Direct Seling Agents (DSA) are business correspondents for banks and NBFCs. They do market research and provide leads about interested customers for loans under an agreement from the lender.
In return, they get a handsome commission, a significant income source, and business ownership.
If you have a knack for sales and are great at networking, DSA business is your call for sure.
Let us go ahead and share some tips about how to start and operate a profitable DSA business.
Tips to Start a Profitable DSA Business
Why do you want to be in the DSA business? What do you want to achieve in the next five or ten years? Do you have a proper plan to begin? etc
People often over-looked the first step and jump into starting a business. Asking questions is a part of self-analysis. It shows your preparedness to face the challenges of the DSA business.
To be frank there are hundreds of DSAs working in the field, you need to make yourself different and better than them to succeed. Therefore, a planned approach is a must for a successful DSA business.
Reasons and Plan
Identify reasons to start a DSA business and prepare a solid plan, ticking all the boxes.
Is it just a side hustle or a full-time business as a primary source of income?
Is it for a few years or a lifelong business plan?
Reasons to Start a DSA Business
Being your own boss
Doing what you want, where you want, and mostly when you want
Improving your standard of living
Boredom with your present job
Demand for loan products (online and locality)
These are a few common reasons that drive people to start their businesses. Identify yours and begin a journey of a profitable business.
Though DSA business does not require any specific degree or qualifications, a basic understanding of the loan market, terms related to the loan procedure, and market analysis will prepare you better to generate leads.
Technical knowledge of your product and confident communication skills makes an ideal combination for a successful DSA business.
Banks and NBFCs provide training for DSA agents. You will receive complete product training after successful registration with your bank or NBFC. However, the core job profile of a DSA is to provide leads, and the rest is taken care of by banks and NBFCs.
Dedication and Willingness to Sacrifice
Sales are challenging, and there is no other way to say this. There will be long days, sleepless nights, and pressure to meet targets. You need to come out of your comfort zone to operate a successful DSA business.
Though it is challenging, rewards make the day better. A dedicated and skilled DSA can earn excellent money.
Basic Knowledge of Finance and Management
DSA generates leads and forwards them to the bank or NBFC as per a written agreement between the parties. Anybody like homemakers, unemployed, people with jobs or business can start a DSA business after training and the agreement.
As a business owner, you need to manage finances and client records. Therefore, it requires a rudimentary knowledge of management and finance skills. You need to maintain excel sheets for clients, leads updates, and different types of calculations like commission, loan amount approved, etc.
Thanks to the internet, you can learn Excel and the basics of management skills through YouTube and searches on the browser.
Additional Reading: How do I become a DSA Partner?
Knowing your market is crucial for any business because it’s all about customers always. Unlike traditional market analysis methods, you can do it without even stepping a foot out of your home with the charisma of advanced tools and the internet.
Though, it would be great if you utilise both online and offline methods for wider coverage of the market segment.
Tips for Online Market Analysis
Inform friends, family, and acquaintances on social channels about your DSA business
Ask for their suggestions on the business and requirements for loan products such as home loans, personal loans, etc.
Create a business page on Facebook and Instagram. Post an ad and ensure to reply to every query and message
Create a channel on YouTube, post videos, and interact with people in the comments section
Market mapping demographic-wise through Analytic Tools of Google and Facebook
Analyse data from all the above and do target marketing. It will provide qualified leads and higher chances of conversion.
Tips for Offline Market Analysis
Increase social gatherings and attend social functions
Meet up with people and expand your network in the locality
Target people with influence on the local community
Talk to friends and family in-person
These steps will provide direct lead and referral leads for your DSA business
Become Andromeda Loans DSA Partner & earn maximum commission
DSA business facilitates easy loan application and disbursal for loan applicants. There is huge scope and market for the DSA business in India as people are in hurry to own a home and fulfil their necessities.
Refer to the tips in the passage and form a sound plan for a profitable DSA business now.