Jensen says every company has a different approach to selling: Some use home parties; some use catalogs; some use cold calling or face-to-face meetings. But all, he says, have two things in common: "First, [the selling system] is duplicable. I can teach it. I can duplicate it with people in my downline. And second, it provides predictable results. That means you can expect an average number of sales or a similar level of results more times than not." Many companies that follow the direct-selling model and fail haven't thought through how their representatives will consistently sell their product to many different customers.
In addition, Leisner says, you need to harness information about existing and prospective customers. Keeping in touch with people who have bought your products in the past and reaching out to people who have shown interest in purchasing or hosting direct-selling events is essential to expanding your list of prospective customers.
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7. Sell the opportunity while you sell the product. According to Jensen, only about 30 percent of direct-sales consultants sponsor a new member of their downline within the first 90 days. However, that three-month window is also when most direct-sales consultants make their decision about whether or not to continue with the company.
To get your earning power up and begin building your business, Jensen advises ramping up your sales team right away. "Time is our top competitor. Knowing that, take the time you can spend on the business and work on the business," he says. "This is a great opportunity for a lot of people. There's nowhere you can get this kind of return for working two or three hours per week, when you want. Some people are averaging over $100 per hour," Jensen says, although he adds that is not a typical level of compensation for part-time workers.
Once customers have had the opportunity to try the product and get excited about it, they're more likely to "evangelize" it, he says, spreading their enthusiasm--and selling--to people they know.
8. Market yourself. Of course, there are only so many products your family and friends can buy from you. That's why it's important to keep looking for creative ways to expand your sphere of influence, says Robinson. Look for opportunities that match what you're selling. You might want to have a booth at a craft fair or at your town's annual festival, she suggests. Jane Creed, a former executive at direct-selling giant The Pampered Chef and co-founder of Creed and Creed, an Orinda, California, global marketing and PR firm serving direct sellers, has seen successful independent reps who have set up their own websites and e-mail marketing campaigns.
There certainly are many ways to market your business, but it's important to ensure that the company is as enthusiastic about new marketing ideas as you are. Some are more conservative and prefer that you use existing marketing materials or get approval before doing anything new. "Different companies have different rules about what you can do with their marketing," Robinson says. "Some companies provide you with materials--that's great. Others have the flexibility where, if you say ‘I want to try this,' they'll let you try what you want. It's about [finding] a good fit for you."
9. Keep on top of the numbers. Keohohou says successful direct sellers should regularly review how their team members are performing. If a consistently good producer is falling behind in the number or dollar value of sales being made, it may be a sign that there's something you need to address. That could mean working with the team member to build his or her own downline, to provide additional training or support, or to find solutions for cracking a tough market or finding new customers.
Jensen agrees: "No successful leader has ever achieved success in this business without being a strong manager of a group. You need to build leaders, or [the business] will all fall on your shoulders." He advises direct-sales team leaders to work with their companies to help people in the downline reach a return of $25 to $35 per hour, which he says is a compensation level that tends to keep team members from leaving the company.
10. Keep in touch. The bigger your enterprise is, the more you need to be in touch with company higher-ups to help you manage the business and ensure it's being developed properly, says Leisner. Companies have a vested interest in helping you achieve and maintain success, and it's important that you take advantage of the resources offered to help you do that.
Keohohou says many companies have back-office support for distributors, where they can get help monitoring and developing their businesses. She also advises having a regular method of keeping in touch with all the people in your downline so you can inspire and encourage them. And this will help you avoid any unpleasant surprises and make it easy for your group to communicate with you.
All the experts agree that having a passion for your product and a professional approach to your business should be at the heart of any direct-selling enterprise. Make sure you follow the same good business practices you would if you were starting your own venture from scratch. And remember, like every business, you'll get out what you put in.
Getting Down
How do you develop those six- and seven-figure downlines? It's a lot of hard work, says industry consultant Jane Creed, and you should be wary of anyone who tells you differently. Still, there are some common elements of success the experts have observed.
Adjust your expectations. Most of the people attracted to careers in direct selling aren't looking for it to be a full-time job. In fact, the Direct Selling Association has found that more than 85 percent of direct sellers spend fewer than 30 hours a week on their businesses, and Dan Jensen of direct-sales consultancy Jenetek says more than half work nine hours a week or fewer. So it's unlikely that your entire downline will be populated by powerhouses like you, intent on building sizable businesses. But creating a team of consistent sellers--even those who are just earning a few hundred dollars each month--can return considerably more than a hotshot who leaves after a couple of months.
Run your business like a business. While other sellers may be keeping less-than-bankers' hours, you need to focus and work, says Jensen. "For those who look at the big picture and see the potential of picking up the management component of this type of work, there can be great rewards," he says. That means being organized, using the proper technology to track sales and keep in touch with downline members, and watching the numbers while continually recruiting new people and promoting your products.
Stay in the market. The most successful direct-sales enterprises Creed has seen have their top people out in the marketplace, selling on a regular basis. "The top people at The Pampered Chef aren't sitting back and letting the downline do all the work," she says. "That keeps them understanding the customer."
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