How To Grow And Scale Your Network Marketing Business

Direct selling is an effective way to earn money and offers several advantages for the network marketer. Minimum dollar investment, maximum returns, and a lot of social benefits ensue for the business based on social benefits. New sales consultants also need to be included in the team. Growing and scaling the network marketing business means working round the clock to ensure effective planning and management.

How Direct Selling Works

Indirect selling/MLM/network marketing business, consultants/distributors offer products and services straight to clients in the absence of physical retail units. Sales take place through one-on-one contact. Direct-selling companies operate as MLM businesses. This means the compensation for sales reps is based on direct product sales and sales rep recruitments.

Direct selling distributors recruit associated into the fold and then receive commissions based on the representative’s and the recruit’s sales. Pyramid schemes work the same way, although the difference between MLM and pyramid scheme is that the latter relies on recruitment only, and not product sales, for revenue. To prevent direct-selling ops that minimize recruitment over sales, it is essential to have effective MLM software that serves as a means of enhancing planning and ensuring smooth and seamless operations.

How to Grow Your Business:

For growing the business, you need to focus on how to grow your profits and scaling effectively. Whatever scale is set out for the direct selling endeavor, what is essential is that the success of the business depends on planning and coordination. For this, network marketing software is important.

Choosing the Right Product:

For direct selling businesses, selecting the right product is imperative. You should be able to relate to the product you are selling. It is harder to sell something one does not feel strongly about. You need to be willing to stand behind the product. Watch out for products with health claims. Check if the goods are durable, as well. Check the quality of the product. If the product is consumable or not, reputation and quality are important factors in building a repeat customer base.

Evaluate the price of the product as well. You also need to be clear about the customers who will purchase the product and whether your network marketing business will be able to offer them what they are looking for. Is the product a necessity or a luxury item? Luxury items have higher price points and do well across the holidays. In tough economic times, sales of luxury items become harder.

Understanding Cost and Compensation:

Understanding compensation plays an important role in choosing products and formulation of the business plan. Some compensation plans stress on sales, while others focus on recruitment. In unilevel plans, one recruits as many people to the down-line as one can and they stay in the down-line as long as one continues selling. This is referred to as the party plan. Derive monetary success by recruitment as much as by sales, both for the individual and the down-line.

Stairstep or breakaway plans, on the other hand, require new distributors or associates one is recruiting to break away from the downline so they reach a predetermined number or volume of downline distributors of their own. On the flip side, one can break away from the up-line too. The plan emphasizes sales as opposed to recruitment.

Binary, as well as other compensation plans, are limited to two distributors at the top of the down-line plus sales volume in the down-line, which determines the success. These plans come with weekly payouts. There are similar types of plans with different levels of down-line and distributors.

Along with choosing a type of MLM compensation plans, research the fees and terms associated with specific plans. For this, you need to be clear on several scores.

Firstly, you need to study the cost of the starter kit. It needs to be in line with the product cost and affordable for you. Next in line is the commission structure. Higher commissions are more effective, but the commissions too high could signal an overpriced product, making it tougher to sell and an ineffective short-term strategy.

Check the monthly maintenance costs. If one sells only occasionally, this becomes an important question, as fees can eat up profits. Selling back unsold inventory is important. Consider if the company offers large incentives for piling up inventory through the volume discount too.

Next, you need to create your direct sales business plan. While direct selling is easy to set up, one still needs a plan. A clear business plan outlining the essential steps any entrepreneur should take into account while outlining a new venture is important. Review your reasons for getting into direct selling. Think about your strengths and weaknesses and determine the enterprise scope. Understand the overview of the compensation structures and be clear about what to search for in a product.

Networking for Marketing Success:

Once the amount of time is realistically determined, one can devote this to direct selling and speaking with those who sell your desired product. Set short term and long term goals as well as recruitment goals. While making a product choice, one can come up with ideas of the potential customer base, but now one needs to look at the market closely. In case there are many other sellers of the product in the personal network, you need to be able to find a new market segment.

Direct selling can be a complicated business, but most profitable, if one gets it right. It takes single-minded dedication, and direct selling businesses net success only if they set a game plan. One needs to understand what exactly the goals are and set a specific timescale. You also need to cast your net wider. Direct selling requires persistence and hard work. It also requires the best MLM software for setting up shop.


For the best direct selling network, you need to think ahead of the game and work on how to provide your marketing partners with a competitive advantage. Choose the best network marketing software and give your business a competitive advantage in the right direction. Opt for Ventaforce, the premier MLM software for boosting the productivity of your direct networking business. This comprehensive network marketing software is exceptional for direct selling businesses seeking growth and profits.

Ventaforce is a go-to software solution for network marketing companies that seek to grow and scale. Find out how Ventaforce can be used to bring positive outcomes and boost the productivity of your direct selling business. Do visit our website, and our Facebook, LinkedIn, Google Plus and Twitter pages too. Learn more about this on the exclusive YouTube channel.

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