As a distributor you may be sharing your business success and advertising online or in social media. Common postings include product benefits, and the monetary success of joining a global opportunity. However, when you sponsor your first international team member you might have a few questions. Are there any legal requirements to growing your business internationally? Here are some considerations when starting to grow your team in multiple countries.
Step 1: Get support from your company to grow internationally
First, talk with your company to find out what countries they currently do business in. Let’s go through some of the specific questions you’ll need answered.
How will you get product to the customer? In most cases, companies can ship products to most areas of the world. There are some exceptions based on shipping and type of product. Be specific and ask your corporate office what countries can be shipped to and what countries you can sponsor from. Some companies operating in countries that have poor shipping practices will instead choose to warehouse a will call office for product pickup. You can in these cases instruct newly sponsored team members to pickup their products after purchase.
How will you be paid when sponsoring and selling internationally? Most companies have what is called seamless commission plans. This means that the company will calculate commissions made from growing your team in other countries using a points based system that translates into your commissions being paid in your local currency and country.
How will you market successfully to customers who speak a different language? Ask about marketing and multi-lingual promotional materials as well as any information they have specific to sponsoring and selling internationally. Encourage your downline with “feet on the ground” to attend all corporately sponsored events if possible.
Is the country’s culture cash-based? If the country you want to do business in is a cash based culture you will want to let your local team members conduct business or you will need to get a work visa for that country if you wish to physically sell there. Cashed-based countries are the most difficult to grow and maintain a team in from abroad.
Step 2: Determine your legal needs during expansion
You will also need to take time to ask yourself an important question before you proceed: Will I need to form a company or legal entity in each country I am expanding into?
Normally the answer is no if you are sponsoring internationally from home. If you are personally visiting and selling in a country then the answer is maybe. You should check with local area authorities and international work visas for that country. Sometimes people who have legal status in two countries decide to move their home country for payout purpose. You will need to have legal status in any country in which you get paid. A few companies may allow you to get paid in multiple countries, but that is not the norm.
Check out part two for two more steps to going international.