In my business, I talk to people often about their goals and dreams. I am passionate about what I do and love sharing with others...
When talking with people about business opportunities (mine specifically or in general) I often hear the question "Why did you choose the company that you did?".
I believe it true that everyone in the industry who has an existing home based business - be it Direct Sales, Network Marketing, MLM - would have answers for that question. Not that any of them are right or wrong and I believe there are many legitimate opportunities out there for the "RIGHT" person. The problem is determining if you are the "RIGHT" person for that particular opportunity.
In my estimation it's important to find the right company for you because I believe your BELIEF determines your outcome and you have to find that true fit opportunity.
For those who are new or again exploring to find the right business to commit to and put your energies and resources into can be a daunting task....
It took me many "learning experiences" with things that did not quite fit me, my lifestyle and my goals to find the "RIGHT" opportunity for me.
By sharing the criteria I used when I found my business, one I've been with for over three years and plan on being with indefinitely, I might save a few of you opportunity seekers and possibility thinkers out there some time in narrowing down what opportunity might be for you.
To be successful and be able to stick with it for the long term the company has to be RIGHT or as I always say it has to be a "true fit" in your life. Depending on your present situation - children and family, jobs, commitments, health and so many more aspects of life - it's important you find a company where you can still succeed within your current lifestyle. Without changing your life, your job, what you do in your free time, your hobbies, your friends etc.
I credit my "learning experiences" in both the direct sales and network marketing industry as great stepping stones to finding and appreciating where I am at today.
My last investigation and research of my present company came when I would not have even considered myself actively looking. The company and opportunity found me in many ways. But as I investigated it and weighed it out I realized this was the right one for me.
Here are some of the criteria I used when evaluating my present company:
CONSUMABLE PRODUCT = REORDERS AND ONGOING RETAIL SALES
Consumable products in my estimation are the way to go! A product that someone will use or deplete in a reasonable amount of time meaning that they will need to purchase (reorder) more when they run out. An example would be the candles I sell in my business but also can include products such as cosmetics, nutritional products, cleaning products and the like.
In years and businesses past I was with companies that in my estimation marketed fantastic products. But the "shelf life" of that product was long term meaning there wasn't a reorder base in place and you constantly had to go out and find new customers. Companies that fall into that category include many home decor and home enhancement products, toys, jewelry and the like. Something a person might only buy once or twice but definitely not on a repeated basis.
Consumable products - in my case candles - allow me to continually market to my existing customer base by way of new products, occassions and holidays that call for more of my product, new scents etc. It means my customers will keep coming back for more! Repeat business means better retail profits!
UNIVERSAL ACCEPTANCE OF THE PRODUCT LINE - SOMETHING MOST EVERYONE WANTS
For me, candles fit the bill there too! I have been with other companies in the past who also had great product lines but ones that didn't necessarily appeal to everyone I met. I wanted a product that appealed to everyone - female or male, all ethnic groups, all income levels because I knew that would make the retail part of my business easier. The more sales you make the more successful you are!
In the past I'd been with cosmetic companies (excludes men), home decor companies (excludes people for various reasons including age bracket and income level, whether they own or rent and how much discretionary money one could spend on home decor) etc. etc. I'm sure you get the idea.
Personally I chose candles because it's pretty much a universal product to women. Most men I know also purchase them if not for themselves then for gift giving occassions. It doesn't matter if you rent or own. It doesn't seem to matter what economic bracket someone comes from. Candles are one of life's little pleasures and a feel-good product that appeals to everyone. Everyone loves a good candle and the home fragrance industry is big business!
FREEDOM FROM QUOTA-DRIVEN SALES PRESSURE
Quotas equal stress and headache in my book! I had been with companies like that in year's past and decided I was never going to shelve inventory for the sake of making a quota - or shelve a large autoshipment of product I'd never use to get my commission check due me - again!
In my direct sales past I found it was a struggle being a "part timer" with a full time quota in a business. Let's face it life deals you all kinds of things! While you might have a ton of sales one month something could happen to preclude you from having that sales volume the next. If you have a team under most of these comp plans - what do you do? You order products anticipating the future needs of your customers and shelve them. That way you get your check....but is that fiscally sound?
In 2001 when I "retired" from a direct sales company I had CASES of product plus my kit and lots of demo/sample items. I looked at it and realized it didn't make sense. I swore when I did join another company again when my son was older I would not join a company where I had to store a ton of products.
Quota-driven sales pressure keeps many ladies tied to the home party gig. Stop doing them and you stop meeting your quota....then you are in trouble! You may wind up missing commission checks. Keep missing your quota and it could signal the end of your business!
So you can't really take a vacation for a month or two from doing home parties can you? Don't get me wrong...I like home parties. I still go to a lot of them! It's a fun night out for moms. But I remember in 2000 and 2001 being a single mother with a full time job that already kept me away from home like 9 hours a day. My son was an infant and the thought of leaving him to do another home party to meet my quota no longer was fun! It was time away from him to meet a company's expectations of me. It was quota-driven sales stress I didn't want! When the business stops being fun....I did what should be done and I "retired" from that company in 2001!
My present company found me in 2005. There I was with a full time job and also a part time job so I was very emphatic that doing home parties could not be a necessity but an option - meaning IF I wanted to do them not because I HAD to do them. In my three years with my present company I've only done four home parties because I wanted to (for friends) not because I had a quota to meet. This business fit for me because I didn't have that quota-driven sales headache and it was okay to have a huge retail month one month and not sell anything the next.
