Fuller Brush has been selling quality cleaning supplies for 104 years; Watkins began in 1868 and Avon in 1886. Other companies, like Tupperware, have been around more than 50 years. New companies such as Zavita and Numis Network are just starting out. What all of these companies have in common is their marketing approach. They offer all of their products via direct sales through independent consultants. Direct sales is also known as network marketing or sometimes multi-level marketing. Each company is unique in terms of products, the culture of the company, the commission plan and the level of training provided. If you are thinking about becoming a consultant be sure to do your homework prior to signing on the dotted line.
Positive Aspects 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.
You are in charge of your schedule. This is both a positive and a negative aspect. On the positive side, you are able to work your family life into your work schedule. But, if you are lazy and unmotivated, you may not get much done. It is important to make work something you do regularly.
Disadvantages in 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.
Your chance of success is only 5%. The failure rate of network marketing consultants is astronomical; a good 95% call it quits in the first three months. If you are going to make your business work, you must give it more time to grow. Three months is not even enough time to really learn the product well.
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?
Keeping Organized. If you have to pick through piles of sticky notes and scraps of paper to find a phone number or someone’s order, you are losing a lot of time that could be spent earning money! Keep yourself organized, especially financially, and you will find that your stress level goes down and productivity goes up.
Discipline. Can you make and stick to your own schedule? Yes. Do you need a boss looking over your shoulder to get work done? No. Can you tolerate working alone? Yes. You need discipline for your business to thrive.
Can-Do Attitude. Patience and commitment to your own success is essential. Know what you know and where to find answers for things you do not know. Promise to give yourself at least a year before you give up and quit.
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.
How much cash do you need up front? Starter kits are generally inexpensive; however, if you cannot afford the kit without borrowing money or charging it to your VISA, think twice. Then think again. You have two options at that point. Save up for the kit or find another company with a less expensive starter kit. Do not charge or borrow to buy a starter kit.
Does the company have a sales quota? If you cannot afford to invest $75 month in and month out for the duration of your business, do not sign on with a company who has a sales quota of $75 per month. I prefer to work with companies who have no quota.
What is the company’s reputation? Disgruntled former consultants will lay it out for all to see. If there are more negative comments on a network marketing forum or board, look elsewhere. Of course, most companies will have one or two negatives. It is the overall pattern you are researching.
Now is the time for you to do your homework. Put on your thinking cap, dust off your critical thinking skills and get to work. Be very careful not to get sucked into the hype of all of the wonderful bonuses and prizes and potential income you can make. It is so easy to fall into making an emotional decision. Refuse to be pressured by anyone. Join when and if you are ready. Not because you are being pressured.
If you are looking for an excellent, solid direct sales company, why not consider Watkins. They have been in business since 1868. Stop by and see what it’s all about. Be sure to look at the free recipes, too. If you see something you like, I’d appreciate your business. My ID number is 381132.
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