5 Things You Should Know Before Becoming a Direct Selling Distributor

5 Things You Should Know Before Becoming a Direct Selling Distributor

October 07, 2021 05:57 Created by Admin, Last modified on November 02, 2021 03:59

The decision to join any Multi-Level Marketing company should be taken seriously, especially if you are investing your hard earned money into the opportunity. Taking the time to evaluate each opportunity and primarily the company itself and what they offer is the only way you are going to give yourself an opportunity to succeed. One of the major reasons is that most people don’t understand how to choose the right business to get into. The following are five things that you must know before you join any Multi-Level Marketing company:

1) Identify the product- First and foremost, do you love the product? If the answer is not an unqualified yes, look for a different product for your direct sales business. There are so many choices in direct sales businesses that you should be able to find a product you can get excited about. But try to be critical too. What are the drawbacks of this product? You need to know this to overcome objections. Also, critically evaluating a product before entering into a direct sales business will help you avoid work at home scams or pyramid schemes.

2) Choose the company- Identify companies that offer the type of product or service that interest you. Start by searching Indian Direct Selling Association member list based on product category and database of direct sales companies. Visit a prospective company's web site. Attend a party or demonstration, if applicable. With the right product and the right company, you'll have every opportunity to succeed.

3) Commission- Of course, another important factor should also be the type of commission system they offer to their members. Keep in mind, the companies that sell higher-priced products may offer a larger commission on them, but they may be harder for you to sell. You want consumables that are a frequent re-order item. Return business by satisfied customers is best. Sometimes, it is worth the time and effort to buy a few products and try marketing them on your own before you join. How much interest are you getting and could you actually make a decent income from the company under the commission structure they have set up?

4) Get industry literate- Get copies of all company literature and read it thoroughly. Look at how many years the company has been in business. Find out about the number of distributors, average distributor earnings, and distributor dropout rates. Read the company's product brochure, marketing materials, and any distributor agreements. Also, request the company's financial statements for over the last five years.

5) Understanding Cash Flow- And just like any other business, your direct sales business will have ongoing costs. Expect to pay for gasoline, cell phone and internet charges, paper, gifts for clients, interest on items purchased on credit, childcare costs, etc. Plus you have to pay for inventory. Yes, you will likely make back what you invest in inventory, but be sure you have adequate cash flow to cover this investment.

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