Up to now, I still see many people doing direct sales in China, and sometimes I meet people who do direct sales and ask me why I don't do such a good business. Because they are full of enthusiasm, chatting on QQ wastes time and hurts feelings, so I generally adopt the avoidance policy. Here I will write my own views in detail. Please refer to friends who are doing direct selling or preparing to do direct selling.
Is direct selling worth doing?
1. Is a good product worth doing?
First of all, I'm sure the products of many regular direct selling companies are very good. My family and I have used the aloe shampoo, aloe shower gel, aloe mineral crystals, garlic capsules, amino acid tablets and aloe gel from Zhongshan Perfect Company for a long time, and also bought vitamins and minerals from Amway Company, such as the formula of glacier mud bones and joints from the new company.
Every regular direct selling company has its own fist products. Amway's strength lies in nutritional supplements containing natural plant ingredients and household cleanliness; For example, in recent years, Xin Qiang has acquired Hua Mao Company in skin care products and is competing with Amway in nutritional supplements; Perfect company's products are suitable for the public and the price is relatively suitable. Most products contain aloe vera. Real, good and beautiful shark liver oil and ostrich oil are imported from Iceland with good quality and good effect. I won't count other companies.
The question is, is a good product worth making?
Many direct sellers told me: "A good product will lead to a big market!"
But how many people are sharing this "big market" with you?
The direct selling system encourages the development of "offline", and its biggest attraction lies in the "passive income" brought by offline, which makes the direct sellers feel that as long as there are enough offline, they can make money without doing anything. So they must spare no effort to "develop the team". As a result, more and more people are doing the same direct selling company, and the competition between them is growing.
To know how big the competition can be, just search "Amway" on Taobao. Most Taobao merchants are selling at a discount. I bought it too, but now I dare not buy it online, because there is a post on Taobao that says it is a fake. You'd better go to the store to buy real goods.
In addition, another subtext of the direct selling system is that it will not provide protection policies for agents. On the other hand, other manufacturers, who develop agents and distributors, have different levels of protection policies, such as prohibiting cross-selling, prohibiting price reduction, advertising and promotion support, and regional division. Those who violate the regulations will be fined or even disqualified from renewing the contract. In order to ensure profitability, manufacturers will control the number of agents and distributors in a limited and planned way. If the number of agents and distributors is out of control and their interests are damaged, they will probably not continue to distribute the products of this manufacturer.
But what about direct selling companies? Direct selling companies welcome unlimited agents! What was the result? I don't need to tell you.
2. The trap of direct selling system
The biggest dream of a direct seller is to earn money without working, which is the so-called "passive income". The premise of obtaining passive income is that you develop enough downlines, and when these downlines generate turnover, you can get a certain percentage of the total commission.
The most common description is called "642 Plan", that is, if you develop six friends, each of these six friends develops four logoffs, and then each of these four people develops two, then the total development is 6×4×2 = 48 (people). If everyone generates a monthly turnover of 65,438+100,000 yuan, your offline team will generate 480,000 yuan, and you can earn 4% commission.
This seems to be a good example, and the factor of incomplete replication is taken into account. Actually?
I think only a strong and dedicated marketing mix can realize the above assumptions. The monthly sales of 10000 is not easy for ordinary people. Although it is possible for professional salespeople, they earn too little. You need to convince them that developing offline can make more money, otherwise it is easy to lose money.
If you are good at sales and have the ability to organize 20-30 strong salesmen, direct selling is really suitable for you. But most of the direct sellers I contacted didn't have this ability, so they were just busy for nothing.
Promotion is a very difficult job. Salespeople should stick to it for a long time and bear a 99% failure rate. I have worked in sales for several years, including insurance, and I know the hardships and pressures that most people simply can't bear. Before the direct seller goes offline, please seriously consider whether your friend and your development target have such ability, otherwise losing time and money will only harm him.
