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 a direct sales company is a means of making a living. And for a much larger group, it represents additional income or pocket money. They all work during the set commission period and trust their company will pay their compensation on time and at the right 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 need to promote and sell products to earn money. In this process, direct sellers naturally must provide their customers with the exact items at the exact amounts that they ordered. While occasional stock-out situations can be tolerable, it is obviously 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. At a minimum, they want prompt and accurate answers to their questions from the home office. It is imperative to provide field 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 is not made aware of it on time, how would the field react the way you expected? Many managers think their job is done when the mass e-mail goes out to the sales force and that is a big mistake!

Insufficient Training

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 for yourself. Companies must provide the necessary motivation to the field members through various means and do this repeatedly.

And you think these are all no-brainers and no company in the industry would make such simple mistakes? Well, I can say you’re totally wrong!

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Hakki OzmoraliHakki Ozmorali is the Principal of WDS Consultancy, a management consulting firm in Canada specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is also the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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