Tag Archives: Getting Started

What is the best way to get started with my direct sales business?

The best way is to start with a method where you feel comfortable.  A few suggestions though:

1)      Host your Own Party – Have a party yourself and invite everyone you know.  If people already know the product, this is a bit easier to get people to turn out, especially if they like it.  Regardless, ask them to come, check out what you are selling, and tell you what they think about it.

2)      Ask Someone to Have a Party – Depending on what you are selling, you may be able to get someone to host a party for you.  Ask your parents, your friends, someone.  This helps you get a comfortable start, but also allows you to start expanding your circle of possible hostesses.

3)      Open House – Another great thing you can do is have an open house. It is a come and go event for a few hours and people just drop in, check out the product, and hopefully order.  Invite everyone you know and invite them to bring a friend.  You might even want to offer a small gift if they bring a friend.  Some people give the hostess benefits away (do a draw for different things – purchase, booking, friend, etc).

4)      Vendor Events – If you cannot get anyone to host, or do not know anyone, you can try a vendor event.  But be warned that these can be hard to use for bookings or sales, and every event is different.

5)      Classifieds – As a last resort, you can try the local classifieds.  Make sure you adhere to any rules your company may have about advertising.

What does it cost to get started in direct sales?

Every company is different in regards to their startup costs. Some companies will allow you to sign up for $20 or less, where others may charge more. Another option is that you can earn the cost of your kit back if you make a certain amount of sales when you first start. If money is a problem, you can talk to your potential sponsor about doing a starter show where you get the sales to buy your kit. This is beneficial to you as you already get sales which will help you to qualify and it helps to pay for your kit.

There are other potential costs to get started, but typically buying your kit should take care of everything to get you going. Of course, you will encounter other costs, but that is another topic.

Getting your Business Going Again

Nothing on the books?  No fear, here are some things you can do to get your calendar booked up!

–          Call past hostesses and customers to see if they are interested in seeing a book.  Don’t push the party right away.  Some might say right off the bat, you know, I was getting low on X and Y, and you can suggest having a party where they can get it for free.

–          Spend some time on advertising – I will be doing some articles on this in the near future.

–          Attend trade shows and promote your products.  You may get some sales at the event but focus on the benefits of having a party.  Network with the other vendors as they may be able to pass contacts your way.  I know I have had people ask me if I know someone who sells other types of products.

–          Create your FRANK list and see if there are any places you can get a booking from.  FRANK – Friends, relatives, acquaintances, neighbours, kids (or people you know through your kids).

–          Have your own party and invite everyone you know – Offer incentives at it if they book their own party

–          See if you can setup somewhere and show off your wares.  I know here, different direct sales companies can setup at the hospitals for an afternoon.

–          Make sure everyone around you knows what you sell.  You never know when someone will say back to you, “I was just looking for someone who sold that product!”

How long before I see profits?

This is another loaded question that will really depend on you and your direct sales business.

The first factor is how much money you spend to get your direct sales business started.  If you purchase your kit and nothing else, you are going to see profits faster than if you purchased a kit, extra business supplies, extra product and spent a bunch on advertising.

The next factor is how fast you get out and make sales.  And of course, as you make sales, you are using up supplies and need more.

If you get started quickly and do half a dozen parties in the first month, you should recover your investment pretty quickly and be onto profit with your direct sales business.

Example:

Kit – $150 purchase price –

Assuming no need to purchase any more supplies or do advertising

6 parties x $400 sales  = $2,400 sales

$2,400 x 25% = $600 proceeds

New supplies needed = $50 (catalogues, order forms)

Original investment = $150

Net proceeds = $400

Of course, this is just an example and in a perfect world.  You may do less sales, you may spend more to get started, you may spend less to replenish supplies.  But you can do something similar to this to figure out what you will need to get back your investment and start making money in your direct sales business.

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People talk about having an open house? What is it? What does it entail?

An open house is when you open your house out for people to come by and check out your product.  That said, you do not have to do it in your home if that is not convenient – you can rent a hotel room, the back room at a restaurant, or anywhere else.  I borrow my father’s house as he has much better parking than I do.  You set up a display of your product and then people browse and put in orders, book parties or even sign up to join your team.

The great thing about an open house is that it can be as simple or as complicated as you want.  I usually advise on keeping it simpler as you want to focus on the product, not on the food or other items in your home.