Direct Selling & the National Economy

Direct Selling & the National Economy

By Amy Robinson

In a recent edition of DSA’s weekly publication, InTouch, a number of executives from some of the top companies in the direct sales channel weighed in with their insights and expectations for direct selling in 2012.

It comes as little surprise that each executive expressed great excitement and optimism for what lies ahead in direct selling. Our industry offers an incredible opportunity to men and women of all ages, races and educational backgrounds. Our companies and their distributors participate in countless philanthropic efforts at home and abroad, and many of our companies have received recognition for taking the lead in eco-friendly and environmental awareness initiatives.

It’s easy to recognize how this industry positively impacts the lives of millions around the world, but in many cases that impact isn’t fully represented in the national or global economic picture.

To borrow words from AJ Deeds, President of DSA member Loving Works, LLC: “One of the most significant issues for direct selling companies is that the jobs we create aren’t counted in national employment statistics. One of the underlying barriers to direct sales is that we’re not often acknowledged as a major contributor or even seen as a real player in the economy, and that’s something that needs to change.”

I think it’s safe to say that most every man and woman who works in direct selling has probably pondered a similar thought at some point or another. With a clear focus by lawmakers on creating income opportunities (for example, the American Recovery and Reinvestment Act (2009), the Hiring Incentives to Restore Employment Act (2010), the Education Jobs Act (2010) and the Small Business Jobs Act (2010) – which created a $30 billion fund to provide capital to small banks in order to increase lending to small businesses, just to name a few) why hasn’t much attention been paid to the direct sales channel, which offers nearly 16 million people in the US alone a unique business opportunity and, for many, a much-needed source of income?

Direct selling provides countless college students with extra income to put towards education loan payments. It empowers stay-at-home parents to fulfill a lifelong dream of owning a business while balancing their family obligations. It motivates military spouses to own and operate a successful business even when military obligations require them to move frequently and often on short notice. It enables retirees to earn extra income, and many others the ability to support their families without the stresses of 9-to-5 life.

As AJ said himself: “While we have more success stories than can be counted, we are rarely considered for, much less invited to, the national leadership table. By bringing the stories of our industry forward in 2012 to a national stage, we, the direct sales channel, can represent part of the economic solution.”

It’s unfortunate that an industry that generates more than $28 billion for the U.S. economy each year through sales alone, not to mention other sources of economic impact, isn’t recognized for the potential it holds to solve at least a portion of our country’s unemployment situation. With that in mind, perhaps 2012 is the year where direct sellers everywhere can focus on spreading the word about the opportunities we offer to work toward recognition as an economic force that changes people’s lives.

Amy Robinson is the Direct Selling Association’s Chief Marketing Officer and Senior Vice President.

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How To Offer Incentives Without Cutting Your Price

Offering incentives in small business can be a bit of a challenge, but it can also benefit you in terms of customer relations, customer retention, and of course sales. However, it can be risky to base all of your incentives on price cuts, so consider some alternatives when creating them.

Tokens/Tickets/Vouchers – One cupcake shop in Columbia, South Carolina created a special incentive to attract customers on last fall’s Small Business Saturday movement. For every dozen cupcakes purchased at regular price, the customer would receive four tokens, one each good for a free cupcake. To sweeten the deal (pun intended), the owner allowed the tokens to be redeemed right then and there if the customer wanted. This was a brilliant idea, because most businesses, big and small, make customers wait until a future visit to redeem such an incentive, and often with an expiration date that creeps up sooner rather than later. Using tokens, tickets, or vouchers and rewarding your customers on the spot shows your appreciation for their patronage.
Loyalty Programs – A great deal of businesses have some form of a loyalty program in place for frequent shoppers, but take this idea to the next level by offering your customers something really special. For example, the children’s clothing giant, Carters, gives each customer a card that gets a stamp for every $20 spent. After 5 stamps, a 10% discount is applied to the next purchase. This is pretty standard, but you can use this idea to your advantage. Instead of a discount, you could offer a special shopping day where he or she would have exclusive access to new products before they’re made available to the general public.
Individualized Product or Service – Based on a customer’s purchase history, you could offer a product/service that he or she would be particularly interested in. For example, say a customer regularly buys a certain type of hair product from your cosmetics business. Because you know what this person wants and needs, you could offer a free consultation for a new hairstyle, color, or shampoo and conditioning treatment. Providing individualized service to your customers improves relationships and gives them more reasons to come back.
Free Gift With Purchase – This really works well when you can purchase items at wholesale that have a higher perceived value. Additionally, you can promote a higher-priced item by offering a free gift with it. For example, select a product or service that you want to interest your customers with; if they buy it, they could also get a free custom-printed t-shirt designed by a local artist, or a free canvas tote bag with your logo printed across the front. The benefits here are two-fold: the higher price you can charge for the item will help offset the cost of your free gift, and you are also advertising your brand by distributing your merchandise to your customers.

