Direct selling is the art of selling a product directly to the consumer in a non-retail environment, such as online, home or other non-store locations. The product goes to the company, then to the direct sales person and then to the consumer. One thing that you should understand. The products are not usually sold or found in a typical store and retail locations.
The system is associated with the party plan and network marketing companies. Actually, I know of at least three types of direct selling, namely the single level or door to door direct sales, party plan sales and the multi-level marketing.
Often times, people associate the direct sales as the MLM or network marketing. Millions of men and women around the world joined the direct sales industry with the goal to liberate themselves from their financial struggles as well as give them some sense of fulfillment out of their efforts to start an online home business.
Myth 1. Direct selling is a pyramid scheme. A pyramid scheme recruits investors and continue to do so in order to support the scheme by providing profits to the earlier investors. The initial investors recruit investors who in turn recruit more. This can be done with or without the sale of actual products but may involve sales of products just to show legitimacy.
In this system, the profit is generated primarily from recruiting investors. This means that the only people who are actually making money are those who joined the system first and at the top, which made most of the pyramiding schemes fail.
Direct sales comes with selling legitimate products or services directly to consumers in a non-retail environment. Examples are the Avon, Amway and Oriflame. It builds a network of independent sales representative who gets a commission out of the items they sold online or through their connections.
Myth 2. Direct sellers are not serious entrepreneurs and their host party strategies are considered outdated. Direct selling still works well and their independent distributor and representative are the most aggressive and persuasive people. It can be annoying at times though that when you add someone on Facebook, they directly add you for a host party or DM you selling other items. That is how serious they are in reaching to you and building their business online.
Myth 3. Direct sellers are ALL work at home moms with less skills and education. This may not be the case because these days there are many over 40 startups and entrepreneurs who are doing most of their marketing in social media.
People selling products from home are not only the work at home moms. They are also skilled professionals who got a full time day job, but are just looking for side gigs they are passionate about.
Myth 4. No one gets rich with direct sales. One of the most famous question for this myth is, “Can you really make money in direct sales?” I am also wondering if I can make a living from direct sales.
Actually, you can sell everything from food to services in a non-retail environment such as Facebook. People are now using social media for selling and growing their network.
This a low cost entry industry and anyone can pretty much enter. However, some people are not cut for it and aren’t as successful. If you want to earn serious money, then persevere and show a sustained effort. Build your customer base, learn the value of engagement and rinse and repeat your online marketing strategy.
The question is: Are you prepared to put the time and effort into achieving your goal?
Myth 5. Person at the top makes most of the money. Nope, you make more money if you spend more time and effort learning how to make a sale. Some can even surpass their sponsor’s income.
Myth 6. You have to be a good sales person to make a sale. No. You only need to network with people and highlight the benefits or the needs met by your product or service. Nobody wants to buy from a pushy salesperson!
Myth 8. You need to talk to people to make a sale. No. You just have to post the information and show how they can contact you or order from you. Personally, I do not want to talk to a salesperson unless it is really important. I just make a bit of a research to confirm the information they shared on social media. Not everyone succeeds with direct sales so you have to understand if it is a good fit for you!
Myth 9. You sell an overpriced product. This is not true. Most products already have an SRP price list given by the distributor.
Myth 10. This is a get rich scheme. That is totally untrue. This is exactly the opposite. You only get rick if you show a sustained focused effort, consistency and perseverance in selling your products.
Myth 11. Market is saturated. The market cannot be that saturated because the population is always growing. Imagine the babies being born every day!
Myth 12. All direct sellers are required to buy inventory so they can start selling. This is not true. Direct sellers are given the option to buy their first pack so they will have something to sell. They are even allowed to take orders and only purchase the products when it is confirmed. Most consultants order products for their own use to help them get a bit familiar with the products they are selling.
Myth 13. Direct selling is not a legitimate business. Direct selling is a legitimate business with a buyback policy to protect against inventory loading. It promotes consumer protection and guarantees over their high quality products. Direct selling offers competitive products that are purchased by the end or ultimate user.
Myth 14. High financial risks. No. It has low cost of entry so it gives you from zero to low financial risks. Financial risks can be the purchase of products for high inventory which can be prevented with better monitoring.
Myth 15. Direct selling takes advantage of vulnerable population. This is not true. Many joined the direct selling due to low entry point. The consumers buy the products due to discounts and cost saving package deals.
Myth 16. Direct selling salespersons never make a profit. Well, if you do not sell a product, you will never make a profit. Revenue earned with direct selling is a way to get a family vacation or presents for the holidays.
Myth 17. Network marketing is easy. It is simple and legitimate but never easy. You need to learn a lot about social engagement, content marketing, videos and other graphics.
Myth 18. Anyone can be successful with direct sales. Persevere and be patient. Learn the tricks of the trade and listen to what your customers are saying. Not everyone can be successful in this trade.
Myth 19. Make big money quickly. No. That is not true unless you sell a lot of products to friends and families and get their repeat buys.
Myth 20. Everyone needs the product. This is not true. Remember that there are many alternative products. The particular product you are selling may not meet the expectations or requirements of your target audience.
Myth 21. Direct sales only share but don’t sell. You still sell but sharing content is a good strategy to attract a specific group of people who may want to buy your product.
Myth 22. Direct selling is unregulated. This is not true. It got a permit and registration number. It pays its taxes so the industry is regulated.
Myth 23. Direct selling is only for cosmetic and beauty products. This is partly true. Most direct sellers offer beauty products, but there are other products being sold through Facebook such as the health products.
Myth 24. Sales is a numbers game depending on the people you network. Partly true. There are many factors you need to consider to make a sale and one is if the product meets the particular need of a consumer.
Myth 25. One pitch fits all. Nope. People have different ways of looking at things and you have to learn those ways. Adjust your sales pitch and easily adapt to different communication styles. People won’t remember you but they would remember how they felt during the interaction.
Myth 26. Talk until you close the deal. It is not just talking, but also the art of patiently waiting for the customer to finally get ready to buy. Build trust and rapport and handle objections well.
Myth 27. Scripts are for beginners. This is not true. Even myself makes a script for the inquiries. What I did is create a magazine type PDF that would introduce the product and provide information.
Myth 28. You earn big in direct sales. This may be partly true. You get what you put into it, but it certainly has no income ceiling.
Myth 29. You use people to make money. This is not true. You sell a product that people buy to make money. Direct sales have products to sell.
Myth 30. Direct selling is for older people. Direct selling is for both young and old. There is no age restriction.