Could You Start a Direct Selling Business?
Learn how to supplement your income through Joining a MLM Company
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Are You saving for a rainy Day?
Always dreamed of owning your own business?
Recently retired and want to add to your nest egg?
Need Extra Cash to cover the bills?
If any of these sound like you, the solution could be starting your own direct-selling business—you know, with a company such as Forever or Avon, in which you sell goods through home parties and one-on-one consultations. Direct selling is big business: In 2014, the 60 million direct-sales representatives working globally generated more than $114 billion in revenue according to Direct Sales Aid.
The pros:
You'll be your own boss, work flexible hours that fit around your family and schedule, meet new people, sell a product that you like and enjoy using and make money doing it. At the very least you will be able to get a product you use yourself at a cheaper discounted price.
In today's economical market, Direct Sales are booming. More and more people are choosing to shop online and Social Media is a big plus for all Direct Sales Consultants. With Facebook, Twitter, Pinterest, Linked In, You Tube and many more social Media sites to choose from, the world is your oyster.
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The cons:
Despite what many people promise, you probably won't have customers beating down your door, especially at the start when you are building your business. You'll become familiar with the word No or Not Interested, because not everyone you approach will want what you are offering and while some direct sellers do indeed earn six-figure incomes, for most sellers the income probably won't replace a full-time wage.
But, supplement is the key word here. If you're looking to make extra money to boost your income, or indeed just to save for that rainy day then read on to learn more and lets Party!.
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Party Fact: A Belief in and a Knowledge of a product sells.
Experienced direct-sales consultants will tell you that to be successful, you need to choose a product or service in which you really believe, one you use yourself. When you're excited about something, that excitement is contagious, and it leads to higher sales. If you're not passionate about the product, your results will be mediocre at best. So before you plunge in, choose your product wisely.
Party Fact: It doesn't take as much money as you might think. Gone are the days of paying a lot of money to invest in a garage full of inventory. These days, start-up costs for most direct-sales companies are modest: A start-up kit (training materials, samples and actual products) typically costs less than £100. Once you've started to set up parties and generate sales, your costs will—depending on the company—probably be limited to replenishing order forms and catalogues. perhaps buying some of the products to use as samples. Watch for companies that say you can join for free! Quite often, they have very demanding requirements for you to stay active, such as having to have x amount of sales every month
Party Fact: There are now several basic selling techniques. When you think of direct selling, you probably think of having to do "Parties"
Today Consultants can also sell their goods one-on-one, meaning they might invite a friend over to look at the products, or set up appointments with just one person at a time.
You can use "Basket" or "Pouch Parties" of a way of getting your products in front of people who wouldn't want to host a home party or maybe live too far away from you.
You can use Social Media platforms such as Facebook, Twitter, Pinterest etc and advertise to huge potential markets
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Party Fact: You've got to get out there. Being a consultant means getting out and selling your wares. You cannot be timid and shy. Before you start, get all the training the company has available. Many companies offer online training and skill-building programs as well as training DVDs that come with the start-up kit to help you learn how to approach people and sell effectively. New consultants should also be teamed with an existing, experienced consultant who will lead you through online classes, webinars (online seminars) and training manuals.
Party Fact: Many people believe that you should join under someone with Experience and has been with the company for a long time. My opinion would be slightly different. The length of time and their experience does not mean that you will necessarily get on with them. Choose someone to sign up with that you can build a relationship with, that you like their ethos and work ethics. Would they support you or are they too busy with the other 150 consultants under them?
Party Fact: What you'll need from the start is a network of friends and family members to help build your client base. But friends and family only go so far. They will support you to start up and widen your circle of interested customers. To make money, you're going to have to attract clients you don't know. To do this, integrate your passion for your business and the products you sell into your normal course of life. If you sell make up or clothes, for example, you may find that wearing the products wherever you go is the best marketing tool. As people comment, don't simply say thank you. Be ready to tell them about the company, have opportunity packs in your handbag to give out and suggest that an easy way they can get what you're wearing for free is by hosting a party. If you sell Tupperware, be sure to use it when you bring food to a PTA meeting or school fair. If someone notices it, strike up a conversation and talk about the company.
Party Fact: There are two ways to earn money. Whether it's Candles, Cookware, Kitchen Tools,
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Make Up, Health Products or any other direct sales products, you earn a commission on everything you sell. The Direct Selling Association reports that, on average, a direct seller earns 10 to 50 percent commission, depending on the company. So, let's say that as you get started, you sell £500 worth of products in a month and your commission is 25 %. You'll earn £125.00
But as a consultant, you're not only selling the company's products, you may also attempt to recruit other people to become consultants under you—which makes you their manager. When this happens you get commissions on their sales, which is known as multilevel marketing or MLM. So if you find 10 people to become part of your team, and each of them sells £500 in products that month, if you earn 5% commission on their sales, your 5% commission on those sales will be £500.
Check out the compensation plans for any company you may be interested in. The good companies focus on you earning for selling products. Not Recruiting
Party Fact: Direct-selling companies also offer very appealing incentives such as bonuses, cash prizes, cars and trips to encourage consultants to sell and recruit more. So you could make even more through incentives. Check out your companies incentives.
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Party Fact: You start with a company but a couple of months down the road, you think this isn't for me or you have a change of circumstances. You Can Leave! Before you sign up, look at what will happen if you decide direct selling isn't for you. At the very least, go with a company that will buy back your unsold inventory.( In resell-able condition) Companies that are members of the DSA (most of the big ones are) are required to buy back unsold marketable products and sales aids (like catalogues and order forms) purchased within the prior 12 months, for at least 90 percent of the price you paid for them. Some companies will refund your start up kit, but don't expect a refund for the expenses that you have incurred setting up and operating your business.
I hope that this will help you to make an informed decision about starting your own business. There are too many horror stories from people who jump in and don't research the companies properly before they start, then find that Direct sales is not what they thought it would be.
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