Direct Sales Business Plan

Do an Internet search to find out the buzz about a company and whether its sellers or regulators have reported problems.After running a search for recent articles and blog posts, do another one using the company’s name and words like “scam” or “complaint.” 3. You’ll want to learn how much you’ll pay in start-up costs and ongoing expenses before agreeing to become a company rep.Even then, you must allow time to build your customer base.

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But pyramid schemes are illegal and the vast majority of their participants lose money.

They rely on recruiting new representatives to profit (not product sales), charge reps large upfront fees and convince them to buy large amounts of inventory that is not returnable.

One of the most popular questions I get asked about flexible and part-time work options is: “Can I really earn a living working in direct sales?

” It’s a great question, since these days you can sell everything from gourmet food to financial products in this $30 billion industry.

But if you want to earn serious money through direct sales, you’ll need to make a sustained effort.

Direct Sales Business Plan

While there’s no formula for determining how many hours you must commit to generate a substantial income, I think that to earn the equivalent of a full-time salary, you have to work full-time.Pagliurolo wouldn’t reveal her exact income, but told me she’s “compensated well.” Most people who go into direct sales aren’t as successful, though, and some aren’t cut out for it, as I’ll explain in a bit.How to Spot the Phonies Before answering the how-much-can-you-earn question, I want to be sure you understand the language of the direct-selling industry and know the difference between legitimate firms and phonies.While that figure may seem shockingly low, it’s important to realize that 89 percent of direct sellers run their businesses part-time; most work under 10 hours a week.Also, many reps go into direct sales because they want to buy their favorite products at a discount and have fun earning a little extra spending money.Reps often get into the business just to buy items for themselves and have no intention of selling or recruiting, Robinson said.That helps brings down the average earnings figure.The average starter kit for a Direct Selling Association member company is , but some firms charge much more, especially those with expensive inventory, like high-end fashion companies. is a career coach, speaker and author of Second-Act Careers: 50 Ways to Profit From Your Passions During Semi-Retirement.In addition, you might be required to pay membership fees or maintain a certain level of sales to continue receiving your consultant discount. The FTC has an excellent online list of queries for the person who'd be your sponsor or for other distributors. Her website is My Lifestyle; on Twitter she is @Nancy Collamer.Recently, a federal court halted the alleged pyramid scheme of  Fortune Hi-Tech Marketing, an operation that affected more than 100,000 consumers and was described by Attorney General Jack Conway of Kentucky as “one of the most prolific pyramid schemes operating in North America.” Fortune Hi-Tech claimed consumers would make substantial income by selling products from such companies as Dish Network and Fortune Hi-Tech’s own health and beauty products.One recruitment tweet said: “Bring ur friends & learn how 2 make 0K a YR.” But “it was a rigged game and the vast majority of people lost money,” said C. How much can you make working for a direct sales company?


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