For more than 20 years, ByDesign has been supporting our clients’ international expansion and growth. The tips below have been garnered as a result of launching hundreds of international direct selling companies. Whether you are an established company on the global stage or planning to become one, these tips can save you a lot of time and money.
The Global Direct Selling market is rich with opportunities and potential risks. Not only are the work and business cultures quite different in North America, Europe, and Asia, but from a tactical perspective, several additional areas must be considered that may not be on your radar:
The Freedom Open Platform can handle all markets in parallel while fulfilling the unique requirements of your expansion plans. From unlimited Countries, Currencies, and languages, the ability to restrict inventory by country, to the unique features needed to facilitate your compliance with multiple governmental organizations — Freedom is your complete solution.
Highlights of Freedom’s International Features:
Successfully launching in a new country begins with research and due diligence. Evaluating the economic conditions in a potential market will allow you to determine if the country meets the criteria you need to support your business strategy and goals. The list below will provide you with the five most important data points you will need to complete your economic evaluation.
When it comes to business policies, we find Asian and U.S. markets place more considerable attention on ensuring customer satisfaction. They tend to have better return/replacement policies and cash on delivery options. This sometimes triggers the need for territory-based configurations of the back-office technology.
Your company must be strategic about scaling up from your domestic country to various international markets. Look for countries with stable technology infrastructures, including:
You will want to pay very close attention to the political, cultural, and economic differences in each country. Successful expansion is much more about localization than it is about having one size that fits all markets. A common mistake is over-valuing the potential of a market based on your domestic results. It may be challenging to find detailed information on each country, but stick with it — doing extensive research upfront will save you a tremendous amount in the long run.
When expanding internationally, you must be prepared for the inevitable fluctuation in exchange rates. When negotiating contracts, a best practice is to lock-in a specific exchange rate to allow you to forecast revenue and expenses accurately.
English speaking countries, such as Canada, Australia, United Kingdom, Ireland, and New Zealand, are the most straightforward for U.S. based companies to consider. The fewer differences between your domestic country and your international markets, the easier the expansion will be.
Argentina, Indonesia, Colombia, United Arab Emirates, and China tend to be more challenging due to the complicated regulatory environments. Additionally, Taiwan has special rules tied to invoice numbers, invoice documentation, and Health insurance deductions, and Korea has different tax rates based on their earnings. Some companies have to collect these taxes before issuing their payment – more like withholding. It is critical to thoroughly understand the requirements of each country before launching there due to the unique requirements and regulatory climate.
ByDesign clients are doing business on six continents, in 140 countries. Our software is being used in 71% of the world’s nations today. Our Corporate H.Q. is in Tampa, FL, and our Singapore office supports the Asia/Pacific Rim market.
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