18 Feb

We have examined the most common problems in direct sales. The 6 keys to success in direct sales are derived from this

With its mindset, the human factor plays an essential role in direct sales. The human factor is not the content of this article and would go beyond the scope of this article. However, the mentality can only become effective when the necessary conditions are in place. As is well known, the better car in Formula 1 always has an advantage (prerequisites) over the better driver (human-mindset) with a disadvantaged car. In this article, you will learn more about the requirements for success in direct sales.

Surveys show that finding partners is the biggest problem for members in direct sales. An explanation will follow shortly. The 5th problem: Finding partners comes after priority as easy to recognize is only at the 5th place. If the problems and tasks are not solved before that, it is HARD to IMPOSSIBLE for those involved to become successful in direct sales. Details on direct sales can be found on the DIRECT SALES page.

The following chapters (6 keys) show step by step a methodical approach for success in direct sales. Starting with key number 1. Every key is a prerequisite for every other key to success in direct sales.

Key Number 1: Positioning – New category without competition in direct sales & insight

What is positioning?

Positioning is what a product or service does in the mind of the respective consumer. Positioning is therefore also called the “stony path” into people’s minds.

Why is positioning in direct sales so important?

According to Munzinger (a German author), 90 percent of the brands in Germany are insufficiently positioned. To be successful, however, a new free category with clear positioning is needed.

The example of HEALY shows us: HEALY is: “Frequencies for your life – Healy” and “This is the Healy: The Wearable for health – well-being – balance”. The example shows different positioning and the mixture of English and German language on the German website is also striking.

A very clear illustrative example, however, is the Wagner stone oven pizza. Both terms of the STONE OVEN and the PIZZA were already in the perception of the people and Wagner positioned himself correctly. As close as possible to the existing with a new category, the STONE OVEN PIZZA and became the market leader in the German market.

We decide on the category first. For example, we go for a beer and only then do we decide on the brand, i.e. which beer we consume. Therefore the category is of utmost importance.

The #1 finding on positioning in direct sales is:

It needs a generic name in a new free category in a competition context. The category must be first verbally than visually easy to understand.

What is your category in direct sales?

Stay tuned and find out more about key number 2: Sales Strategy – Blue Ocean Strategy.

Key number 2: Sales strategy – Blue Ocean strategy & insight

What is a sales strategy?

A sales strategy describes a long-term planned sales function within a marketing plan. To achieve Sales Excellence, the sales strategy is documented in writing.

The goals are SMART formulated and there is a process-oriented approach in direct sales. A sales strategy is clearly communicated and the efficiency of sales activities in direct sales is measured through constant monitoring and analysis during implementation.

YOU CAN’T MANAGE, WHAT YOU CAN’T MEASURE proclaimed Peter Drucker

Why is a sales strategy so important?

Most companies and players in direct sales are in constant competition (RED OCEAN). Very often it is only about the sales price of services and products, or they are replaced – substituted. The goal is always to take a position without competition in direct sales, to choose a BLUE OCEAN strategy.

Vorwerk’s Thermomix illustrates how a clear unique positioning and sales strategy was implemented in direct sales.

The picture above illustrates this position very impressively and speaks for itself (Chan Kim & Renée Mauborgne).

The #2de insight on sales strategy in direct sales is

It is a Blue Ocean strategy to be detached from the competition. Otherwise, the participants will be in constant competition.

What is your sales strategy in direct sales?

Stay tuned for more information on key number 3: Support structure in direct sales.

Key number 3: Support structure in direct sales & insight

Setting up a business in direct sales without a support structure is comparable to selling a Ferrari without a workshop for maintenance and service. Could this work? Probably not!

How many people would you have to ask to sell a Ferrari? Or is it better to pick up the potential buyer during his search? Read more: The process of business development in direct sales.

What is a support structure in direct sales?

According to Randy Gage (How do I build a multi level money machine), when choosing the right network in direct sales, the first question must be asked: Is there a functioning support structure? Since most companies end up with the product.

A functioning support structure contains solutions to problem number 1: Positioning – New category without competition in direct sales and key number 2: Sales strategy – Blue Ocean Strategy.

A support structure in direct sales provides the business partner with the tools necessary for building a business. Information is relevant for communication, directed to the respective target groups.

Why is a support structure in direct sales so crucial?

So that business partners find a system that provides essential support in achieving their goals. A support structure in direct sales provides the business partner with the decisive benefit so that he can become successful at all. This includes the definition of target groups, support in communication, and in the sales organization.

The #3rd insight into the support structure in direct sales is:

A functioning support structure in direct sales does not consist of a list of names and xx new contacts per day. Rather, a functioning support structure in direct sales includes positioning-compliant and strategic communication and supports the business partner in their activities with appropriate modern tools.

What is your support structure in direct sales?

Stay tuned and find out more about key number 4: Unique product in direct sales.

Key number 4: Unique product & insight

Many companies offer unique products. But what made a product unique? Here is a brief example of a product that probably every woman knows!

An oral contraceptive has changed the world of women. It first came onto the market in 1961 under the name Anovlar. The product would not be unique unless the CUSTOMER BENEFIT is also unique. But what is an oral contraceptive? This is the PILL! With the unique positioning (key number 1) PILL or ANTIBABYPILL, this unique product has conquered the female world. With the sales strategy (key number 2) via specialists, the product was offered and supplied to a clear target group. This would be without support structure (key number 3) was not possible in sales.

