Wednesday, September 30, 2009

Direct Sales 101

There are many different industries that have part time work and work that you can do without leaving your home.

1. Travel Agents

2. Real Estate

3. Virtual Administrative Assistants

4. Virtual Concierges

5. Home Parties (Direct Sales)

These types of opportunities will all be present at the NetWork: Part Time & Work From Home Expo. They are great ways to “have it all”. Flexibility to raise your family, be the CEO of your household and contribute to the financial coffers of your home.

We will discuss becoming home travel agents, real estate agents or virtual assistants at another time. For this blog entry we want to focus on the one veiled in the most mystery and misconception. The Home Party industry – or as the industry calls it “Direct Sales

SALES – A very scary word. But the average Direct Sales representative is not your everyday used car saleswoman. Most are in a home party setting where a host invites her closest friends over for snacks and beverages and they sample the products you are offering and buy from your greater catalog. Direct Sales representatives rely mainly on your “networks”. Having home parties with the women from PTA or Mommy and Me… or if you belong to a local women’s group.

Susan Powell a partner with Network Expo found that with each home party she did as a representative for Fantasia Adult Products she was asked to do two or three more at the homes of attendees. It basically promoted itself.

You might know of Avon, Mary Kay, Pampered Chef, Southern Living or Fantasia (womencentric adult products), but there are hundreds of companies that represent every product imaginable. Cooking products, foods, children educational products and toys, health products, beauty products, home products, candles, fitness equipment, clothing… there is a company for almost any product you can think of!

What is Direct Selling?
World Federation of Direct Selling Associations sites Direct Selling as “an alternative to traditional employment for those who desire a flexible income earning opportunity to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full time employment. In many cases, direct selling opportunities develop into a fulfilling career for those who achieve success and choose to pursue their independent direct selling business on a full time basis.”

What does that mean? It means different things for various companies. Many involve home parties, but with the advent of the internet many direct sellers grow their businesses over the internet.

The cost for an individual to start an independent direct selling business is typically very low. Usually, a modestly priced sales kit is all that is required for one to get started, and there is little or no required inventory or other cash commitments to begin. This stands in sharp contrast to franchise and other business investment opportunities which may require substantial expenditures and expose the investor to a significant risk of loss.

According to the Direct Sales Association people choose Direct Selling for a number of reasons… The most popular being:

  • Direct selling is a good way to meet and socialize with people.
  • Direct selling offers flexible work schedules.
  • Direct selling is a good way to earn extra income.
  • Direct selling is a good way to own a business.
  • Earnings are in proportion to efforts.

How do you become a Direct Seller?
There are no special degrees to obtain or tests that you have to take. You are basically your own boss. You can work part time or full time and you set your own goals. The upfront costs are usually very small compared to franchises or other start up businesses. Some are as low as $99 where you receive your start up kit. Others can be more costly, but the return is usually worth it.

And the best part is that you get the support, technical assistance and training from a larger parent company that knows what the business.

Who Really Buys?
A lot of people love to catalog shop and shop at home parties. Actually home parties come with an expectation that most who attend will leave having bought something. A recent survey from the Direct Selling Association shows that “74% of Americans have purchased goods or services through direct sales. That's more than the number who have purchased through television shopping and on-line computer services combined… Sales in the U.S. have more than doubled in the last decade to more than $30 billion and are now more than $100 billion worldwide.”

How can I choose a Direct Sales Company?
Well of course my first answer to that is to attend one of the NetWork: Part Time & Work From Home Expos (www.net-workexpo.com). The first one being on January 10th at the Double Tree in Somerset, NJ.

But you can also visit sites like DSA.org or WDSA.org. They can help you navigate through the hords of various companies and will give you links to legitimate ones.

Feel free to email us or join our facebook page and we will also talk to you about which companies are stellar for starting out.

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