"Direct Selling provides and opportunity open to absolutely everyone, regardless of background, specialized skill or capital worth" - Paul Zane Pilzer
5 Factors to Consider When Choosing a Direct Sales Company (Plus, Which Companies are the Most Profitable for the Individual Distributor)
Want to know which direct sales companies are the most profitable? First, let's create some context around the question. Which direct sales companies are the most profitable for who? For the company or the for the direct sales distributor?
If you want to know the most profitable direct sales companies, it's probably Amway or forever living, or one of the big direct sales health and wellness companies, but if you want to know which companies are going to create the most profits for you, I recommend a high ticket direct sales company where you can maximize your commission on the front end.
When choosing a direct sales company, there are several important factors to consider, including:
1. Products: Consider the product line offered by the company and whether it aligns with your personal interests and values. Research the quality and demand for the products to ensure that you will be able to sell them effectively. You will be the most successful when you are a product of the product. So make sure you choose a product or service that you believe in because the first person you need to sell is yourself.
2. Compensation Plan: Research the compensation plan and understand how you will be paid for your sales efforts. Consider the commission rate, bonuses and incentives offered, and any requirements for advancement. You will also want to get an idea of your goal income and determine how many sales it will take to hit that goal. So if your goal is $10K per month, and you make $100 every time you make a sale, you will need 100 sales per month to hit that goal. But if your average commission when you make a sale is $2,000, you will only need 5 sales per month to hit your goal. One option is clearly superior in my opinion. I would much rather have to make less sales and have to deal with fewer people. Plus, you will often find it takes the same amount of energy and effort to make a several thousand dollar sale than it does to sell something for several hundred. You can attract high quality customers as well who are easier to deal with.
3. Market and Competition: Research the market demand for the products offered and assess the level of competition in your target market. Consider the company's position in the market and whether there is room for growth. For example, there are a lot of me to products in the health and wellness space. If you are going to go into an industry that is completely saturated, you can still have success, but your product has to have some elements that really stand out among the competition. Ask yourself, how is this different than the common options you will find in the marketplace, because if your customers believe they can buy basically the same thing you offer at Walmart or GNC for a fraction of the price, that is not a recipe for a profitable or sustainable business.
4. Training and Support: Evaluate the level of training and support offered by the company, including training materials, mentorship opportunities, and marketing support. This is a factor that is often overlooked. Many direct sales companies offer tremendous training and mentoring just for being a distributor. It almost makes up for the fact that many distributors go years and years without turning a profit. Just be careful you don’t end up one of them by taking action and avoid the trap of being in constant learning mode and never taking any action.
5. Company Culture: Consider the company's values, mission, and overall culture to ensure that they align with your own. Look for a company that supports and values its representatives and offers a positive and supportive environment. Do they offer weekly group trainings? Are the group webinars more than just company ra ra events, but actually have training substance and value?
It's important to thoroughly research and evaluate these factors before making a decision on which direct sales company to join. Additionally, seeking the advice of successful representatives within the industry can be beneficial in making an informed decision.
Which direct sales company is most profitable?
You do want to make sure you are joining a direct sales company that is profitable at the corporate level because you want to join a company that can stand the test of time and competition.
It's difficult to determine the most successful direct sales companies as success can be measured in various ways, such as revenue, number of representatives, brand recognition, and customer satisfaction, among others. However, some of the direct sales companies that have been consistently successful over the years include:
- Mary Kay
- Rodan + Fields
- Nerium International
This list is not exhaustive and there are many other direct sales companies that have found success in the market. It's important to note that success in direct sales can also depend on the specific circumstances of each case and individual effort.
Which direct sales company is most profitable for the individual distributor?
It's difficult to determine which direct sales company pays out the most to its distributors, as it can vary greatly depending on factors such as the company's compensation plan, sales volume, and individual performance. Some direct sales companies have a higher commission rate, while others offer bonuses and incentives based on specific goals or sales milestones.