Making the decision to embark on a new direct sales opportunity can be thrilling. The possibilities of additional income for your family and the ability to snag new products that you love at deep discounts are exciting, but lurking behind that excitement is always a sense of fear and wonder. You wonder if you’re making the right investment and you’re worried what will happen if it doesn’t work out as you intended. These are all natural emotions when taking the leap to start a new business, but by being prepared and doing your homework, you can be more confident in your decision and focus on growing your business without fear and doubt.
More often than not, I see mompreneurs leap into a new direct sales company on a whim. Perhaps she was at a party and the opportunity was presented. Or maybe she has a friend that sells a particular item and got interested in it that way. While these aren’t necessarily bad ways to join a new company, they’re not the “smart” way to start a new business and you may just be setting yourself up for failure as it may have not been the right choice. So just how do you choose the right business for you? With hundreds of direct sales companies out there, there’s no perfect answer. What may be good for one person may not be good for another. But, there still are some general guidelines you can follow while doing your research to weed out companies that aren’t a good fit for you and ones that won’t help you reach your goals. To help you, here is a guide for finding the best direct sales company for you. To guide you along, I’ve also created a handy Direct Sales Start Up Research Guide to help you map things out on paper.
Set Your Goals
The first thing you have to consider while researching companies is to decide what you want to get out of your business. Are you looking to make a certain amount of money? Perhaps you’re doing it more for a discount on products you love. Whatever your reason, write it down. Setting your goals and having them accessible to refer to will help you to make sure whatever you choose is going to benefit you in the long run.
Select Your Industry
There are so many types of companies out there. From fitness to candles, make up to cleaning products. You name it, it’s probably out there. Your next step will be to narrow down what types of things you’re interested in. To be successful in business, you have to have passion behind what you’re selling. A word of caution-don’t just select one type of product. While doing more research, you may find that the industry you’re most interest in isn’t actually a good business move, so you’ll want to have others in line to turn to should your first choice not be right for you.
Identify The Companies
Once you know what industry you’d like to pursue, it’s time to find companies that offer those types of products. A good place to start is our Work at Home Opportunity Guide. We have many companies listed by category, but with new companies popping up all of the time, even our guide can’t keep up. Do a simple Google search to find even more companies. For example, if you’re interested in botanical cosmetic companies, Google “botanical cosmetic direct sales opportunities.” Make a list of all of the companies that pop up and do this for each of the industries you’re interested in.
Do Your Research
Once you have a list of companies, it’s time to get down to the nitty gritty. Obviously, you like the products. Now it’s time to find out about the business. You’re going to want to gather some pretty important information, including:
How long have they been in business?
How many consultants do they have?
How much does it cost to start?
What does that include?
What are the price points of the products?
Who is their target audience?
Do they have quotas to meet to stay active?
What is the commission rate?
Can you build a team?
What are the downline commission rates?
Do they have training available?
A worksheet that you can print multiple times to use for each company is available in our handy Direct Sales Start Up Research Guide.
Analyzing Your Research
Once you’ve compiled the facts on each company you’re interested in, it’s time to go through them and figure out what’s what. Many of the decisions will be personal based on your needs, but there are some general things to look for that make a company appealing.
Number of Consultants: Finding a young company that isn’t over saturated with consultants across the country is an important thing to consider. There are many companies where there can be hundreds of reps in your area already. Finding new business can be tough in this situation. Young companies with ground floor opportunities will often be a better bet, although there is something to be said for companies that have stood the test of time, like Mary Kay or Tupperware. I wouldn’t discount them altogether, but it’s certainly something to consider.
Target Audience: Knowing where to find your target audience and being able to access them is key. For example, if you don’t have young kids, more than likely, your circles of friends and family don’t have them either. So picking a company that sells toys may not be a good fit for you. Make sure that whatever you decide to sell is something that you can easily market to your friends and family as they will likely be your first customers.
Price Point: This is where I find a lot of direct sales consultants have trouble. There are many companies out there that lure customers in with their extreme sales and low prices. Sure, this sounds great from a customer perspective, but is it great from a consultant perspective? If the prices of the items are too low, like $5 accessories or $2 lip balm, how many of those are you going to have to sell to make a good profit? You’ll spend far more time making those sales than if you sold products that were a little higher in price. For example, let’s say 2 companies have a 30% commission rate. One company sells cosmetics that average about $5 a piece. The other company sells handbags that average $50 a piece. To earn a $15 commission with the first company, you’d have to make 10 sales, whereas with the other, you’d only have to make 1. Always look at the cost of your time, otherwise known as opportunity cost. Your time is valuable. Your goal is to work smarter, not harder.
Training: A good company will have lots of resources available to support you in your business. Look for things like webinars, training videos, ecourses and mentor programs to help you along your way. A company that doesn’t invest in the success of their consultants isn’t a company you want to work for.