By thinking outside the box, there are endless possibilities to the incentives that one could offer. What are some of your ideas for non-price related incentives? Please share them in the comments section below!

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DSEF & CBBB: Help Prevent Your Facebook Account from Being Hacked in 3 Easy Steps

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Help Prevent Your Facebook Account from Being Hacked in 3 Easy Steps

There are several quick steps you can take to avoid getting your Facebook account hacked. These include:

Make sure that your ‘Secure Browsing’ is enabled – That means your browser uses Https instead of the standard connection. How to change your setting: While on Facebook, look at your URL address in the browser. If you see “http:” instead of “https:” you DO NOT have a secure session. It’s easy to change. Just go to Account (upper right) click Account Settings… Then Security – click Change. Check box (secure browsing), click Save.
Regularly change your password – Get in the routine of changing your password often. Try to use a combinations of upper & lower case numbers/special characters and don’t use any parts of your first or last name.
Enable login notifications – Click on Account Settings … then Security … then enable login notifications. This will cause Facebook to notify you when your account is accessed from a computer or mobile device that you haven’t used before.

And finally, don’t click on suspicious links while browsing Facebook and never give your login info to anyone.

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

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Target Marketing For Small Business

With so many different marketing methods being used in business these days, it can be overwhelming to decide which is right for you. One should consider the use of target marketing, which is dividing your market into specific groups and concentrating on just one or a few important components. For example, a pet grooming business specializing in grooming show dogs could implement a direct mail campaign (snail or electronic) that reaches only particular dog owners rather than advertising in a newspaper that would reach a much larger market. The first step is to define your target market; then you can develop strategies to advertise your business directly to them.

Defining your target market, or “niche”

Decide why a person would make a purchase from you. People usually buy something for at least one of three reasons: to solve a problem, to meet a basic need, or to make themselves feel good. Sorting your target market into one of these categories will help you narrow your focus to a smaller group.
Consider the demographics of those who could use your product or service. This information includes age, gender, income, education, marital and family status, and ethnic and/or religious background. You’ll be able to invest your marketing dollars more wisely if the information you gather about your target customer is specific.
Consider the psychographics including lifestyle, social class, activities, and attitudes/beliefs. This additional information should allow you to form a picture of what the ideal prospect would be like. From there, you can figure out where they would be exposed to different types of advertising.
When creating a target market, or micro-niche, you should make sure that it is small enough that you can be a competitive force, but not so small that there isn’t enough money to be made. For example, Amazon has pretty much cornered the market on the online sale of books, DVDs, and digital media, so trying to compete with them would be futile. Similarly, construction of birdcage perches exclusively out of recycled material is too specific and would appeal to such a small number of people.

Examples of target marketing

A direct seller for a higher-end jewelry company knows that her customers are mostly women in their 30s-40s who like a well-polished look that includes a versatile wardrobe, a contemporary hairstyle, and manicured nails. Advertising to this target market can be done via fashion blogs, hair and nail salons, and local clothing boutiques.
A small business that offers in-home photography sessions knows that its target market is parents of newborns wanting professional pictures without the hassle of going to a studio. This demographic can be reached via parenting magazines and websites.
A pastry shop that specializes in custom-made freshly-baked desserts knows that its target market is mostly made up of local business owners and private party planners. Reaching this group can be done via vendor fairs and event hosting expos.

The key to target marketing is deciding who that small group is and then finding the best approach to reaching them. Don’t be afraid to ask questions of your current and past clients to get to the information you need. You will save money budgeted for marketing as well as being able to build your business based on those who have the greatest interest in your product or service. How have you defined and reached your target market? Share your ideas in the comments section below!

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Selling You

There is a significant difference between buying something and being “sold.” Your customers want to have confidence in not just the product or service, but the person representing it. For this reason, it is important to sell yourself effectively and open doors for new opportunities.

