Starting a Direct Sales Business
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Is Direct Sales Business For You?
A direct sales business can be so tempting in many ways. First, it’s tempting to those looking for a way to be their own boss and basically determine their own income. On the flip side of that it also poses a threat because it can make you want to own every product the company you work for sells. The next thing that tempts those looking to start a direct sales business is the desire to up and quit a day job in order to pursue your business full time right off the bat.
The want to sign up for a company is oh so tempting!
When you’re being recruited for a direct sales company, you hear all about how great it is to work for yourself, make your own money, and have as much time as you want to do the things you enjoy and so much more. I mean who wouldn’t want a brand spanking new car they didn’t have to pay for or the chance to no longer depend on a 9-5 job? Those things are so appealing, but be very careful before jumping in with both feet. Keep in mind:
- No successful business got that way overnight. It takes hard work and dedication to build a business. Yes, it will take you more than just a few hours a week to create a profitable income.
- Finding customers and clients isn’t always as easy as some want you to believe. If you don’t like having to search for, advertise or make telephone calls to prospects then direct sales probably isn’t for you.
- Good record keeping skills are a necessity. If you have a problem organizing, you’ll either need help or will have to break the habit and begin keeping good records from the very beginning. Don’t be fooled into thinking you can put it off until tax time. That’s a nightmare that you’ll wish you’d never went to sleep to have, trust me on this one.
- Parties are the only time you’ll have to work at your business. This is just plain not true. The examples above illustrate the fact there is more to direct sales than just holding parties. Don’t be blind-sided with this thought and you’ll do fine.
It’s very enticing to want to purchase every product your company sells. For instance, if you’re a candle lover and become a rep for Mia Bella, or another candle company, it can be very tempting to want to purchase every single candle scent you like. Yes, you should know your product but not at the cost of spending all your hard earned income just to satisfy your addiction to yummy smelling candles.
One way to avoid wasting all your money on the product is to make use of the samples many companies send. This gives you a chance to actually learn the product in order to make selling it easier. This way sure is a lot better for your profits than buying full size products every time you turn around.
If you think you can immediately quit your day job and go full swing with a direct sales business, think again. It takes time to build up a profitable business and in order to maintain your current income you’ll need to be patient. Use your spare time to grow your business and when the time comes that you can say goodbye to your J-O-B you’ll be glad you waited.
Don’t let a direct sales opportunity blind you with its sparkly first appearance. Yes, it is possible to create a booming direct sales business that will bring you very nice benefits in the long run. Be smart and do it the right way from the beginning.
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Why Start a Direct Sales Business?
There are many reasons someone might find themselves signing up for direct sales business after direct sales business. The three that got me personally were:
- I wanted to make more money.
- I really liked the products the company sold.
- I was plain bored.
That last one really got me more than the others. I was tired of wanting more. I was bored with life, my job (that was a big one) and wanted something to make me happy and stimulate me. I loved the idea of the incentives some companies offered – houses, cars, vacations. Yeah I bought into it more times than I really wish to admit.
After joining almost every direct sales company there is out there, I can tell you that most of them are not everything they claim. There are, however, some that I am proud to say I have either joined or hosted parties for that I would whole-heartedly recommend. How do you tell them apart? Don’t fall for these things and you’ll be well on your way to weeding out the good from the bad.
- In only a couple of hours a week you can lose your day job! Plain and simple, this just isn’t true. Anything worth doing will take more than 2 hours a week in order to be profitable. These hours normally don’t include all the little things every business owner needs to succeed such as bookkeeping, calling prospects, etc.
- Our top sellers make 6 figures and you can too – quickly! Again, you have to work hard to get there. Honestly, they probably didn’t make millions, but they still made a lot of money and there’s nothing more motivating than knowing you can make a lot too, but realize it will take time and effort.
- You have complete control over your time. You can set your schedule…sort of. If you’re holding parties, etc. then your hostesses will actually determine when you’re working the parties. You can set up certain days and times, yes, but when it comes to other parts of your business you need to be flexible to be successful. You’ll need to make yourself available when they need you.
