What is Market Saturation and Why Does It Matter?

I think we've all heard those 2 words - Market Saturation. But what does that really mean?

Market saturation occurs when the amount of products or services in the market have reached more than the amount that consumers are willing to buy. That means, if you are offering the same products that everyone else is offering, eventually, the amount of people buying from you will decrease because they just can't buy from everyone! 

How do you combat market saturation? You have to come up with new products to introduce to the market, improve existing products, or do something that makes you stand out and essentially take the business from your competitors by offering something extra - whether that is better customer service or extra promotions. 

Let's take a look at the direct sales clothing industry. There are hundreds of clothing companies. LuLaRoe, Agnes and Dora, Hello Pink... just to name a few. LuLaRoe for example has close to (if not over) 100,000 consultants now. I used to be one of them! Sure, you could be the only one in your city, but if you plan to sell online, you have an enormous amount of competition! There are consultants who have been in the business for many years who put on a live show and nearly sell out. But they have amassed a following over the years that has become loyal to them. They can afford promotions. A new consultant may put on a live show and maybe get 5 viewers? If she's lucky she will sell a pair of leggings... IF they are super special "unicorn" leggings! Why? because with 100,000 consultants and well over half of them selling on Facebook, customers don't need to be in 50,000 groups. They will only choose 5-10... 20 if you're a real fanatic! It's just not feasible for everyone to be successful when everyone is selling the same thing. Yes I know, they all have different patterns on the clothes... but the number of consultants is still overwhelming. 

Does this mean you cannot be successful by selling LuLaRoe or another clothing company? No. It just means you have to work harder to earn a smaller piece of the market... and don't be surprised if your customers are stolen away by someone else. 

Some things I suggest you look for in a direct sales company: 

Unique product. The newest idea on the block is the easiest to promote. Everyone sells clothes. Everyone sells candles. There are literally MILLIONS of makeup representatives. What makes your product stand out from the crowd? 

Variety. Is your company a 1 product wonder? Or do they have a wide selection of products? If you are limited to only selling 1 or 2 products, if someone doesn't like those products, they are not going to be your customer. If there is a wider variety of products, there is a higher chance that your customer can find SOMETHING they like. 

Low number of representatives. The fewer the representatives in your company, the more market share you can each have without competing with each other. As you work to spread the news about your company, you can also build a team under you! 

NOT FREE TO JOIN!! But everyone loves free!! I can get 10 people to sign up today if it is free!! That may be true! But that also means TONS of competition. Also, it is proven that you are more emotionally invested in your company if you are FINANCIALLY invested in your company. That doesn't mean that you have to spend hundreds of dollars to join a company. But, even at $10, $50, or $100, that motivates people to take the business seriously and it weeds out all the people who expect something out of nothing. 

Want to know a company that meets all of these criteria? 
Check out You Got Shoes on my profile. We are the ONLY direct sales companies that sell SHOES. We have a variety of sizes, styles, and price points on our shoes with over 300 pairs to choose from. There are less than 600 fashionistas at this time across the United States. We are also NOT free to join, and I'm proud of it. Even so, it's not expensive to join. We have join specials that are constantly changing. 

Interested in seeing our join specials? Check out my site: www.YouGotShoes.com/MandaPanda
Or, chat with me to learn more about the company - or just to network! www.facebook.com/MandaPandaYGS