Another most troublesome place is that the direct selling system requires you to act according to the boss's way, but it does not provide you with the freedom to be a boss. What do you mean? First, there is no basic salary for direct sales and no social security medical care; Second, all expenses such as publicity fee, bus fee, telephone fee, entertainment fee and venue fee. It is all borne by the direct seller himself, and the company will not reimburse it, but as a salesman, it can be reimbursed reasonably; Third, it is not allowed to advertise, rent out appearances or run products of other companies.
No basic salary, no social security and medical insurance, all expenses at your own expense. For the convenience of product turnover, you have to pay for the goods. At best, it is the boss, at worst, it is the backward labor force. Say it's the boss, why not let me rent a facade to advertise; Without providing special protection policies and special preferential cooperation conditions, why not allow me to run other companies' products concurrently? This unequal agreement is very harsh for people who have no business experience.
So the direct selling system looks beautiful, but it is not suitable for ordinary people, unless you have strong marketing and organizational skills, or you have excellent business skills, or you have a particularly extensive interpersonal relationship, and you can quickly establish a relative consumer group. If you lack these basic conditions, give up direct selling.
3. Online direct selling and online pyramid selling
Domestic Internet direct selling companies should not do it. Just look at their products and systems.
Most of these online pyramid selling companies with new technology signs require participants to pay tens or hundreds of dollars to buy membership or products as admission fees, and then ask you to continue to attract people to participate and share with you. Such an obvious pyramid scheme has actually attracted many people who want to join SOHO on the Internet.
Direct selling companies such as Amway officially sell products. You can do a good job in product sales, organize a good sales team, and earn some conscience money. However, online pyramid selling companies are completely money-circling games. Even if there is a product, it is just a cover, using people's ignorance, greed and inertia to collect money.
For example. A network company claims to do online distance education. As long as the members pay about 1000, they can use the online distance education content for life. Offline members can earn commissions and upgrade constantly, and adopt a multi-level reward system. Because the company has products and the website production looks very formal, it can quickly gather a large number of members. Think carefully, can this one-time fee really support the development of a formal online distance education company? Secondly, I don't know if the affiliated members have carefully read the company's educational products. I've seen it. It's rubbish and lacks the foundation for long-term development. Not to make money. Not many people are willing to pay this price. How many of those paying members are real users?
Finally, this "distance education company" was finally banned by the State Administration for Industry and Commerce.
4. How to treat direct selling?
If you agree with the products of regular direct selling companies and think you are sure to sell them in large quantities, you can try it.
A regular direct selling company refers to a company with a direct selling certificate issued by the State Administration for Industry and Commerce.
Don't touch the informal direct sales and pyramid schemes promoted on the Internet unless you think it's okay to make money by cheating.
5. How to distinguish between pyramid selling and online pyramid selling?
There are several simple principles. Ask yourself: If you don't make money from this product, will you and others spend money on it? Are there any end users, that is, consumers who don't buy for making money? Do I need to go offline to make money?
6. Business opportunities other than direct selling
Most people who do direct selling are working-class, lacking business experience. They choose direct selling largely because they don't understand business.
In fact, direct selling can be said to be the worst business model. For agents, the internal competition is fierce and there is no necessary protection and support policy; For the boss of direct selling company, the maintenance cost is too high and the interpersonal relationship is too complicated.
A good enterprise should start with market segmentation and plan products, prices, channels and promotion in detail. Friends who lack this ability should be patient, patient and patient again! Don't start until your experience and knowledge can control the business. As long as you have experience, knowledge and ability, you can find investors even if you lack funds.
7. Support the state to resist pyramid selling and strictly control direct selling.
Direct selling and pyramid selling are the same thing. The reason why the state cracked down on pyramid selling and strictly controlled direct selling is because it saw the great harm of this multi-level system. The concept of "passive income" advocated by direct selling companies and direct selling teams has seriously deviated from the basic values of society. This so-called "passive income" is essentially different from interest income, dividend income and rental income. If left unchecked, it will only lead to ignorance, greed, laziness, empty talk and fantasy.
8. Concluding remarks
I spend so much time and ink to explain my views on direct selling, hoping that more people can make the right choice and not be misled. If readers think what I said is still reasonable, please reprint the full text to help brainwashed people get lost.