relatively easy way for those who excel at selling to start a home business. This model is a person-to-person sales of consumer products or services taking place outside of a traditional brick and mortar location. The biggest benefit to the owner of a network marketing business is that the profits and/or commissions are paid directly to the seller.
Income Potential
Direct selling offers people the opportunity to make significant income selling either part of full time (or as a supplement to their existing incomes). Though incomes may vary based on individual efforts, some business owners can, and do, earn multiple six figure incomes yearly. In many cases, top sellers can earn up to $20-100K per month! The business model provides an opportunity to earn a full-time or part-time income with the added benefit of more personal freedom. Sales models and commission structures vary by company, but in general, this is an extremely powerful way to create a significant income.
Products and Services Sold
Network marketing companies generally offer a wide variety of products and services that the seller can profit from (both on and off the internet). They offer very high quality products such as personal improvement courses and seminars, health and beauty and home care products to name only a small few. Some companies drop ship to each of your customers. Most MLM companies, on the other hand, require you to pre-purchase your product prior to selling to your customer. This obviously increases holding costs and could leave sellers with excess inventory that cannot be sold. With top-tier direct sales companies, the home office sells to the affiliate at wholesale and drop ships directly to the customer. This saves you time and money.
Marketing Your Business
To be successful in direct marketing, the owner must fist have a steady flow of potential business partners or customers visiting their websites. No customers, no sales! The business owner will need to find affordable advertising such as link exchanges, free message boards, banner exchanges, article placements, pay per click, Google and Yahoo ad placements (can be expensive) and many other on and offline methods. Consider paid advertising in order to drive traffic to your websites.
This business is not about taking advantage of your friends and relatives and trying to sell them on your business. It is recommended that direct sellers use traditional and nontraditional sales efforts, which can range from cold calling, direct mail, advertising in the local paper, television or on the radio. Search out cheap but effective advertising. Lastly, learn how to maximize your exposure with effective use of the social networking internet sites such as Facebook, MySpace, Squidoo and others to expand your presence.
Final Thoughts
Things to think about before joining a direct selling/ network marketing company include a rewarding, life-changing journey for someone looking to own their own business and determine their own financial destiny. You can leave your job or career once your part-time business income exceeds your current income. I encourage you to investigate the direct sales industry and consider developing a direct sales business that can lead you to financial independence.
Remember, direct selling is not a 'get rich quick' type of business, but it can be quite profitable once you are established. Today, direct sales offer business owners the opportunity to sell many different types of products using both online and offline methods. If you are you searching for a great direct sales company, do your research and determine what is best for you. Avoid any company that promises fast cash with minimal effort - it does not happen! Finally, once you find a proven system, get the word out about your great direct sales opportunity and make sure you market and build your downline team! To Your Immediate Success!
About the Author
Stephen Eastham is a retired senior US Marine Corps officer and Naval Aviator, program managment expert and is an independent direct sales entrepreneur with LifePath Unlimited. A former owner and business broker of Sunbelt Business Brokers of San Jose, CA, Steve promotes the benefits, freedom and lifestyle of direct sales, network and attraction marketing. Please visit his website at EasthamGlobal.com
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