“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.
Getting Started with MLM – Direct Sales
October 6, 2005 by Ty | 7 Comments
In Network Marketing Tips
Business Opportunities Weblog | Getting Started with MLM on October 6th, 2005 at 8:49 pm
[...] 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. [...]
Digichex on October 11th, 2005 at 9:23 am
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.”
I wonder where thes statistics come from. We work in an industry that has earned some mistrust and we really need to site facts with there sources as to rebuild credibiliy.
Digichex
Rick Zeien
Founding Member
Ty on October 11th, 2005 at 12:18 pm
The statistics quoted in the article come from the Direct Selling Association.
MLM Home Business Opportunity on July 1st, 2009 at 2:23 am
some extremely valid points !!! there are too many promises out there these days that people forget that they will actually need to work their business to make any money… do your due diligence and be ready to work, otherwise forget about it !!!
Juma Jarvis on December 25th, 2009 at 8:18 pm
This is a must read article for all people considering joining MLM.The stats and facts as well as suggested things to look for before joining will save many a ton of time and money.
Jahangir Alam on April 5th, 2010 at 6:13 am
Very valid points given above. Really enjoyed reading it. Thanks
Josh on April 15th, 2010 at 9:51 pm
Direct sales can be very time and energy demanding. The use of the internet has allowed MLMers to take advantage of its leverage and become much more effective than people who ise direct sales.