Why should YOU consider starting your own direct sales business? There are several reasons (you may have even more, but these are the biggies):

  1. Additional Income - this may be to make ends meet, fund a retirement or education account, pay down debt or just have money for fun “extras” each month. There are also some great tax benefits to having your own direct sales business. Product awards or purchases, paperwork supplies, mileage, photocopying, postage - all can be legitimate expenses in your business. Check with your accountant for the details.
  2. Free Products - almost every direct sales company compensates distributors with free or heavily discounted product. If you’re a “frequent flyer” who makes lots of purchases from a certain company, it could be worth your effort to investigate becoming a distributor for this benefit alone.
  3. Incentive Awards - these can range from jewelry to cars to vacations that are awarded based on performance (sales, recruiting, etc). When is the last time your current employer handed you free airline tickets and hotel accommodations just for showing up and doing your job throughout the year?
  4. Time - whether you’re a stay at home Mom who needs some “grown up time” out of the house, or a Mom - or Dad! - who’s ready to give up the grind of a 50 hour work week (including commuting) and have more time with family, you can find a good fit with a direct sales company.

I know of one woman, a very busy, very successful real estate attorney, who started her direct sales business because she and her teenage daughter both loved the products and found that it was a way for them to spend time together. Mom would conduct the in-home presentations, and her daughter would accompany her to the shows to help out. Not only were they spending time together doing something they both perceived as fun, but they were earning money instead of spending it!

Some other criteria you may want to consider when comparing direct selling business opportunities:

  • What is my initial investment?
  • Is the product or service that the company provides something I would be proud to offer as a distributor?
  • Do I need to carry inventory and/or make deliveries? This could significantly up your “work hours”.
  • If the company does provide shipping to customers, what are the delivery fees (high delivery fees can turn a customer off even if you have a great product)?
  • Do I pay for the Host Benefits (the rewards that the host receives when she opens her home to the company and its products) or does the company provide them?
  • Do I pay to run credit cards or does the company absorb that expense?
  • What are my sales requirements, if any, to remain a distributor in good standing with the company?
  • Is there a career or promotion path for distributors (even if you don’t think this one is important to you, it’s still good to know)?
  • Does the company offer training? If so, how (on-line, tele-conferences, live meetings, print materials, DVDs, audio CD’s)?
  • How “recession proof” is the product or service that this company offers? Will sales dry up if the disposable income of potential or repeat customers dwindles?
  • What is my commitment to the company if I do agree to become a distributor? There may be a minimum amount in sales or number of shows that you agree to submit before making a decision to continue with the business or quit. Whatever the requirement is, it shouldn’t be excessive, but a fair amount of time/sales to allow you to assess the business model and product line and how well it works for you.

The most frequent concern expressed by potential distributors is will I have the time to do this? Many people are planning to start their direct sales business alongside a full time job, and/or busy family/personal schedule. You need to bring this concern forward by asking, “How much time will I need to devote to my business if I want to earn $XXX amount per month?” or “How do I qualify for the free car/vacation/jewelry?” if that’s your big “why” for starting your business.

The best way to get the answers you need is to speak with a distributor for the company or companies in which you are interested. Most of the bigger direct sales companies have websites that will provide some answers, but there’s no substitute for discussing your interest with someone who has his or her business up and running to really find out the nitty gritty details.

Phyllis Rampulla is an Independent Sales Director with The Pampered Chef Ltd., a career she undertook after 16 years as a licensed physical therapist. For more information about her and The Pampered Chef Ltd., visit http://www.pamperedchef.biz/phyllisramp

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