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2010 is the the New Opportunity for Direct Selling Industries

Guest post by: Jason Bronson

Article Overview: “Direct sales” means selling a product or service directly to the consumer, without having a storefront. It used to be door-to-door selling, then the party plan, and now has progressed to using the technology of the internet to make sales contacts.

2010 is the the New Opportunity for Direct Selling Industries

The term “residual income” is used a lot in direct selling industries. What is residual income, and how does it work?

“Direct sales” means selling a product or service directly to the consumer, without having a storefront. It used to be door-to-door selling, then the party plan, and now has progressed to using the technology of the internet to make sales contacts. The early years of direct sales was hard work, as the commissions earned were made only on what the salesperson sold.

Building a Network of Sales People Allows More Product or Service to be Sold

It didn’t take long before the salesperson realized that if he trained more people to sell the product and received a little commission from those sales, he could increase the sales of the product and his own income could increase proportionately.

And if those people trained others too, soon everyone could enjoy making more commissions, and the parent company would be selling more product. After a while, the commission from the network of sales persons under the original one could be more than what he, himself, was selling. Those commissions that keep coming in from the network are what are called “residual income”.

Who Pays the Residual Income?

If the built in mark-up of the product was having to be shared with every person in the upline, pretty soon all that margin would be used up, and no one would have the incentive to bring in more salespersons. So the parent company, realizing the value of the training and support given by each salesperson, directly pays him for that service.

Residual Income Works Best with Consumable Products

When a salesperson has developed a customer base that is consuming products regularly, that is where the greatest commission is paid. Some of your best customers may want to become sales representatives also, and are your best source of recruits. Customers are the lifeline of any business, and giving good customer service will keep them returning.

Recruiting has Responsibilities, Too

The same is true of the salespeople in the downline. Without ongoing support and training many lose interest. Whether the training is done by you or by a direct sales market trainer with a lot of expertise in selling, the training and support will keep the motivation going. There are some wonderful training products, seminars, and videos that can assist you with the training of your organization.

But the most important thing that you can do for your organization is to make frequent calls to give your positive support and enthusiasm for what you do.

Recruiting others to do the same work is a responsibility that successful marketers are willing to embrace. That is the reason for the residual income, and opening up the potential of new recruits is one of the joys of network marketing.

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Article Tags: direct selling industries, party plan, sales contacts, storefront
Referred by: http://jaykubassek.com



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