All I have to do to get everything due me under the comp plan with my company is make my $39.95 a month purchase of the Candle Of The Month! How easy is that? The Direct Sales background side of me absolutely loves this! So any ladies or even the guys in direct sales out there who are under quota-driven stress or quota-driven headache, I've been there, done that and would be glad to share why what I am doing today is so much better!
RETAIL PROFITS AND BUSINESS EXPENSES
Another big consideration for me was the profit percentages and costs of doing business as a distributor. Having background in both direct sales and network marketing I was able to recognize the pitfalls each industry offers on a resale/retail profit level. And what the "hidden costs" could be for being with a company depending on their structure.
Products from direct sales companies usually have a retail profit or commission percentage you derive from selling it. I've looked at literally hundreds of companys' offerings. Some of these percentages are really low, even as low as 20% although the industry average seems to be about 35%.
Think about a typical retail business - a brick and mortar store. Have you ever heard of the concept of "keystoning your product"? That's the rule most brick and mortar retailers use....they must "key" their product - double their money or better on a retail sale to cover their overhead. Now before you jump in and say you don't have overhead when you work at home, yes you do! We'll talk a little bit more about that in a bit....
Products from a network marketing company are different. These are usually more consumer or distributor consumed (meaning the distributor and their family is the end consumer). Usually the retail possibilities with most of these products are minimal. Or if they do offer a retail-able product the profit margin is very small.
I chose my company because of the double-your-money and better retail profits I can earn at suggested retail prices. However I also have the flexibility of setting my own prices which I absolutely love! That means I can run specials and offer discounts for repeat customer loyalty without taking my profits down to zero or bare minimum.
What are the other costs of doing business...even if it is home based? There are costs and you have to do some checking around to find some of them sometimes. Are there sign up or renewal fees? Does your company provide a website or do you do so at your own expense? Can you order your marketing materials (say business cards) where you want or do you have to order from the company vendor? How about product catalogs? How often those change becomes important as this can be a big expense!
The company I am with includes the website in my monthly purchase so I get product to resell and the company website. There are no "hidden" costs which I really like. When exploring a company these are all considerations to be checked out.
A COMPENSATION PLAN FOR SPONSORING THAT THE AVERAGE PERSON CAN ACHIEVE
The compensation plan for residual income (commissions) is a major consideration especially if you are looking towards residual income to change your life indefinitely.
Of course you want to go with a company that is established, in good standing, with a track record of timely payments to it's distributors. That goes without saying....
But take a long hard look at the compensation plan for sponsoring. Do the math! What would it take to realize the kind of income you would like to see? Is it attainable to you, especially if you are new to the industry or haven't quite honed the skills to be a big recruiter?
I've never considered myself a huge recruiter but I am a successful sponsor and have built organizations in several companies in my background.
With direct sales companies I've found most compensation plans for sponsoring don't go deep or in order to do so it takes a rather large organization to realize significant residual income. Since most direct sales companies are naturally retail-driven, you can luck out on recruiting but I have found usually it takes more than what the average person, especially the part timer, are capable of.
With network marketing companies, many compensation plans are loaded with those direct bonuses for sponsoring. Which is great in a sense of large up-front payouts. But what happens when you stop sponsoring? Take time off? Those bonuses go away and the actual residual portion of the check isn't usually something that excites most - again unless they have a large organization under them. Again the criteria is usually more than what the average person, especially the part timer, are capable of.
The company I am with now has a very straightforward residual income compensation plan. Most in direct sales will find it exciting! While at first glance some network marketers may not, once they realize the full impact of a comp plan like we have they get excited because it's not bonus based. Meaning as they grow an organization they will have the freedom to take time out without worrying about their check decreasing! Isn't that why most people get into network marketing to begin with - freedom?
It simply takes 5 - and the power of duplication - to get paid on 6 levels no matter how wide the organization grows. No break-away groups or loss of income. You can actually promote and get paid on up to 8 levels plus leadership bonuses. So there is an unlimited residual income potential here....
But what's not unlimited is WHO it is available to! The average person can do this and succeed with our marketing plan.
THE BEST OF TWO INDUSTRIES - DIRECT SALES AND NETWORK MARKETING
Direct Sales and Network Marketing are both huge and respectable industries with millions globally earning incomes this way!
If you can find a company that appeals to both industries and works beautifully you can capitalize on the power of both those concepts and duplication! The company I am with offers that. Our program, our compensation plan, our residual profits and all the items covered above make it a winner for an individual who is in direct sales and a network marketer too!
With a background in both industries it thrilled me to find an opportunity that appeals to both! Thus I am very passionate about this fact and feel it sets the company I am with apart from most others!
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It is my hope that I shared some insight into my experiences, my background and things to look for in your search for the RIGHT company for you! True I shared a lot about my company and why it might be the one - but whatever opportunity you decide take hold of it, believe in it, make it your passion and GO FOR IT! Best wishes and see you at the top!
Dawn Mathisen
About the Author:
Dawn Mathisen lives in Southwest Florida and is self employed in her own Gourmet Candle Business. In the past she has worked in Corporate America and Teaching as well as owned several small businesses. Dawn has gone from Overworked Single Mom to Work At Home Mom in about three years and she believes in sharing her experiences and knowledge she's gained in these ventures with others. It is her hope to help those actively looking for the opportunity that is right for them. You can find out more about Dawn by visiting http://www.coolcandlebusiness.com or by emailing her at ScentsationalBiz@aol.com
