What is This Business Anyway?

Whenever someone asks me this question I have to smile and ask them if they have a few minutes. Direct Sales is not easily defined like a restaurant or an IT firm. Sure, most people have heard of it, but they assume they know the definition based on "out of date" facts. In a nut-shell, it is one of the best marketing plans a business can use to get their products in front of the consumer.

Direct Sales (Network Marketing, Mulit-level Sales, etc.) has become a fast growing piece of the business world today. Whenever the phone rings or an e-mail comes it could be that invitation to change the way you see the business world. What is this phenomenon that is taking the lead in home based business? Who is leading the charge and why would anyone really want to do this? Have you thought about joining this multi-billion dollar industry, but were afraid to ask? Here are some answers that will help you understand this industry without feeling any pressure from overzealous business builders.

Direct Selling is a way for a manufacturer of goods to get their product to the consumer leaving out the middle steps of the wholesaler, warehouser, advertiser, and the retailer. Instead the manufacturer goes straight through the consultant and immediately to the consumer. Companies save millions of dollars annually, and these savings are passed to the people in the network in the form of bonuses, commissions, and added incentives.

This might lead one to think this is a sham, a pyramid, or a rip off, yet most direct selling companies are not. To begin, pyramid schemes are illegal in the United States and the government has been very strict in what a direct selling company is allowed. For you, the consultant, direct selling is a viable way to make a business on your own terms. It is not a get rich quick sham. One must work very hard and for at least 2-3 years to begin to reap the benefits of this business. In every way it is a small business that one must work to make large. Once the upper levels are reached the business owner does not sit back and watch the paychecks roll in. On the contrary, one must continue working to maintain a viable company. I have never heard of any CEO in a traditional business that has gotten to the top and quit. If that happened the whole company would crumble. The same is true in direct sales.

Choosing a company is an important part of the journey to a great business. Key factors to look for are: demand, consumables, trends, your ability to make time, and your passion for the products offered. Is there a demand for the product? Is it something that can be used then needed again and again? Do the market trends indicate a need for the product? Are you able to create time to present the product or business to potential buyers? Do you really like what you are selling? Researching the company is also an important part step. Going to the Direct Sales Assoc. website http://www.dsa.org/ you will find a listing of all the direct selling companies that are members of the DSA. This not for profit group is the watch dog of direct sales companies, and they set high standards for its members.

The final two keys to choosing network marketing is the company's start up costs and their compensation plan. Check into this thoroughly as this can vary widely from company to company. Most companies do ask for a fee that can range from $15.00 a year to $100.00 per year, or a one-time fee that could include products to help get the new seller going. These fees are normally used to defray the costs of memberships, start up kits, periodic newsletters, or training packets. Compensation plans can also vary greatly from one company to another. One company may compensate with bonus checks based on the amount of retail volume you earn each month, or it may base it on a combination of the team and volume. Usually the bonus is a percentage that can be a straight forward amount or it could be an obscure formula that calculates the bonus based on several factors.

Now to the big question, are you ready to jump in with a direct selling company? Well, don't sign on the dotted line too fast. Like any business decision you should never make a hasty choice that you may regret later. Direct selling is an excellent choice to say yes to, but be prepared to work hard for that pot of gold at the end of the rainbow. It is there for anyone who wants it bad enough, but you will have to make sacrifices to get there. You will have to have dedication and perseverance through the ups and downs that come with this market. If you should answer that phone call that gives you the opportunity of network marketing, stop and think before saying, "No." It just might be that once in a lifetime opportunity that will change the rest of your life. Someone once said, "If you want something you have never had before, you must do something you have never done before."