There are many formulas out there on how to have a successful Direct Selling business, but no business model is the same as any other. And despite the importance of a lucrative compensation plan, the products are the essence of your brand and your storytelling, as well as being the key to the attractiveness, novelty and long term consistent success of your business.
Here, we present you some keys for a great product-centered strategy in your Direct Selling business planning:
1. Great products that you are passionate about
Before considering other aspects of your sales, you have to make decisions on a product that drives excitement while sharing its benefits with your friends and family. It must give you the feeling that a new brand and company can be built around the value purpose of this product for the consumers.
Keep in mind that the business model and the product, must constantly influence and rely on each other.
Tips for great product selection for Direct Selling:
- Look for a product that can leave a big profit margin, so it is cheap enough to compete in price, yet you can set a high profit margin to spread between your compensation plan and your earnings.
- Visualize the value purpose of the product for your consultants and study the market size for this product, to project the growth of your business.
- Design the first drafts of the sales strategies for this product, kits, maximum discount, bonuses, sales channels, sampling, …
- Answer these questions:
- What need does the product need to fulfill?
- What value does the customer see in the product?
- Does this product currently exist?
- What is the expected margin?
- Who is the competition?
- Are people willing to pay for this product?
- How does the product stand out?
- What resources do we need in order to develop this product?
- How do we prioritize other products in our pipeline?
Consider these product selection criteria for Direct Selling:
- Attractiveness and virality potential (Brand storytelling through products)
- Buyback potential (Dynamic products)
- Success cases supported
- Recurring consumption
- Consultive sale
2. Always, your consultants are first your consumers
Understand how to sell your product to the final consumer. Yes, do not worry yet on how you are going to build your network of consultants, your product has to be so attractive by itself that it triggers the desire for purchase in the final consumer and therefore the action that your strategic planning has to take is on creating the Customer Journey map or Customer Wheel:
Focus on each stage of your customer purchase process.
Build your buyer persona:
- Understand everything about their profile characteristics, lifestyle, and motivations to purchase your products.
- Niche products, for a niche audience = Higher engagement.
- Segment and study your customer types, their motivations, triggers, purchasing power, incentives.
Loyalty programs for Consultants retention in Direct Selling:
- Conduct intensive research on their shopping behaviors, and the frequency of their purchases, to build your auto-ship or subscription packages, referrals and loyalty programs.
- Write policies for customer management for each customer segment, for the relationship you want to have with each, and consider if your offering is resting on a single transaction, or if it is going to be an ongoing subscription. Then consider the importance of these ongoing relationships (shopping clubs, parties, memberships, VIP clubs…) for your business success.
3. Consultant Funnel ⇔ Compensation Plan:
Once you have clear demographics of your consumer, and the data on how many there would be, you can start thinking about how many distributors you will need to reach those consumers and how to leverage their sales efforts to get to the complete coverage in sales in those markets.
Just the way you did with the buyer persona of your consumer, conduct the profiling of your consultants with the behaviors you want to generate in them through their customer journey, so they turn into your sellers, ambassadors, and leaders.
Always keep in mind that a consultant was a consumer at first. It’s those actions, messages, support and brand storytelling that they are subject to throughout the purchase process that eventually makes them want to share your brand with more people. That’s where your network building starts.
The actions you design for your consultants begin with the enrollment and the fast start process in order to offer faster results perception and increase attractiveness towards your business. Then in the development, consolidation, and expansion of your network by leveraging your sales force capacity. Along with that evolution comes the increase in the income and bonuses.
Throughout the phases of evolution of your compensation plan, consider behaviors like: Consultant acquisition, personal selling, organizing online and offline sales parties, training, coaching, leadership, and Influence…
All the behaviors your consultant journey presents must be rewarded in accordance with their importance in the business model, and supported with corporate generated content.
In the Direct Selling Industry, you should always keep in mind that one of the most attractive sides of being a direct seller is the unlimited income opportunity as rank up in the levels of your Compensation Plan.
S4DS Software Solutions for Omni channel and Direct Selling
Technology plays a key role in the development and success of your product, consumer loyalty, consultant acquisition and retention in today’s Direct Selling. We, at S4DS, have the formula to support all the behaviors your company’s Compensation Plan needs for succeeding over the long-term.
With our Software, your business has access to up to date technologies to implement disruptive and omnichannel selling methods (Catalog, MLM, Binary, Party Plan, Flat Sale, E-Commerce for MLM), to stay in the game for the growing e-commerce sales, to have strong Social Selling campaigns through Social media integrated and with more automated tools, and to manage Influencers and leverage their actions and networks.