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How Do I Know Which Company Is Best For Me?

Here is a great informational page that might be a good start for anyone looking into joining a direct sales business. Before you join any company you need to create a plan of what you expect of a company and what you plan to do with the business once you join. Here are a few great questions to ask yourself in the decision process.

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What kind of company do you want to work with?
There are so many different types of direct sales businesses out there, narrow down your search by figuring out what types of products you are interested in and feel you will be good at. You want to join a company that offers products that you like and would use. If you are passionate about the products selling them will be easier. If you like the products and use them yourself and truly enjoy them, it will be easier for you to tell others about the products.
 
What do you want to be able to gain from the opportunity?
Do you want to recruit and build a team or just purchase products at a discount and sell to friends and family. Each company is different, some offer down line commissions and some do not. So if you want to be able to build a team and earn an additional income, make sure the company offers a down line commission structure.

If you are just looking to sell part time or purchase at a discount, you need to make sure the company does not have a quota each month or you may not qualify to order at a discount.

You also want to make sure the compensation plan is easy for you to  understand so that there is no confusion. Some are in black and white to say and others are not so easy to understand.

What kind of pay structure are you looking to earn?
Once, again every company is different and some offer a 15% commission while others offer up to a 50% commission. You want to make sure which every company you join offers a commission plan that you feel comfortable with.

Some direct sales companies offer bonuses for sales at some level. If you are looking to run a business and earn a strong income you would like to be able to earn bonuses based on your performance.

How much are the business supplies?
Some give the business supplies to the consultant, where others you have to purchase them. Supplies can get expensive so make sure you ask what the cost of the basic supplies are. Catalogs, order forms and so on.  You want to make sure you are comfortable with the business costs.

 I have saw catalogs run from .25 a piece on up to $10.00 a piece. So if you are only going to make a 10 or 15% commission will it be worth it to you, to purchase $10 catalogs? If you earn a 15% commission would you be willing to give out a $10 catalog the same as you would be willing to hand out catalogs that were $1.00?

What are the policies?
Each company has set their own rules that a consultant much follow. If you want to sell online, then you need to make sure the company allows the consultant to sell on line. If you sold online and the company did not allow it, you could lose your contract with the company.

If you want to advertise online, make sure it is allowed. Some do not allow online advertising!

If you want to run a full business a have a website, it is important to join a company that will allow you to have your own website. So, you want to make sure that would not be a problem.

Do you have a quota to follow each month? If you want to join as a part time rep or a hobby consultant and a company says you must sell $700 a month, is it worth it? Ask yourself that question. If there is a quota and you do not meet it, you would become inactive and not be able to purchase until you ordered a set amount  to become active again. So check in to the monthly or quarterly sales amount, that way you will know what is expected of you.

What kind of hostess program does the company offer?
The hostess program will be a vital part of any direct sales or home party plan business. You need to be able to book shows or you will not be able to run a full business. Make sure the company offers a good solid hostess program. If the hostess benefits are low or hard to reach, you might want to reconsider. You want to be able to use the hostess program to help gain customers and bookings.
 
There are some companies that pay for the hostess benefits and others that the consultant earns a 40% commission, but the consultant is responsible for ordering and paying for the hostesses free merchandise and booking gifts, which comes out of the 40% commission. So, don't forget to ask if the company pays for the hostess benefits or if the consultant is responsible.

Ask yourself this. What type of benefits would you look for when deciding to host a show? The hostess needs to feel like she is going to gain something in exchange for hosting! So the percentage of free merchandise earned is important and booking benefits.

Which type of hostess program would you be more will to book with?

10% in free merchandise on sales of $300 or more.
and
1 half priced item for $300 in sales

OR

20% in free merchandise on sales of $100 or more.
1 half priced item for every $100 or $200 in sales
with
Booking Bonuses or shopping credit.

  

 

How Do I Know Which Company Offers the Best Commission and Sales Opportunities?

 

