Starting a direct sales business sounds like a dream come true, but laying the right foundation is key. If you’re interested in starting a direct sales business, there are things you need to consider before you take the plunge. Learn more from the experts at Kaeser & Blair below.
Questions to Ask Before Starting a Direct Sales Business
What need are you filling?
Before you start selling a product, you need to know why you’re selling it to begin with. Why do people need your product? If you’re selling promotional products, for example, you’re filling the need of businesses trying to promote their services with a proven marketing tactic. Businesses need promotional products, and you can be the one to provide them.
What is your target demographic?
Who do you want to purchase your products? Is there a certain industry you want to work in, or are you targeting people in a specific age range or background? If you have personal experience in a certain industry, you may want to target businesses who do work you’re familiar with. Continuing with the promotional products example, you may want to specialize in working with small businesses or businesses within a certain industry you know. If you’ve worked in retail, you may want to target local retail establishments since you already know the business.
How much can you invest upfront in your business?
All direct business opportunities require an upfront investment. The obvious cost is purchasing the starter kit that comes from the business you choose to work with, but other costs can add up quickly. Remember, you need to market yourself! Business cards, product samples, office supplies, advertising costs, and more could cost more than you think. However, these tools are necessary for getting your name out there.
Tips for Starting a Direct Sales Business
Know your product.
Knowing as much as possible about your product will help prepare you for any questions your customers may have. Do industry research, talk to other experts, and attend conferences whenever you can. Learning as much as possible will position you as a leader in your selected industry.
Use social media.
Social media is one of the best marketing tools you can use to get your name out there. Start on one platform at a time if you haven’t used social media for businesses before. Show off your products, advertise sales, and generate public interest by engaging with your followers. We have a series of social media tips you can check out here.
At Kaeser & Blair, we recommend setting S.M.A.R.T. goals: specific, measurable, attainable, relevant, and time-based. “Make money” isn’t a good goal to set because you haven’t defined the parameters of what that means. Instead, focus on getting new clients or making a certain number of sales. For example, “onboard three new clients by the end of the year” is specific, measurable, attainable, relevant, and time-based.
Practice good sales techniques.
When trying to make a sale, do your best to stay calm and collected. Don’t try to pressure your potential client into purchasing a product, and don’t try to guilt people into buying something from you. Rather, make sure you know your products, do your research, and be yourself.
Ask for referrals.
Referrals are some of the most powerful and effective ways to get new business. Getting your first sale can be a challenge, but once you’ve had a successful experience with someone, ask if they know anyone else who could also benefit from your services. Though it may feel awkward at first, referrals are an essential part of growing your business.
Learn More from Kaeser & Blair
If you’re interested in learning more about starting a profitable direct sales business, Kaeser & Blair is ready to help. With over 100 years in the promotional products business, we have helped thousands of entrepreneurs get started in sales. Contact us to learn more!