Tag Archives: Direct Selling Association

5 Tips for Choosing the Right Direct Sales Business For You

If you’ve decided you want to get into direct sales but aren’t sure which company you should choose, here are five tips to help you decide.

DSA (US) Logo

DSA (US) Logo (Photo credit: Wikipedia)

1. Choose something that interests you. The best salespeople truly believe in the products they are promoting. You will find it much easier to sell products that coincide with your hobbies or interests and you’ll also be more likely to stick with the program long-term.

2. Ensure that you can afford the kit. Some party plans require you to purchase an expensive kit to get started whereas others send free samples or let you pay in installments. Make sure that you won’t be stretching yourself to pay for the startup kit. If you have a small budget, look for a company that is cheap to get started with.

3. Look out for monthly minimums. A lot of direct sales companies have monthly sales quotas. Compare the quotas with what you think you can realistically sell or pay for yourself if you have a bad month.

4. Do some investigating. Check out forums for different multilevel marketing companies or direct sales workers in general to look for trends of satisfaction or unhappiness. See if the majority of posters have had good experiences. Every company has a downside so try to find one with a downside you can live with.

5. Seek help from the Direct Selling Association. They have a code of ethics that all companies must follow so checking their member directory is a great way to find direct sales companies that follow legitimate business practices.

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News: Direct Selling in 2010: Sales Increase to $28.56 Billion

US Retail Sales 1992–2010

Image via Wikipedia

In 2010 estimated retail sales increased 0.8% to $28.56 billion. While 2008 and 2009 were tough years for the U.S. economy and for direct selling, industry leaders remain cautious, but believe the decline in sales of the past few years has seen its end.

“Direct selling provided supplemental income to millions of American’s during the worst part of the recession,” said DSA’s President Joseph Mariano. “As we see the economy begin to emerge from its lowest point in decades we know many of those who found direct selling to be an answer to their financial needs when times were tough will now find that same opportunity to provide a better life for their families for the long term.”

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Book Review: Ultimate Guide to Direct Selling

Author:  Karen Phelps

If you have not heard of Karen Phelps, it’s possible you are living under a rock.   She has been in direct sales for over 25 years and as a result she has dealt with probably every situation a person will encounter in their journey.  These days, she works as a speaker and by writing books to help those in the industry to understand what they are doing and to help them improve their business and their income.  Sections of the book include methods to help to control your attitude, create methods to get bookings, how to grow your business, motivating and managing your team, how to maintain a business that fits your lifestyle and how to make your direct sales business last for a long time.

One of the best things about this book is the breakdown.  There are ten chapters dealing with different key areas of your direct sales business.  The language used is clear and easy to understand so that everyone can be a success after they are done reading this.  A great feature is that Karen has included scripts to help you with various aspects of your book if you are not sure what to say in a situation.

Whether you are contemplating joining a direct sales company or have been in one for a while, chances are you will learn something new by reading this book.

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DSA: Annual Growth & Outlook Survey

“There is good news coming from the direct selling segment,” said DSA President Joseph Mariano. “Despite the economic climate, direct selling continues to be a source of income and support for independent consultants across the U.S.”

DSA (US) Logo

DSA (US) Logo (Photo credit: Wikipedia)

The U.S. direct selling market grew faster than the overall U.S. economy, which grew 3.9 percent as measured by gross domestic product (GDP).Nearly half of U.S. direct selling companies experienced sales growth and another 14 percent remained flat.

– Direct sales increased 4.6 percent to $29.87 billion

– Salesforce sized at 15.6 million sellers in the U.S.

– Direct selling market outpaces growth in gross domestic product (GDP) by 0.7 percent

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Getting Help with your Direct Sales Business

Help!

A great aspect to working in direct sales is that we have help wit our business if we need it.  Who else can say that?  Sure, if a fast food chain has issues, they can go to their head office for helop, but realistically, how much help is that?  They can go to other stores to ask for assistance, but will they get it?  But in direct sales you have a variety of places to help you out!

Upline – The first place you should go for assistance, they are there to help you.  Yes, some of it may be due to the fact that when you succeed, they do as well but I like to believe that most people just want to help others.  Unfortunately, there are some direct sales consultants out there that do not believe in helping their team, but they tend to be far and few between.

Other Consultants – These days, there are a lot of places that you can go for assistance.  If you need assistance with your specific party plan, chances are there is a Facebook location or message board where you can post.  For those that just want assistance in general, like how to find bookings, there are whole networks out there for help.