Direct Sales Company Product Base Commission Ecommerce Options Sales Methods
Avon Cosmetics and much more 20-50% Yes Person to Person, Internet, Home Parties
A Perfect Party Party Supplies 25% Yes Home Parties, Person-to-Person, Internet
Arbonne International Skin care and Cosmetics 35% Yes Home Parties, Person to Person, Internet
At Home America Home Decor up to 30% Yes Home Parties, Person to Person, Internet
Azante Jewelry, LLC Jewelry 25-30% Yes Home Parties, Person to Person, Internet
Bittersweet Candle Company Candles up to 40% Yes Person to Person Internet
Brown Bag Gourmet Goodies Coffee 20-30% No, but consultants can sell from their own websites Home Parties, Person to Person, Internet
Celebrating Home Home Decor and Gifts 30%-40% No, but online catalog website available Home Parties, Catalog Parties, Fundraisers, Phone sales
Clever Kingdom Clothing 20% No Home parties, Fundraisers, Person to Person, Internet
Cookie Lee Jewelry Jewelry 50% Yes Home Parties, Person to Person, Internet
Country Bunny Bath and Body Skin care 15% Yes Home Parties, Person to Person, Internet
Delightful Gourmet Wonders Gourmet Treats 25% Yes Person to Person, Internet
Discovery Toys Educational Toys 20% Yes Home parties, Fundraisers, Person to Person, Internet
Dream Impressions Rubber stamps 10-28% Yes Home Parties, Person to Person, Internet
Fun Bugs Inc. Clothing, tote bags, posters, & more 30% Yes Home Parties, Person to Person, Internet
Greeting Cake Co. Cakes Up to 45% Yes Person-to-Person, online, other retail
Healthy Pet Net Pet Products Up to 20% Yes Home Parties, Person to Person, Internet
Heart Warming Creations Country Decorative Accessories 22-27% Yes Home Parties, Internet, Fundraisers, Book Shows
Herbalife Weight Loss Products 25-50% Yes Person to Person, Internet
Highlights - Jigsaw Toys 20-34% No Home Parties, Person to Person
Home & Gift Collection Home & Garden Decor and Kitchenware 25-40% No, but consultants can sell from their own websites with guidelines Home Parties and Internet
Homemade Gourmet Meals and recipes 30% -40% Yes Home Parties, Internet, Fundraisers
Homemaker's Idea Company Home Goods 25% No, but online catalog website available Home Parties
iCelebrate Diversity Multicultural gifts 5-20% Consultants can use corporate website or sell from their own websites Home parties, Person to Person, Internet
Juvio Computer Tech Support and Training Revenue Sharing Yes Home parties, Person to Person, Internet
Kat's Coffees & more Coffee 25% No Home Parties, Internet
Lady Emily Skin Care 50% Yes Home Parties, Person to Person, Fundraisers, Internet, Retail
L'Bri Pure n' Natural Cosmetics 20-35% Yes Home parties, Person to Person, Internet
Leaving Prints Scrapbook Supplies 30% Yes Home Classes, Person to Person, Internet
Longaberger Baskets 25% Yes Home Parties, Person to Person
Lunesse® Health and beauty 25% Yes Home parties, Person to Person, Internet
 Mary Kay Skin Care and Color Cosmetics 50% Yes Home parties, skincare classes, makeover clinics, internet, newspaper, trade-shows, and as fundraisers.
Miessence ONE Group Skin Care & Cosmetics 10-30% Yes Home Parties, Person to Person, Fundraisers, Internet, Retail
My Movie Biz DVD Rentals ? Yes Internet and Person-to-Person
My Precious Kid Safety Products 25-50% No, but consultants can sell products off their own websites Person to Person, Internet, Safety Classes, Fingerprint Parties, Fundraisers
Natural Bodycare Skin Care 30% Yes Home Parties, Person to Person, Internet
Nuvante Skin Care Up to 40% Yes Person to Person, Internet
Pampered Chef Kitchen tools 20% Yes Home Parties
Partylite Gifts Candles, Home Decor, and Bath & Body 25-32% No but consultants can get approval for their own websites Home parties, catalog sales, online parties
Petra Fashions Lingerie and Sleepwear 30% No Home Parties
PS I Love You Greeting Cards 50% Yes Home parties, Person to Person, Internet, Craft Fairs
Pure Pearls Pearls 15% Yes Person to Person, Parties, Internet or however they want to get the sales is up to the Person
Richmont Direct Christmas Decor, Cooking, Jewelry, and Personalized Gifts 20-30% Yes Home Parties, Person-to Person, and Internet
Rita Wilcox Accessories, Inc. Accessories 25-33%
 		 No, but can promote online Home Parties, Person-to Person, and Internet
Scent-Sations Inc. Mia Bella Candles up to 50% No Home Parties, Fundraisers, Other Retail
Southern Living at Home (Willow House) Home Décor 25% Yes Home Parties, Catalog Parties, Person to Person, Fundraisers, Internet
Spa Destinations Person Care 25-37% Yes Home parties, Internet
Stampin' Up Rubber stamps 20% No, but online catalog website available Home Parties
Story Teller Toys 20-35% No, but consultants can sell products off their own websites Home Parties, Person to Person, Internet
Tastefully Simple Gourmet foods 20-36% Yes Home Parties, Person to Person, Internet
The Traveling Vineyard Wine and Accessories 20% No, but consultants can promote on their own websites Home Parties, Internet
Time To Celebrate Home Decor and Gifts Up to 40% Yes Home Shows, Internet
Top Line Creations Scrapbooking Supplies 25-40% Yes Home Parties, Person to Person, Internet, Fundraisers
Tupperware Food Storage 25 - 35% Yes Home Parties, Internet, Person-to-Person, Home Shopping Network, Mall Kiosks, Fundraisers
Two Sisters Gourmet Gourmet Food 25% Yes Home Parties, Internet
Unique Baby Boutique Parenting/Babies 25% Yes Home parties, Person to Person, Internet
Usborne Books Books 15-30% Yes Home Parties, Person to Person, Internet, Book Fairs, Fundraiser
Warm Spirit Aromatherapy Varies
15%-30%		 Yes Home Parties, Person to Person, Internet by Personal or company website
Watkins Food Products 25% Yes Person to Person, Internet, Home Parties
Zedora Italian Jewelry 35% Yes Home Parties, Person to Person, Internet

