Golden Opportunity or Hype?

Entrepreneur:

Selling clothing, housewares, beauty products and other goods through in-home parties and one-on-one consultations can be big business for entrepreneurs and moonlighters alike. Last year, the 16.1 million direct sales representatives working in the United States generated $28.3 billion in revenue, according to the Direct Selling Association (DSA), a national trade group.

Take Elvi Valenzuela, for example. Like many recession casualties, the 27-year-old Edison, N.J.-based car salesman, working entirely on commission, saw his income slow to a trickle in 2008. Valenzuela agreed to join his mother in selling women’s cosmetics at house parties for JAFRA Cosmetics International, Inc., the direct sales firm she has been working with for more than a decade. Less than two years later, he’s bringing in $12,000 in monthly sales and has received a $40,000 Mercedes from JAFRA in recognition of his efforts.

But despite what some evangelists tell their recruits, most direct sellers don’t come close to the numbers produced by Valenzuela, who works at least 40 hours a week. The DSA reports that roughly 90 percent of direct sellers are moonlighters who, by choice, work only part-time.

So, what does it take to make it in the direct sales world? How can a newbie tell the legit opportunities from the bogus ones? Here’s what to consider before jumping in.

Be Realistic about Sales

Set Your Own Hours

Weed Out the Scams

Photo by Jenny-Pics

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