More is Not Always Merrier

First we had the dot come era.  Now we seem to be in the direct sales era.  More and more direct sales start-up companies are coming onto the scene; presenting more opportunities to work at home.  One recent trend is to start multiple direct sales businesses.  More is not always merrier.  Let’s examine this concept further. 

Consideration:  Some WAHMs would suggest that becoming a representative or consultant for multiple companies give their customers a much wider variety of offerings.  Instead of having one website or one company catalog with twenty –five to two hundred various products per company, they prefer having a sum total of one thousand plus items to sell. 

Potential Problem:  Have you ever been to a restaurant that has an extensive menu? Perhaps you’ve had to dismiss the server more than one time because you had a difficult time making a decision.  Whereas if you went to a restaurant that has a quality menu with only thirty different items from which to select, you likely had much fewer challenges deciding what to order. 

Consideration:  Some decide to become a consultant for XYZ Company.  Only after a period of time, sales are not what they imagined them to be.  So then they decide to add another company to see if that works any better.  But then they hear of new companies who are offering very low enrollment fees or many with free sign-ups.  Surely they cannot afford to pass up those new opportunities and decide to add more businesses to their menu. 

Potential Problem:  Credibility. Owning multiple businesses can back fire on you.  You may think you are offering customers more to choose; however you may be sending out a signal that says: “I couldn’t make XYZ work well enough as a stand alone” or “I could not stay devoted or focused enough to stick with just XYZ company” or worse yet, “Please don’t view me as passionate about my product or as an expert, because I don’t really know what I want to sell… so I decided to try to be my own Super Walmart”.  

Consideration:  Some see free or low cost start-ups and think “I’ve got nothing to lose; it’s not costing me anything.”   

Potential Problem:  There is no free lunch.  We all know that.  Even a company with a free start up will end up costing you something.  Consider such expenses as:  Shipping charges on “free” Vista Print marketing collateral, inventory, vehicle signage, booth space for the next crafts show, catalogs, packaging material, business supplies, etc.  Those investments are all well and good if there is a return on the investment. However, each time a new business is added and it potentially weakens the business owner’s credibility, odds are decreased that she will be able to stay in the black with all these extra add-ons.   Additionally, don’t forget to value your time.  Time spent developing a new business could have been spent growing an existing business.   

Footnote:  There are some very successful business owners who represent more than one company.  It can be done.  Some choose to represent complimenting companies while others choose entirely different target markets.  The point here is not to discourage anyone to broadening their horizons – but rather just be cautious not to become a “business collector” or in come cases … a “start-up addict!”

© 2007-2008 Regina Baker & Company

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