Culture plays a critical role in the success of a direct sales company.
Too many people think if they just use:
- social media,
- have a good product,
- a great compensation plan,
- direct sales software,
that they can start a direct sales company. Yes, these things are important. But until you understand who you are and what kind of company you want to be, it is hard to achieve and maintain the growth you want in direct sales.
People will often say: “Ok, Ok I get the culture thing but I need a comp plan or I need to grow the company. How fast can we grow the company to a certain number of people and start making a profit?”
I know right then that they have their work cut out for them.
Yes profits are important and yes growing the rep base is critical.
But first you need to ask: What kind of a business are you going to be?
Are you a product company using direct sales as a marketing channel or are you a direct sales company selling a product?
The direct sales business is a people business first and a product business second.
With this said lets consider some areas where creating a culture or we could call it an environment where the company is closely aligned with the distributors and employees.
This is when the magic occurs.
Be passionate. Make it a Crusade
o Too many people start direct sales companies because it appears to be a good place to make money. It is. But if you want to really get your distributors building then have a passionate crusade about the opportunity and product you are offering.
o People want to be part of something important. They want to make a difference. If you can energize your distributors and arm them with passion for what they do then you will have created an unstoppable army.
o People can smell a phony a mile away. If you don’t really believe in direct sales and what can happened with your distributors then they will sooner or later know you are just in for the money. You may not even see this happening. It will show up in slow growth and less productive distributors.
o Find a product you believe in that is unique and makes a positive difference in peoples lives. Stand behind this product with impeccable service and confidence.
o Now take this and match it up with a total belief in helping people build their businesses.
o A passionate crusade for your product and the distributors is a great combination.
Build a company with a Soul
o When you hear someone say “that person really has a good soul”. Or that a person doesn’t have any soul. It makes you think that a person is either a good or bad person inside. A business is no different. A company can have either a good soul or bad soul.
o When we state build a company with a soul what we are saying is make your business more than about bottom line profits and spread sheets. Look at your employees and distributors as more than necessary cogs in the great wheel of business. Make sure that at the end of the day not only are you making money but you are making a difference in the lives of your distributors and in the world by what you provide.
o We rarely remember people just because they made a lot of money. We remember them for what they added to society. You have the opportunity to make a positive impact in the lives of thousands or even millions of people if you build a business with a soul.
Stand for something beyond the product
o To many people think if you have a great product then you will have a great company. Yes a great product is important to your success. But just think about when you may have gone to a restaurant for dinner. You may have gone there before and thought the food was great but this time the service was horrible and you said I am never going back there again. Even though the food was good you still made the decision to not go back.
o Business at its best is not about profits. Yes you have to make a profit and if you don’t even the distributors will not have a business. But if profit is your main concern then the decisions you make will only be about money and bottom line profits. This attitude can bleed through to your distributors, which will negatively affect your culture and growth.
o Create a WOW experience for your customers and distributors that will keep them coming back for more.
It’s about doing the Right Thing
o Integrity, fairness, authenticity and being value based are key drivers to a successful direct sales company
o In the long run doing the right thing is the best practice. This is where service based leadership comes into play. The more we serve the distributors the more committed to the company they are. We call this positive social capital. Social capital is very valuable when you have to make tough decisions even if it is the best thing for the distributors long-term. This social capital should only be used when there is no other option for the company and never just leveraged to make things easier for the company.
o Every decision you make in the company should be measured against how will it affect the distributors either positively or negatively.
Create an emotional connection & trust with your people
o In direct sales the great business owners understand that their success is closely tied to the success of the distributors.
o Without them you don’t have a direct sales company.
o This author was in a DSA meeting where Doris Christopher the founder of Pampered Chef when she was asked “what was one of the most important things she could share with the other owners of directs sales companies in the room”. She said; “At Pampered Chef we work for our consultants”.
o If you base your business on supporting and providing service to your distributors it will pay dividends.
o When owners start looking at their distributors as just a way to sell a product then this is the beginning of the end.
o You want to make every decision with the thought of “how does this affect the distributors. Is this good for them? Sure you have to maintain good sound business practices but if you end up making all of your decisions on the basis of what is good for the company you might find out one day that you don’t have any distributors.
o It has been said that distributors may love the owners but not trust them. How can this be? Distributors are a funny group. They can feel good about what you have offered them and even respect all that you do. But they may not trust that you will make the right decisions for them. This can happen early in the life cycle of the business or many times it happens when a company matures and owners tend to be less connected to the distributors.
o When you first get started with your company don’t be an armchair leader. Get out there and see the distributors. Do conference calls. Learn about their families. Recognize them for even little accomplishments. This is an incredible investment to building your company.
o Write handwritten notes to your distributors to recognize them for accomplishments.
o Recognize the spouse even if she/he is just supportive.
Create a sense of community
o People have a built-in desire to belong to something. A direct sales company can be one of the avenues that provides this to them. People may join a direct sales company to make money but many times they stay for other reasons. One of these reasons is to be part of something special. Create an environment where you are providing personal development and a social gathering place either virtually or in person. This occurs on conference calls, company forums, leadership councils, events, conventions, incentive trips, the company website and any other place where you and others can build personal relationships
o Many companies have provided service opportunities for their distributors for local and national causes. Some companies have even added a service project in third world countries when they go on incentive trips. This is a way to give back for all the opportunities they have been given in the business. I have spoken to some distributors that said that the service projects were the highlight of the incentive trips.
o A sense of community is created by the personal attention that is given to the distributors from the owners and staff. When your distributors feel the company is like family then you know you have created a good community.
o How do you do this? Be authentic in every thing you do. Just be a real person and always have the needs of your distributors come first.
o Don’t elevate yourself above your distributors.
o Too many companies when they are small try to make themselves look bigger than they are. Use this unique time as a new startup to build off of being new and small. You will build loyalty, enthusiasm and a sense of team work if you do
Get people to love your company
o It is one thing to have a great product or service or even the best compensation plan on the planet. But if your distributors, customers and employees love your company then this is a great gauge for knowing if you are creating the right community.
o You want prospects to say: “What a great company. I want to be part of it”
o Remember it is the emotional connection that people have with the company and its owners that is so important to grow with
“We are a people business not a product company”
o Never forget a direct sales company is always about the people. “Build the people and they will build your company”
So in the end culture is an environment that you develop from the early design of your company. It comes before compensation, software and all of the other top tier elements of a direct sales company. Get the culture wrong and the best compensation plan and product will not pull you through.
Your culture is your brand. Brand just lags behind your culture.
In a nut shell culture is really a feeling woven through business practices that create community between the company and distributors where they feel a bond of trust and integrity between each other. It is about building a company with a soul.
