Tuesday, February 4, 2014

What You Need to Know Before Starting a Direct Selling Business

What You Need to Know Before Starting a Direct Selling Business



There are a lot of companies that will offer you a commission if you sell their product. Some of these are reputable companies that will support you and enable you to make a living. Some companies might not be so helpful. So, how do you know which company is best for you?

Ask questions.

What are the start-up costs? Is there a starter kit? If so, what’s in it? What else do you need? Ask your recruiter how much money she had invested in the business before she started to see a profit.

How much money will you make? Ah, the big question. Be very wary of people who tell you that you will get rich overnight. If it sounds too good to be true, it probably is.

What percentage is the commission? Will you make 10% of what you sell? Or 30%?

Is there a quota? Do you need to sell a certain amount of product in order to stay active?

Will you be responsible for collecting money yourself? This might not seem like a major factor, but it can be. First of all, it’s a lot to keep track of. Second of all, how are your math skills? Third, it’s a responsibility: having the money in your car, in your house, getting it into the right bank account. And what if your customers don’t pay? Will you be stuck with the loss?

What is the success rate? How many people who start this business do it for a year? How many do it for five years? What is the percentage of consultants who sell this product for their sole source of income?

Do you need to carry an inventory? Some people will tell you that you can’t sell from any empty basket. This is the 21st century and you can most certainly sell from an empty basket. People do it all the time. If a company tells you that you need to purchase $1000 worth of inventory in order to get started, consider the implications. Do you have the storage space? Will you need to insure it? How will you protect it from the kids, and the dog? Is an inventory really necessary?

Is training available? What will this training look like? Will it cost you thousands of dollars to go a conference hundreds of miles away? Or is the training free? Will you have a real person available to you? Is training available online? Will you be able to get the help you need?

Is training mandatory? Are their obligatory weekly or monthly meetings that you need to attend? Do you have to join in on a conference call at a specific time? How will mandatory training fit into your life?

Does this company have a multi-level marketing plan? Ask the person who is recruiting you, “Do you make money if I sign here?” While this isn't necessarily a bad thing, and while lots of money can be made in an MLM company, this is something you should know. It can help you analyze your recruiter’s motives. Does he really want to help you? Or does she just want the $50 recruitment bonus?

What is the ongoing investment? Do you need to buy your own catalogs? Do you need to buy samples or demonstration items? Will you have a website? If so, who will pay for it?

Will you have to pay for shipping? Shipping costs can be outrageous. Who will pay: your customer, your company, or you?

Will you have to do parties or shows?

Is there a dress code? This sounds silly, but you should ask!

If at all possible, ask these questions of someone who has nothing riding on the answers. The person trying to recruit you into a company may have your best interests at heart. Or they might not. Go online and look for forums that discuss the company that interests you. Do a blog search for the real scoop. Ask someone else who is in the business, but has no investment in you.

Here are a few companies broken down for you so you can get a sense of the diversity in these direct sales opportunities. These three companies are reputable, and people have actually made money by selling their products.

Mary Kay:
$100 start-up fee
50% commission
No quota, but if you do not order a minimum amount of inventory, you do not get the 50% commission
Consultant collects money and processes all payments
Inventory is suggested
Multi-level marketing plan
Consultants have to buy their own catalogues and samples, and have to pay for their own websites
Consultant pays for shipping
Parties and shows
There is a dress code

Lia Sophia:
$149 start-up fee
30% commission
Quota
Consultant collects money and processes all payments
Inventory is optional
Multi-level marketing plan
Consultants have to buy their own catalogues and samples
Customer pays for shipping
Parties and shows
NO dress code

La Bella Baskets:
NO start-up fee
20% – 35% commission
 Leadership bonuses available
NO quota
Company collects money and processes all payments
NO inventory
NO multi-level marketing plan
Consultant pays a fee of under $25.00 each month which covers all expenses
Customer pays for shipping
NO parties or shows
NO dress code

The important thing to remember is to not get distracted by glitz and glam. You are probably not starting your own business so that you can win a free trip to Italy. You are probably starting your own business so that you can work your own hours, be your own boss, and earn an income. Keep your real goals and mind when you are evaluating the companies out there. And remember! Ask questions!

For more information visit my website at: http://dallan.labellabaskets.com/

Small Business Opportunity in a Gift Basket!

Work at Home Moms – Small Business Opportunity in a Gift Basket!











Would you like to work around your kid’s schedule, instead of asking them to work around yours? Would you like to earn money while your kids are napping? Would you like to work in your bathrobe? Would you like to pay your bills and care for your children at the same time?

Good news: you can.

There are a myriad of companies offering you a cut if you sell their products. You can sell just about anything via direct sales: make-up, dishes, jewelry, candles … you name it, you can probably sell it!

Many people, especially mothers, express interest in becoming an independent consultant for one of these companies only to learn that it costs hundreds (or even thousands) of dollars before you can make a single dime.

Not the case with La Bella Baskets, a new company that offers an income-generating opportunity that woman can afford without mortgaging their homes. La Bella Baskets sells gift baskets online.

You know, those prettily wrapped baskets full of baby products, or sweets, or spa products? La Bella sets their consultants up with their own personal websites, through which shoppers can buy gift baskets and have them shipped directly to the lucky recipients.

La Bella offers a wide variety of baskets. You can find gift baskets for: toddlers, teenagers, employees … even men! They offer baskets for special occasions such as weddings and birthdays, and they offer get well baskets and sympathy baskets. It seems like there really is something for everyone.

La Bella consultants earn a 20% – 35% commission on all gifts sold. There is also lots of bonuses.

There are no start-up costs, but consultants have a small overhead under $25.00 a month for training and support. I know some women who joke about all the “starter kits” in their closet – with La Bella, there is no starter kit.

La Bella has no sales quotas, so there is no pressure. Women are encouraged to work at their own pace. If your child gets the flu, you get to take care of your child.

This is not a “get rich quick” opportunity, but consultants can earn a steady income. Most consultants start modestly by asking their friends and families to gift shop through them. It beats a trip to the mall, especially when shopping for those people who already have everything! Everybody loves a gift basket, especially those work-at-home moms for whom the basket puts food on the table!

For more information visit my website at: http://dallan.labellabaskets.com