The decision to become a direct seller should be one that you make according to what you want to achieve, says Wood. To determine if it's right for you, first weigh your goals, both personal and financial. "Make sure they are realistic. It may take years to achieve a high level of success," Woods adds.
1. Identify a product
Direct selling companies offer more than 70 product and service categories – everything from health and beauty items, apparel and accessories to cookware, wine, pet items, gardening supplies, and much more. Most people choose something they already use or are familiar with. Find a product or service you love, says Wood. "Without a strong belief in what you are selling, it is doubtful that you will be able to market it or recruit others to do likewise."
2. Choose the company
Identify companies that offer the type of product or service that interest you. Start by searching DSA's member list based on product category and MLMIA's database of direct sales companies. Visit a prospective company's web site. Attend a party or demonstration, if applicable. With the right product and the right company, you'll have every opportunity to succeed, says Wood.
3. Contact consumer watchdogs
Research the company's background and track record. Is there a history of complaints filed against it? If so, what was the nature of the complaints and how were they handled,. Check with the local Better Business Bureau (www.bbb.org), state consumer protection agencies, and the Federal Trade Commission (www.ftc.gov). What do others have to say about the company? Talk to former or current direct sales reps to find about their experiences. You're also likely to find any negative information about a company online.
4. Get industry literate
Get copies of all company literature and read it thoroughly. Look at how many years the company has been in business. Find out about the number of distributors, average distributor earnings, and distributor dropout rates. Read the company's product brochure, marketing materials, and any distributor agreements. Also, request the company's financial statements for over the last five years.
5. Ask plenty of questions
Be sure to ask as many questions as you need to get a good feel for the company's policies and procedures. If someone else is recruiting you, that person should be able to answer your questions. Call the head office if necessary. Any reputable company will be happy to answer any questions you may have, advises Robinson.
6. Size up the costs
No matter what direct selling company you chose, the cost of entry should be modest, usually around $100, says Woods. Typically this includes a sales kit with company information, product samples, and training materials. Watch out for companies that try to pressure you into paying large sums of money for the privilege of joining or loading you up with large inventories. To the contrary, pyramid schemes make all of their profit on signing up new recruits, so, they tend to require higher up-front money to join. Beware of service fees: $50 a month comes out to $600 annually, cautions Woods.
7. Review the return policy
Find out if the company buy back unsold inventory, especially if you decide to quit the business. Beware of opportunities that encourage buying large inventories of products to reach achievement levels or receive a special discounted price. Make sure the company guarantees it will buy back at least 90 percent of all unsold inventory, sales kits, and materials (that are in good condition), says Woods.
8. Look into the compensation
Make sure you understand the compensation plan, which differs with each company. Just as with other retailing methods, it's all about establishing a market and selling consumers quality products or services at competitive prices in reasonable quantities, Robinson says. The money you earn shouldn't be dependent solely upon your recruiting new distributors. Only sign on the dotted line when you are confident this is the right company for you.
Shilpa Amit Shrivastava
National Team Leader
www.vestproduct.com
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