Direct Selling and International Success

As Direct Selling encounters ever-increasing growth worldwide, company leaders may want to give serious thought to expanding to new markets. While there are many any number of things to consider when a business decides to go overseas and a new market, Direct Selling companies have a few special things they need to pay attention to as they make their plans.

Finances

Be prepared for the unexpected. Work closely with distributors and an established network of local business partners to understand any particular pitfalls and risks of this new market. While this may seem common sense, it bears repeating. Direct Selling companies don’t need to worry about brick and mortar concerns, but building up a new market, especially one that relies on personal connections, can take time. Being able to see a new operation through the first period of set-up and stabilization without doing damage to operations at home is key to success. Being ready for any dramatic ups and downs that may occur will give a company an even more secure foundation to work from.

Direct Selling companies don’t need to worry about brick and mortar concerns, but building up a new market, especially one that relies on personal connections, can take time. Being able to see a new operation through the first period of set-up and stabilization without doing damage to operations at home is key to success.

Taxes and Laws

Companies looking to expand overseas should make sure they know what the employment status requirements will be for distributors as well as themselves. Labor laws and taxes will be pivotal to helping distributors successfully establish themselves, manage their careers and expand customer base. Other countries and cultures may also be more or less litigious than what company leadership is accustomed, so Direct Sellers need to be particularly prepared for these eventualities.

Compensation Plans

Differences in per capita incomes and economies mean that what works as a sales goal in one country may not work in another. Company leadership needs to consider what is feasible for a new country, which means that compensation plan parameters could be higher or lower than in their home country. It may also be important to consider how the economy in the new country may fluctuate, which will effect consumer spending as well as what is ideal to keep Distributors motivated.

Company leadership needs to consider what is feasible for a new country, which means that compensation plan parameters could be higher or lower than in their home country.

Pricing

What may be a reasonable price at home may not be reasonable in the new country. Price a product or service too high, and it will not sell. Price it too low, and consumers will see it as a steal or they will be doubtful of its quality. A lack of sales or selling too much at a low price negatively impacts a company’s bottom line, which impacts sustainability and financial viability. Direct Selling in particular needs to pay attention to this as the appeal of offering something perceived to be profoundly different from that available in brick and mortar stores can be strong; however, it can’t be so inexpensive that Distributors find their efforts never really paying off.

Technology

Even emerging markets have technology and use social media extensively. This is in great part what will allow a Direct Selling company to make inroads into the new economy, after all. Find out how to harness and use it in the most effective way possible and in the most culturally appropriate way, too. Finding out what technology is available, what Internet speeds are most common, and what modes of technology are used most often and how will offer invaluable insight into the economy and culture and make it possible to connect with customers and distributors alike.

This may be the tallest order of the day, and the most important one by far. An inability to effectively communicate within a cultural context is a recipe for failure.

Cultural Differences

For Direct Selling especially as a people intensive business, it is particularly important to pay attention to cultural considerations. Leadership needs to understand not just how business is transacted between businesses, but they also need to know how to interact with customers, how to build trust, how to be respectful. This may be the tallest order of the day, and the most important one by far. An inability to effectively communicate within a cultural context is a recipe for failure.

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