Direct selling and Multi-Level Marketing (MLM) is another way to bring in extra money for your home and earn a living. This industry is generating multi-billion dollars right now!
Here is the catch.
Direct selling- everybody can do it.
But not everyone will succeed.
For some, direct sales/MLM is a fun business and these salespeople find themselves at being very successful in this business. But for others, direct selling/MLM is a waste of time and they end up losing money, out-of-business and burned out.
What are the common causes and reasons why one has failed in the direct sales business? This is an eye-opener for everyone not to slump into the same pitfalls.
4 reasons why you fail in direct sales
Thinking that this an easy and quick get-rich scheme, many independent distributors or sales representative join the direct sales business without doing their research. They don’t understand that they need to spend the time to learn the process and the system.
In reality, you need to spend at least six months to 3 years to master the methods. But most sales consultant will give up in less than three months. This will cause them to lose a lot of money that they invested in products that are not doing anything but collecting dust. Congratulations! You have just wasted a lot of money and time.
The secret of success for most fruitful sales consultant is to stick within the company. Trust the process, yes even if you are not generating profit. That could take as long as three years or more.
Reason#2: You joined a company on a whim
Some independent distributor or sales consultant failed in direct sales because you got caught up in the moment and did not do your research. You did not know much about the products, marketing plan, and the support system.
It is very important to ask yourself the four basic question before joining any direct sales. It is a step to avoid wasting your time and money.
Try to ask these questions:
First, do you actually like to use these products?
Second, are you willing to put in the time to market the products? Keep in mind that with direct sales it is very essential. That includes creating and maintaining a presence on social media.
Third, ask yourself if you have the potential contacts or people who may buy your products or recruit. Keep in mind that some people are annoyed with direct sales and MLM marketing tactics. Are you willing to annoy or even alienate friends and family? If you have not listened to the podcast The Dream Podcast, I urge you to take a listen. It explores the dark side of direct sales/MLM.
And finally, ask yourself if you are willing to work or sacrifice to grow your direct sales business.
If most of your answers are no, then do not go through with direct selling/MLM. You will be wasting your time, effort, and money.
Reason#3: Your support system is nonexistent
In the world of direct sales/MLM, sponsors or mentors plays a vital role. They must be there to guide, train and motivate you on how to become successful in this business.
Now, if you are a type of person that has strong personal skills or are self-motivated, your sponsor’s presence will not be quite important for you. That characteristic will help your ability through the process.
But if you are a novice then selecting the right sponsor is very important. They will help to ensure your long term success. This will be done by teaching you their techniques as well as to give you the best motivation. If you don’t have the right support system, then there is a high probability that you will fail in the direct sales business.
So it is better not to pursue to avoid wasting your time and funds.
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Reason#4: Wrong mindset
As a salesperson, you need to communicate with a lot of people frequently and constantly. What happens when your personality doesn’t fit? Or you are not comfortable in explaining or selling your products. You need to have a paradigm shift. From an employee mindset to an entrepreneurial mind. Change the mindset to a growth mindset!
Talk to as many people as you want. Proceed with caution as you contact your friends and relatives. Do not hesitate to share the product’s features and benefits. Make this a part of your routine and do this consistently in six months to three years and you see the good result.
If you will not change your mindset success will continue to elude you on this venture.
Direct sales and MLM is definitely not for everyone and the bottom line is most people will not become very successful. What has been your experience? Have you beaten the odds? Or do you have a cautionary story to share? Leave your comment below.