| Nearly every network marketing and direct selling company ever established has written somewhere in its objectives, plans to expand internationally beyond the borders of its origin. Why shouldn’t they? The global market is obviously larger than any single country or region. Numerous network marketing companies generate more sales revenue abroad than they do domestically. So should you jump right in? Perhaps. However, first think through the following four things you’ll need to consider to improve your chances of success. 1. Can you provide continuity for your commission plan? No one would suppose that you could simply take your existing commission plan and automatically roll it over to new countries without a problem or concern. Some things to consider include your ability and/or need to pay commissions in local currency. Does your current domestic commission plan reward the action you desire when it is implemented in other countries? Are there income levels that would cause a need to change the way rank advancement is handled? There are various approaches to solve this issue, but clearly without a well thought-out commission structure for your new expansion plans, you could find yourself unsuccessful. Read the commissions section of this e-newsletter, for insight from InfoTrax Systems’ CEO and author of Understanding Multi-Level Commissions and Their Role in a Successful Company, Mark Rawlins as he discusses the three major schools of thought on international commission plans. 2. What product changes will you need to make? The intensity of this issue will be dependent on the product you manufacture and/or distribute. Clearly a motivational training program wouldn’t carry the same regulatory requirements as a nutritional product. Some questions to consider include finding out if you’ll need in-country approval equivalent of the U.S.-based Food and Drug Administration. What product labeling changes will need to be made? What import/export requirements exist for your product type? The requirement might be great or minimal, but the subject is certainly one that can’t be overlooked. 3. Will you have a virtual or physical presence in other countries? Centralizing can often be a cost-saving measure over a physical presence in each country. Yet in some cases you might not have a choice. Depending on your business type, some countries require a physical presence prior to the time that you are able to sell your first product there. There are also strong advantages in recruiting and management associated with a physical in-country presence. Even opting to go with a physical office, consider if that office can support a number of other neighboring countries as well? Much of your decision between a virtual or physical presence will be based on economic factors, yet other considerations such as control, government regulations, and cultural nuances will come into play. 4. What local language requirements will you have to fulfill in order to succeed? Language is very often the first thing that comes to mind when considering international expansion. The well-used phrase “English is the universal business language” might or might not hold true for you depending on the country and your typical buyer. One way to approach this is to look at other direct selling companies who are succeeding in the subject country. What have they done? What materials have they translated? There are a number of good translation services that can translate materials for you at a reasonable cost. Deciding what to translate and in what priority order, is probably the biggest challenge you’ll find in this area.
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