This is not for everyone, direct selling can show you how fast-track your biz.
Direct selling is one of the oldest ways to market products-a fact unknown to many, but something that helped launch and sustain household names (and billion-dollar companies) like Avon, Mary Kay, and Heinz.
Before gaining acclaim and success, the firms were nothing but small companies that could not afford to put up physical stores to display and sell their products. Henry Heinz, in particular, was a peddler. Yet lack of resources inspired him to organize a sales force that went straight to people's homes to sell Heinz products.
The 32 companies under the Direct Selling Association of the Philippines (DSAP), a self-regulating industry organization, share Heinz's enterprising spirit. The group ensures that businesses engaged in person to person selling-often linked to the multilevel marketing (MLM) industry- are legitimate and are performing only the best practices as encouraged by the Washington D.C.-based World Federation of Direct Selling Association.
"Because it can be very lucrative, multilevel marketing attracts unscropulous business people who take advantage of it and then shut the business down after they make money," says Sean Patrick Zuñiga, consultant and one of the top network builders of the Filipino Entrepreneur & Resources Network (FERN). "On the other hand, there are networkers who quit after recruiting."
Whether you're into direct selling or not, here are lessons from the industry's most successful companies on how to stay competitive and keep people motivated:
Put quality first. FERN started in 2003 offering a wide array of products, but after a couple of years, the company still wasn't picking up. It was when then-investor Tommanny Tan stepped in as CEO that FERN focused on one product, the non-acidic Vitamin C supplement Fern-C, also sold at retail stores.
"I think that's an acid test for a product coming from a networking company, if your product is really of value. People would not go to a drugstore to buy your product if they don't want its benefits. In most networking companies, the reason people buy the product is because they'll earn from that product," says Tan.
START-UP TIP: Whatever distributor channel you wish to use, remember that with high-quality products, half of the battle is won. Distributors are also more motivated to sell a product if they believe in it themselves.
Train salespeople to become brand ambassadors. In additional marketing the whole spectrum of dealers, wholesalers, and retailers all contribute to the costs of distribution that companies pass on to consumers. On the other hand, direct-selling companies mobilize distributors that are trained not just in sales but in other key skills needed to provide the best customer service.
For instance, an Avon representative "is a personal beauty consultant," says Andrea Jung, the company's former CEO. "Some people want that high touch."
Considering the economics behind the business model, "that's a lot of money saved by networking companies," says FERN's Zuñiga. "The advertisers are distributors, and they cut so much of the middle."
START-UP TIP: If you're not so keen on integrating direct selling to your business model, you may still convert loyal followers into brand ambassadors by creating valuable rewards programs they can share with friends.
Reinvest in the business. At the core of any business must be a compelling value proposition that convincingly answers the question, "Why should consumers try and keep buying our products?" says market guru Josiah Go, founder of Waters Philippines and former chairman of DSAP.
"It must be able to change their preference in your favor in a sustainable manner, hence the need for constant adjusting, updating, and reviewing of relevance versus direct competition and alternatives available. "Go says in the book The Entrepreneur: Understanding the Five Tasks and the Five Treasures of Every Entrepreneur, which he co-write with wife Chiqui Escareal-Go.
Maintain and even increase your competitiveness by investing as much in research and products development as in customer relations. According to Mary Kay Ash, founder of the popular cosmetic company. "Pretend that every single person you meet has a sign around his or her neck that says, "Make me feel important, 'Not only will you succeed in sales, you will succeed in life."
START-UP: Build a culture of innovation in the company where ideas are not limited to top management. Encourage each member to be always on his toes and contribute to the greater good of the company then reward him for it.
Source: Entrepreneur Magazine
Direct selling is one of the oldest ways to market products-a fact unknown to many, but something that helped launch and sustain household names (and billion-dollar companies) like Avon, Mary Kay, and Heinz.
Before gaining acclaim and success, the firms were nothing but small companies that could not afford to put up physical stores to display and sell their products. Henry Heinz, in particular, was a peddler. Yet lack of resources inspired him to organize a sales force that went straight to people's homes to sell Heinz products.
The 32 companies under the Direct Selling Association of the Philippines (DSAP), a self-regulating industry organization, share Heinz's enterprising spirit. The group ensures that businesses engaged in person to person selling-often linked to the multilevel marketing (MLM) industry- are legitimate and are performing only the best practices as encouraged by the Washington D.C.-based World Federation of Direct Selling Association.
"Because it can be very lucrative, multilevel marketing attracts unscropulous business people who take advantage of it and then shut the business down after they make money," says Sean Patrick Zuñiga, consultant and one of the top network builders of the Filipino Entrepreneur & Resources Network (FERN). "On the other hand, there are networkers who quit after recruiting."
Whether you're into direct selling or not, here are lessons from the industry's most successful companies on how to stay competitive and keep people motivated:
Put quality first. FERN started in 2003 offering a wide array of products, but after a couple of years, the company still wasn't picking up. It was when then-investor Tommanny Tan stepped in as CEO that FERN focused on one product, the non-acidic Vitamin C supplement Fern-C, also sold at retail stores.
"I think that's an acid test for a product coming from a networking company, if your product is really of value. People would not go to a drugstore to buy your product if they don't want its benefits. In most networking companies, the reason people buy the product is because they'll earn from that product," says Tan.
START-UP TIP: Whatever distributor channel you wish to use, remember that with high-quality products, half of the battle is won. Distributors are also more motivated to sell a product if they believe in it themselves.
Train salespeople to become brand ambassadors. In additional marketing the whole spectrum of dealers, wholesalers, and retailers all contribute to the costs of distribution that companies pass on to consumers. On the other hand, direct-selling companies mobilize distributors that are trained not just in sales but in other key skills needed to provide the best customer service.
For instance, an Avon representative "is a personal beauty consultant," says Andrea Jung, the company's former CEO. "Some people want that high touch."
Considering the economics behind the business model, "that's a lot of money saved by networking companies," says FERN's Zuñiga. "The advertisers are distributors, and they cut so much of the middle."
START-UP TIP: If you're not so keen on integrating direct selling to your business model, you may still convert loyal followers into brand ambassadors by creating valuable rewards programs they can share with friends.
Reinvest in the business. At the core of any business must be a compelling value proposition that convincingly answers the question, "Why should consumers try and keep buying our products?" says market guru Josiah Go, founder of Waters Philippines and former chairman of DSAP.
"It must be able to change their preference in your favor in a sustainable manner, hence the need for constant adjusting, updating, and reviewing of relevance versus direct competition and alternatives available. "Go says in the book The Entrepreneur: Understanding the Five Tasks and the Five Treasures of Every Entrepreneur, which he co-write with wife Chiqui Escareal-Go.
Maintain and even increase your competitiveness by investing as much in research and products development as in customer relations. According to Mary Kay Ash, founder of the popular cosmetic company. "Pretend that every single person you meet has a sign around his or her neck that says, "Make me feel important, 'Not only will you succeed in sales, you will succeed in life."
START-UP: Build a culture of innovation in the company where ideas are not limited to top management. Encourage each member to be always on his toes and contribute to the greater good of the company then reward him for it.
No comments:
Post a Comment