Things To Consider Before Getting Into Direct Sales

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Things To Consider Before Getting Into Direct Sales

May 21, 2009 by Angela Shupe | 0 Comments

Direct selling offers an affordable choice for many women who hope to launch a business from their home. However, sometimes it can be hard to sort through what might work and what is a scam. A recent Leader-Telegram Online article offers a few tips to help those interested in direct sales find the right system for them.

Set goals regarding income generated. Someone wishing to earn only spending money will have a different approach to direct sales than someone planning to work more hours.

Verify that the product you’re selling is legitimate and usable. Watch out for sham products.

To start selling, direct sellers often must buy a starter kit – usually about $100 – that typically includes product samples, catalogs, order forms and a training manual. Compare the cost of the kit with what you get in return.

Understand the company’s compensation plan. Typically direct sellers earn 25 to 50 percent of a sale.

Make sure the company has a buyback policy on products you purchase to sell. Companies should pay at least 90 percent of the purchase price of inventory bought in the past 12 months.

Direct-sales companies that are Direct Selling Association members must comply with the group’s code of ethics. To find a list of members, visit dsa.org.

Some of the big names like Mary Kay, Avon, Tupperware, and Passion Parties are a great starting point for the direct sales entrepreneur. Just make sure you do your homework before you buy into any system.