Your Company – You likely can talk to your company when you need help but they will just be able to assist you with technical issues such as problems with your product or when you are having a website issue.  Do not expect them to give you ideas as to how you can find bookings.  But make sure you take any issues you have such as issues with receiving your product from the shipper or quality issues.  They want you to be happy!

No matter where you are with your business, having help and resources will help you to be a happy consultant and allow you to improve your business.

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Direct sales versus a Job

Depending on what you are looking for, you might be considering finding a job to help make ends meet. But did you know that with some determination, you can make the same income or more with direct sales?  Let us examine this – we are going to ignore any income tax implications as you pay income tax on both a job and direct sales earnings.

Job

With a job, you make a set amount of money.  You may be able to work extra hours to make extra money, but if your employer does not see the need for it, it is not an option.  To make extra money, you would have to get a second job which may or may not work with your main job and may be at minimum wage.

Direct Sales

Parties – The first avenue of income is from doing parties/events.  You are able to schedule as many in a month that you can fit in or can find hostesses for, not to mention individual orders.  There really is no limit to the income you can make here.  When doing a party, chances are you are going to make at least 100 bucks in the two to three hours it takes for you to do the event, the paperwork and deliver the product.

Recruiting – Not only do you make money by doing parties, but you can also recruit people to join you and you will earn income from their sales.  This is somewhat residual as you do not have to work for it but you are expected to train those that join you.  How much you earn will depend on your company.

Fundraisers – Lots of companies are offering a fundraiser program.  You do not tend to make as much with these percentage wise, but the sales that you get should more than make up for it.

Which method sounds better to you in regards to making some extra income?

 

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News: Direct Selling Has Been a Benefit For People In The Recession

Direct Selling Is Recession-Proof

Neil Offen, president of the Direct Selling Association says of the direct sales industry, “We’re recession-resistant in the sense that more people come to us during economic hard times for supplemental income or replacement of a lost job.”  The prolonged recession has acted as a tool that direct sellers have used for recruitment purposes.  Large direct sales companies like the makeup and clothing giant, Avon, and Silpada Designs, a jewelry manufacturer, are encouraging their sales consultants to inform people that direct selling is a tool they can use to keep producing income even when the economy is performing poorly.
Read more:  http://www.secaucusnewjersey.org/direct-selling-a-way-to-overcome-a-sluggish-economy-2308.html

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I want to quit my job and focus on my direct sales business. Should I?

Free Money Collection in Cash

Image by epSos.de via Flickr

This is a loaded question that I cannot give you an answer on.  Only you can make this decision.  But here are a few things to consider.

Income – How much money do you need to make in your direct sales business each month to live on?   Notice I don’t say to replace that income as that income may not be realistic or it may not all be needed.

Savings – Do you have an emergency fund in case you have a bad month and don’t make the money you need from your direct sales business?  How long can this money get you through if you have a bad couple months with your direct sales business?

Taxes – Can you set aside money and not touch it?  Remember, your direct sales company does not pull money from you to cover income tax, so you will need to pay this to the government when you file taxes.  Of course, ideally you will not owe, but you never know.

Additional Costs – If your employer provides you with any type of benefits you need to consider if you still require these or if you can purchase these elsewhere.  This would include, but is not limited to, items such as health care, pension or a drug plan. While you may not think you require these items, you never know when something will come up and you wish you had them.

The statistics for this are not very supportive though, but who doesn’t like to prove others wrong?

Average Yearly Income for Direct Sales Associates in 2008: $1,974

(Source: Direct Selling Association )

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Article: Direct sales companies draw local workers

Job cuts, smaller bonuses and scaled–back hours have pushed more people than ever to become direct–sellers, a phenomenon industry experts have seen before, said Amy Robinson, of the Washington, D.C.–based Direct Selling Association.

“It’s definitely not recession-proof, otherwise we’d never see downturns and only see gains,” said Robinson. “We call it recession resistant. We are absolutely affected by a bad economy. People don’t stop spending. They spend differently.”

The $30 billion industry offers a variety of products and holds steady even when retail numbers drop. More than 74 percent of the American public has purchased goods through direct sales.

Robinson said less than 10 percent work full–time and the majority are in it for supplemental income. The median salary for a direct–sales consultant is $2,400 and only about 2 percent of direct–sellers earn six figures.

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