Goodness of Direct Selling got Recognized

Written Sajeev Nair, Sep 14th, 2016 | Category: General | Comments: None

On September 10th 2016, when the Central Govt declared a proper Legal guidelines for the Direct Selling/Network Marketing industry, India has given birth to a new era for the free enterprise model. Let me thank the leaders and the industry bodies like IDSA, FICCI, FDSA etc who have been fighting for this for the past 5 years.

Kerala had witnessed the worst for not having a proper guideline and regulation for the industry. As there were no proper guidelines or regulations, many fast money schemes came up claiming that they were all doing Network Marketing business. Govt authorities found it difficult to differentiate good companies from the fast money pyramid schemes and hence the severe actions, which affected the genuine companies and people who were doing genuine business. Police actions in 2011 and 2012 against the companies and people who were involved in this industry had affected the livelihood of lakhs of people in the state.

Now with these guidelines people can engage in this business with pride. However, the question still remains: how will I select the right company? Especially, with this new development many new companies will come up. Hence it becomes important to know how to select the right company. Though I am still part of this industry, I am not biased to any companies. I got into Direct Selling in 1998 with one of the world’s largest Direct Selling companies. I and my wife Bindu had put our blood, sweat and tears for 13 years with the same company. Though we were earning good income, we resigned from this company on Nov 3, 2011 just because we never wanted to do anything in our life against our consciousness. We were concerned about the income our team members were making; we found it tough to keep on giving hope about a business in which we had lost our conviction. However, we realized that its not easy to take such decisions as people come into business listening to our words and the hope we give about the future of the company, and it becomes tough for them when we give a different in

formation about the company. This happens because in this industry, the relation with the company becomes almost like devotion and worship rather than just business. It is time to be more professional in this business. Companies stand to do business and distributors also stand to do business. When it comes to business, all are looking for the best return on their investment; whether it is money, time or energy.
Considering all these, the most important thing is to be associated with the right company. I look at 3 Ps when it comes to identifying the right company:

Promoters

The most important factor in such a business model is the Promoters; their back ground, philosophy, values etc. The Promoters/Founders of the company should have excellent professional management background; they should be highly qualified and experienced. Experience in creating a network is not enough for managing a company. That’s why many companies started by Network Leaders have failed.

Products
Beauty of Network Marketing is its power to generate residual income. This will happen only if the products, which are sold through the network are Fast Moving Consumer Goods. Products can have a premium pricing or economic pricing. However if the pricing is premium, it should be targeted for upper class consumers. But in this industry, many companies having premium products target the lower and lower middle class as they are more vulnerable. As a result the market get spoiled

Plan
Lot of people decide on the company based on the compensation plan. Please note that Plan in not at all more important than the promoters background and products. If the pricing is genuine and quality is good, there is a limit to which a company can pay. If some company is offering fancy percentages as commission, its better not to believe. Genuine companies offer 30 to 45% of their sales realization (at distributor price) in various forms of commissions. Anything beyond 45% is absolutely impossible.

A person who associates with a Direct Selling company should know that he is becoming the ambassador for the company. People see the company through him/her. Hence it becomes so important to associate with the right company.

Invest in Your Passion

Written Sajeev Nair, Jul 2nd, 2016 | Category: Business Coaching | Comments: 1

It is quite exciting to see the upsurge of entrepreneurial spirit in India.  People, especially the youth, are keen to start their own ventures.  Thanks to the Start Up India mission.  Should appreciate the media also for highlighting the start up success stories.

However, the flip side is that there are lots of people losing money in this bargain investing into ‘wrong businesses.’  Question is, what is a ‘wrong business.’

Sajeev Nair start up

Two types of people approach me and Bramma for start up advise and coaching; those who have money and those who have ideas.

