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Have you started your direct sales business? There are several reasons why this kind of venture is lucrative. It can help you supplement your income, have a flexible work plan where you work from home, create friendships, up to your business skills, and become your boss.
But how do the top direct selling companies make it to the top? It is not by coincidence. These firms have mastered the art of developing networks, paying commissions, growing their businesses, and mastering their margins. All these are only possible with the right technology in place.
Keeping up with the latest technology has helped successful direct selling companies keep up with and adopt the latest trends in the market for smoother operations. One of the decisions that these firms have made is to buy direct selling software.
Before you invest in direct selling software, there are several factors to consider so that you can settle for the very best. Below are 7 of them:
- Define your business requirements
Define what your business needs would be early in the process. Write down all the information that your business would need and how can get it. That would require you to a business analysis through interviews, observation, constructing business cases, and identifying new opportunities. With a list of your needs, you can then identify the best software solution that fits your business.
- Choose your business model
You must know your customers, product, and business goals very well to determine the perfect direct sales business model. There are various types of business models you may consider. These include multilevel marketing (MLM), party plan, hybrid model, binary, catalog, and flat sales. You can also complement these models by using more current methods such as influencer marketing and shopping clubs.
- Define the process flow in your business model
You should create a direct selling business model that works for you and all the consultants involved in your chain. Think about the business flow that your customers will follow. The right technology should be compatible with other technologies on every part of a business flow.
Some of the levels of business flow for each part of the business include consultant and customer enrollment, purchase, dispatch, returns, customer service, and commission payment flows.
- Choose a structure for your compensation plan
You need to have a clear financial path which you use to settle commissions, redeem prizes, offer incentives, and so forth. Ensure that your compensation plan is attractive, with several motivation elements such as offers, gifts, and incentives.
There are different types of compensation plans in direct selling software. These include binary plan, matric, board, and unilevel plans.
- Know the countries that your direct selling business will cover
Where and to whom do you plan on selling your products? Determine where you want to carry out your operation in the short, long, and medium-term. This will help you note down the legal issues that may affect your business depending on its location. You should communicate these terms to your direct selling software provider.
Operations in different countries also require the use of different languages and currencies which you need to keep in mind.
You also need to be clear on the different payment models that you can allow on your site. Common payment methods include cash, gift cards, crypto coins, and debit or credit cards. Before you choose a payment method, analyze them to determine factors such as speed, security, cost of transactions, the percentage of people in the market using that payment method, among other factors. This information will help you when you need to integrate with the direct selling software.
- Prioritize the ability to analyze your data and information
Real-time, organized information is crucial in helping you make the right business decisions. Define the indicators that will help you analyze the progress of your business daily. These could include sales, new customers, payments received, and so on. You need direct selling software that can serve you with all these reports.
- Ensure the software integrates well with other software
Usually, direct selling software is only part of the entire technology that you will need for your business. It should work well with other systems such as payment processors, logistics companies, ERPs, virtual wallets, among others.
To build a successful direct selling business, you need to have a vision for your business and define ways in which you can get there. That includes investing in the right technological tools like the direct selling software that will help you stay on top of market changes and run more efficient operations.
Choosing the right software provider is a big part of your success. Determine all the features you would like to see in your software now and the future and find a provider that can meet those needs.