Network Marketing Vs Direct Sales in a Nutshell

If you are interested in operating your own business from your home, library or coffee shop there are a few different roads you can take. Different compensation plans and products to market. Choosing which one suits you best.

So let’s get to it!

In a multilevel marketing company you will be building a long term residual income. You will still earn compensation with a sale but not as high as you would in direct sales.

Network marketing is typically costs less to get involved than a direct sales company. Making it more appealing to get other people interested. Direct sales has a higher fee, hence the higher commission paid upfront with each new sale. Neither is better or right or wrong. It’s up to you however you want to build your business.

Another thing about network marketing is you will be able to leverage your time and efforts through the work of others more than you would with a DS compensation plan.

Also, network marketing and direct sales have been called scams in the past. So are they all scams? I don’t think so and here is why. If there is a product or service being offered and compensation to be rewarded then it is not a scam.

I’m sure you have heard the term pyramid scam. Unfortunately that is what most people think of when they hear network marketing or direct sales. It is only to their misinformed knowledge that they would jump to the conclusion of it being a scam.

I hoped this has helped to define the difference in the two.

Three Steps to Direct Mail Success

Direct mail is still the number one marketing strategy used by many successful sales companies. With direct mail, you have total control over the presentation of your message. Direct mail is a unique blend of advertising and sales. While good advertising should certainly lead to sales, direct mail allows you to present the product or service, make an offer and try to close the sale-all at once!

Here are just a few of the advantages of direct mail as a marketing strategy:

* Allows you to target your message to a very specific audience.
* Direct mail is a relatively inexpensive medium.
* Direct mail messages can be personalized to add reader appeal.
* You can evaluate its effectiveness. You can keep track of exactly who responded and from where.
* Mail readers are actively involved. People read their mail when they choose. So, for at least a second or two, your message will have their undivided attention while they open and scan it.

There are three elements to an effective direct marketing strategy:

1. The List
2. The Offer
3. The Mailing Piece

The first of these three steps to a successful direct mail campaign is obtaining the right list. Targeting the right market is the key to this marketing strategy. When selecting your list make sure you target people most likely to have an interest in what you have to offer as well as some things in common with your present clients.

This common ground might be age, sex, occupation, income, geographic area, family size, magazines they subscribe to or any number of other demographics. You can obtain lists that are specific to the demographics of your particular target market.

You should also maintain an up-to-date list of all your customers and clients. Direct mail to this list can create additional business, introduce new products and services or promote sales or special offers.

The second step of this marketing strategy is the development of a “matching offer”.

The offer you make in your direct mail needs to be carefully thought out and matched as closely as possible to the interests, needs and motivation of the people on the list. The more specifically you match the offer and the list the higher the response rate.

Let me use an example to demonstrate. When I was a mortgage consultant many of the sales people in the office sent direct mail. The list that was mailed to was targeted to homeowners who had taken out mortgages with specific lenders in a specific time period. The lenders that were targeted were known to be lenders with typically high interest rates.

The response and closing rate of those mailings were higher than a mailing that was sent to all homeowners in the same area because it was targeted to a group of people that would be more likely to want to refinance.

The third element of this marketing strategy is the mailing piece or the presentation of the offer to the list.

The most common and least expensive mailing piece format used by small businesses is the solo format. It’s a single sheet, printed on both sides and folded in half or thirds and mailed without an envelope.

Another solo format that’s even simpler and less expensive is a postcard or oversized postcard. This can be a very cost effective way of communicating with your list of customers and clients.

The next step in the development of your mailing piece is to write the copy or present your offer. Copywriting is a valuable skill. I urge you to develop the ability to write good advertising copy. Here are some tips to get you started.

* Take proven sales letters and ads and rewrite them to fit you and your offer.
* Create a swipe file of successful ads and letters. When you see an ad that catches your eye, save it.
* Save your “junk mail”. A lot of it’s written by the best copywriters in the world.
* Subscribe to the National Inquirer, The Star, The Globe, etc. The ads in these publications pull in millions of dollars worth of orders.
* Make sure your message matches your market. This means your offer has to have perceived value to your prospect.
* Use lots of testimonials in your ad copy.
* The headline is the most important part of any ad or letter.
* Use multiple PS’s in your letter. Restate the offer, deadline, free gift, etc.
* Offer multiple options for your services. Label them ex. Gold, Silver, Bronze.
* Before you write, make a list of all the objections a prospect could have for not buying your product or service and then answer them in your letter.

Direct mail is a profitable marketing strategy if it’s used properly and all three components are well thought out. It can provide you with an endless source of targeted leads for your product or service.

The Lucky Thirteen C’s (Components) for Promoting, Marketing and Selling Your Artwork

One of the best things I have come across to help business owners to understand the differences between promoting, marketing and selling is the following quote from an unknown author.

“If the circus is coming to town and you paint a sign saying “Circus Coming to the Fairground Saturday,” that’s advertising. If you put the sign on the back of an elephant and walk it into town, that’s promotion. If the elephant walks through the mayor’s flower bed, that’s publicity. And if you get the mayor to laugh about it, that’s public relations. If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that’s sales.”

