Direct Sales: Do You Know What to Look for in a Company?

When it comes to picking the best direct sales companies to join, it can be an easy decision or it can be difficult.  For some people, they fall in love with a product and they join the company right away.  For others, they may want to work in a certain industry, but do not know which company is going to meet their needs.  If you are part of this second group, here are some ideas to help you pick the right company for you.

Consider Your Personal Needs

Costs

A great thing about direct sales is that you can start a business for a minimal cost.  If you were to start a brick and mortar business, you are looking at many thousands of dollars to get started. Not to mention the ongoing costs associated with it.  But with direct sales, you can get started for a few hundred dollars. Typically, you will get a kit with product that you can show and information and training to help you get started.

Chances are, whatever company you pick will have additional costs associated with them.  This is something to ask the person you are looking to sign up with.  For instance, how often do new catalogues come out and what do they cost to buy?  Do you need to buy new products when the new books come out?  How much do things such as order forms and other supplies cost? Do you need to pay for a website?  Do they process credit cards for you?

Flexibility

One of the reasons that a lot of people get into direct sales is the flexibility that it allows the person joining.  You can schedule your events when you want to work.  It does not always work out that way. But if you control your calendar properly, you will only work when you want to.

Socialization

A lot of people who get into direct sales are stay at home moms who are looking to get out of the house and socialize with other adults. Some people just are looking for a reason to get out of the house, even though they may work a day job or do other things during the day.

What to Look for in a Direct Sales Company

Direct Sales vs. Pyramid Scheme

First, let me say that direct sales and a pyramid is not the same thing.  Direct sales are where you have a business and you make your money by selling products.  Pyramid schemes are where you make money by getting others to sign up with the company.  So if you sign up for a company and you pay $100 dollars and of that, $75 goes to the person you are signing with, it is a pyramid.  If you do not know if they make money when you sign up, ask the person you are talking to, or do some of your own research.

Product

Some are very passionate about the product that they get involved with, so they want to educate other people about how wonderful it is.  This may be makeup and how wonderful it can make you look, cooking supplies and how much more fun cooking is, or any other product.

There are two trains of thought when it comes to picking a product to sell. The first is that you should join a company that sells a product that you love and that you are passionate about.   If you cannot find such a product, then you will want to look for a product that you feel that you can sell.

Commission

One of the most important things is to find out what commission rate you are going to make. Most companies have a base rate and commissions can increase based on monthly sales or size of team. For many people, this is one of the biggest factors in making a decision. Check out the commission rates for when you build a team, even if that is not something you plan to do for a while or at all, as you never know when you may change your mind or someone wants to join you.

Every company offers a different rate of commission, ranging anywhere from 10% up to 60%. There are some industries that tend to have higher commission rates than others, such as jewellery and romance.  Not only do you make money by making sales, you also make money when you start to build a team.  Many companies also offer a fundraiser option. This is another avenue where you can make money.

Quotas

Most companies have low quotas or no quotas so you do not have to worry about making sales each month or doing a party every night to keep your business active.  When you are looking into a company, this is something that you want to look into.  Every company is different so make sure you ask before you sign.

Inventory

You want to ask about inventory before you sign up with a company.  Some of them require that you carry inventory so that your customers get the product at the event. This can be costly and cumbersome.  For some people, carrying inventory is not a problem. For others, it can be a reason not to join.

Company History

For some, the history of a company is an important thing.  Companies that have been in business for many years may be viewed as a better option than one that has only been in business for two years.  Any company can go under, but those that have been in business longer usually have gotten over some of the initial hurdles and are more stable.

With a bit of research, you will find a direct sales company that will be a good match for you. The research will also let you know what you are getting into in regards to costs so you do not get a surprise later on.

Skills That Can be Helpful with Direct Sales

You may be considering direct sales but do not know if you have the skills to be successful in this industry.  This is a list based on some discussions I had with others in direct sales, but it is definitely not an all-inclusive list.

If you’re wondering if you should join a direct sales company, consider whether you have these useful traits:

Believing in Yourself – If you don’t believe in yourself, you will not succeed.  You have to be able to tell yourself that you can do this, that you will be successful, and that you can do whatever you set your mind to do.   If you do not know how to believe in yourself, ask others for assistance or find some books to assist you.

Personable – As this business is all about being with people, you need to be friendly and approachable.  If you are selling cooking products, it may not be as important as someone who is working in romance and helping people with some very personal issues.

Organized – Depending on how busy you get with your direct sales business, you will need to make sure that you are organized and that you keep your schedule under control.  Without some organization skills, you can easily lose track of what is going on and cause yourself a lot of difficulties in your personal life and in your business life.

Priorities – It is important to know what is important in your business and what is not.   You need to know when new products will be released and when others will no longer be available, but it is probably not as important for you to know the exact details of product are not important, as you can always look it up and get back to your customers.

Be Positive – Even if you are having a bad day or a difficult customer, you need to keep the smile on your face and not let it get to you.  If you go to a party and are having a bad day and being grumpy with your customers, it is going to show and you are going to lose sales.  Leave everything but that event behind when you show up.  You can stress about whatever after the event is done and you are driving home.

Goals – Set goals and then figure out what you need to do to achieve them.  If you do not have goals, you are going to have a hard time getting out of your business what you want.  For instance, if you want to make $1000 after expenses each month, you need to figure out how you are going to do that.

Self-Starter – Due to the nature of the business of direct sales, you need to be able to get yourself going.  Quite often the parties do not come to you and you have to get out there and find them.  If you cannot get yourself out there and booking new events, your business will not thrive.

• Related job ideas: How to get paid to promote products

Sharon has been working in the direct sales industry since the fall of 2006.  In that time, she has worked for three different companies.  Since November 2008, she has been with Gold Canyon Candles where she is a manager.  Sharon has created Direct Sales Help which is a blog to help those that are experiencing difficulties in their direct sales careers.