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Starting your Direct Sales business and How to Finance It

Want to start your own business but do not have the money to do it?  Here are some methods to help finance your startup and get you going.

Direct sales can be a very exciting industry, and when you find the company that suits you, you are ready to jump in with both feet and get started.  Unfortunately, sometimes having the money to get started, even an amount as little as $20 can be difficult to find, but there are some things that you can do to help you with this.

Money cash

Money cash (Photo credit: @Doug88888)

Have a Party – One of the best ways to get started is to host your own party!  If you have found someone to sign up with that is local to you, see if they will come over and do a party for you and give you all the sales.  If your friends know this is going to be your debut party, they will likely come out and support you.  Not only does this get you your kit, but it also gets you started on any new consultant program that your company may offer.  Be prepared to sign on the dotted line the day of your party, or else the consultant that did your party will be within their rights to keep all sales and you won’t get the proceeds to signup.

Odd jobs – Can you do some odd jobs for friends, family or others?  Check your local classifieds for people needing help with various things like house cleaning, dog walking, lawn mowing or anything else you are capable of doing.  Before too long you could have the money raised!

Garage Sale – if the weather is nice, haul any unneeded items you have onto your driveway or lawn and try to sell it.  Once you get started sorting out your house, you will be amazed at much you can find to sell.  Remember that you will never get as much for your items as you think they are worth, for instance, books will sell anywhere from a nickel up to 50 cents (at least where I live).

Borrow – See if you have a relative or friend that might lend you the start up fee or help you in some other method.  Maybe you can ask a few different people to help you out.  In return, you will want to pay them back and you may want to offer them a discount on product or something else as a thank you.

Charge – Do you have a credit card with some room on it?  While it is always best to buy things with cash, you can put your kit on credit.  Make sure you take any money you make at the party to pay it back before you start paying interest on it.

Payment Plan – Does the company you are signing up with have a payment plan?  If so, use that.  Or you may have to choose a lower level kit than what you want, and work on building it up with profits.  There is nothing wrong with doing this.

While direct sales may be cheap to get into, sometimes cheap is still hard for some people, and they are joining a company to make money.   Don’t forget that there are additional costs in direct sales that you will have to have money to pay for, even if all you get are new catalogues.

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How much does the person who I signed up with make?

This is a question you will have to figure out based on your company and what the commission schedule is.  The best thing to do is to talk to your upline and ask them what they are making.  This is especially important if you do not understand the schedule yourself or are working on goals or what you need to do to make the income you want.

Commissions can be based on several factors – management level, team size or team sales.

What do I need to do to make money in direct sales?

The short answer, make sales.

To make sales, you can do a variety of things.  You can do home parties, you can do catalogue parties, trade shows and Internet sales.  Each of these will have different results and the results likely will not be consistent.

You can also make money by recruiting people.  They join your team and you make a portion of their sales in commission.  Each company has their own requirements as to what you need to do to get paid though – a certain title, a certain amount in sales, etc.

Do I make money on my direct sales team?

Congrats on recruiting people to your company!

Yes, chances are you that you will make money off of them, but there are different criteria for this, and every company has different rules.

Commission By Sales – This means that you will get commission on your downline based on your own personal sales.  Some companies require a minimum amount of sales per month to get paid, and some have a sliding scale, and the larger your sales, or your team sales, the more you get paid.

Commission by Level – Some companies will pay you commission based on your level within the company.  You could be a leader, a manager, a director, and get a different rate.  Your level may be determined by team sales, by the size of your team, or by some other factor.

If you do not know what method your company uses, then you will want to talk to your upline or go through the training materials to help you figure it out.

How to Save Money on Supplies

There is not much you can do to make these items cheaper for you.  Depending on your company, you may be able to use hostess credits to order some of these products.  In that case, when you have several orders that do not belong to a party, use the hostess credit that accumulates to purchase the items you require.  This is great way to stock up on new kit items as well.

Another thing you can do is find a consultant with your company who lives in your area.  You can then order your supplies together which will allow you to split the shipping cost which will ultimately allow you to save money