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Large vs. New Direct Sales Companies: Which is Better?

When most people consider joining a direct sales company, one of the first few things they take a look at is how long the company has been in the industry. Most people gear towards joining established companies that have had decades of experience in direct selling but what they fail to consider is the fact that the company’s age is not the only determining factor for a successful venture. Direct selling is a multi-billion dollar industry and continues to be stronger as the years go by, especially since lots of people have turned to direct sales to make up for lost jobs and the lack of available opportunities in the job market. Any company, whether old or new, can be a viable opportunity for earning a sizable income, provided that it is legitimate of course. With agencies like the Direct Selling Association keeping watch over direct sales companies and their methods of selling to ensure that they abide by the direct sales code of ethics, it is relatively easier to check for a company’s legitimacy. There are, however, certain advantages to joining established companies that cannot be gained out of joining new companies and vice versa. These differences will be explored further below:

Product Recognition

Perhaps the main difference between joining new companies and established ones lie in product recognition. Joining companies like Tupperware, Avon, and Mary Kay, for instance, can give you the advantage of consumer awareness when it comes to the products and the brand itself, as these companies have had decades of experience in the industry and have managed to make themselves known worldwide. For consultants, this means that you don’t necessarily have to work so hard on proving what these products are worth because most, if not all, have already encountered these brands at one point or another. The selling point of such companies lie in the fact that they already have a very large consumer base and operate in different countries all over the world.

On the other hand, joining direct sales companies that are relatively new to the industry means that you have to pay as much attention into marketing the brand and its products as you would with selling them. The advantage of joining new companies, however, is that there is likely to be lesser competition, giving you the advantage of introducing a new band and set of products to consumers in your area. This will give you a head start in the company and if you have a great product base, you can easily build a loyal network of clients.

Leadership Levels

While both established direct sales companies and new ones offer pretty much the same levels of leadership, there is still a difference on how fast you can actually climb up this hierarchy. Established direct sales companies no doubt, offer more elaborate incentives and leadership positions than new ones but at the same time, it may prove to be a lot more difficult to get promoted because of the sheer number of consultants involved in large companies, though leadership promotions will largely depend on monthly personal sales volume and as well as sponsored downline representatives. When you join direct sales companies that are just in their startup stages, you have the advantage of growing with the company and building your team at the same time as the company builds its network of consultants. You also have the benefit of being able to take advantage of the hype that surrounds the company’s launching period. Consumers love new brands and products and for as long as you are quite certain that the company will not merely thrive on hype and still be sustainable later on, it may be easier for you to join a company that has just been launched. It may also make it easier for you to sponsor new consultants into the company. 

Compensation

When it comes to the compensation plan, you can find just as great an opportunity for profit in new direct sales companies as you would with those that have been in the industry for a long time. The number of years that the company has been operating does not really affect the compensation plan but since newer companies are still trying to get recognized in the industry, they tend to offer very competitive commission rates to match those of older companies. In fact, some newer direct sales companies even offer larger rates for personal commissions than those that have been in the industry for decades. However, your potential for profit does not lie on how high the compensation plan is, as the consumer appeal of your products is still the primary consideration for this.

Network

Established companies already have a large network of consultants representing them, which can serve both as an advantage and disadvantage for new consultants. The advantage of being part of a large network is that there are a lot more resources when it comes to training and support but at the same time, being part of a large network also means having more competition. Newer companies, on the other hand, are still in the process of building their networks so you have the benefit of being one of the first, which can be quite advantageous for you in terms of leadership but there may also be fewer resources for training and support.

Both established direct sales companies and new ones offer profitable opportunities to interested consultants. The most important thing to consider when joining is whether you would enjoy selling the products that the company offers, as this is essential in making any business venture work.