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Posts Tagged ‘direct selling’

The Most-Asked MLM Consulting Question

Thursday, September 29th, 2011

As consultants in the fast-paced world of direct selling, we get a feel for the most-asked questions of MLM consulting firms.  The most-asked question we receive is, “Will my mlm business work?”

Other questions include these:

  • How can I find investors for my new MLM company?
  • What are the steps to launching my MLM startup?
  • Can I start my MLM enterprise in 90 days?
  • How do I get my first 500 MLM distributors?

The list goes on.  Importantly, as mlm consultants working closely with mlm consulting issues, I think that the most important question should be asked by us to our client:  “What do you have that others need, that is so valuable and worthwhile that direct selling becomes the most efficient and effective way to get the word out?”

The corollary might be, “What are you absolutely passionate about, and what are you best in the world at doing?”  With vision and leadership, you will really go places.  The direct selling business is booming!

Ask any MLM consultant or consulting firm!  They will agree.

Here Comes the MLM Boom!

Monday, August 29th, 2011

It’s that time of year!  MLM and Home Party companies are gathering around the country in conferences and conventions.  As summer vacations come to a close, MLM and Home Party reps are once again open for business!

MLM and Home Party businesses have fared well during the recession, and September through November are traditionally peak enrolling and selling months of the year.  It’s also the time of year when people begin to stay home and socialize there, rather than going out and spending more money.  In 2009, retail sales fell around 9 percent, according to DSA’s statistics; direct sales fell as well, but only by 4 percent. In 2010, direct sales actually rose slightly, from $28.33 billion to $28.56 billion.

“During a recession, people are spending money, but they’re spending it a little bit differently,” says Amy Robinson, Vice President of Communications for the Direct Selling Association. “A woman who maybe buys a $200 suit every season may decide to buy a $25 necklace to accessorize what she already has.”

At the height of the recession from 2008 to 2009, the number of direct sellers jumped from 15.1 million to 16.1 million, before adjusting to 15.8 million sellers last year.  It’s still a powerful indicator of the strength of direct selling.  Direct selling companies are always hiring!  Startup kits range anywhere from $19 to $199, and a person can get started immediately when the idea sparks their imagination and dreams.

At LaunchSmart, we have seen a steep increase in the number and frequency of visitors and inquiries at our website.  People want to know what it takes to start a company, bounce their ideas against our executive sounding board, and take advantage of all of our resources that have been created to help them start and successfully operate a MLM or home party / party plan company.

Competency 9: Commissions

Friday, April 15th, 2011

The commission processes for MLM and Party Plan Companies are the main attraction for everyone.  Thousands of hours of effort culminate this event, bringing fervor and expectancy from both field organization and company alike.  The validity of the compensation plan and its business processes are uncovered for all to see.  When the experience is successful and as expected, confidence peaks.  When it’s not, the clock begins a fast countdown to disappointment and suspicion.

When home office staff views themselves as a team and when accountability is expected from department heads, problems are taken care of.  When everybody realizes that they play a role in assuring accurate commissions, management magic happens.  Once the main event arrives and obstacles are handled upstream, the burden of the system administrator’s job is lightened.  We preach cooperation and unity, with the successful commission experience as your target.  It’s the main installment in Happy Distributors.

To set the stage for commission processing and checklists, we first make the case for consistency in processes.  The commission process begins the moment a new account is entered, or an order is entered, or credit card information is entered, or adjustments are made, and so forth.  And, the accuracy of a commission run is placed into jeopardy whenever anybody places an order on hold, makes adjustments without understanding all of the implications (and thus, the importance of selecting and training the right people, and then trusting them and holding them accountable), and dozens of touches in the critical path of an account and an order as it navigates through the system.

Accurate commissions truly are the responsibility of every employee.  In the grander scheme, the company has three promises to keep, and all employees are engaged in this quest:

  • Product promise (quality product delivered on time)
  • Commission promise (accurate commissions paid on time)
  • Service promise (caring, competent, consistent service whenever needed)

We can promise you that once you have business processes in place, and your company is consistent in adhering to policies that support these processes, you will obtain consistent results.  Be sensitive to the risks associated with replacing these principles with your own rules that may go outside the framework we have presented in the Business Process Guide. There is much to be learned from those who have gone before you.

Importantly, never, never, never allow policies to dictate.  Encourage innovation, and provide clear channels for improving processes in ways that respond to the recommendations and requests from front-line employees who will always be your best and greatest hope for identifying the gremlins and small nits that often result in great variances away from intended trajectories.  It’s universal that small defects in your processes in the early days of your business will only appear as the company grows.

Instead of looking for people upon whom to heap blame and shame, accept that change will be constant and that great leaders understand and embrace the growth (personal and professional) that comes to all who work together to build a great organization.

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