7 Important Things to Consider When Choosing a Direct Sales Company

Written by Nicole Dean

Owning your own direct sales business can be very rewarding. You can set your own schedule, be your own boss and set your earnings potential as high as you want.

You might even earn some fancy jewelry to wear, a fancy car to drive or a great vacation.  However, it’s important to make a good decision and choose a company that is right for your situation.

There are a lot of things to consider when choosing a direct sales company to partner with and we’ve outlined 7 of the most important here.

COST
What is the actual cost to join?  Often times a company will require you put out money for a starter kit when you sign up. What comes in that kit? Are there actual product to sell or just samples or demos? Will you receive paperwork and catalogs or do you have to pay extra for those?  What about when you run out?  Is paperwork reasonably priced or free?  If you have to spend a large sum of money on a starter kit, but don’t receive any “extras” in it, you may want to reconsider. A good direct sales company will have items in their starter kit that you can use personally or sell to your first customers.

VALUE
Is the product consumable?  What is the re-order rate?  Is the product competitive? Is it overpriced? Is it such a great product that it will sell no matter how much it costs? Do people need it? Is it something people can’t or shouldn’t be without? Always consider the product, its value and the competition before deciding that you want to sell it.

LONGEVITY
How long has the company been around? Are they a new company, just starting out? You will want to find out as much as you can about the product: how much competition is out there, and if there’s a lot, how much better is this product? Who started the company? Are they reputable? A well established company is usually a good sign.

BUSINESS MODEL
How will you make money?  Are you selling actual products? Memberships? Services?  Make sure you understand the business model and that you are actually selling products.  Other business models are fine but might not be what you’re looking for.

PRODUCT
Have you yourself tried the product, use the product, love the product? If the answer is yes, then that’s a good start. If the answer is no, then ask yourself why you are even considering selling something you know nothing about.  If the product is something that you won’t mind owning a lot of –in the event you have to buy inventory or decide to quit the business – then go ahead and get started.

LEADERSHIP
What is the sales director like? The sales director is the person that holds the regular sales meetings and usually determines the success of the team. Will you get along with that person?  Are they a good trainer and show true leadership skills? These answers won’t necessarily determine whether you should join the company or not, but it is something you should consider. Do you get along with most people easily or are you slow to get to know others or a bit shy? Ask yourself these questions before joining a team you might not feel comfortable with or get the training and leadership you need.

INCENTIVES
Most direct sales companies offer incentives.  If you’re motivated by challenges then you might do well with the company incentives. You’ll want to take this into consideration as it will make setting and reaching goals a lot more fun.  Incentives can be in the form of recognition, jewelry, products, cars and trips

Whenever you’re choosing any business you’ll need to consider the pros and cons.  Things like cost and time investment could be deciding factors.  If you’re unsure, sit down with your recruiter and ask questions.

If you get the answers to all your questions and you still don’t have a good feeling about a company or the person representing it, go with your gut. Ask more questions, give it some time, put it away for a month or so, and then come back to it. See how you feel after some time has passed, and after you have gotten some more answers. Don’t jump into something you’ll regret later.

Once you decide to start a direct sales business take some time to really consider all of the things mentioned above; it will help you make the right decision and be on the path to success.

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