Be Yourself. As obvious as this may seem, it’s a pitfall of many people in the sales industry. Don’t try to do and say what you think the customer wants to see and hear; people are turned off by lack of sincerity. Identify your strengths and highlight them in your customer interactions. This will also make a relationship you build easier to maintain.
Make a great impression. The average consumer is bombarded by advertisements in their various forms all day long. What can you bring to the table that will impress your customers? Plan ahead what your objective is for that specific situation. This way you won’t have to rely on a generic sales pitch that may not relate to the circumstance or may not have any relevance for the person to whom you are selling.
Demonstrate good character. “Our character is what we do when we think no one is looking.” With this quotation in mind, conduct your business with integrity. If you promise something to a customer, make sure you can deliver. This also applies to the way you interact with customers; express a positive demeanor, practice good manners and common courtesies, and follow through on your end of the relationship.
Listen. Just as most people don’t want to be “sold,” they also don’t want to be talked at. Effective communication involves a great deal of give and take. You may have the perfect dialogue planned, but the conversation takes an unexpected turn. Listen to the customer’s concerns, questions, and information to be able to respond appropriately. It will be clear to the person that you are truly listening, which is will be greatly appreciated.
Dress and speak appropriately. This may vary greatly depending on your industry, but your personal appearance and conversational skills speak volumes to others about how you conduct business and the kind of person you are. Make sure that these things are positive reflections of yourself that will contribute to and benefit your business.
Educate and provide solutions. Customers may not even realize they have a need for your product or service, so demonstrate your expertise by educating them not just about your specific product, but about products like it in general. From there, you will able to highlight why your product would best suit the customers’ needs. Additionally, you should be able to accurately answer any questions the customer has about your product, your business, or you. By focusing on the customer, you are essentially selling yourself as a person who can enrich his or her life in some way.

Selling yourself is about showing who you truly are and conducting yourself with a good balance of confidence and humility. What tips do you have for “selling you”? Please share them with us below!

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Tips for Building and Leading a Team

Have you ever listened to a vocal ensemble sing a piece of music? Usually, there are several different parts being sung such as bass, tenor, alto, and soprano. Each of these parts don’t sound quite right when isolated, but put together, they contribute something that is greater than any one part. The same can be said about teamwork in direct sales and small business. No one is ever a success or failure without the help of others; so building an effective team is important to the growth of your business. Here are some things to keep in mind for both building a team and leading it well.

Building

Identify your ideal team. Decide what characteristics are important for your potential team members to possess. With this as your focus, you will be better able to find like-minded people who will be compatible with you and each other.
Find quality people. You don’t want to hire just anyone to join your business, so put in place some measure to recruit smart and talented people. For example, create an entrance interview where potential employees write down how they work best, what they consider a good reward, and how they are effectively motivated. This creates an understanding among team members and you of how to best work together toward a common goal.
Provide training. Was Babe Ruth a record-setting hitter the first time he picked up a baseball bat? Even the most talented person doesn’t walk in on the first day knowing how to do everything right. Provide some initial training when someone is hired, and continue to offer professional development and mentor opportunities throughout your team’s time with you.
Implement a recruiting system. Recruiting can be done through traditional advertisements, the use of social media, word of mouth, etc. Find a system that works best for your business, and be open to recruits about what your business goals are.

Leading

Delegate. It may be difficult to give up some control, but empowering your employees by delegating important responsibilities demonstrates your trust in their decisions and creates a positive culture of teamwork.
Have an open-door policy. Your team should not hesitate to come to you for guidance, questions, and feedback. Making yourself as accessible as possible will prevent many employees from making mistakes.
Challenge your team. Encourage them to think outside the box, even if it’s a bit more than you think they can handle. Part of being a good leader is helping people recognize and utilize their own talent.
Acknowledge their talents. Although you want to create a culture of teamwork, it is also important to give credit to individuals when warranted. Doing so will keep them motivated to continue doing good work.

Remember the famous saying, “The whole is greater than the sum of its parts.” Building and leading a great team requires careful planning and continuous learning. Surround yourself with intelligent people who are willing to work hard, and the sky’s the limit.

How have you created a better team? Share your tips in the comments below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

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Tips for Better Small Business Videos

Think about your favorite television show. What exactly do you like about it? Chances are, there is some connection made between you and a character, theme, or story; this connection is what makes you keep watching. The same holds true for online videos, which is why you should be creating them for your small business. You don’t have to be a professional videographer to shoot an effective video, but there are some tips to follow to make the most out of yours.