In a nutshell that should give you a clear visual description of the important aspects of being in business and making a success of it. To consider promotion, marketing and selling all at once is a tall order. However, I have developed a checklist approach that I call, The Lucky Thirteen C’s (Components) for Promoting, Marketing and Selling Your Artwork.

1) Career Commitment

It is important with any career, but especially crucial for a professional artist, to achieve a level of commitment and purpose that supersedes most all the other aspects of his or her life. Making an all out commitment to having your sole income be derived from producing and selling artwork is a risk, much like any other business. However, it is a risk that you must be willing to take on with eyes wide open and with some minimal financial reserves to see you through the start up phase of your business.

2) Creative Spirit

It should probably go without saying that an artist needs to be a creative, open-minded individual who has a sense of beauty and the stamina to sustain a life of ups and down and good times and bad times. Not all artists can ride the wave of success to the degree they desire. Creative spirits must know themselves well and be in touch with their inner child who delights in the wonderful things life has to offer.

3) Character Development

People perceive a person’s character through the actions and deeds of that person. If a person demonstrates that he or she is honest, forthright, and caring, the vast majority of people will be won over. Most people are in tune with who has integrity in business dealings and who does not. Don’t use deceptive tactics or hidden agendas in the business relationships that you develop, or you will soon find yourself standing alone.

4) Confidence

There is a difference between confidence and arrogance. There can be a fine line between the two. It would be worth your while to have someone be brutally honest with you when you cross that line from confidence to arrogance. Many times a person that is more quiet and shy comes off as arrogant because he or she is not the demonstrative type. People may take that more inward person the wrong way. Work on being able to confidently talk about your work in a professional manner.

5) Communicate

Communication skills are a premium in any business. Being able to address small or large groups of people to tell a story about your art techniques or a specific piece of artwork is a skill that is so valuable. People want to hear about what inspired your creative spirit and what the significance of certain symbols are. They also will know if you are genuine or are just saying things to impress them. Brush up on your skills and be sincere in your dealings with people. Remember that communication is two-way, and you must also be an active, attentive listener.

6) Create a Website

Yes, it is the technology age. A few years ago people were not asking, “Do you have a website? What’s the address?” A web presence is becoming more and more important. You could use some of the basic website builders and do your own. However, a better idea might be to leave it to the professionals, providing you have the resources to make that happen.

7) Community Involvement

Getting involved in your community and local events may not be as applicable to artists who have already achieved a national level, but it is a must for local artists who are looking to expand their following. There are many ways to become involved, and there are many organizations that could use help or donations of any kind. Get your name out there, and at the same time feel good about what you are contributing to your hometown.

8) Collect Contacts

As a person goes through life there are a myriad of ways to meet people. If you are looking to meet people who are potential customers, you must be at events that art buyers attend. This may not be an event where you are able to directly sell something on the spot, but you can certainly meet people who may be potential buyers. Events such as Chamber of Commerce Mixers is an example of one of many opportunities to establish business relationships.

9) Consider Commissions

Many artists are vehemently opposed to doing commissions. Some feel that a commissioned work may have too many strings attached and may stifle the creative spirit. Others welcome working with an individual customer who has specific needs for such things as decorating purposes. It’s one of those things that can be labeled, “Take or Leave It.” But think about the cost in the long run.

10) Charitable

Throughout a community there are numerous fund-raisers always going on that requires solicitations of donations for this cause and that. Most are very deserving and are very needy. One way of contributing to the community and also a good way to get your name out in the public eye is to be an eager contributor to it. If you decide to donate a piece of artwork, don’t give them something that you consider a reject. Offer them a substantial piece that will give you the attention you deserve.

11) Converse with Consultants

Talking with a professional consultant or art agent may be just what you need to help with promotions and public relations. The cost of contracting this kind of assistance could more than pay for itself in the long run. Make sure any relationships you establish with a consultant are based on his past performance and on a like-minded plan on which you can both agree.

12) Consistent Pricing

The kiss of death for any artist might come about if you are not aware of inconsistencies in your pricing structure. Buyers do notice those kinds of things. Everything that you put up for sale should be kept in a log with specific descriptions that can be used for a reference in pricing future pieces. Yes, it is okay if your prices go up, but there should not be significant discrepancies in what appear to be like items that are selling at the same time.

13) Customer Satisfaction

Always follow up on sales. You don’t want an unhappy buyer bad-mouthing your work or your sales pitch. If someone isn’t happy with their purchase, think about the damage that you can cause by digging your heals in. Be liberal with your thinking in terms of returns or trades. You want happy customers because they could be return customers. Never forget that unhappy customers have big mouths.

There are certainly more than “The Lucky Thirteen Components…,” but this will give you some basics for consideration as you think about promotion, marketing and selling. Remember the rule of finding out what your customers want, and you will be on the right track by following that lead.

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