Keys to success in direct sales
By Joan Carles Sanjurjo
There are successful Direct Selling companies all over the world, some of them have been around for quite some time. But… What sets them apart from the rest? Have they launched a novel product? Or is it perhaps the Compensation Plan that has contributed to their success?
For context, let's define what we mean by Direct Selling. Direct selling involves selling products directly to consumers in a non-retail environment. Sales are made at home, at work, online, or in other non-store locations.
Table of Contents
What is direct selling?
Success factors in direct sales
Training
Compensation system
Operations
Accordance
Communication
Product catalog
Conclusion
What is direct selling?
With direct selling , manufacturers bypass middlemen in the supply chain and sell products directly to consumers. In traditional retail environments, products are sold online or in a physical store, but direct selling relies heavily on salespeople contacting customers in nontraditional settings.
Real and economically sustainable list of thailand consumer email success in direct sales cannot be attributed entirely to a single factor, we particularly bet on these six factors that we explain below.
Success factors in direct sales
Training
A well-planned training approach in a company is essential for success in direct selling. The main goal of training is to teach sales representatives how to manage their activities more effectively and thus generate more money.
Training for Direct Sales Representatives
There are several subsections within the training, such as product, sales tactics, compensation plan, leadership, and goal achievement, among others. It is convenient to offer each of these components at different levels, such as introductory, intermediate, and advanced.
The main benefit that training will bring to success in direct sales is “knowledge.” And yes, also, the “motivation” of the sales force is always an additional advantage that should not be underestimated.
Compensation system
Contrary to a common assumption among entrepreneurs, the compensation plan should never be used as the most important element. The Compensation Plan alone will not lead to success in Direct Selling if the other components we describe in this article are insufficient.
In any case, all effective compensation systems have certain characteristics:
They are a vital component of the company's overall strategy.
Reward key behaviors in the field.
They are easy to understand and explain.
They offer unlimited earning potential to salespeople.
They are a controlled expense for the company.
They comply with all applicable requirements and regulations.
Operations
“Operations” takes into account all the tasks that must be carried out so that salespeople seeking success in Direct Selling can plan, develop and expand their activity.
This pillar includes elements such as product sourcing, distribution, information technology, commission payments and customer service, to name a few.
A poorly structured operation only creates crises on a daily basis. Some of these may be minor, while others may be major, or even disastrous.
Accordance
This issue has never been more important than it is now, and that is thanks to a few bad apples – companies operating in the sector with clearly questionable practices. That is why compensation systems and customer complaints are now under intense scrutiny, as regulators around the world impose ever stricter limits.
It is therefore vital to ensure that each of a company's interactions with its direct sales representatives, and their interactions with end customers, comply with market standards.
Obviously, non-compliance in this area leads to investigations, heavy fines and sometimes even bankruptcy of the company in question. The damage caused to the sector as a whole is additional collateral damage.
Communication
Effective communication is an absolute necessity for success in direct selling. In this regard, there are two key directions: internal communication, with the sales network , and communication with the general public.
Internal communication includes all the “transmission” of information to sellers to help them carry out their activity smoothly, and also to keep channels open to facilitate their voices being heard.
Communication with the public has two objectives: to create awareness and trust towards the brand among people and to voluntarily represent oneself before the authorities.
Product catalog
No, we haven't forgotten about products. Obviously, there needs to be a decent product portfolio, products that end customers need, and a catalog that is broad enough to allow salespeople to make a good living. Without it, the five components we've described would be incapable of leading to success in direct selling.
Conclusion
Companies that use direct selling as a marketing strategy are transforming themselves through digital technologies and exceptional software for direct sales management. The goal is to improve the customer experience, thereby achieving record sales worldwide.
