Tag Archives: choosing direct sales

Why choose Direct Sales?

When it comes to direct sales, there are many reasons that people get into the industry.  Ultimately, the reason you join is up to you, but here are some great reasons to consider getting involved with direct sales.

English: Tupperware brand plastic containers 2...

English: Tupperware brand plastic containers Tupperware 2011 (Photo credit: Wikipedia)

Brand Recognition

One of the best things about joining a direct sales company is that there is already a brand there that people know or recognize.  The longer the company has been in business, the more likely that people will know it when you mention it to them.  This can be a great way to get your business off and rolling.  For instance, if you tell a friend that you just joined Tupperware, chances are they are familiar with the product and would be willing to assist you get started by hosting a party.

Product Research

Another great benefit to joining a direct sales company is that they have already done a lot of research in regards to the products and therefore you do not need to do much research.  This is especially important when you are working with products that have various chemical make ups as the company has done all the research and can provide you the data that you and your customers want.  They will also do research to determine what types of products people want and will invest their funds in producing these products.

Low Start Up Costs

If you were to start a business, even a home based one, you would need quite a bit of capital to get started.  Even a business with a limited inventory will require several thousands of dollars to get off the ground with product and marketing.  A direct sales business can be started for less than $500 or even for free and with brand recognition and word of mouth, you can be making a profit within a few months if not sooner.

Flexibility

For many people, the greatest benefit of a direct sales business is to be able to control their work schedule and their income.  If you only want to work a few hours a week, you can do that.  If you want to make a full time income, you can do that as well.

These are some of the more common reasons that people get into direct sales.  Do you sign up for any of the reasons or did you join for some other reason?

 

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Should you join a Start Up Direct Sales Company?

When it comes to direct sales companies, there are a lot of choices which can be overwhelming.  Sometimes you will find a company that is brand new and it looks attractive as everything is wide open for you to get in and be very successful.  But, there is more to consider than just getting in on the ground floor as start-ups can be more risky.

Flower new

New business a good idea? Photo credit: @Doug88888)

Knowledge

Do these people know anything about the direct sales industry or been involved it before?  While the concept of direct sales sounds simple and easy, there are many different areas to be considered.  For instance, can consultants sell the product all over the country or are there restrictions in some areas so you cannot recruit there?  Who is responsible for paying sales taxes to the government?  How is product going to be delivered to consultants?  What type of commission will consultants make at different levels?  Will there be rewards for recruiting people?  For someone who does not know the industry, some of these considerations can be very daunting.

Financial

How is the company financed?  Have people invested their own funds or has it all come from the bank?  How long has the company been in operations?  Even if you are just hearing of it, it is possible it has been around for several years.  For instance, my company had only been in Canada for a year when I joined but had been in the States for over 10 years.

Compensation Plan

There is more to consider than just getting in on the ground floor.  Does the company offer a good compensation plan to consultants?  This would be commission on personal sales and any people that they recruit.  If they only offer you 5% of your sales in commissions, it may not be a company you want to join.  But on the other hand, if they offer 50% commission, the question is whether that is sustainable in the long term and if you will make sales at that level in order to earn the commission and keep the company operating.

Product Choice

How many options do the customers have product and is there similar product available elsewhere?  If you are selling the exact same thing that is sold at Wal-Mart, you may have difficulty selling it at parties.  But if your product is exclusive to your party plan or you have a better version of the Wal-Mart product, then you should not have a problem.  You want to know if consultants have any say about new product that the company makes available in the future.

Know the Story

It is always nice to know why the company started and sometimes that can make the difference to people considering signing up.  There are many people that like to support the little guy and will join a company that was a Mom and Pop operation before they will join a company that was started by a big corporation to get bigger.

The biggest factor when joining a direct ales company is finding one that fits your needs, whether they are new or old.  Do your research and find out the answers to your key questions and concerns before making any decisions.

 

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