You probably know someone who is involved with a direct sales company – think Avon, Tupperware and Mary Kay Cosmetics, Fuller Brush or Watkins are the old standbys. Some of these companies have been around for over 100 years! Jusuru and Mia Bella Candles are the new kids on the block. Each individual company has its own product line, pay plan, training and overall culture or feel. Before you join any direct sales company, it is extremely important to do some research on the different companies.
Benefits of Direct Sales
Inexpensive to get started. When you compare the cost of starting your own brick-and-mortar business or an e-commerce store with joining a direct sales company, you will see that the cost of becoming an independent consultant is far less expensive and less risky. The majority of companies price their starter kits under $200. Some even let you give it a try before you have to pay anything. The kits come with catalogs, order forms and some product samples. You will need a space in your home to set up your office. Check with your town to make sure you do not need a business license. As you gain clients, you will need to invest in some software to manage and keep track of your clientele, as well as software to keep your books organized. Online content management programs start at $15 per month and can go as high as $250 for software you install on your own computer.
You control your income. Direct sales consultants earn commission on each item sold. So, at least in theory, your earning potential is unlimited. To get a good idea of potential earnings, make sure you understand your company’s compensation plan completely. Some of them can be more than a little tricky to figure out. Make sure you ask plenty of questions and are clear about the compensation plan before signing on the dotted line.
Flexible schedule. Having a flexible schedule is a double-edge sword. On one hand, you can schedule your work time around family responsibilities; however, it is very easy to make your schedule so flexible that you never actually get around to working. It is very important to make your work time a part of your daily routine. And stick to it.
Drawbacks of Direct Sales
Paid commission. If you work hard, keep updated on the latest sales methods and are disciplined, your business will grow and you will gradually build yourself a nice nest egg. On the other hand, if you work your business like a hobby, expect no more than a hobby income.
You need an advertising budget. Free advertising is great, but you will also need a small amount of money to keep your business in the public’s view consistently. Otherwise, they will forget about you.
The odds are that you will fail. A nasty little fact that the sponsors will not tell you is that most consultants crash and burn before the first 90 days are up. That is to say 95% fail; only 5% succeed. Promise yourself that you will commit to a year of working your business before you quit. Otherwise, it really does not make sense to even begin.
Necessary Skills
People skills. You must be able to talk with other people in order to make sales. Sometimes this means cold calling. Sometimes this means talking to friends. You will hear “not interested” many more times than you will hear “I’d like to buy some…” Can you talk to people without pressuring them?
Organization. An organized person gets more work done each day simply because he or she does not spend time hunting for phone numbers, sorting through a hundred sticky notes and shuffling through a stack of papers looking for something. Keeping yourself financially organized throughout the year definitely pays off when tax time rolls around.
Self-discipline. You must be able to work alone. You must be able to motivate yourself to meet your deadlines, make your calls and get your advertising out by the deadlines you set.
Commitment/Patience. As mentioned earlier, 95% of direct sales consultants leave within 90 days of signing up with a company. This is hardly enough time to get your feet wet. Be patient and diligent. Give your business at least a year to get established.
How to Choose a Company
How long has the business been operating? You want to get involved with a company that has been around at least two years. Most direct sales start-ups do not make it that long. The ones that do have a better chance of being around five or 10 years from now.
Can you afford the starter kit? If you cannot afford the starter kit for one company and there are no short-term payment plans and the company is not set up for consultants to earn the kit, you have three choices. First, you could save up to buy your kit. Second, you could borrow the money from a family member or friend. Third, you could put the kit on your credit card. Fourth, you could look around for another company that you can afford. Choice one and choice four are the best options. Avoid taking out a loan or charging your kit.
What is the monthly quota? Personally, I do not like to work with companies who insist that I purchase $100 worth of wonder juice each month. Before you sign up with any company, be clear on how much (if any) you are required to purchase each month.
Check review of the company. Visit some forums geared to network marketers. Read what others have said about working with a particular company. Hopefully, most of the comments will be positive. If not, move on.
You have a lot of research ahead of you before you sign on as a consultant with a direct sales company. This is a time for you to be thorough, cautious and to apply your critical thinking skills. It is very, very easy to get caught up in making an emotional decision. The prizes, the potential earnings and the promise of easy sales (”the product practically sells itself”) can override your sensibilities. If direct sales is appealing to you, take the time to do your research and make decisions that will benefit you and your family in the long term; you do not have to rush. Any direct sales company worth associating yourself with will understand that and encourage you to join when you are ready, not before.
Have you ever tried Watkins? If not, you are definitely missing out on a good thing. The double-strength vanilla and cinnamon are two best-selling favorites. They make a big difference in the taste of what you’re cooking. Speaking of cooking, Watkins has some excellent free recipes at the site. If you see anything you like while you’re there, I’d appreciate your business. Please use my ID #381132 at check out.