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A Direct Sales business is a great way to find financial freedom but picking the right company can make all the difference.  Before you become an independent representative here are the sort of questions you need to ask and be happy with the answers when choosing a direct sales company:

1. What do you sell and what makes it unique in the industry?
2. Who’s your target audience, type of customer, and are you comfortable with that?
3. What is the cost to start? And what is included in that cost?
4. What percentage commission do you make from your sales (as a starting consultant)?
5. How often are commissions paid? How are commissions paid, can they be paid directly into savings accounts?
6. What is the company’s minimum monthly quota?
7. What is the commission structure for the company?  
8. Does your company offer online catalogs that can be ordered from? Is there a charge? How does commission work for online orders?
9. Does the company offer your own website space to market and sell through? Is there a charge? Is there internet marketing training provided, is there a fee?
10. Are email accounts provided for professional presentation? Is there a cost?
11. What incentives are offered; trips, cars, cash bonuses, conventions etc?
12. How are products delivered – directly or do you have to run around making deliveries with the extra costs involved?
13. What are the customer and consultant shipping charges for supplies and orders? This can greatly vary between companies and seriously influence customer buying decisions and your commission income.
14. Do you have to purchase all of your own marketing materials? How much is the average cost on the marketing materials? Are they offered by the company?
15. How seasonal is the product? What is the realistic potential for year round income? Is there an opportunity for residual income?
16. What is the unique selling point for the company – is it set up for the growing market demand for natural, fair trade, organic products? Is it a declining market or industry?
17. What is the training program like? Does the company offer online training like videos and webcasts? 
18. Is the website state-of-the-art?  Does it offer e-marketing, e-invitations, contact assistant, training, downloads, etc.?
19. What is the Field Leadership like? Do they meet monthly?
20. Who pays for the host rewards? Are there products for instant gratification sales or promotional rewards or sponsoring awards?
21. What is the return policy for the company?
22. What are the sales tax requirements?
23. What is the company’s buy-back policy and the time frames involved?
24. Does the company allow consultants to feature product at local fairs, festivals, shows or events? Doing shows can increase direct sales and party bookings for you but some companies are not structured to allow for cash and carry sales.
25. Are you able to carry stock to satisfy customers’ need for instant gratification, use for promotional rewards and sales and how much do you pay for them – what percentage?
26.  How much do you pay for display and promotional products?
27. What are the exit costs for leaving the company such as promotional goods, marketing materials and products?
28. What are the typical questions a consultant asks in the first three months – this can give you an idea about any quirky procedures.

How many other consultants are working in your area – is it at or will soon be at saturation levels?

Starting a home based business requires that several factors are taken into consideration to see if building a business is something you can actually do. For instance, do you have the time to dedicate to working? No one becomes successful without consistent activity over time. Can you put 10 – 15 hours a week into your own business? If you where going to purchase an expensive franchise, you would make sure you had the time to see it grow. The principle is equally applicable to your own home based business.

Secondly, do you have initial capitol to begin your business? There has never been a successful business built that has not had initial capitol investment upfront. Most traditional businesses take 5-7 years before they are generating a profit. The incredible opportunity in the direct sales industry is that you can begin a legitimate business at home with a much smaller amount of money. You need to be clear on what you want. Do you want to make a little extra money for Christmas presents? Do you want to make and extra $100 a month to put into savings or pay off debt? Or do you want to make a full time income by working from home? All of these scenarios can be achieved by working from home if you have the right team, the right company, and the right attitude about your business. What is even more incredible , it that you even have the opportunity over time to start out just needing extra money for Christmas and graduate to complete financial freedom within 5-7 years. It all depends on you.

Now you have determined whether you have the time and you understand that it takes a little money to get going. Now how do you know if the business you are looking at is a legitimate, reputable, ethical company that will stand the test of time? Look at the company and its leadership. Have they been around and are they established. Most network marketing companies do not last more than 3 years. There are pros and cons to going with companies with a long established name or a newer company just starting to gather momentum and name status. The bottom line remains. What do you want? What do you like? Can you be passionate about the companies’ product? Would you buy the product even if you did not want to build a business around it? Then you are getting close to making a decision.

