Use Direct Sales to Create Wealth

Direct Sales as an option....

Have any of your friends ever approached you with a "great business opportunity?"Perhaps it was in direct sales. Direct Selling, as defined on the Direct Sales Association website, "is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. Products are sold primarily through in-home product demonstrations, parties and one-on-one selling."

Direct Sales can also be referred to as Multi-Level Marketing (MLM), Direct Marketing or Network Marketing. This method of marketing and distributing goods has become a $30 billion dollar business in the US alone, with about 15 million direct sales people. In the interest of simplifying things we'll refer to the salespeople as distributors and the industry as Direct Marketing.

Basically a company markets its products or services through a network of consultants or representatives, using primarily word of mouth as advertising. By eliminating the middle man (which in this case would be the retail stores, advertising agencies, warehouses etc) they are able to compensate many of their sales people or distributors generously and to put more money back into product development then an average manufacturer would be able to do. Many times Direct Marketing companies have something very special to offer which normally cannot be marketed properly through normal advertising or packaging, and requires a little more explaining by the salesperson to make it stand out. That's where home parties come into play- it's kind of like an infomercial live in a friends living room!

This is a brief synopsis of how the companies work and how the salespeople profit. In Multi-level marketing companies distributors sign up with the companies to have the ability to sell the company's products or services. Part of the job of the salesperson is to sell the product but also to sell the business, bringing in new people who also want to sell the product and sell the business. When they accomplish that the distributor is then compensated on not only their work but the work of the new people they've sponsored into the business and the people they did and so on - hence the phrase "multi-level." If you are working a 40 hour work week and all of the people in your network are doing the same you will be paid not only on your effort but also on their effort in exchange for training and motivation. This is called Time Leveraging.

If you've had a negative perception of the Direct Marketing industry or if you never thought you would consider a business like this, take a good long look at this industry before you scratch it off your short list. Financial gurus such as Robert Kiosaki (bestselling author Rich Dad, Poor Dad) and Donald Trump recommend building a network marketing business to ensure future income and acquire wealth. Warren Buffet owns a Direct Selling company. The 2 biggest sellers (Avon & Mary Kay) of cosmetics in the world are Direct Sales companies. This isn't about a garage full of air filters and pink Cadillacs, this is an industry in which you can build a million dollar business with little start up costs by selling anything from mortgages to lipsticks. And what may be even more important is that you can help others do the same thing.

The Good the Bad and the Ugly of It

Pros:

Low start up costs- Most people can start a Direct Sale business for under $1000. That is unheard of with a conventional business.educationeasy.net business plan. It would include sign-up costs some business material and demo kits to share the products.

Time Leveraging/Residual Income. Get paid for your work and a percentage of the work of people you sponsor and train. Also you will continue to get paid for sales years down the road from people you've networked into the business.

Unlimited Income potential- Yes it sound too good to be true but based on the business.educationeasy.net business plan you can truly earn millions of dollars with a direct sales business. It will take time and a lot of effort to build up a network big enough to accomplish it- but it's doable.

There is room at the top for everyone- Unlike traditional or corporate business which has only 1 CEO most network marketing companies allow anyone who achieves high sales numbers to reach the top of the company.

You can build this business alongside your current job and commitments. Most network marketers work between 10 and 20 hours a week.

Supportive motivating environment- This is what appeals to so many people. Because the success of your sponsor (upline) depends directly on your success they will support you in every way they know how. It is refreshingly different from the competition of corporate America.

Cons

Some people find it difficult to approach others with the business.educationeasy.net business plan and sometimes the product. They may feel as if they are a burden to friends and family whom they asked to support them in the beginning.

Must be a self motivator. Because you are your own boss in this business you must remain focused on your goals. You will not have an employer to answer to, and this freedom can sometimes lead to procrastination and eventually just not working the business at all, especially if you have another income you can depend on.

Sacrifices upfront with the payoff on the back end. People often over estimate how much money can be made in this business in the first year and underestimate how much can be made in a 5 year period. Therefore many quit before they can truly enjoy the fruit of their hard work.

How to choose the right MLM company:

Make sure the company you choose is a member of the Direct Sales Association, check their website for information dsa.org DSA.org In this business integrity is of the utmost importance, the companies must meet very high standards to be accepted into this association and remain as members.

Choose a company whose product or service you believe in. If you don't love the product you are selling why would anyone else?

Check out and understand the compensation plan. This will be your paycheck, understand how you can make the most money with your business, then choose accordingly. Your potential "upline" or the person who sponsors you into the business can review this with you, and they will subsequently be responsible for your training.

Try choosing a company that offers a consumable product. That means that it can be used up and needs to be repurchased- this will ensure your residual income as you build clients for life.

Choose a company that has a good reputation and one that has been around for at least 10 years. You might not be getting in on the ground floor but at least the company will be well established and won't up and disappear with your residual income.

Probably the most important-take the quality of people who are involved into consideration. Go to a meeting or two, speak to your sponsor and their sponsor, and understand the culture of the company. Make sure you actually like these people, that they are positive and honest. You will be spending a lot of time with them, you should enjoy their company.

If someone has approached you with this business.educationeasy.net business plan and you blew them off - go back to them and find out more. Their company might not be a fit for you but at least it's a starting point. If you have no push off point go to the Direct Sales Association website (dsa.org) and click on "member directory," make a few choices of marketing and category and they will give you different companies that may be a match for you. Research their website and Google the companies. Careful what you read online- people can post some unfair and irrational information about these companies, just use your best judgment.

Theresa Struck owns and operates her a direct marketing business from her home. She believes that American families can use team building and time leveraging to achieve financial stability. Theresa imparts her knowledge and new found wisdom in her new website designed to support entrepreneurs who are looking to create an income from their home office. Especially mothers who are trying to balance earning an income with being present for their children. Come share in this refreshingly supportive and informational site homebasedbusiness4moms.com homebasedbusiness4moms.com