“If you need to invest $150, you should get something reasonable in return, whether it’s samples, catalogs or training materials,â€? she said.
“If you have to pay $4,000 just for the right to recruit other salespeople, that’s a huge red flag.â€?
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,â€? 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,â€? 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,â€? she said.
via the MLM Business Opportunities Weblog.