Final Thoughts
As you can see, there are so many things to consider when deciding upon a new business opportunity. Everyone has different goals, different needs, different interests, so what may be great for you may not be great for another mompreneur. I hope this guide helps you put thought into your business decision so that you have an enjoyable and rewarding direct sales career!
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Excellent advice Morgan =) Thank you so much for sharing this guide…I am sure many will benefit in their search for a direct sales company that suits their needs… Happy, successful investigating mompreneurs =)
Thank you, Barb!
[...] for you? With hundreds of direct sales companies out there, there’s no perfect answer, says Business Among Moms. What may be good for one person may not be good for [...]
Thanks for posting such a nice blog….
Yes I GREE WITH YOU. It is even true in our country. Me and my wife started a direct selling business and i think we did it right.
Carlo recently posted..Globe Tattoo Advertisement while I am browsing.
Great Blog!! Thank you for all the information. I am an Independent Senior Consultant with Thirty-One Gifts, and I cannot say enough wonderful things about the company and it’s mission. I highly suggest everyone check out the opportunities offered by Thirty-One.
http://www.mythirtyone.com/msargent
Great article it is important to find a company that really will work for you. Easy to get excited about a company or opportunity then find you do nothing with it.
I finally found a company that works for me, low start up, no expenses, no inventory, no harrassing family or friends! I have waited 14 yrs for a company like this!
I am an Independent Consultant Manager for Restaurant.com. Check out my website http://www.myrdcbiz.com and contact me if you are interested in learning more.
sorry, I politely disgree with your point about “saturation”. That is a myth. People have started in 20+ year old companies and gone to the highest titles. It’s about work ethic , not how many reps there are.
All the Answers you need about joining lia sophia with ME!!
When you start your search for the perfect direct selling or home party line business, here are some valuable questions to ask when comparing companies and opportunities. I have filled in the answers regarding the lia sophia Jewelry advisor opportunity.
1. Start up cost should be minimal. Start up cost in direct selling and network marketing companies are usually modest and mainly to cover the cost of the sales kit. What is their start up cost? What comes in the kit? Start up kit for lia sophia advisors cost $149 which includes 20 pieces of jewelry, jeweler’s carrying case, 1″ display tray, set of 2 foam sheets, merchandise stock list, excellent beginnings DVD, training program, display cloth, ring sizer, 200 colored invitations, guest lists, customer selection tickets, hostess envelopes, wish lists, hostess selectionℴ summary sheets as well as 20 catalogs. I offer anyone that joins my team an incentive, if you have 5 shows and at least $1,500 in sales in your first 5 weeks, I will reimburse you the entire cost of your kit.
2. Some companies require a monthly purchase. Is there a monthly minimum purchase requirement and if so, how much is the monthly investment? Lia sophia has no monthly requirements or minimums. To be considered active you must have $250 in sales in a quarter.
3. Most companies submit the local state sales tax, however, there are a few that do not. Will I be required to submit my own state sales tax? No, lia sophia does that for you.
4. Check with each company regarding their return policy. This will be vital to your business. Can I return unwanted or damaged products and if so, what is the return policy? This is one of the wonderful things about lia sophia. They have a Lifetime Replacement Guarantee on all of the jewelry for customers and advisors. What is really nice is all returns from customers are done directly between the customer and the company. The advisor has nothing to do with it once the sale is complete. There is no charge for returns or exchanges for 120 days. After that, there is a $5.00 fee per return for the customer.
5. Do you have a buy-back policy? Some companies offer to buy back unsold marketable products purchased within 12 months prior, should you decide to quit the business for 90% of the price you originally paid. Do they offer a buy back policy? For a period of one year the company will take back any unused jewelry or supplies still in its original packaging, provided it can be resold as part of the current line. Credit will be at 90% of the amount paid. Any past due amounts will be applied before rebate is paid.
6. Some companies require independent representatives to pay for portions of the hostess gifts, etc. You should know up front whether part of your commission earned will go to cover these costs. This will reduce the actual amount of commissions earned. Am I required to cover part of the hostess gifts or pay admin. Fees, etc.? The only fee towards the hostess plan is $6.00. That is the only amount that is subtracted from your commission check. Another benefit of lia sophia compared to other direct sales companies is that we earn commission on all half price items, including those purchased by the hostess. So if your show total is $500, your commission would be $144.00 which is $500 minus x 30% minus $6.00.
7. It is always smart to compare catalog and supplies cost as they vary by company. What do your catalogs and paperwork cost? Catalogs are $6.50 for a pack of 10. Invitations cost $3.00 for 100. Wish lists cost $2.00 for pad of 50. Hostess summary sheet $1.75 for 12. Guest list $3.75 for 12. Sales slips $2.75 for 50. Plus lia sophia has a printable section on their web site for advisors to print off some supplies for free.