Keep it brief. The most effective videos are under two minutes in length. Even if there is something in your video will draw the viewer in to watch for a longer period of time, the second a person sees that time length bar at the bottom of the screen, he or she is likely to click away for the simple reason that it is too long. When scouring the internet for information, people want to find that info easily and quickly. Choose only the important points to highlight your message. Tip: Be sure to include a call to action somewhere toward the end of your video which directs the viewer to visit your store or click the link to your website, for example. This keeps your video in the viewer’s mind before he or she moves on to the next one.
Get personal. Stock footage of products or locations and frames of still photos are generic. Viewers will make the same assumption about your business. Instead, record a video that features your real staff, location, and products. Consider featuring an introductory greeting from you, the owner, and if applicable, candid footage of your staff on the job. Also, don’t be afraid to use humor; keep it professional, but you definitely want to give your video some personality.
Choose a theme. Your video should have a point. Are you introducing your business to the world? Are you featuring an innovative product? Answering frequently asked questions? Whatever you choose to do, make sure everything in the video is centered on the theme so as not to lose focus or make your viewers click away. A great way to plan your video is to write a script before shooting any actual footage. This will give you a clear plan of action and allow you to see if anything is off-topic before you even begin.
Feature tutorials and product demonstrations. Which is easier: reading about how to cut up a pineapple or watching someone actually do it? Nowadays, when people want to learn how to do something, they find a video online that physically shows them what they want to learn. Most people are visual learners and prefer this type of medium anyway. Furthermore, you are giving the potential customer a glimpse into the user experience, which is extremely important. People want to know exactly how something works before they buy. Take advantage of this by using tutorials and demos that work for your business.
Use music. In doing so, you will be able to set the mood for your video and evoke a feeling from the viewer. Also, music is a perfect way to fill in any gaps of silence between narrations and transitions. There is a plethora of open content on the web as well as music that is public domain, so copyright infringement will not be an issue.
Share your video socially. Your video does no good if it is not being shared. Posting it on YouTube is the best place to start. Make sure you choose a title for your video that will optimize your search results. Tip: Search keywords for your video in the YouTube search box to see what comes up. If it’s something you’d rather not be associated with, then you’ll be able to choose more wisely. Having effective keywords is more important than ever, especially with people’s increasing reliance on Google Instant, which shows results as you type in your query. With more and more people using smartphones to search for and view content, Google Instant has become another must-have convenience for most.
Preview your video before posting it. Check to make sure that there are no items in the background that may offend, look messy, and that you don’t want others to see. Finally, make sure your video quality is good and reflects well on your business.

By following the suggestions above, your video will already be a cut above most of what is out there right now. What other tips can you offer for creating an effective video? Please share them with us below!

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How to Build a Unique Business

What is the first thing that comes to mind when you see a red bullseye? If you’re like most people, your answer is Target. What is it about Starbucks that makes it different from other coffee establishments? Perhaps it’s the taste of the coffee itself, the blended language of their drink sizes, or maybe even the first place to bring the culture of Italian espresso bars to the U.S. These are exceptional examples of a million dollar idea, but they are also standards that we can look up to. Sometimes it seems as if everything has been done before. Even so, your business can be a unique endeavor if you can apply and incorporate your own individuality.

Focus on your personal strengths. Even if your business is very similar to others, there is only one you. Do some serious personal reflection to pinpoint what makes you different. What can you bring to the table that no one else can? For instance, you may be one of many direct sellers in your area working for the same type of company. However, use your strengths to make yourself stand out from the rest. A consultant with a background in theatre might do very well using his/her knowledge and expertise to create an entertaining and polished sales presentation unlike any that customers have seen before. Your business is a reflection of who you are, so take advantage of that, and give it your personal flair.
Choose a micro-niche. Instead of casting a wide net and trying to cater to a large market, narrow down your business and your target market. The more narrow and specific you make it, the more recognized in your field you will become. For example, a hair salon might focus on children’s hairdressing. A micro-niche would be a salon that specializes in children’s hairstyles for the pageant circuit. Now, a very specific target market can be reached, and the business can become a well-known one among those in that circle.
Make customer service a top priority. Considering experiences you have had with other small businesses, what were their strong points? Where were they lacking? Use this knowledge to perfect your own customer relations. Is there something you can offer that goes above and beyond what your competitors are doing? Think about learning your customers’ names, something personal about them, and what they could get of your business that would somehow make their lives easier or more pleasant. Modern technology has stolen much of our culture’s person-to-person interaction, so the better your customer service is, the more memorable you will be.
Use unusual interests to your advantage. Whether you are starting a brand new business or looking to make an existing one more innovative, take a close look at your own interests. Is there something unique or unusual about them? For example, a forward-thinking individual named Jason Sadler developed an idea for wearing t-shirts to advertise companies wanting viral exposure. His website has become its own community of people viewing and sharing his team’s content.

The key to building a unique business is identifying your own personal distinction. What other ways do you bring originality to your business? Share with us in the comments section below!

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Socialize to Increase Business

Socializing is the art of meeting and engaging people. Mastering socialization skills will not only help you in developing better relationships, but will also increase your business. Incorporating these characteristics into your everyday interactions will help you find and reach your target market.

