How to Choose a Direct Sales Company

There are hundreds of directs sales companies out there. Which one is the right one for you?

So you want to be in direct sales but don’t know where to begin. Maybe you have heard of Amway, Avon, Mary Kay, Tupperware direct sales companies just to name a few (and I mean that literally). maybe you have a friend or family member trying to get you to sign up under him/her. Either way, before you make the big jump there are a few steps you should understand and a few questions to ask.

  1. How much does it cost to join? Probably the first thing you will want to know. there are direct sales companies that offer free signups. If there is a fee, I have seen prices range from $15 to $300 and sometimes more. Some companies (not all) offer sign up specials from time to time. If money is tight and you are willing to wait, then this may be good option for you. Is there an auto -shipment requirement? Are there any quotas? Yes, you might need to meet quotas to stay active. I have seen companies offer no quotas all the way up to $500 a month. Will the company offer you a replicated website? Will the website be free or at a monthly cost? Either way, know your fees.
  2. How long has the business been around? Is the company  reputable? How long have they been around? What are their ethics? How is the customer service? Return policy? Try to pull up several reviews (unbiased) about the products and company itself to see if you joining will be a good fit.
  3. How many representatives does the business currently have? Certain companies have been around for a very long time, therefore they have thousands and probably millions of representatives. So think about this, if that’s the case with your company, how many representatives are in your area? If there are hundreds then how will you compete with that? Even though not all of the reps will be actively promoting, there might not be enough customers in your region. This does not mean that you will not succeed.  Maybe you’ve got skills and selling is your thing. Maybe you stand out above the rest and if that’s the case then by all means go for it.
  4. Are the products affordable? Believe it or not, product pricing is important. Are the prices reasonable? Will you be able to sell to your average Joe or Jane? In my experience with direct sales I have found that if the prices are too low and you’re taking 20% commission you will have to sell a whole load of products before you can see any type of decent money, and if the prices are too high, how will you convince others that they need to buy your product?
  5. What is the compensation plan? It is very important to understand the compensation plan. It’s simple. How will you get paid? And when? Every company has devised their own formula. The question is, does it make sense to you? Does it seem reasonable? Is your pay dependent upon recruiting, selling or both?
  6. What are the ingredients used? If the products are food related or cosmetics, skincare, what ingredients are being used? Do you care about ingredients or do you just want to make money? If you are about ingredients, then are they gluten free? Do they test on animals? Are natural ingredients used? Do they contain parabens? Phthalates? These are things you will need to know not just for your own decision making but to answer customer questions as well.

Whatever you decide, one thing is for sure know what you are getting yourself into. Do your research, don’t be afraid to ask questions. Find out as many details as possible before you invest your time and money.

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