8. Customer shipping charges are important to your business and can vary greatly from company to company. What are the customer shipping charges? And consultant shipping charges for supplies and orders? Lia Sophia charges a flat $3.80 per order no matter what the size of the order. Advisors are also charged $3.80 for any order whether it be supplies or samples no matter how big or small.
9. It is customary for companies to have a monthly or quarterly sales requirement to stay active and/or receive overrides. What is the monthly/quarterly requirements? There are no sales requirements as an advisor. When or if you decide to move up with the company and become a manager, you then need to have $1,500 in personal sales a month with a total of $5,000 team sales (this includes your $1,500 personal sales) in a month to earn commission on your downline.
10. If you plan to participate in local fairs, festivals or events, you will want to know whether the company allows you to sell cash&carry items. Many will not as they prefer representatives to provide one on one customer support and book to increase sales. Do you allow representatives to sell products at local fairs and events? You may have a stand at any event and sell products however, we do not sell the kind of product that requires an inventory to carry.
11. Many companies provide representatives with a company approved website. If you plan to market your business online, this will be vital to your success. Does your company provide a website and if so, what is the cost? If they do not, can I design my own? Yes, lia sophia has company approved websites that you can buy for $9.95 a month and you may set your own preferences to the site to make it your own.
12. Some companies authorize representatives to deduct their commissions prior to sending in the show order, while others require all monies collected forwarded to home office and then commission checks are issued monthly or twice per month. How are you required to submit payment for a show? All money from the show is submitted to the company and lia sophia sends you a commission check weekly or you can sign up for direct deposit.
13. Many companies now ship their products directly to the consumer or hostess, however, there are a few that require the representatives to deliver a show or products. Am I required to deliver products? No, all party orders are sent to the hostess and all individual sales are sent to the individual.
14. With some opportunities, representatives are encouraged to stock products to have on hand for eager customers. Will I be required to stock or carry inventory? No, we do not stock or carry inventory.
Most companies allow their representatives to purchase products or display items at a special discount. Are representatives allowed to purchase products at a discount and if so, what is the discount? As an active advisor, you will enjoy a discount of 70% on jewelry samples. You may only purchase one of each item. Twice a year prior to a new catalog coming out, the company offers the chance for you to earn a privilege purchase of a 77% discount on jewelry.
Have them explain the commission structure and levels of achievement as it varies greatly by company. What is your commission structure? Advisors earn 30% on all personal sales. When you recruit just 3 people and have monthly team sales of $5,000 and a minimum of $1,500 from you, you become a manager and earn 40% commission on your personal sales and 10% commission on your recruits sales. Plus there are bonuses offered for total sales of $10,000 you earn $125 bonus, $15,000 gets you a $150 bonus and $20,000 earns you a $175 bonus plus you earn 5% override each week on personal promoted units. There is a lot more to the leadership program and if you are interested I can e-mail a complete leadership file to you.
Do they offer additional incentives, such as trips, a cash bonus and etc.? Yes, there is a trip you can earn yearly. They also offer an excellent beginnings program for new advisors to earn up to $600 in free jewelry certificates for reaching certain sales levels in their first 15 weeks of business. The company also offers monthly contests and incentives as well.
What type of support is available? First of all, the support of me, my manager and her upline. Not to mention all the support from the company. They offer incentives monthly for sales levels reached. There is a special section on the advisor advantage website that is called lia sophia university and the company is constantly adding new things to help with our business. I will personally do everything I can to help you succeed no matter what your goal with lia sophia is, we will work together. I have a yahoo message group for my team where you will find tons of support, ideas, files, forms, flyers and everything you need to help you get started with your new business. I also offer weekly conference calls with a different training topic each time to help you succeed with your new business.
As with any business, finding what works for you and your lifestyle will be the key. Take time to research opportunities and consider whether the business and support team are a good match for you.
Hello, I currently sell for a company called SASSY LIVING we offer a wide variety of neccessary accessories !!! visit us at http://www.sassyliving.net to view our products and opportunity.
Doreen
There are so many good direct sales companies and products to choose from. One big deciding factor I use is the quality of the people who join.
Walker recently posted..How to Start a Direct Selling Business for Beginners
Thirty-One is AMAZING…They spoil their consultants like no other company I’ve seen. Training and support is top notch and the products completely sell themselves. Right now, there are 3 separate consultant incentives going on simultaneously (5 if you’re a new consultant) where we can earn freebies!!! Interested in learning more? Check out my website at mythirtyone.com/erinbailey
Thanks for providing a guideline about choosing a direct sales company. I read through your points with Norwex in mind, as I’m an Independent Sales Consultant and Sales Leader, and was happy to note that each criteria is met completely. If anyone is interested in knowing more about an opportunity with Norwex, please contact me for more information.
http://www.garciewong.norwex.biz