World of Direct Selling: My Secret (!) Formula for Success


There are three components that need to be sucessfully brought together for any direct selling venture to outpace others. This has been my simple, secret formula. And these three components are:

1)    Product
2)    Compensation Plan
3)    Operations

Let’s take a look inside each of them…


This is our first test. Your products can both be tangible and intangible in direct selling. We all know by now that this industry no longer deals with cosmetics and food supplements only.

Your product portfolio has to meet some conditions:

1)    It needs to be broad enough so that a direct seller maybe not in his/her every attempt but at least at a meaningful frequency, can close a sale. In case you have a limited line and moreover, if that line is not in high demand, then your life is not easy.

2)    The product line should also be not broader than enough that can cause you problems in terms unnecessary overstock.

If you meet these two above, you can say you have passed the first test.

Compensation Plan

A very important test. Here, you have a series of calculations that govern how the field organization will be rewarded for marketing, selling and many of the times, for also distributing your products. You should always keep in mind that it is this organization that will bring other sellers to you, too.

Some has the misconception thinking that a direct selling operation is all about a compensation plan. These go on to claim that a “good” compensation plan is enough to solve everything. Well, this is not so true.

On the other hand, if you do not have a “good” compensation plan, no matter how “great” they may be, your products can do nothing but decorating your warehouse.

As a general rule, while providing an unlimited earning potential, a compensation plan should be designed in a such a way that it will never go out of control to take you down the drain.


This is our last test… You have great products and a great compensation plan, then what?

Few of the questions that need to be answered under this topic are:

* Are you delivering your products as fast as possible, or at least, are you able to keep your promises in this respect?
* Are the parcels 100% in line with the order, and undamaged?
* Can the field members get meaningful responses from the HQ for their daily problems?
* Are you paying the commissions on time and accurately?
* Are the training programs informative, meeting the exact needs and entertaining at the same time?
* Are you providing all updated information your web site?
* Can your direct sellers keep track of their and their downline’s activities real time?
* Are you good in social media?

Obviously, this formula is no secret but you are completely wrong if you think all companies follow it. If you are confident that your company is good in these three, you definitely are in the right track.


lang: en_US

Post to Twitter

Spread The News!

Leave a Comment