Direct Sales – What to Look For

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Direct Sales – What To Look For

Direct Sales is not the same as it was 30 years ago. When I was growing up, I knew of Tupperware parties and Avon and Mary Kay ladies visiting our house. Fast forward to now, where direct sales companies and consultants use offline and online strategies to market their products. You’ve heard of Stella & Dot, right? How about Rodan + Fields? There’s also Scentsy, Beachbody, cAbi and so on.

It took about six months for me to research, observe and decide to sign up with one of the leading direct sales companies in the country. I was skeptical; mostly, I was not interested in hosting ‘house parties.’ Direct sales companies have evolved, encouraging consultants to share their excitement for the products on social media – call it ‘social commerce’ or ‘social selling.’

Direct sales gets a bad rap, thanks to scams like pyramid schemes and sketchy multi-level marketing companies. What I’ve seen in real life runs the gamut – I’ve seen real friends earn more than their 9-5 jobs, friends who have broken even, friends who are starting out and friends who got sucked into those other sketchy companies. My best advice is to go with your gut. If it’s too good to be true… well, you know the rest.

What To Look For

If you’ve been thinking about joining a direct sales company as a consultant, here are some things to ask and consider:

1. How long has the company been in business?
2. Is their income disclosure statement public and easy to find online?
3. What is the cost of a starter/business kit(s)? What does it include and is it enough to get you started without buying more inventory?
4. Do you have to buy inventory?
5. Exactly how much money will I be “put out” on the first month?
6. How do you get paid?
7. Are you actually selling a product? (Pyramid schemes, where you just recruit people to join your team and sell no products, are illegal.)
8. How many consultants are there? (While the answer might be subjective, we want to know if the market is ‘saturated.’)
9. Are there monthly sales quotas?
10. If there is a quota, what if I don’t meet it? What happens next?
11. What’s the average sale? Monthly sale?
12. What’s the average price point for the product(s)?
13. How much does it cost to join? Is there an ‘initiation fee’ or business kit?
14. Do you have an online presence (website) that customers can order from?
15. Are you required to buy products for yourself?
16. Are there incentive programs to motivate you to be successful in the business?
17. What type of help/support will you receive from the company? From your team?

Belief

Whether you decide to dip a toe or dive right in, I believe the most important factor in being successful in direct sales is belief. This is an investment – your hard-earned money is going to a business kit or starter kit. If you have just 10 hours per week to work your direct sales business, then give those 10 hours your 100%.

If you’re a direct sales consultant, what other questions should a potential consultant ask? Do you shop through friends who are direct sales consultants? Tell us in the comments!

Post may contain affiliate links.