Todays Mompreneur

What does Avon, Pampered Chef, Mary Kay, and Tupperware have in common? They are well known and offer a direct sales business opportunity.

Like always, the feelings people have towards opportunities like those will vary from person to person. Some people are hard set against direct sales. These opportunities tend to be lumped in with the Multi-Level Marketing (MLM) category, and, if they earn money off of an individual they have recruited, it generally fits the description pretty well. It is the popularity of those top brands that I named above which helps smooth out the wrinkles in the MLM appearance.

When most people say MLM, everyone thinks of that pyramid scheme which makes you more money by recruiting others and having them continually recruit… eventually not even selling a product, just recruiting. However, MLM allows you to earn from those you recruit but you base your business on selling a product, with recruitment as a benefit and slight addition to your income.

Now bring your attention back to the term: Direct Sales. Representatives, Specialists, whatever title they give their independent sales team, they sell directly to the customer. They personalize the experience for their customer, there are no store shelves. This sales style has proven profitable for companies, as well as for the reps that push the product on the streets. Take care with the term sales, though. If you couldn’t sell water to a thirsty man, should you be entering this business?

Some people swear by the direct sales approach as a great business opportunity, while others will point out that you are earning money for someone else so it’s not a true business. Both are right.

I can’t tell you how you should feel about this topic, but I can help guide you. Like the photo I included with this post, you need a pros and cons list. Below is my own list of pros and cons with the direct sales industry. Maybe my list will be your jumping off point into making this decision for yourself? After all, one pro might weigh heavier for you than it would for someone else.

Pros
• The investment is much less than it would be to start a conventional business.
• You’ll have the brand from the base company to offer the recognition you need, which will aid you in getting the word out about the products you are selling.
• Individuals with a background in retail, and enjoys making sales, often find themselves doing very well in the direct sales business.
• It offers flexibility, although you will get out of your business what you put into it. The more work you do, the potential you have to earn a living will increase.
• There are a variety of brands that offer a direct sales opportunity so you can enter just about any business that you feel passionate about.

Cons

• No matter how much of a business you turn it into, you’re still only representing a company and their products.
• Approximately 99.9% of the time, direct sales is not free. Most companies require an investment. In many cases you’ll need inventory on hand for any shows you might be offering. The general rule of thumb is that it takes money before you can make money.
• Getting people to join your sales team may not be the largest part of your business, but that is a big chunk of it. The regular money that most reps make will come from the sales of the people under them. A bad sales month won’t hurt as much if the people under you are still working at it.
• If you can’t sell, you won’t make money. This is probably a bad idea if you can’t stand the idea of speaking to a group of people.
• Not all direct sales opportunities are legit. (It can be avoided if you do your research before you join!!!)
• Only a small percentage of representatives make it into the millions from direct sales. Most reps only make enough money to supplement a part-time income.

Trackback URI | Comments RSS