| In today's economic downturn while retail stores are | | | | covered?), credit card processing fees, shipping fees |
| struggling to stay alive, many direct sales companies | | | | and restocking fees on returns. If the company offers |
| are doubling or tripling their business. If you are | | | | "host" awards for the host/hostess who has an event |
| considering joining the ranks of the over 15 million | | | | for you, who pays for the awards (does it come out |
| people in the United States who are independent | | | | of your commission)? Does the company provide a |
| consultants in direct sales companies, the information in | | | | personal website and/or e-newsletter, and if so, what |
| this article may save you time, energy and money. | | | | do they charge for them? |
| Whatever your reason for considering a direct sales | | | | Compensation: |
| position, you need to know how much money you will | | | | What is your initial compensation on sales, and can it |
| net and how much time you will have to invest in order | | | | increase? How much are you committed to sell to |
| to earn it. It is possible to spend more money with your | | | | stay "authorized"? Is there a penalty if you miss that |
| company than you are netting from sales and | | | | quota? What is the average sales of an event/party |
| commissions. There are hidden costs to being in direct | | | | (what is your take-home)? What is the commission |
| sales that you may discover only over time - unless | | | | plan for recruiting (how many people, what does it take |
| you know the questions to ask up front, many of | | | | for them to stay active so you are paid on them, do |
| which are listed below. | | | | you have to increase your recruiting to maintain a |
| Company Reputation: | | | | team commission)? Is there a quota on you or your |
| One of the best resources to help with the search for | | | | team to receive commissions? What happens to your |
| the right company is the website of the Direct Sales | | | | status if you miss a certain time period of achieving |
| Association. This organization represents the top direct | | | | that quota? Is there a bonus program (is it achievable)? |
| sales companies in the United States and has a Code | | | | Leadership/Training: |
| of Ethics to which member companies must adhere. | | | | What type of training program is available through the |
| For more information, you might want to search the | | | | company? What is the expectation for a manager or |
| Internet for the company name and words like "fraud" | | | | leader for their mentoring/training of the recruits? Are |
| and "lawsuit." Do you know an independent consultant | | | | managers/leaders encouraged to continue to sell, or |
| in this company? What is his/her professional | | | | do they "retire" on commission from their recruits? |
| reputation? Is the product high quality, and can you | | | | What is their incentive to stay active in sales? |
| represent it passionately and knowledgeably? | | | | The answers to these questions vary significantly |
| Up-Front Costs: | | | | across direct sales organizations, and if you don't ask |
| Up-front costs include the initial investment (what does | | | | before you invest your time and energy in the |
| it include?), additional samples you are expected to | | | | company, you may find out several months later that |
| purchase (how often, costs, can you "earn" them?) | | | | you can't make a decent income because of the |
| and sales supplies (how often do new catalogues | | | | hidden costs and penalties. If you can't find the |
| come out?). They could also include business cards | | | | answers to these questions from the company, ask |
| and items to display your wares (clothes racks, | | | | the person who wants to recruit you. If the answers to |
| jewelry cases, display boxes, etc.) Do you have | | | | the above questions are positive, the company won't |
| adequate computing power, including current software, | | | | mind sharing them with you, and if no one is willing to |
| to manage your new business? | | | | provide straight answers, you know not to invest your |
| Hidden Costs: | | | | time and resources. |
| Hidden costs may include administrative fees (what is | | | | |