What is Direct Sales you may ask? Direct Sales is where you are in charge of selling items personally to
people. You are responsible for finding the customers, taking their orders, placing their orders and
sometimes even delivering their orders. To put it a little simpler it is basically like a franchise on a
smaller scale. You get a right to say you are selling a certain name product from a larger company such
as Scentsy, Velata or Mary Kay just to name a few. Direct Sales are sometimes referred to as Multi-Level
Marketing (MLM). This is due to the fact of building a "Team" to work for you. The more people you
have and the more promotions you get ultimately the more money you will make.
How do you get started in Direct Sales? The way most of them go is an "Independent Consultant" will
either talk to you about joining and if you are interested they will have you fill out some paperwork or
most of them now days you can sign up online. Wait though, don't get too excited. I would say 99.9% of
them are NOT free to join. Most of them require a "Startup fee". Prices range greatly on this. Can be
anywhere from maybe $50 to the thousands. I'm not saying one is better than the other because it all
depends on how the company is set up. If you can make your thousand make quicker and easier than
you could make your $50 make then I would say the thousand dollars would be a better route if you
could afford it but they don't always work like that. It depends on if there are minimum monthly sales
commission percentage and other factors.
What happens after you sign up? After you have completed signing up then you will receive your
"Startup Package" full of information and some products usually. Now they expect you to get out there
and start selling. What do you do you ask? Well, if you are lucky and the person that you signed up
under knows what they are doing and are a good leader then they will help you along the way. If they
just signed you up to fill their "numbers" then you will have to try and figure things out along the way on
your own or reach out to other members in the company that may be willing to help you.
How do I get customers? Well, usually they tell you start with family and friends because they are the
easiest to talk to and usually the most open to helping you out. Try to get them to talk to their friends
about it and so forth. You start expanding your "Network" through them. For some people friends and
family are either not interested or they are not in a position to help. This is where a lot of people run
into a wall. Where do I go now? Who can I get to buy this stuff? For some people this is easier for them
than others. If you are someone that is very outgoing and can talk to anyone and everyone then this will
not be a problem for you because you can just tell everyone you talk to. For people like me on the other
hand it can become a lot more difficult until you get more comfortable. For this situation be creative.
Here are a few examples I do. Take a walk around the neighborhood and put flyers at the doors. This
method you can get the word out to a lot of people and unless someone comes to the door before you
leave you don't have to talk to people about it. The flyer has all the details. Leave some inside close to
your door that way if anyone comes knock on your door then you can just give them one to take with
them as well. Kind of like an exchange you will take their handout if they will take yours. Seize an
opportunity. You know you run into people that will tell you everything about their lives. So always have
information on you and if someone talks about something you have then be sure to give the information
to them. Or maybe if you get brave and they don't ask just offer them something to take a look at. You
never know who your next customer or "consultant" might be. A lot of times consultants are customers
first. So keep in contact with customers and ensure every once and a while see if they are interested in
joining your team.
Do I have to keep stock on hand? This depends on the company and your sales technique. Some
companies may require you to keep stock on hand while others may suggest against it. If you are
planning on doing "Cash and Carry" where you sale the products and get cash instantly then yes you will
need it on hand but if you are going to have customers order it and pay through the company then no
you will not need to keep stock on hand. Personally I do a little of both. I keep a very Minimum stock on
hand and when I sale that I replace the small stock. I prefer the customers ordering online just due to
the fact it is easier to keep track of for taxes.
How do you make money or How much money will I make? This is one of the most frequently asked set
of questions you get. These are two very important questions but please remember in Direct Sales you
need to know more because everybody and every company is different. It depends on what their "Title"
is and how many people they have under them on their team, how many sales they had and what their
commission percentage is like. Some Companies commission may be something as small as 1% while
others may be something like 50%. You may think 50% Amazing!! Well, think again if you are looking to
be able to build a team and then relax and earn money that way. For the most part, the higher they pay
you for personal commission means the less they will pay you for commission that your team makes.
Let's take one company for example " Velata ". They pay you say anywhere from 20-25% for most
consultants but you ONLY make 2% off of your team below you and that is only for 3 Deep. Also you
have to maintain $150 in "Personal Retail Value"(PRV) at least 1 month out of every 3 to keep your team
AND you must sale $500 PRV a month to even earn commission from your team. Let's look at another
company " It Works! ". They pay you usually 15% for your personal sales commission and they pay you
10% for each team member's commission up to 3 Deep and 5% for 4 and 5 Deep and 2% infinitely below
that. Here you can do a monthly auto-ship at only $80 PRV to be able to earn your commissions. As long
as you have your $80 PRV auto-ship each month you will also earn the commission from your team as
well. So between these two examples "It Works" would be the better choice if you were planning on
building a team to earn money but maybe "Velata" is the better choice if you plan to only make money
off of your sales and not build a team.