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7 Steps to finding the right Direct Sales Company for YOU!

Phuong White Business Basics, Direct Sales, Education Leave a Comment

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So you’ve done some research and you’ve decided that you are interested in making a little extra income through direct sales. Now what? How do you go about finding the right company/product for you? After 16 years of success in Direct Sales I have some suggestions that may be of assistance to you.

Step 1:  GO 1st TO THE PRODUCTS YOU USE & LOVE!  Search to see whether or not the company that produces the product you enjoy have an affiliate marketing or direct sales opportunity. If they do then you are golden! You must LOVE the product or service you are thinking about representing. If you don’t, then stop right now. Selling and suggesting products or services that you do not care for or personally use is wrong on so many levels I simply do not care to even take the time to cover all of them. Instead I’ll briefly go over why it would be benifical for you to LOVE the product/service you are interested in selling. It’s so crazy simple, if you love it, then you won’t have to “sell” it! There’s no selling involved, you are simply sharing why you love the product/service. Additionally the training process will be equally simple because your learning curve won’t be as high since you already have personal experience with what the product can do.

Step 2: How much will it cost to start? Is there a minimum requirement to receive earnings through the company? You want to make sure that you begin your new direct sales adventure with your eyes wide open! There are countless opportunities out there, which also means that there are countless ways companies choose to operate business. However I’ve seen 3 main options that many companies offer to new entrepreneurs to choose from.

  •  NO FEES:  Some companies have no feed to join.  Many Affiliate marketing for example like having an Amazon Store only requires you to sign up and start promoting products through your virtual “store”/”links”.
    •  SMALL FEE w/ PURCHASE OPTION:  Some companies have no fees to join but you are encouraged to purchase products and supplies to display or use as demonstrators. 
      •  STARTER KIT:  Other traditional Direct Sales companies have joining fees in which you would receive a “starter kit” that contains initial support materials, samples and supplies that you may need to start your business.. 

      Step 2


      You want to be mindful of what the fees are to join the company and then you also want to know what the requirements are to get paid.

      • MINIMUM EARNINGS BEFORE PAYOUT:   Affiliate Marketing opportunities sometimes have a threshold where you need to earn a minimum amount of for example at least $50 before they pay you.
        • WHOLESALE PURCHASE:  Some companies require you to make a minimum purchase at a wholesale cost and you as the Direct Seller can then turn around and sell the products at retail and keep the difference.  For example you buy $300 in products and receive $600 in goods.  So when you sell your $600 in retail products you earn an additional $300 that is your profit to keep!
          • WHOLESALE PURCHASE & ACTIVE STATUS.  Some companies require tat you meet a certain level of activity on sales + purchase in bulk before you get your payout.  For example you must have at least $1,000 in sales in a quarter before you are allowed to purchase in bulk to in turn resell for a profit.

          This may all seem confusing to the newbie. However, with a little research and study you will quickly see that Direct Sales is amazingly exciting! It’s business light, if you will. If you can understand the different avenues of running a direct sales business you will soon see that the major business of our world opporates similarly but with just bigger numbers. For example a shirt manufacturer sells tens of thousands of shirts to a buying company at 80% off retail. The buying company in turns sells the shirts to a box store at 40% off retail. The box store sells to you the end consumer at retail. Along the way, people are getting paid. I admit this is a grossly simplified example, but you get the idea. Here’s where the excitment comes in…. YOU do not have to buy tens of thousands in shirts to make money. That is what Direct Sales is offering you. A little piece of a very big retail pie if you will!

          Step 3: Understand the compensation plan. If you are new in Direct Sales then it is very important that you pick a company that offers a commission schedule that you understand and can easily explain to potential team members. If this is not your first time in the Direct Sales rodeo then you know that there are some crazy marketing plans out there. Here’s my rule of thumb, if you cannot explain how you make money in five short sentences then you may want to move along to the next company. For example, here’s my company’s compensation to the sales force: Step3


          Step 4: Is the company innovative and or is a leader in their industry? If you don’t want to go off the rails, then make sure you join a company that has a good track record! There are two schools of thoughts on this one. Some feel that if you can be a part of a grass roots effort and build from the ground up, then you have a great chance at making it big. This is so true! However do keep in mind that if your company is so small or so new that people ask, who, what, when, where and why then they will quickly go to huh? And if you are not quick and do not have strong sales skills, then you can loose the sale before you even get the chance to give your pitch. Additionally a new startup may not have the infrastructure and support in place for you. This can be both exciting and scary. If you are a leader then you can get down and dirty and really play a big part in building up your company. If you are simply looking to make a few extra bucks here and there, then I say go for a more stable company.

          Others feel that if you join a power house company than you will get power house name recognition and support. This is absolutly true as well! You won’t have to try as hard to get people to recognize your company’s brand. Chances are the company has already worked out the kinks and can point out the pitfalls to their new business owners to watch out for so you can walk around them. The training most likely will be top notch! However do keep in mind that everyone wants to be a part of a winning team. Which means you’ve got to play nice is the big sand box and work hard to build your personal talent and niche. Yes your customers are buying the company’s products, but it is your personality and your personal story that secures larger sales and customer loyalty.

          Step 5: Can you stand behind the story? Does the company’s story inspire you? What is it all for? It can’t just be for the money. I assure you, when all is said and done and you’ve paid off all your debt what will sustain you to continue is your belief in the company. Also, the difference between a $50 sale and a $500 sale is your passion! Why in the world would you want to “fake it till you make it”, when you don’t have to fake it at all? LOVING the product and LOVING the company is the magic formula to long term success.

          CONTINUE reading Steps 6 – 7…