Does the company have consumable product? This is a very important point to consider. You will save yourself time and money in the long run, if you build a network of consumers that love to use your businesses product over and over again. If they get to the bottom of a container and can’t survive without your product again, then you are starting to build a distribution system with ongoing product sales that provide passive residual income. Does your company offer a way to sell their product online or allow clients to order products themselves? Think long term. Act as if your business is a multimillion dollar international business that is servicing hundreds of thousands of clients around the world. This is bigger than asking a friend to throw you a party. This is big business.

What are the timing and trends in culture? You surely do not want to be selling VCR’s right about now. You would be in the poor house. “Health and Wellness” is this decades and the next decade’s business boom. “Why?” you may ask… because of the Baby Boomers. They want to look younger, feel younger and stay fit and energetic well into their 80’s. Does the company you are thinking about representing, provide products that hit that market?

Do you have the ability to leverage your time? Leverage is the key ingredient that makes good businesses take off. CEO’s get paid off of the efforts of their employees, and there can only be one CEO of a company. However with direct sales, you can teach and train others to do what you do. They get all the benefits of being their own CEO while you get a percentage for teaching and training them how to do it. It truly is a brilliant business model. Everyone wins.

Do you have strong corporate leadership and up line support? These are vital components for long term success. You want to join a team that know where they are going, and have the ability to show you what to do as you are first starting out. More importantly, do you have strong personal leadership? Do you know what you want? Are you going to let anything or anyone stop you? That will get you through the bumps and bruises of your first year in business. If you are committed to working on yourself, developing the skills needed to be successful and give your business time and consistent effort, the sky is the limit.

Direct sales can be your ticket to a profitable home-based business. There's low risk and low overhead - and you'll find lots of conversation, creativity, and cooperation among the company's representatives. But how do you know which company is right for you? Here are ten things to look for as you research your options.

 

1. Products. Successful direct sales consultants exude a genuine enthusiasm for their products. Before joining a company, you'll need to have the inner conviction that your company brings products and an opportunity that no other company can. It's important for you to get your hands on the products before you sign. Place an order or, at the very least, request a catalog and product samples before joining.

 

2. Passion. Does this company involve a business you are truly passionate about? One of the nice things about a direct sales business is that you can often find one that suits your personal passion...whether it's cooking, home décor, beauty, or scrapbooking & cardmaking. And when you're genuinely enthusiastic about the industry and the product, you'll feel as though you are sharing, teaching, and helping - not selling.

 

3. Initial investment. What kind of cash outlay will your start-up require? Look closely at the company's joining fee and/or the cost of your business starter kit, but also think realistically about how much inventory you'll need to have on hand and what kinds of business supplies or products you'll need to get your business started.

 

4. Monthly minimums. What kind of personal sales volume is required? Are you ready to invest the time and energy that this level of business building requires?

 

5. Compensation Plan. Each direct sales plan is different, and it's important to look over the fine print. What is the commission rate and how is it paid? How are you awarded for recruiting others? How does the company handle breakaways?

 

6. Control. How much control do you have over the way you build and promote your business? Ask to see the company "rule book" before signing on.

 

7. Support. What kind of support networks are in place? How involved in the business is your upline? (Is your upline able to answer the questions in this article, for example?) How quickly does he/she return phone calls and emails?

 

8. Advertising. What kind of advertising and promotion does the company deem acceptable? Most companies have rules for the way their logo and trademarks are represented, both online and off.

 

9. Accessibility. Does the company offer exclusive products? Also, take a look at the level of saturation in your particular market. A newer company that offers quality products may hold a lot of promise in your particular industry.

 

10. E-commerce. Does the company have an e-commerce option? Many direct sales companies are now offering replicated websites so each representative can promote an individual online presence. A few direct sales companies even have shopping carts alongside these websites so you can make sales online, too, with the product dropshipped from the home office.

 

Take your time researching your options. When you have found the company that's right for you, you'll know it.

 

About the author: Susie Cortright is the creator of the award-winning online magazine http://www.momscape.com as well as a representative for a rapidly growing new direct sales company. Learn about the company she chose here: http://www.momscape.com/business.htm

 

Article Source: http://EzineArticles.