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By homeparty

Starting Your Own Business - Why Direct Selling May Be Right for You

Have you been thinking about starting your own home-based business? If so, you're not alone. If you've been wondering what the most common home based business is, it's direct selling - that is working as a sales representative or distributor for a large company and selling their products directly to consumers. This is a very attractive business opportunity for many people, but especially from women who want a business that they can run from home and still take care of their families.

According to the Direct Selling Association, Direct Selling is: "Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. Products are sold primarily through in-home product demonstrations, parties and one-on-one selling."

When asked why they started their own business as a direct seller, these were the most common reasons given by women between the ages of 25 and 50:

  • The freedom to work your own hours
  • Inexpensive Start-up Costs
  • On-going training and mentoring
  • Unlimited earning potential
  • Benefits that include health care, dental care and educational assistance
  • Opportunity to meet new people, never boring, excellent working conditions

What types of products are available?

  • Cosmetics and skincare products
  • Educational products including toys, books and games
  • Fashion clothing, fashion accessories and lingerie
  • Food, cooking and nutritional products
  • Home appliances
  • Home décor products
  • Household cleaning products
  • Jewelry
  • Laundry and personal care items
  • Office and Industrial cleaning products
  • And many others that haven't made this list

According to the Direct Selling Women's Alliance, direct selling is the fastest growing home-based business industry, with an estimated 43 million direct selling distributors all around the world, who represent more than 400 direct selling companies that have an annual combined revenue of more than $26 billion dollars!

How does Direct Selling Work?

Products are usually sold face to face and usually directly to the end consumer either in their home or place of business (if you're selling products for businesses.) Most of the time the distributor provides an in-home or onsite demonstration of the products being offered for sale.

Usually this means that you would ask a friend or family member to hold a party in their home. They invite other friends, family members and neighbors, and you help them to make the party successful by providing invitations, games and prizes during the party and incentives for other people to become hostesses of their own parties. During the party you would also provide a demonstration of some of the products. Most hostesses receive some sort of discount or free merchandise as an incentive both for holding the party and also based on the total dollar amount of the sales at her party.

Why is Direct Selling so Popular?

There are two reasons that Direct Selling is so popular. Consumers love it because it means they personalized service, often from their homes - so they don't have to go spend time and gas going to malls, searching for exactly what they want and fighting crowds and long lines at the checkout counters.

The second reason is that for the direct sellers themselves, it offers a genuine business opportunity with the freedom to work their own hours, with no income limits or special education or training required.

How Do You Get Started?

Getting started in Direct Selling is pretty simple. You simply choose the company that you'd like to work for, contact a representative, purchase a sales kit and go through a training program. With most companies, you can get started in as little as a week.

However, it's always a good idea to do some research before you jump into direct selling.

Do some research about the companies you're interested in working for. Things to consider are:

  • How long has the company been in business?
  • How many direct sellers work for them?
  • What type of training do they provide?
  • What is the percentage (commissions) you can earn?
  • What benefits do they offer?
  • What are typical results from other representatives?
  • How much does it cost for you to get started?
  • What type of a guarantee do they offer consumers on their products?
  • How are products delivered?
  • Are you required to purchase products yourself?
  • Are you required to stock inventory?
  • What kind of paperwork, bookkeeping and tracking are you required to do?

People who are experienced direct sales representatives say that it's best for newcomers to choose a company based on their own interests and passions. If you are someone who enjoys dressing up, wearing jewelry and learning the latest techniques in cosmetics, choose a company that offers those types of products. Similarly, if you like to cook and always look for the latest gadgets, try a company like "The Perfect Chef" that sells kitchen equipment. "Your own enthusiasm and passion for what you're doing comes through and you'll end up making more sales and have more fun while you're working," says Cathy Townsend, a direct selling sales manager with one such company. "Most of our representatives tell us that they never feel like they're working, because they're always having so much fun."

And finally, be aware that especially in Direct Selling, you will only get out of your business what you put into it. Direct selling requires the same dedication, commitment and work of any other home based business, if you're going to be truly successful and make a profit.

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Comments

businessideas profile image

businessideas 3 years ago

As a former director of a direct-selling company, I learned that the most important qualities of a successful direct-selling company are its commitment to training and personal development.

When researching potential companies to join, therefore, make sure you are thoroughly satisfied with the training system offered by the company and that your team is committed to personal development training (i.e. leadership training, etc ...)

castlepenn profile image

castlepenn 9 months ago

Thank you for posting this great hub. I think that direct sales can work for any industry, especially for those in retail products. Whether you're selling home decor products or industrial supplies, direct sales can really grow your business. http://rachelwright.commercerocket.com

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