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Is It an Over Saturated Market?

By: Deb Bixler



I would be rich if I had a penny every time someone told me their company was an over-saturated market! I have heard it from all different companies, both large and small, in every product line. People who live in the back woods and the big cities all say the same thing:

The market is saturated!

Is Starbucks An Over Saturated Market?

The concern about market saturation indicates a misunderstanding of sales. Does the mini-market on the corner complain that there is another less than a mile down the road? Does Starbucks whine that you can see the next Starbucks from their door step?

No, they understand that this is what makes business good! It actually contributes to business success!

Think about this—you can only service about 500 people well. With almost 400 million people in the US, and over 7 billion worldwide, how can any company have a totally saturated market?

Almost any town can support multiple reps. (Take your town’s population and divide by 500 to get the amount of distributors you would need to have before saturation occurs.)

Has Mary Kay Hit The Saturation Level?

I don’t think any of the companies whose distributors say the market is saturated are in fact saturated. Think about a direct sales giant like Avon or Mary Kay. I have at least 5 personal friends who sell Avon and it is those who work their business that are doing well.

It has nothing to do with saturation and everything to do with customer service! Did you know that in 2010 there were over 700,000 Mary Kay US distributors? A study found that 91% of the women in the US who wear makeup use some brand other than MK!

Does that sound like a saturated market?

Saturation In The Market Is An Excuse!

Whether you are sharing the opportunity with a lead who is concerned or your team member (or yourself) cannot succeed because of saturation it is nothing more than an excuse.

  • Maybe your potential lead just does not want to hurt your feelings by saying no.
  • Is that team member taking actions to build the business?
  • Or could you just be looking for a scapegoat as to why you are not working your business?
A good market saturation strategy is to:

  • Use every marketing opportunity available to you to find bookings
  • Provide AWESOME customer service
  • Explore new markets for the product or service
  • Use every service opportunity your company provides—diversify with fund-raisers, charity events, catalog shows, etc.
  • Reinvent the brand with your own personality—set yourself apart from the other distributors
The way to overcome the saturation concern from new distributors is to be confident about your business and have a good answer to their concern that validates them, offers a solution and encourages them to share more about what is REALLY holding them back!

An example using the feel, felt, found sales method would be:

I can understand your concern about a saturated market. You are not alone; that is a question I hear a lot and yet I have found that there is more business out there than one distributor can handle.

I can certainly teach you how to thrive in our company and create income….

You said you could use some extra income; would you mind sharing more about why you are concerned about joining?

Remember it is more about attitude than anything!  No market is ever saturated!
It is easier to represent a well-branded company than one that is not well known!

This article was originally published by Home Party Plan Training Center

Published: September 26, 2014

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Deb Bixler

Direct sales party plan educator, Deb Bixler, host of the Cash Flow Show - Direct Sales Radio is the leading authority for home party plan business training. Recognized worldwide, Deb provides corporate consultancy, party plan coaching, online and live training events as well as social media management for the home business consultant.

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