Misconceptions About Direct Selling (From an Entrepreneur’s Perspective)

Direct selling from many aspects is a unique industry. Many people who have not studied these aspects well enough build misconceptions in their minds. And these sooner or later might lead to failures if not corrected.

Here are some of these that I have encountered during my career in direct selling:

It is extremely easy to set up a direct selling / network marketing company.

Well, if it is to only incorporate it in compliance with the laws, then it usually is easy. Otherwise, “Look at that direct selling firm. We should do the same. Let’s find few ladies, provide them with the products, and that’s it” approach is bound to fail. Success requires considerably more than this.

Today, it is the Internet that prevails. Face-to-face is old fashioned. Let’s set up a web shop for people to visit and buy from us.

The Internet for sure has become an integral part of our daily lives, including those of direct sellers’. Today, they do many tasks on the Internet that they previously did through call centers and by sending faxes. However, the Internet has not replaced face-to-face communication. Rather, it has enhanced it.

Direct selling is only for cosmetics and diet products. Ours is an entirely different product category. So, this channel would not suit us.

All goods and services that one can think of benefit from this channel. You might want to check here the long list of product categories that the US Direct Selling Association’s members are selling.

Our product line has a highly prestigious image. This image will be ruined in the direct selling channel.

Now, you’re telling me that a product’s image can be so negatively impacted depending on the sales channel. Please just close your eyes for a moment and think of few products with a quality image in your mind. Then, please tell me where you saw (and probably, bought) these products the last time.

The compensation plan is everything. If we develop the highest paying plan, noone can outpace us.

To have a good compensation plan is important. It is not possible to succeed without it. But it is not possible as well, if you don’t have products that are in demand and if you don’t have a professionally-managed home office.

We are capable of developing a very good product line, a sound compensation plan and bringing together highly talented staff. But the most difficult part should be building the field.

Not exactly. Sales force is important as it brings growth but if you have really achieved all these like you say, believe me building the field organization will be an easy part of your venture.

The first line of networkers are of utmost importance. We need to select them very carefully.

You won’t be able to select them with a precision. Many of those you had thought would succeed, will fail. And those you did not approach because you had thought would not fit in, will be successful in some other organizations. It is always good to have strong first liners but this is not a vital issue for your long term success as many strong leaders will emerge afterwards.

There are highly successful leaders in that organization. We should convince them to join us as our first line.

You don’t really have to do this. There are millions of people out there looking for a financial way out for themselves. Plus, you don’t want to be tagged as “proselyter” from day one, are you? As long as you do the necessary homework, believe me all those successful leaders out there will knock your door soon.