Direct sales can serve as a good way to maximise revenue. Whether you want to start your own direct sales company or you’re selling the products of an existing company as an independent contractor, this model can produce advantageous results.
These benefits aren’t merely about increased sales, but stronger relationships with customers, an improved customer experience, and the opportunity to directly tell the story of your business and what it offers.
Here, we’ll discuss the essentials that you need to start a business through direct selling.
Direct Selling in South Africa
Before diving in, it’s crucial to familiarise yourself with member direct selling companies that have a significant presence in South Africa. The Direct Selling Association of South Africa (DSA) exists to represent direct selling companies that sell goods through direct sellers who operate as independent businesses or sales agents.
This association has set out a code of ethics that all DSA members pledge to abide by. In the DSA Code of Conduct, you’ll find terms of conduct between the direct selling company, the direct seller and the buyer, as well as the company and the direct seller.
Starting Your Own Direct Sales Company
If you have an existing company, you can register yourself on the DSA platform as a member company. There are different types of direct sales options you can choose from to generate more revenue for your company.
What Exactly is Direct Sales?
Direct sales involve the process of a sale occurring between a company and an end-user without middlemen like retail stores. Typically, companies use an internal sales team to push direct sales, or they conduct a multi-level marketing (MLM) approach, such as companies like Avon, Tupperware, and Herbalife, among many others.
Another common approach in direct sales is single-level sales. Here, companies distribute products on behalf of the brand and earn a commission based on what they’re able to sell.
Where to Start in Direct Sales?
If you would like to start your direct sales business, here are the key steps to follow:
1. Choose a Niche
It’s best to look at a specific area that you feel contributes to your strengths and would be successful. This increases your chances of success and allows you to connect with your customers. A good approach would be to look for a gap in the market or a product that’s in demand.
2. Work With a Trusted Partner
To ensure that you work with a trusted partner, you can start by finding a listed member company that aligns with your niche on the DSA member companies list.
Have a look at the brand policies and values and make sure they are in alignment. This will also help you avoid unregistered businesses that might harm your reputation. Choose a brand that prioritises good training for its sales agents. Additionally, have a look at the payment terms and fine print.
3. Register Your Business
Registering your business gives you credibility. It shows that you are serious about your work. You can register your company through the Companies and Intellectual Property Commission (CIPC) website.
You should also follow the tax rules set by the South African Revenue Service (SARS). Keep records of your earnings and expenses. This will help you manage your finances and stay compliant.
4. Build a Marketing Plan
Direct selling is all about relationships, visibility and connection.
You can market your business online through social media. Create a Facebook or Instagram page. Share your story and post product photos. You can also use WhatsApp to send updates and special offers to loyal customers.
Offline marketing still works. Attend local events or markets. Give demos and samples to potential buyers. People buy from people they know and trust.
5. Keep Learning and Improving
The best direct sellers invest in continuous learning. Work on their communication, product knowledge and customer service skills is bound to help you improve the customer experience.
You can attend training sessions hosted by DSA member companies. However, it doesn’t end there; you can also watch online tutorials or join local entrepreneur networks.
Digital tools like Zoho CRM or HubSpot can help you manage your customers and follow up on sales. They are easy to use and keep you organised.
