Kwing Herrero

Why did I Choose Direct Selling Business Model Instead of IT-Related Business?9 min read

After graduating from college at 19, I started working as a web developer. Through hard work, dedication, sacrificing rest and sleep, missed gatherings and grasping all freelance projects that I could grab, many doors have opened, which helped build my career. But after working hard for more than seven years, I needed to work harder the more I climbed the corporate ladder – and this led me to the realization that if I stopped working, I would stop earning. In this post, I want to share my reasons why I chose Direct Selling Business Model Instead of IT-related business.

How and when did I transition from an employee to an entrepreneur? 

Way back in 2011, my entrepreneurial journey started. I signed up as an Independent Distributor for a global health and wellness company named USANA Health Sciences. It was when I stumbled upon a book called Rich Dad Poor Dad. The book’s contents challenged my way of thinking, and this book has opened my mind that I can have plenty of options if I transition from an employee to an entrepreneur. You can check the whole story by reading From average employee to an entrepreneur with almost 10,000 associates internationally.

Photo with XTRM1-11 family. This is one of our team buildings

My ultimate goal is to set up my income to autopilot / passive and make my passive exceed our monthly expenses – that way, my family and I have exited the rat race of getting up, going to work, and paying our bills.

Hamster wheel - Image from Giphy
Hamster wheel – Image from Giphy

I believe that achieving the goal of setting my income to auto-pilot is achievable in my entrepreneurial venture, which is becoming an Independent Distributor of USANA. Some people call this venture MLM or Network Marketing, and this kind of business model is unpopular with many.

But please be advised that to reach this stage, you need to put in years of consistent effort in building your business.

This business model is great, and in the early years, it was the trend. Unfortunately, however, many people with ill intent have used this business model to scam people by promising their recruits the promise of getting rich quickly or growing their money fast without doing anything. This incident that happened many years ago is why many people became skeptical about this business opportunity, and this adds a layer of challenge to distributors to expand their business.

Despite the issues, I still decided to pursue this rather than venturing into a side hustle or business related to my course, IT. Here are the five reasons why I chose the Direct Selling business model over a start-up traditional IT services company:

1. Competition

It’s tough to develop a unique and original idea nowadays. A competitor can easily copy an idea and create a better product. If you are a start-up with limited resources, it will be very challenging if an established company makes a product or system similar to yours.

Chess competition stock photo

In USANA, there is also competition, but at least the company is already established. The products are ground-breaking, and the office, business permits, logistics, accounting, etc., are already in place. Of course, the competition among other distributors is fierce, but at least I won’t have to worry about the worries of an entrepreneur in a traditional start-up setting.

2. Costings and Capitalization

Despite an IT company’s ample opportunity, it takes a fortune to start one. There are essential factors needed to operate like office space lease, workstations, software, utility bills, business permits, etc. The salary is also a significant factor to consider when hiring a programmer or developer.

Operating and business expenses

USANA’s business model employs the direct selling business model, meaning I don’t hire people and pay salaries to get the work done. Instead, I build my team of people who wish to earn money on the side. Then, I train and support them through training and mentorship, and if they grow as better leaders, my business will also increase.

Other significant factors that I liked in USANA are: 

  • Products are already top-notch with a team of world-class scientists.
  • Support from the corporate office is fantastic,
  • The business model is fool-proofed and has paid an enormous amount to distributors.
  • Office facilities are free of use for associates – you can visit USANA offices in other countries and use the venue for free.
  • The corporate handles the logistics – deliveries are handled properly even in different countries.
  • International business expansion is straightforward.
  • Company events are superb.
  • And many more. 
Photo of Kwing holding Nutrimeals
Photo of Kwing holding Nutrimeals

3. Emerging Technologies

Almost every day, the technology is evolving. New business ideas pop up; new hardware is developed and launched, so the software in your program needs to be updated regularly to match it. New hardware is released every year, so we are also expected to upgrade to run the latest apps faster after a few years. There are also new development toolkits with added security features and many emerging factors. You have to keep yourself updated; otherwise, your product will be outdated and won’t meet the standards. Your competitor will also get ahead of you. So, there will be no leverage because you need to keep up regularly.

Mark Zuckerberg reveals Metaverse

As a distributor in USANA, we also need to keep training to get updated about the latest trends and take advantage of where most people put their attention. Upgrading tools is a plus, but it is not required. We also need to keep grinding and growing our business until we reach the point where the business massively grows.

4. Titans in the Industry

If ever I succeed and make it big, there is a big possibility that the titans like Microsoft, Apple, Facebook, Google, Tesla, and other giant companies will develop a product identical to ours? So there is a big chance that my current clients would consider shifting there, and this will cause a massive impact on my company, and all the hard work may go down the drain not unless we know how to pivot. 

Here are the world’s largest tech companies in 2021 by Forbes. You can read the article here.

5. Inheritance

We all grow old, and in reality, our time running our business is also limited. I don’t see myself programming, managing, and working on our business until I am 65. If I pass this business to my children and they seem uninterested or skilled, what do you think might happen? There is a big possibility that the board of directors might take over, or I hand my business down to my kids, who might or might not be interested in running it. Changing leadership in a company will significantly impact its culture and how they operate things.

Torch olympics gif from Giphy

I want to make it simple and easy. I work hard and grind in my prime years, and once the foundation is established, I will let the business run, and when I am ready to retire, I will transfer it to my kids. If ever they don’t want to expand and they want to pursue other things, that’s okay. My USANA business will continue to earn because I have built it for decades.

And here are my five reasons why I focused on the direct selling business model. Let me emphasize that:

There is no right or wrong choice here because regardless of which path you choose; you will succeed as long as you keep grinding and growing your business and never stop, even if things aren’t working. 

Kwing Herrero

I decided to focus on USANA because it is SIMPLER. I did not say it is easy, but it is simpler than running a traditional company. 

Bonus Tip! 

When choosing a business, I always refer to the B-Quadrant Quiz from Robert Kiyosaki’s book, Cashflow Quadrant:

Are you a true business owner?
Can you leave your business for a year or more and return to find it more profitable and running better than when you left it?

o Yes
o No

If your answer to this question is NO, then my friend, you are self-employed not a business owner.🙂

My recommendation is: Find an opportunity to generate profit, focus on that, and once you’re all good and comfortable, you can freely look for other businesses of your choice. What’s important is you have a road map to your goals, and you enjoy what you are doing.

If you think USANA is a good fit, you can check the online tour that offers information about the company, products, and compensation plan.

I hope you get value from this. I highly encourage you to start your own business. Here are The Eight Reasons It is The Perfect Time to Become an Entrepreneur Today.

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