- Once you bring new people in, you can stop working so hard. This is far from the truth. Sure you might not have to book as many shows or parties, but you will now have a team you’re responsible for. You need to be a good leader to them and that will take time and hard work if you want them to succeed.
- You’re starter kit is all you need to buy. There is a reason it’s called a “starter” kit. It gets you started. From that point on you might have to purchase a certain amount of inventory or pay for a monthly plan, depending on the business you’re in, in order to be a consultant for the company. Find out what your total investment will be before jumping in thinking the only money you have to shell out is in the beginning.
The bottom line is this – if you’re looking to start a direct sales company, do your research before just jumping in blindly thinking you’ve found the pot of gold at the end of the rainbow. You need to focus on your business and realize every day is not going to be peachy. Remember the saying, “If it sounds too good to be true, it probably is.”
Pros and Cons of a Direct Sales Business
Direct sales business can be very rewarding if you work hard and become successful. The following are some pros and cons of the direct sales business.
Pros:
- Direct sales gives anyone a chance to be a business owner and entrepreneurship allows everyone to realize their dream of working for themselves.
- Direct sales has low start up costs and low overhead. Most can be started for $100-$200 and because consultants can work from home and almost never have to carry inventory, the ongoing costs can be contained. When you sign on with a direct sales program, you are provided with all of the tools you will need to get started.
- There is plenty of variety in direct sales. With opportunities for selling jewelry, candles, home decor, health and beauty products, clothing, and much more, you can choose a product that you feel comfortable with and believe in, and that your customers want.
- Direct sales business owners set their own hours. Consultants can work part-time or full-time as their schedule allows and moms can work around their kids’ schedules.
- Direct sales programs offer support for their sales consultants. It can be tough getting started, especially if you have no sales or marketing experience. The support of the company and your sponsor can mean the difference between success and failure.
Direct Sales Tips
- How to Deal With Debt Collectors
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- Increase Your Chances of Business Success by Developing a Niche Marketing Strategy
Developing a niche marketing strategy may sound foreign to some business owners.
Cons:
While direct sales is a legitimate home business with good earnings potential, the industry is not perfect. There are some drawbacks to direct selling and some programs are better than others. It is important to carefully evaluate and understand a direct sales program before signing on the dotted line.
- There are hundreds of legitimate direct sales companies, but unfortunately, all direct sales programs are not on the up and up. Be very cautious of exorbitant start up costs, lack of support, guaranteed income, and heavy emphasis on recruiting rather than selling.
- Some direct sales programs have hidden costs you didn’t count on. While they supply a starter kit for you to host parties you may be surprised later on by the cost of catalogs, brochures, product samples, and other marketing items that you pay for out of your own pocket. Sometimes there is also an annual consultant fee and website fee.
- Each direct sales program has its own guidelines and policies and procedures that govern your marketing and sales activities. You may find some companies’ policies too restrictive for your goals and personality.
- While it is easy to get started in direct sales and the company provides training and support, don’t be lulled into thinking the products will “sell themselves.” It takes ongoing effort to maintain a steady income. No business runs itself and your success and income is directly proportional to how hard you work at selling the products.
- Direct marketing programs offer websites for their associates and sometimes restrict consultants to using it, not their own website for Internet marketing. Unfortunately, because all of these sites are exactly the same and tied to the main company site, they aren’t the best tool for marketing online. If you plan on marketing primarily on the Internet, you will need to establish your own online presence.
Knowledge to Succeed
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Direct sales is a legitimate, viable home business. Remember to always take into consideration the pros and cons of any direct sales business you are thinking of joining. Think about costs, value, the product itself, your market and the person recruiting you.
Ask any and all questions you have before you sign up to avoid making the wrong decision and regretting it later. If you are aware of both the advantages and disadvantages of this type of business and do your research, you can find a company that meets your needs and that you can build into a successful business.
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Frederick Pearce says:
10 months ago
Sounds like good advice, Chas. Well done!