Managements at direct selling companies are no exceptions when it comes to making mistakes. Some of these are minor in nature so they might not hurt the whole operation much. However, some others can make real damages. Below are six areas where if mistakes are made, the consequences on the sales organization might be disastrous:
Default in Commissions Payments
For many individuals, the opportunity provided by the company is a means of making a living. And for even a larger group, it represents at least a pocket money. They all work during the set commission period and trust their company they will get their compensation on time and at the exact amount. You don’t want to pay them at a date later than you promised or even miscalculate their commissions.
Stock-Outs
Individual field members have to promote and sell products to earn money. In this process, direct sellers naturally have to provide their customers with the exact items in the exact amounts that they ordered. While occasional stock-out situations can be tolerable, it can be a major headache for the field force if this happens more frequently.
Poor Distributor/Consultant Services
Representatives on the field need company’s support in a variety of fields while conducting their businesses. They at least need to get prompt and accurate answers. It is imperative to provide this support at the highest quality and as fast as possible.
Negligence in Communications
So, you have launched a new product or a promotion or have made a change in your policies. If each and every individual on the field are not made aware of it on time, how would they react to it the way you expected?
Insufficient Training
Each and every direct selling company has different products, a different compensation plan and different policies and procedures. There must be a comprehensive training program made available to the field force, both offline and online. Without this, hoping the field to meet the company’s expectations can only be a dream.
Lack of Motivational Efforts
Direct sellers work 24 hours a day and seven days a week, and usually all alone! Just close your eyes for a few minutes and try to visualize their daily challenges yourself. Companies have to provide the necessary motivation through various means and do this repeatedly.
And you think these are all no-brainers and no company in the industry would make such mistakes? Well, I can say you’re totally wrong!
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Hakki Ozmorali is the Principal of WDS Consultancy, a consulting firm specialized in providing services to direct selling firms. He is also the publisher of The World of Direct Selling, global industry’s leading weekly online publication. He is an experienced professional with a strong background in direct sales. Hakki was the first corporate professional in the Turkish network marketing industry. His work experiences in direct selling include Country Manager roles at Oriflame, Herbalife and LR Health & Beauty Systems, and Regional Director, North America role at Lifestyles Global Networks.
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