Sincerity – Most people can see through a fake smile or greeting and are therefore turned off by it. Be genuine in your interactions. Your customers will know that you truly do care about satisfying their needs and giving them a positive experience.
Confidence – Project confidence not only in yourself, but also in the product/service you are offering and the manner in which you conduct your business. It reassures your customers that you are knowledgeable about your field and qualified to meet their needs.
Inquisitiveness – Getting people talking is all about asking the right questions. It is of utmost importance that your customers feel that you have a sincere desire to learn more about them, but they won’t divulge anything without being asked. Decide what you really should know about a customer to meet his or her needs and strike up conversations with people that relates to those topics. Tip: Create a “script” to get you started that includes a few pre-planned questions, topics, or anecdotes to break the ice or fill a pause in a conversation.
Listening – There is a great difference between hearing what is being said and listening to it. Listening requires you to process information; a person can easily tell if you are listening to him or her. Show that you are listening by responding when prompted, making eye contact, and reading the body language of those to whom you are speaking. Tip: Listening skills role-play makes a great activity for professional development. Plan a few topics ahead of time, and take turns speaking about and listening to them for five minutes at a time.
Positive – People are turned off by negative people. Make sure your conversations stay positive. Even if the conversation turns critical, always maintain a positive view. The impression you will leave after the conversation is an optimistic and can do person. And that’s the kind of person people want to do business with.
Promote others – Make sure most of your conversations are about others. This shows people that not only are you caring, but also gives you an opportunity to highlight your ethics and values. Customers are loyal to businesses that they like and trust.

Places to socialize with your target market:

Community events and hot spots (local fundraisers, playgroups, sports games, farmers markets, dog parks)
Informal and formal parties (summer barbeques, beach outings, holiday cookie bakes, New Year’s celebrations)
Online through blogging, social media sites (Facebook, Twitter, LinkedIn, etc.), your business website
Self-sponsored open house or grand opening event

However you choose to do so, socializing with your target market requires you to know exactly who they are. Once you have identified them, put yourself in situations that allow for meaningful social interactions. You will not only promote your business, but also learn more about how to satisfy your customers’ needs in the process.

How do you interact socially with your prospects? Would love to read your thoughts in the comments below.

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What Do Your Customers Want?

In any given industry, customers have a plethora of businesses from which to choose. When they finally do make that choice, they are doing so because the business offers something they want. As a small business owner or direct seller, you have the advantage of catering to many different types of customers, so finding out what they want is essential to building your business. Read on for some suggestions.

1. High quality products/services – In these tough economic times, making the decision to spend any amount of hard-earned money is a serious one for lots of people. Nobody wants to put money out for something that is poorly made or not performed correctly. Make sure what you are offering your customer is something that you would feel good about purchasing yourself.

2. Friendliness – Odds are that you already enjoy interacting and socializing with your customers; this is a quality that it priceless in small business. Customers want to interact with others who are friendly, courteous, considerate, and generally pleasant to be around. Show them that you value them above any sale.

3. Convenience – It seems that people’s everyday lives are getting busier and busier. Implement convenience measures into your business model that work for both you and your customers. Can they find product information and complete orders on your website? If there is a problem with a purchase, can they easily contact someone who will resolve the issue? Make their shopping experience not only a positive one, but an easier one as well.

4. Knowledgeable staff – If you employ others who have regular customer contact, they should be thoroughly trained in all products/services offered and any purchasing policies that may be in place. Many potential customers do their own research before they buy, but often the tipping point is in the answers that can be acquired from a real live person in the business. For example, before purchasing a new camcorder to capture videos of the new baby, first-time parents might spend a good amount of time online researching the different features, prices, and reviews of various products. However, they will usually decide exactly which one to buy and where to buy it based on how well the staff can answer their questions and help guide them in the right direction to suit their needs.

5. The right to change their minds – For whatever reason, sometimes a purchase just wasn’t the right one for that person. When that happens, how do you react as a business owner? Make it a core value of your business that customers should leave happy with how any problems have been handled. Sometimes this even means going above and beyond the norm. If a customer needs to return or exchange an item, find out what the concern is and help them select something that might be better suited to meeting a need. Furthermore, the process of resolving any issues should be as painless as possible; when a customer sees you doing everything in your power to give them a good shopping experience, they will appreciate it, remember it, and continue to come back.

It’s never possible to please everyone all the time, but by incorporating some basic elements of customer satisfaction into your business, you will be able to attract and retain customers. What have you found to be the wants of your customers? Please share with us in the comments below!

All posts tagged direct sales

Tips for Building and Leading a Team

Tips for Building and Leading a Team

Socialize to Increase Business

Socialize to Increase Business

What Do Your Customers Want?

What Do Your Customers Want?

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