What is a support structure in direct sales?

According to Randy Gage (How do I build a multi level money machine), when choosing the right network in direct sales, the first question must be asked: Is there a functioning support structure? Since most companies end up with the product.

From this example, it is easy to see that even the best unique products and without the key 1-3 are lost and do not reach the perception of the customers.

Do we stick to the product and what makes it unique? It is the original customer benefit (the original need). If a product or service does not solve an original customer problem, it is likely to be short-lived.

Why is a unique product so crucial?

On the one hand, the product creates an effective customer benefit (an original – original customer problem) then it is also permanent. The second and further decisive point: If the early users are reached (early adopters), there is an opportunity to help shape and build the market.

Who would not have liked to bring TUPPERWARE to Europe, for example? Unfortunately, most of us were not yet active in direct sales at that time. Meanwhile, Tupperware is already available from Billa and Merkur. So there is little reason to become active there since the market is being played by many different sales agents. At that time, a good deal is definitely a good deal. Nowadays there is a MEGA CHANCE in the field of nutrigenomics, for example. Nutrigenomics is a field of research in which the findings of genome research and modern medicine are combined to develop preventive foods. These food and dietary supplements serve Mega-Trend Health. A unique product that solves an original customer problem can be found here.

The #4th insight into the unique product in direct sales is

Unique product YES – if it is already established in a market (not just being developed and maybe sometimes launched…). If there are solutions for positioning (key number 1), sales strategy (key number 2), and a support structure (key number 3) in direct sales. Otherwise, even the best unique product will not establish itself or be short-lived if no one understands what it actually is.

Are you dealing with a unique product in direct sales?

Stay tuned and find out more about key number 5: Finding partners, target groups for product and business development in direct sales.

Key number 5: Find partners, target groups for product and business development & insight

As mentioned in the first paragraph, the key number 5 – find partners only after positioning (does everyone understand the category what it is?) Sales strategy (positioning without competition?), the support structure (is the activity supported by positioning-conform and strategic communication and by up-to-date tools?), and an unique product (does the product solve an original customer problem and who buys the product – the Ferrari?) only in the 5th position.

If there are no effective solutions for the keys 1-4, it is HARD and nearly IMPOSSIBLE to find partners for the product and for business development. To make matters worse, if the target group for the product and for the business development is not defined, it is like you want to sell a Ferrari to EVERYONE. Is this possible? Not likely.

What is a target group?

A target group is a homogeneous group of market participants who are more homogeneous in their strategic communication than the overall market. A distinction must be made between the target group for the product and the target group for the business development. Both target groups are not the same homogeneous group!

Why is the target group so important?

The target group is therefore relevant so that the product is offered to exactly that homogeneous group that is very likely to make a purchase. Furthermore the target group is also important for business development because only that homogeneous group is interested in duplicating the business.

The #5th insight about finding partners, target groups for product and business development in direct sales is

The entire alignment of the business with the positioning, sales strategy, the support structure is already done according to target groups. If this is not the case, the problem of finding partners without defined target groups for product and business development will become an odyssey. Usually at the beginning with a lot of motivation and work, but in the end with little or no success.

Have you defined your target groups?

Stay tuned for more information on key number 6: The external observer in direct sales.

Key number 6: The external observer in direct sales

If an upline member leaves or changes a network, the downline usually “breaks down”. Mostly it happens after reaching the highest commission levels or the stability of the business structure was never given or is lost. The reasons for this are usually a too fast rollout, the simultaneous start of sales activities in too many markets, a too-broad target group, and missing or non-functioning complaint management. Then the downline is hit and most affected are those who receive the information at the latest.

Have you ever experienced this and why is it so? A very general explanation in brief.

Business development requires the management of a complex social system. Nothing is more difficult or more complex but is usually suggested to those involved as feasible. In reality for most participants with little success. Other reasons include lack of or inadequate positioning, lack of a sales strategy, inadequate support structure, and insufficient definition of target groups.

According to the system theory – cybernetics 2nd order, the observation of complex systems is already an influencing variable. So if the observer (the leader) leaves the system (the business structure in direct sales), the system falls back into its old form. In other words, if the leader leaves the business structure, the network falls back to its original state, because the participants without a leader leave the network in direct sales. The leader is usually the only one who offers some form of the support structure. Much to the regret of the companies. This can hardly be called sustainable development.

So what does it take for the system to survive with changing participants in direct sales?

The solution is relatively simple. As shown above, an additional observer is needed. This could be, for example, an external company that offers an appropriate support structure. Offering companies usually end with the product. Therefore it is necessary to develop a clear positioning. To establish an individual sales strategy for the market and to provide a support structure, so that – provided a unique product can be established.

The advantages of a support structure in direct sales speak for themselves:

  • Leaders participate even if the business structure is abandoned,
  • Downline participants also benefit when leaders leave the business structure and the business structure remains the same.
  • Furthermore, the offering company benefits from sustainable business development.

Sustainable business development can only work with an “external observer”. Thus all participants, leaders, contributors, and the offering company benefit.

How is this regulated in your network?

With BIOACKER.TEAM we offer a unique contemporary digital support structure in business development to reach momentum in business growth. We offer a unique opportunity to be part of a new launch right from the start. We have prepared ourselves thoroughly for this. If you are interested, we look forward to hearing from you.

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