As companies in direct selling and multi-level marketing grow large enough to consider international expansion, there are some important aspects of globalization that should be considered. Doing so will reduce risk and cost during the process. I will share with you the important factors to be evaluated and we will review them in this article. I have been assisting companies with international expansion for over 35 years. The advice I give is determined by factors such as, where the base corporate office is located:
International from a base in the USA
Most countries will allow you to process your customer and distributor charges in USD currency using your merchant account services in the USA. It’s not always ideal, but it’s a way to start. Your customers and distributors will be charged in their local currency with a currency conversion, and will be assessed something like a 3% charge for this service. If you’re sending the money back into the country to pay commissions either you or the distributor will have a currency exchange rate applied. Even with these added expenses of currency exchange, many companies operate this way for many years.