By Joey Marcelo, CEO of Santé
Published on June 17, 2020–The current global health crisis has caused countless people to lose their jobs and struggle financially, especially that they cannot leave their homes due to lockdowns or fear of contracting the virus.
Amid these challenges, there are still ways you can earn while staying at home. And, for those who are business-minded, direct selling is certainly one of the best options.
As a form of business strategy, direct selling allows you to directly sell to customers without the need for a middleman in a non-retail environment. It is also a classic work-at-home business and a great way to earn extra money while having a good home-life balance and a flexible schedule.
According to a survey by the Direct Selling Association, 79 percent of business owners see direct selling as an attractive option for entrepreneurial opportunities. A Statista survey also shows that almost 1.4 billion U.S. dollars of the direct selling industry’s retail sales were generated in the Philippines, which significantly increased from 2013 to 2018.
How does Direct Selling work?
Direct-Selling businesses typically use the Multi-Level Marketing (MLM) model, where distributors can directly sell to customers and build their own independent sales force. It can either be by recruiting, training, or motivating others to distribute the same products and services.
Selling the products are usually done through one-on-one contact, but it can also take place via phone, in a customer’s home or office, social media, or on the Internet. So, embarking on this business is a good opportunity for you to have a good source of income, amid the health crisis.
What do you want in Direct Selling?
Understanding how direct selling works is one important thing but, being the one doing it is different. Direct selling is not an instant millionaire business. It will take passion and hard work to achieve success in this field. While some do it full-time, others only do it as a means of secondary income—this is one of the first things you need to determine.
Is it going to be a full-time job with future business plans or just a way to earn a little cash without committing a large amount of time to it? What would be your main motivation for being a direct seller?
There are no wrong answers to these questions but, you need to know first why you are embarking on this business. Your answer will help you determine your plans and overall goals.
Direct Selling is a good start to train your skills in sales, because of the low initial investment and positive support of the people around you. Eventually, you will also know that it is an exciting and sustainable business that can help you achieve success.
What products to sell?
Choosing a product is not a big issue since direct sellers also usually like and use the products they sell. However, as a seller, you need to understand what the product is, including its components, ingredients, benefits, etc., before selling them.
The product’s quality is incredibly important to create a base of repeat customers and, the same goes whether the product is consumable or not. Another setter for the product is how you, as a seller, think about the product’s quality. Do you use the products you sell? Is it effective?
Another factor is the relevance of the product. It also pays to know what customers currently demand. With the present health crisis, people need essential goods like food, as well as health and wellness products that can help them boost their immune system.
What are the costs and compensation?
There are three types of compensation plans that direct sellers or business owners may consider for their business:
1. Unilevel – Recruitment is prioritized, but the sellers and recruits cannot break away from their upline to create their own downline.
2. Stairstep – Recruits can eventually break away from the downline when they reach a predetermined number of downline distributors of their own. This plan emphasizes sales over recruitment.
3. Binary – In a binary plan you are limited to two distributors at the top of your downline, and sales volume in their downline is the source of success. Typically these plans have weekly payouts. There are many similar types of plans with various numbers of distributors and levels of downline.
Business owners also need to determine the other costs they need for starter kits for the recruits, commission structure, monthly maintenance fees, and the possible limitations of the amount of inventory at their disposal.
How to reach customers?
Finally, business owners need to find ways to reach their product’s target audience. It is important to create a customer base that will help you reach more buyers and build a network of recruits to join the seller’s downline.
With today’s digital tools, direct sellers can now create a website or a social media page in addition to the old ways of reaching customers. It will help build a network of go-to-customers and expand the business, as well.
Connect to sell
Direct selling has had a bad reputation in the past, nothing more than a pyramid scheme. However, there are still companies with integrity out there that utilize this effective business model to sell products and care for their direct sellers as true business owners and partners—this is what Santé is all about.
Amid the current global health crisis, we know that some lost their livelihood. And so, as an active player in the distribution and direct selling industry, Santé will always be dedicated to helping uplift lives by providing opportunities for those who want to jumpstart a direct selling business.
At Santé, the grass is always greener. Our premier organic health and wellness products and services are designed to help people live more and do more. The company has developed a comprehensive selection of everyday barley-based products, with Santé Barley, as our flagship product.
Barley grass is an effective antioxidant, rich in vitamins and minerals that help keep your immune system functioning optimally. It also detoxifies the body and aids in maintaining digestive health. Our products are also made, specifically, with organic pure barley, as certified by BioGro, New Zealand’s leading organic certification agency.