Direct Selling Strategies Among Traditional Direct Sellers in the Philippines

Direct selling strategies among traditional direct sellers.

First off, let's be clear that by traditional direct selling we mean the credit-extension method as used in the Philippines by Natasha, MSE, Splash Direct Sales, Tupperware Brands, Sundance, Personal Collection, among others. The binary/pyramiding (cash business) type does not fall under this classification.

Traditional direct sellers employed varying strategies or techniques in running their respective businesses. I want to share, based on my actual engagement with the industry, their three main approaches, namely: 1)Act Like the Company Technique; 2) Retailer-based Technique; and the, 3. Customer-based Technique.

ACT LIKE THE COMPANY TECHNIQUE

In this strategy, the direct seller/entrepreneur would play the role of the company-source, for example, imitating the role of Tupperware Brands, as the main risk taker in terms of credit extension necessary in the distributor-dealer relationship. More often than not, the super risk-taker distributor would extend to his/her dealers a credit approval and a much longer credit term, even more than the normal limit allowed by most companies. In this strategy, the direct seller/entrepreneur acts as the super middle man. In this patron-client relationship, the ordinary dealer (the client) would become distributor (patron)-dependent without enjoying promotion and other privileges offered normally by companies to direct-to-branch retailers. We see many distributors employing this technique becoming national awardees, at least in the Philippines. Some however, failed even before taking off the ground.

RETAILER-BASED TECHNIQUE

While the act-like-the-company distributors seek to maintain a group of wholesalers, the retailer-based on the other hand, is secretary- or employee-dependent. His or her technique is to avoid the wholesalers and serve instead the retailers directly through secretaries. The advantage of this approach is that the risk of credit extension is minimized. The disadvantage, on the other hand, is overhead cost required to maintain such type of a direct selling approach.

CUSTOMER-BASED TECHNIQUE

This technique is the kind used by most small-time direct sellers. Go to the customer, and sell the product personally. This approach turns a direct seller into a self-employed person, and not as an entrepreneur.

CONCLUSION

For the goal to reach the million-dollar volume of direct selling business in say, five years, the MLM model is the path to follow, not the credit-extension direct sales model. In my observation, only very few became real dollar millionaires with the traditional direct selling as a mere distributor and not company owner. I just knew one, and the bulk of the business from direct selling went as far as housing, resorts, and schools. Outside of credit-based direct sales, Atomy is considered one of the best MLM platforms. The majority of real networkers, however, are not easily attracted to it. Know more about Atomy through this link.

Whatever approach you want to employ in this trade, always remember this quote from Desiderata:

Enjoy your achievements as well as your plans.
Keep interested in your career, however humble;
it is a real possession in the changing fortunes of time.
Exercise caution in your business affairs;
for the world is full of trickery.
But let this not blind you to what virtue there is;
many persons strive for high ideals;
and everywhere life is full of heroism.

Yes, "EXERCISE CAUTION IN YOUR BUSINESS AFFAIRS; FOR THE WORLD IS FULL OF TRICKERY."

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