Business Opportunities Weblog

October 6, 2005 by Dane Carlson | 2 Comments

The Seattle Times:

“If you need to invest $150, you should get something reasonable in return, whether it’s samples, catalogs or training materials,� she said.

“If you have to pay $4,000 just for the right to recruit other salespeople, that’s a huge red flag.�

Also, make sure there’s an actual product that’s being sold to the ultimate consumer of that product.

“You should be compensated primarily on what you sell or what your recruits sell,� she said. If compensation is based only on how many people you bring into the business, that’s another red flag.

Ask about the company’s buy-back policy for unused merchandise. The association requires its members to repurchase at least 90 percent of unused inventory.

Finally, be realistic about the earning potential in direct sales — and the work required.

The median income in direct sales is about $2,500 a year.

“Most people in direct sales only work a few hours a week, with a goal of making a couple of hundred dollars a month, so that’s not surprising,� Robinson said.

Those who work full time average about $44,000 a year.

“Direct sales can be a great opportunity, but you need to do your homework and you need to trust your gut,� she said.

via the MLM Business Opportunities Weblog.

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Tags: MLM, Planning, Strategy