Working at home is fun, but it IS work!
Working at home can be fun, but it is work!
I have been in direct sales for over 16 years and let me tell you, it is a very rewarding experience to be able to work from the comfort of my own home. I’ve been with several different companies, some good and some bad. I’ve done tons of research on direct sales companies, so I am putting this article together for those who are interested in working from home.
I always tell people who want to work from home to ask themselves a bunch of questions before jumping into any company. I also encourage doing a bunch of research both online and offline, as this will help you narrow your choices.
What products am I interested in? In order for you to join a company, you should really be familiar with the company and the product and have a passion for them both. Do you love to scrapbook? Do you have a knack for cooking? Maybe a keen eye for design? Find a few companies that carry products that you feel you could share your own experiences with and a passion for them.
How do I choose a company to represent? This is really up to you as an individual. But here is my play on it. Request information on all the companies you can find in your genre. Attend a few parties if at all possible. Try to see the products in person so you can experience them. DO RESEARCH!!! I know it takes time, but it is very well worth it. In my opinion, there are well known companies with TONS of consultants on every other corner. Granted, many of these have great products and hostess programs, but if your area is saturated with consultants, chances are you will find it hard to book parties because people will tell you that they were just at a party or they can only buy so much of that product. Try to find something that has similar products but also items that are definitely exclusive to that company. Also, some states do not allow you to sell certain products, so check with your states regulations.
How reputable are the companies? For this I would suggest that you check with both the Better Business Bureau and the Consumer Protection to see what kind of back ground they have. I’d be cautious if the company you are looking at isn’t affiliated with the BBB. You can also ask around to see if anyone has had a bad experience with them.
Are there start up costs? Is it actually possible to start for free? Yes and yes. Almost every company will have something you must purchase in order to join their company. Many offer product kits in various sizes that are made up of their most popular items. These would be used to show your guests at parties. They also include your paperwork and catalogs and sometimes samples to help get you off to a great start. Some companies require a small registration fee as well. There are a few that offer a program where you can “earn” your kit for free. This is basically where your sales from your first party would go toward the retail value of a product kit. Again, check with each company for their consultant programs.
Are there any other fees associated with joining this company? Before you sign at that dotted line, be sure you understand fully what extra fees are charged, if any, to your account. I experienced hidden fees with one company and it wasn’t disclosed in the initial packet I received from the company. I was charged for each party I held, every Hostess item purchased, every customer bonus buy that was purchased, and for every credit card that was processed. Before I knew it, my 40% commission was down to 30%. I was NOT a happy camper. It wasn’t until I inquired about the charges that I was shown that they were listed in the very fine print on the consultant agreement.
I’ve never been in sales before. Is it hard? NO! If you can get up in front of small groups of other women, the products will basically sell themselves. In the beginning write your self notes about each of the products. You can glance down at them as you are presenting your products. With each presentation you do, it will get easier. Soon you will find yourself rambling about each product without thinking.
How do I sell the products? Most direct sales companies sell their products through home party demonstrations. I’m sure you’ve been to them. With a little creativity, you can whip up a beautiful display, demonstrate the highlights of the products and then proceed with orders. There are also catalog sales, individual orders and popular online sales. You may also be able to get involved with craft fairs and expos. Use your imagination and come up with some of your own ideas.
How do I get bookings for parties? ASK, ASK, ASK!!! Initially you should tell all of your friends, neighbors, family and associates that you are on a new endeavor with XXX Company and you really need people to hold parties for you. In order to get off to a great start, try to book ahead of time 8-10 parties within 6 weeks. You will then get bookings off of those parties. You can also try using the internet, newspapers or fliers for advertising. Word of mouth is always a great (and free) way of advertising. Many companies will also allow you to get booths at fairs and expos. Watch though…advertising can cost a pretty penny. Make sure you are not biting off more than you can chew!
How do I get paid?? Ah, one of the most popular and important questions yet. Most direct sales companies are based on a commission rate for their consultants. Basically your pay is based on retail sales at parties. Most companies allow you to take your commission the night of the party, while others will cut you a check every 15 days. There are also bonuses and overrides available with most programs.
Do I really have the time to put into a new business? This is a serious question that you need to answer honestly. After all, it is a business. Many home party plans will take 15-20 hours a week, some less, some more. What you put into your business is what you will get from your business. You need to be a motivated self starter who is willing to go the extra yard for a sale. A lot of new moms and 9-5’ers as well as stay at home moms do home based businesses because it gives them the ability to work around their own schedule. You work when you want and how much you want.
What about taxes? Am I responsible for them or is the company? Each company is different. Usually the consultant is signing on as an independent associate, meaning you are a sub-contractor with the company. You would be in charge of filing your own taxes at the end of the year. Another question to ask is whether or not you will need your own business license. Check with both the company and your state laws. One nice thing about being a consultant for a direct sales company is the tax perks. There are a lot of things that can be written off your taxes. Make sure you keep great records…document your mileage; track your phone bills; keep all of your receipts when making business related purchases. For more information on taxes, visit the IRS website.
I hope you found this article to be of some good for you and your decision in joining a direct sales company. Remember, you reap what you sow. By doing the proper research in the beginning can lead you to a long and prosperous career in your company!
Let me know how you liked this article! Drop me a line.
Missy Lundeen
Pleasure Parties By Missy
For Your Pleasure, Inc.
http://www.freewebs.com/pleasurepartiesbymissy
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1 Answer
Thank you so much for the information!! It helps a great deal to know how to jump start your business!
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