Finding The Best Direct Sales Company To Suit Your Needs

by Stefanie Fauquet

Published on this site: May 27th , 2005 - See more articles from this month...

Choosing a direct sales company might be one of the hardest parts of starting your own home party business. There are so many choices now a days, and a company for every product imaginable, this can be a very daunting task. The most important thing for you to remember is to do is your research before joining any direct sales company. There are many factors involved in what type of company you want to be apart of. How will you know what company is right for you? Take in consideration some of these factors, and you will be well on your way to starting your own home party business.

What products interest you?

First and foremost, you will want to find a direct sales company with a product that interests you. If you actually enjoy what you are selling, this will come across to your customers. Just think back to a time when someone you know raved about a new product she had found to you, weren’t you interested in trying it out for yourself? This is the same concept. Your enthusiasm for your product will make others want to try it too. Passion will keep your business strong.

What are the costs involved with joining?

Money is almost always an issue when joining a direct sales company. Most companies have some kind of initial investment. This does not give a company any less credibility.

Keep in mind the cost of joining and the starter kit and what it includes. Make sure to take note if a company website is included. This will come in handy later on when you want to branch out and do some online networking. You will also need to think realistically on what other costs may be involved in the weeks and months ahead. What kind of inventory will you need? Do you plan on advertising? What other promotional items may you need to get started? Also make sure to find out if your chosen company has any monthly or quarterly quotas you have to meet. Do these seem realistic to you? Make note if there are any minimums when placing orders as well. If for any reason any of the company’s requirements seem unrealistic, take a look at another direct sales company in the same category. They are all a little different somehow.

What is the commission rate?

This is a biggie, and a very important factor to consider when selecting a direct sales company. How much money are you actually going to make? What is their commission plan? Ask yourself, “If I sell $1,000 in product at 25% commission, is $250 worth it to me?” Typically you would want to find a company that has the highest commission rate for the products you are interested in selling.

Are you compensated for building a downline?

Is there any benefit to you in recruiting others and building a downline? Residual income can be one of the easiest ways to make money with a direct sales company. It is the only way to go to make money long term. Have you ever heard of woman making $100,000 or more a year in direct sales? They are all making this because of recruiting, building a downline, and living off of the residual income. Basically residual income is when you are paid for signing up other people underneath you and building a team. You are also rewarded when your team members build their own team, and this goes on for however so many levels. Often you are paid a percentage of what they sell/buy from the company. The more team members you sign up, and the more they sell, they higher your residual income checks will be. This is the easiest way to make money with out ever selling anything yourself. Take note of the percent of residual income you make per member, and on how many levels this goes down.

Do you have any say over what you are selling?

This is important if you want to have control over any aspect of your business. Do your products have a predetermined price that is set, or can you set your own price? How are you allowed to sell your products? Is it only through home parties, or can you do craft shows, and fundraisers too? Another very important thing to consider is can you do advertising. Offline or Online? It may be hard to get a business going that does not allow advertising of any kind. Take a look at the company's list of “rules” before signing up.

Will you have support from the company?

After you have joined a direct sales/home party plan opportunity, will their be any kind of training to get you started? Will you have a sponsor that will be there for you and answer all your questions? What is the customer service like at the home office? Does the phone ring and ring when you are trying to get a hold of headquarters? Basically ask yourself if things are ran in a professional and timely manner. This can tell a lot about the success of the company and how they do business.

What will your competition be like?

Another major factor to consider when beginning a home party plan is knowing what your competition will be like. You usually do not want to be involved with a saturated market. Find out how many representatives are in your area, and if possible, find out how well their business is doing. See if you can spot something they are missing and focus on that aspect of sales. When possible try to be one of the only consultants in your area, and try to offer a unique product that can’t be found anywhere else, but through you.

Can you grow your business online?

As you may know many direct sales and home party plan companies have taken their business online. Find out if the company you are considering allows this. Can you have your own website, that is not affiliated with your company's. Is their online ordering allowed through your website? If you do plan on taking you business online, make sure you can advertising online.

Summing it all up...

Never just jump into any direct sales business opportunity. The key that I am trying to stress to you is to do your research! Direct Sales can be a very fun and profitable venture, and long term, can make you a lot of money. Make sure you get the basics first, and choose the best company that suits your needs. Using these tips on Choosing a Direct Sales Company will have you well on your way to starting your own Home Party Business!

Stefanie Fauquet is the owner of top Direct Sales Resource site designed to help Work at Home Moms build a profitable Direct Sales Business, while being able to stay home with their kids. Visit http://www.WorkatHomeMomOnline.com today!