Hiring: Where to Start in a Direct Selling Start-up

Hiring decisions are important no matter the size of the company, but they are critical when hiring for a start-up, particularly with the direct selling channel. 

We have worked with a large number of entrepreneurs who are starting or have recently started companies selling their products or services through this channel. Hiring for those early positions can make or break a company. Our discussions usually center on what position should be hired first. The answer depends on the existing experience within the organization.

There are two areas that are critical to the organization’s success – Sales and Operations. If you have someone in a leadership position who has direct selling sales experience and who has experience in a “field facing” position, the first hire you should consider is an operations executive. Someone who is process driven, who can establish SOPs, review and negotiate SLAs, and a who has a strong understanding of the technology needs of a direct selling organization. Execution is critical and this individual should execute flawlessly. Direct selling is a temperamental channel and if your execution is flawed in start-up, the sales force will leave quickly.

Conversely, if the organization has strong operational leadership, the sales role is an essential position to consider. This individual must have experience in the channel and know how to recruit, develop, and motivate a volunteer sales force. They must be a “doer”, not just someone who wants to primarily direct others.

In our experience, based on working with numerous companies over the years, it is crucial to determine those positions that require direct selling experience and those that don’t necessarily; and then hire accordingly.

Equally important to hiring appropriately, is being willing to listen and accept recommendations from those individuals you hire with respect to their areas of expertise. Then, give the channel time. This is a distribution channel that takes time and patience, along with a considerable financial investment, but when it takes off, the growth can be explosive.