Those who have money are always in search for the ‘hottest’ business.  They go by data, analysis and advises from experts.  But most cases they fail.  Reason; they had no clue about the business they got into.  Personally I have lost money starting businesses which I had no knowledge about.  Hence never jump into a business just because it is ‘hot.’  Don’t start a business about which you have no knowledge. Or else you should be an investor and there should be a business man with knowledge to run it.  In this case you are not in the ‘business’ quadrant; you are in the ‘investor’ quadrant.

Those who have ‘ideas,’  the questions are; ‘is this your idea or did you get it from someone else?’  ‘is it because a similar idea could fetch in some funding?”  ‘why  should you pursue this idea?’

In fact in this technology age there are no scarcity of ideas.  Hence having a ‘hot’ idea is not enough.  What convert the idea to currencies are your passion connected with the idea, your first hand knowledge about the ‘how to do it,’

Moving up is as important as starting up

Sunshine after the Cloudy days

Written Sajeev Nair, May 20th, 2016 | Category: General | Comments: None

Yesterday Kerala saw some sunshine after long cloudy years.  Hope this sunshine will last for ever and help Kerala to catch up with the national growth.

Sajeev Nairs blog on Leadership

Personally, last five years have been the most miserable time in my life.  So has been the case with many businessmen in Kerala.

I consider the failure of UDF in Kerala is a typical case study for Leadership Failure.  What all can go wrong in Leadership have been demonstrated by Mr. Oommen Chandy, the Chief Minster (or rather ex-CM).

‘Leadership is not standing for a popularity contest.’

However the Chief Minister (now ex-CM) Mr. Oommen Chandy forgot this.  He had to please many people and political leaders and in the process failed to do the right things.

‘If you don’t stand for something, you will fall for everything,’

Mr. Chandy failed to take important decisions at crucial junctures.  There were many occasions when the people of Kerala expected him to stand for the right things; but he failed; may be because of his personal obligations and commitments to some people.

‘If you don’t have a plan, you will fit into someone else’s plan’

From the date Mr. Chandy came into power, he was going as per the plans of some other people.  This happens because the leader himself doesn’t have a vision.  As Bible says, “If there is no Vision, People Perish.’

Leadership is a Combination of Competency and Character.’

While there have been few opinion leaders who were appreciative about the administrative capabilities of Mr. Chandy, he could never escape from the darts being thrown on his character.  His transparency, honesty and integrity were always been questioned and many doubts and questions remained unanswered.

Happiness in your Balance Sheet

Written Sajeev Nair, Apr 1st, 2016 | Category: Happiness | Comments: None

Yesterday on March 31st, one more financial year came to an end. Today onwards all the targets are re-set for 2016-17.

Many companies must have done a lot of stretched sales yesterday (which in consumer products business is called ‘dumping’) to show their growth over last year. Today is the day when many offices celebrate the growth they did register over last financial year.  What is this growth?  In fact, it is sheer sales growth.  Is it enough to check the sales figure to measure the growth of the company? Every year the same struggle, same stretch, same pressure to surpass the sales figures of the previous year.  Is there a better way to increase sales?

Sajeev Nair

Yes. Higher sales mean more happy and loyal customers. Happy customers can be created only by happy employees.  Hence if we create happy employees they will create happy customers and hence higher sales. How many businessmen and CEOs look at the sales scenario like this? Not even 0.1%. Companies spent millions of dollar on advertisements and sales promotions to increase sales. But forget about the most important element in a sustainable sales process; i.e., happy employees.

I think time has come to think deeper on this subject.  At least in this new financial year, lets take a decision to increate the happiness index of the company, which will end up registering unbelievably higher sales. Take measures to enhance happiness amongst employees; create a budget for this financial year to create workplace happiness.

Let workplace give them more happiness than any other place in the world.

P.S. You can attend my latest webinar on ‘Reasons behind Success’ by following the link:http://sajeevnair.com/webinar3/

© 2009 Sajeev Nair – Serial Entrepreneur, Author and Life Coach. All Rights Reserved.