Ideas on how to explain the “Platform” of Direct Selling a/k/a Network Marketing (NWM) / Multi-level Marketing to a traditional businessman or businesswoman . . .
If you want to team up with a person for a Direct Selling / MLM / Network Marketing mastermind collaboration who have a “traditional business mindset” then it is much smarter to explain first the Direct Selling Industry and its “pro’s and con’s” rather than to jump right into exhaustive explanation on all the details of your specific opportunity.
If you give business opportunity meetings, on-line webinars or off-line presentations, in our experience 95% of your audience has no clue about direct selling or the power of it. The great majority of “suspects” open to taking a look are primarily searching for answers to 3 most basic questions:
#1. Can I make any money?
#2. What would I have to do?
#3. Can I Do It?
On the INITIAL APPROACH these answers better be CONFIRMED quickly or they may have little or no reason to keep their appointment or show up to your next scheduled event. Your approach “invitation” better be a dialog about THEM . . . Not a monologue on the Company, the Comp Plan or the Services.
After their first exposure or once enrolled/launched, added explaination on the industry often helps reduce the stigma of the “Pyramid” objection, as business minded people will likely understand a $200 Billion, 60 years+ market, with 100+ million distributors is substantial “social proof” of a legitimate business model, not built on a questionable foundation.
Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing of products and services directly to consumers.
Networking is about generosity, not greed. The strength of direct selling lies in its tradition of independence, service to consumers, and commitment to entrepreneurial growth in the free market system. Success comes from ever increasing levels of service to customers. Direct selling provides accessible business opportunities to people looking for both ‘time freedom’ and ‘financial independence.’
According to the Direct Selling Association (DSA) in the USA and the World Federation DSA, which consists of 59 national Direct Selling Associations and one regional federation – Federation of European Direct Selling Associations (Seldia) the market is around $178 Billion. However many companies are not members and so estimates for direct selling total over $200 Billion worldwide.
More the 100 million people are involved all around the globe. A few major Direct Selling markets include:
USA 16.8 million distributors
Thailand 11 million
Indonesia 10 million
India 5.7 million
Korea 5.5 million
Russia 5 million
Brazil 4.5 million
Malaysia 4.2 million
Philippines 3.9 million
Japan 3.2 million
Country sales in Direct Selling (approx. U.S. dollars):
USA $32 Billion
China $27 Billion
Japan $17 Billion
Korea $14 Billion
Brazil $14 Billion
Germany $8 Billion
Mexico $8 Billion
Russia $4 Billion
Malaysia $4 Billion
France $3 Billion
Basically there are two different types of general Compensation plans: the ‘Party Plan’ in which a distributor is paid 3+ levels deep, and the ‘Person-to-Person’ compensation plan which pays out over much deeper levels. Some plans even continue Residual income to the independent business owner for the “life” of the customer. One such company is the Worlds largest distributor of Telecom and essential home services, the 22 year old giant, ACN – headquartered in Concord, NC. Sales for 2014 in North America ranked them #11 on the Direct Selling annual revenue list.
The Direct Selling / MLM /Network Marketing “Walhalla” is located in Utah, USA, where more than 100 Direct Selling companies, both public and private companies are concentrated in a small area around Salt Lake City.
The average top earner for 2014 in Direct Selling reached an est. $20,000 dollars per month / $240,000 per year based on statistics compiled by the Business For Home publication. Direct Selling is NOT a “get-rich-quick” scheme, like any other profession or industry top earners must master teaching, communications and duplicating their social skills. Top Earners get paid to develop leaders and to build large teams able to collectively acquire a minimum number of qualifying, personal customers. This is accomplished most successfully through relationship marketing: the tried and true method of “Word of mouth” advertising among friends, family and themselves.
Compared to conventional business, the initial investment in Direct Selling can be very low, less than a thousand dollars. In exchange, the manufacturing, shipping & distribution is often done by the Company or its Service Providers. There doesn’t have to be the headache of employees, or added expense of payroll, the overhead of storerooms to stock products or displays. Some form of ‘starters kit’ or Internet portal eliminates the need for traditional ‘bricks and mortar’ store fronts and an autoship on the product or service will often be enough for the new business partner to get qualified and have a great start.
The more folks investigate the Direct Selling industry with an open mind, the more opportunity they may find for their futures. The American economy and especially the marketing business in North America has changed dramatically within the past 50 years. Gone are the days when following high school or college graduation, someone found a job for lifetime employment, in a corporation and were guaranteed pay for 40 hours of work per week, for 40 years till retirement on a pension guaranteed to offset the 40% difference in wages paid by Social Security after 65. Today, many seniors find themselves financially unable to afford to live on 40% difference of their pre-retirement wage and must continue to work.
Success can be yours!
WHATEVER THE MIND CAN CONCEIVE & BELIEVE, THE MIND CAN ACHIEVE! Believe!