More than one option to becoming your own boss

Every year, tens of thousand of individuals join some form of direct sales network or financial product companies, with the aim to eventually achieve financial freedom.

To many employees caught in the daily rat race, getting out of that vicious circle and becoming your own boss is difficult, to say the least. Over the years, you would have developed a comfort zone, where your income, expenses and lifestyle revolve around and is dependent on your job. How do you then hope to achieve your goal of running your own business without ‘sacrificing’ your hard work over the years?

There’s really no fast answer to that. Some people use all their savings, or borrow money from banks, family and friend to open a business they have an interest or feel there’s a potential in. but for the majority who don’t have such resources, a business in direct sales or selling financial products may be an option.

But isn’t that for people who can’t get a ‘proper’ job?

In the United States, direct sales or more specifically multi-level marketing account for more than a quarter of all consumer sales. Similarly, it is a well known fact that multi-level marketing produces more millionaire than any other industry.

Successful insurance and unit trust sales agent are known to earn in excess of a million ringgit per annum. A recent industry survey places average monthly income of an insurance agent in Malaysia at RM8000 a month. And that includes part-time agents as well.

Most people I know fear MLM and financial product sales due to lack of understanding. Both industry are very different from the business and career structure we are used to. However, both require an entrepreneurial spirit and a desire to be your own boss.

Where to begin?

A good place to start understanding these industries further is an entrepreneurship exhibition. At such expos, you will have the opportunity to speak to representative from these companies and get to examine the business concepts they have to offer.

You will also want to speak to friends and relatives who are already in such business (all of us know someone who is it). Ask question you normally ask when starting out in a business-how much is the capital outlay, what kind of resources would you require, how much you can potentially make, the product and the market, etc.

The beauty, and unfortunately the problem, of MLM and insurance/ financial products sales, Is the need to expand your ‘network’ in order to achieve success under such schemes. The whole model of this business is the ability to leverage on other’s efforts, and the collective power of a huge network of people.

Then again, this is not very different from ‘traditional’ businesses where you rely on referrals, words-of-mouth and your salespeople to grow your business.

What do you need to succeed in an agency/direct sales business?

Many people assume that such businesses are for fresh graduates or people who are retrenched and cannot find other jobs. That’s far from the truth.

The most successful people in this business are experienced entrepreneurs – many of whom own multiple business. Common business skills such as people management, financial planning, ‘stock’ control, business etiquettes, etc, are very useful in direct sales and financial product sales.

Like any businesses, you will need to have both tenacity and passion to succeed. If someone comes to you with a promise of quick bucks through MLM- don’t even believe that. Like any business, you will have to works towards that-although in MLM and financial product sales you have the distinct advantage of not having to incur heavy capital outlay.

A word of warming

There’s a plenty of scams out there to catch aspiring entrepreneurs. There’s no better word to call this half-baked programs but the word ‘scam’. In Malaysia all direct sales companies (including those offering mail order) are required by the law to be registered with the Ministry of Domestic Trade and Consumer Affairs. The Ministry monitors these companies for compliance of regulation, and frequently blacklists companies that are known to be dubious in their business. For list of registered companies, visit the Ministry’s website.

Similarly, if you are to join an insurance agency of financial planning group, ensure their background and credibility. It’s your business, so associate yourself with the best.

Take that first step!!

Again, direct sales and insurance / financial planning is not for everyone. But there’s really no harm to find out more and see if this could be your ticket to becoming your own boss minus the usual capital requirements. Go ahead and good luck…