Facts on Direct Selling

"if i would be given a chance to start over i would choose network marketing" ~Bill Gates

Today I would like to introduce you to one of the most controversial business, may not be in all countries, especially in India it’s controversial. This business helps build entrepreneurship mindset to the young enthusiastic people. I would recommend this business only to the people with aspiration and do big thing in life.This industry is definitely not for lazy individual. 

Please find what many celebrities have say on this business. click here to see my post on this

The same skills it takes to succeed in any marketing business are required in Network Marketing:
 - You must be assertive
 - You must have confidence
 - You must be dynamic in your ability to express yourself
 - You must have enough resources to propel yourself through the challenges


The direct selling company provide you with the system,when someone say you need 140 sales of 2 lack each in a week, to reach 10 lacks per week as commission. Its not possible for an individual to do such sales. For that you need to build an organization/team.Using the system the direct selling company provide, you can build an organisation by recruiting people with same interest as yours. The recruitment is must for being successful.


Recommended books.

• The Business of the 21st Century
• The Four Year Career
• Rich Dad Poor Dad
• The Parable of the Pipeline
• Think and Grow Rich
• How to Win Friends and Influence People
• The Greatest Salesman in the World

What is Direct Selling?

Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online. Which is also known as mouth to mouth marketing, referral marketing or MLM. Which is also half a century old business.

Many Indian direct selling companies has closed down because of lack of government support, Media misrepresentation with money chain etc . This has changed now, After 2016 it become legal in India, Government have come up with guidelines. Before 2016 it was in a gray area. Below is the idsa website.

https://www.idsa.co.in/

If you planing to join this industry now  will be right time. KPMG report on this is below.
KPMG Report

It’s not mandatory to be member of idsa to legally operate in india. The Indian Direct Selling Association IDSA is an autonomous, self-regulatory body for the direct selling industry in India. 300+ companies has membership in this, and few don’t.

Benefits of Direct selling business?

 "The advantage of network marketing is the ease of entry, low risk, and low start up cost. Almost everything else has very high risk" ~Harry S.Dent.JR

In this model of business, there is no other expenses apart from purchase of product unlike traditional model, where you need fixed set of employs, stock list, room rent and many miscellaneous expenses and your full time involvement, Risk factor is very high in traditional model, you will never know when you are failing, mostly end up in big debit.

This is like building your organization, every recruitment you do in this business will help you make your business success, after reaching enough level of recruitment you can generate passive income for even generations.

Commission Structures in direct selling?

Binary: - Current trending model. Also the controversial model, resembles the old money chain model. As in traditional model linear distribution model, on each product sold money get circulated among all distributors. But in the Binary model it contains two side. One side will become the power side other becomes the money side, Power side is one side where all your up lines will be helping to build, other side will become the cash side. Whenever any business happen in your money side you will receive the commission on sales.

Sustainability of this business is based on sales, If a commission is paid daily/weekly/monthly the company will take the amount it received during the period, pay all the commission, product prices, and other expenses  rest is taken as their profit during the period. IN most company commission will be paid to max 6 levels during this period. Qnet, Wnt patches..are some

Sunflower: - In MLM Industry, One of the simplest concepts or simplest MLM Plan is Sunflower MLM Plan. Every individual member or MLM companies can easily convey and explain this Sunflower Plan to new member and MLM Business affiliates. In Sunflower MLM Plan each affiliate can recruits new member in their level structure or front line. Each affiliate can introduce new member in any width and the commission distributed up to a fixed limited depth or fixed levels as per MLM compensation plan.

Major misunderstanding on this Business?

•       Chain Marketing: - Very basic of direct selling industries is selling the product, Any distributor can sell the products without even making the other person join, just like traditional business. To increase the sales you need to leverage, means more distributors.
•       High Product Price: - As mentioned earlier most products sold are unique in nature, and very difficult to sell using traditional marketing strategies. Only the individual distributor can explain the product features and pricing. I personally used products sold through many direct selling companies like qnet, amway, wnt patches, All are of good quality. 
•       Wrong Selling :- Many joining direct selling industries are not from sales background, to convince people many have done showing off there luxury cars etc  those people can never get success in this business, as the distributors joined may not get proper training on sales and think it’s a hike based business. Eventually the person introduced and the joined will end up failure.
•      Credibility :- With credibility i didn't mean what your friend/family member says about it, instead the independent representative of the company say about the company. Every person joining this business should check the company credibility, I would recommend at least 15 years’ experience company, Or company with good R&D least company should be backed by person/Company with credible business background to supporting the company
•      Product based pyramid scheme: - This was a general misunderstanding existed in India court, later it was said wrong.  In the linear model money is circulated among all distributors on each purchase of product, MLM models only qualified individual get the commission on purchase of product, based on the model. 

Every business have challenges, Major challenges in this business?

"Network Marketing has produce more millionaires than any other industry in the history of the world" ~Les Brown

1. Misleading Media Reports: - To create sensational stories many media people mistakenly published articles comparing MLM business with old money chain, pyramid scheme, Ponzi scheme. Where money is circulated, which is illegal in India and many other countries.  Many of this article published by media have few days’ life, eventually worn off. As this is now legalized no legal action will be taken on such reports.  More the achievers the company create more it become controversial.   
2. Wrong Selling: - Many independent distributors have done wrong selling by giving fake promises, which intern become controversial to the company. Currently with the government guidelines, legal action will be taken against the individual and not with company. Company would most probably terminate the corresponding individual account.
3. Morality in doing Business: - I have seen doctors, lawyer, successful business person join this business, Major reason for them to join is the financial freedom. There is an initial pain to recruit people with same vision as your, that’s then your business start expanding.
4. Negative thoughts: - Because we see lots of garbage news, our brain will be filled with negative thoughts. Generally what i see, people discuss business, with whom have never done any business. which they will inject you with many garbage thoughts and stop you doing business. Its wise to discuss the business with whom has successfully done the business. Most of them may not have any friends/family who have successfully done this business. You can easily find the achievers name list from company website and see if you have any know person in the list to discuss on your doubts.  Better get the achievers number from the person who introduce you with the business and discuss on his achievement story. If the person introducing you with the business is a achiever, discuss with him on his success story. 

Why people fail?

1.       Team: - Newly joined distributor may not know everything about the business, to train him and educate any newly joined distributors, a team is must. Its wise, to create connection with people outside your network/team. It will  help you understand the strategies they are using to build the team. 
2.      You don’t have a supportive network/family/spouse:- But if you do feel like you have someone close to you who just "doesn't get it" you'll have to either learn to move past it or have a serious and honest talk with them about how their actions are affecting you. If they really care for you and your happiness, they will come around! .  Your friends and family should only become a part of your business if it serves them to do so. If it serves them -- if they see an opportunity for themselves just like you did -- then they are not being used, they are being served.  If you do not believe your opportunity can serve them, DO NOT OFFER IT TO THEM!
3.       Search of Fast Cash: - This business will take time to settle it down, a regular practice of 2 to 3 year is needed in general. Some create team in few months some take years to do.
4.       Not sure on Business: - You should be confided on the business, an equal opportunity is given to everyone who join the business.  To understand this I can take an example, 1 Marathi Swift car is sold in every 2 minutes, in India. Considering the fact there are more than 10 Car Company each have more than 20 variant of cars for each company, each company is expanding daily. Still many opportunity remains for many companies. Market is open you need to find the right candidate for your business.