Things you should know before becoming a Direct Sales Representative
The direct sales industry gives many people the opportunity to succeed but extreme success in this industry only comes to people who work enthusiastically to build their direct sales businesses. One of the reasons why people choose to start a direct sales business is because they hope to recruit other sales reps to join their team, earning them residual income without having to work very hard. Before joining direct sales company you need to know that while you may be able to build a sales team, you also have higher expectations from the company when you build a team-you can’t just sit back and watch your team work and do nothing yourself. Here are some other key things to know before becoming a direct seller:
You will need to spend money in the direct sales business you choose to join before you make any money. Money spent will go towards a kit or display item you need to demonstrate the products for customers. It is also necessary in many direct sales businesses for reps to own a credit card. Owning a credit card will enable you to make purchases from the company on behalf of your customers who choose to pay you with cash. You will also need to use a credit card to order promotional items from the company like catalogs and business cards.
Direct sales companies set their own payout percentages for sales reps and you need to know if the payout percentage is enough money for you to live on. Commission earned on credit card orders may be slightly less than commission earned on cash sales. You will need to decide if the difference is more than you can handle. The best direct sales companies to join are the ones that allow you to process customers’ credit card orders from the company’s website instead of you being forced to pay for a merchant account to process credit cards.
Some direct sales companies charge annual renewal fees to independent reps who wish to continue selling with the company. Some annual fees are modest and some are very high. Before you join the company, you absolutely need to know how much the annual renewal fee is to determine if it is worth investing so much of your time and money in to the business. Some companies don’t charge reps an annual renewal fee but they charge monthly fees to continue working the business. Calculate the amount of the monthly fee by twelve to see how much money that works out to be if you spent a year in the company. Then, estimate how much business you would have to do to make that cost worth your while to join the business. If the amount of the annual or monthly fees is too high then you should look at other companies to consider joining.
Most direct sales businesses are operated out of your home. Owning a home-based business means that many household expenses can be classified as tax write-offs. Keep a folder for storing receipts to show your accountant at tax time. You should also keep receipts for gasoline and mechanical repairs if your business requires you to use your car to make deliveries.
Many direct sales companies offer great financial incentives for reps who recruit others to join their team. Building a team within the direct sales company you work for is usually optional but it is a great source of pride and earning a percentage of your team’s sales can be great residual income. However, building a team usually comes with a price. Once you have a team you will need to make time to coach and train them around your schedule and theirs. You may also be required by the company to make more or your own personal sales in order to maintain your team. If you don’t meet the new quotas you might lose your team to your upline. It is best to review the company’s policies on building a team and determine if the expectations are feasible for you before joining a direct sales company.
Becoming a direct seller could provide you with more financial freedom and open doors for you to meet and influence people from all walks of life. Before becoming a direct seller you should decide if you can handle the business and intend to see it through. Setting goals is very important and achieving your goals will be even better. Direct sales reps are responsible for their own advertising so you need to brainstorm about how to attract and keep customers to keep your business afloat. Not every direct selling company will be right for you, so you need to find one that is compatible with your skills and beliefs. Once you do find the right company, try your best to turn it in to a success and you will reap many personal and financial rewards.