 

 

Resources: Business Start-Up Checklist

 

Background Work

assess your strengths and weaknesses
establish business and personal goals
assess your financial resources
identify the financial risks
determine the start-up costs
decide on your business location
do market research
identify your customers
develop a marketing plan

Business Transactions

select a lawyer
choose a form of organization (proprietorship or partnership for example)
create your business by registering your name, incorporating the business, etc.
select an accountant
prepare a business plan
select a banker
set up a business checking account
apply for business loans (if applicable)
establish a line of credit
select an insurance agent
obtain business insurance

First Steps

get business cards
review local business codes
obtain a lease
line up suppliers
get furniture and equipment
obtain a business license or permit
get a federal employer i.d. number
get a state employer i.d. number
send for federal and state tax forms
set a starting date

 

 

Company Comparison Worksheet 

Below are some basic guidelines you can use when evaluating a business or company.  Beware of companies that encourage "front end loading," or buying large inventories of nonrefundable products in order for you to achieve certain levels or to receive a "special" or larger "discounted" price.  Remember, as with any business, you will be reponsible for your own bookkeeping and tax preparation. 

Feel free to reprint the worksheet below for your opportunities research!  Copy and paste to Word for easy use.


Comparison Worksheet

1) Start up cost should be minimal.  Start up cost in direct selling and network marketing companies are usually modest and mainly to cover the cost of the sales kit.  What is their start up cost?____________________________________________________________________________

2) Some Networking companies require a monthly purchase.  Is there a monthly minimum purchase requirement and if so, how much?_____________________________________________

3) Most companies submit the local state sales tax, however, there are a few that do not.  Will I be required to submit my own state sales tax? _____________________________________

4) Check with each company regarding their return policy.  This will be vital to your business.  Can I return unwanted or damage products and if so, what is the policy?_________________________________________________________________________________

5) Do you have a "buy-back" policy?  Some companies offer to "buy-back" unsold marketable products purchased within the 12 months prior, should you decide to quit the business for 90% of the price you originally paid.  Do they offer a "buy-back" policy?____________________________

6) Have them explain the commission structure and levels of achievement as it varies greatly by company.  What is your commission structure?_______________________________

7) Some companies require Independent Representatives to pay for portions of the Hostess gifts, etc.  While this is not necessarily a bad thing, you should know upfront whether part of your commission earned will go to cover these cost.  This will reduce the actual amount of commissions earned.  Am I required to cover part of the Hostess Gifts or pay admin fees, etc.?
_________________________________________________________________________________

8) It is always smart to compare catalog and supplies cost as they vary by company.  What do catalogs and paperwork cost?_____________________________________________________

9) Customer shipping charges are important to your business and can be rather high depending on the company. What are our customer shipping charges?____________________

10)It is customary for companies to have a monthly or quarterly sales requirement to stay active and/or receive overrides.  What is the monthly/quarterly requirements?______________

11)If you plan to participate in local fairs, festivals or events, you will want to know whether the company allows you to sell "cash & carry."  Many will not as they prefer Representatives to provide one on one customer support and book to increase sales.  It is wise to know this up front.  Do you allow Representatives to sell product at local fairs and events?_______

12)Many companies provide Representatives with a company approved website.  If you plan to market your business online, this will be vital to your success.  Does your company provide a website and if so, what is the cost?_______  If they do not, can you design your own?_________________________________________________________________________________

13)Do they offer additional incentives, such as trips?__________________________________

14)What type of support is available?_______________________________________________

 
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