Posts Tagged ‘direct sales companies’
February 25th, 2008Home Party Businesses are SCAMS! (or are YOU a scam?)
For those that scoff at the idea of doing a direct sales business because they think there’s no “real money” in it….
You are so sadly - wrong!
Over 30 BILLION dollars in direct sales is done in the United States alone, and at last calculated 29% of that 30 billion in sales was done through home parties!!
Not convinced?
Let us look at it another way…
13.6 MILLION Americans bought or sold goods at home in 2004! That was 2004…it has continued to increase.
So I wouldn’t say this is a little sleeper type business concept that very few are successful at - it just takes someone with ambition, vision and persistence.
I cannot tell you how many “woe is me” tales I have heard from women that joined a home business (direct sales) type company and within two months I hear, “I just wasted my money…it’s a scam!” Really??
Not to be harsh….but maybe they need to look in the mirror and see whom or what really is the scam. Don’t kid yourself. If you bought a direct sales kit and really did nothing to promote the business, book parties, pass out catalogs, learn about the products, attend provided training calls, online seminars, local meetings…then I wonder who is scamming who? Could it be these women are simply scamming themselves?
I’m not here to judge.
But I know of what I speak of…
I joined Southern Living at Home a few years ago. I was fired up….I was going to reach all the levels. I got my kit….and then promptly let it collect dust and did absolutely nothing to promote the opportunity or products. I opened the kit…looked at all the pretty things and that’s where it ended. Now….is Southern Living at Home scamming me?? Ummmm….NO. I sucked. I dropped the ball.
I just didn’t think it through. I work full time - so I didn’t realize how I would need to MAKE time for my new business. I didn’t look at their advertising policies. I didn’t really examine the comp plan or quotas. Plus….I can only handle so much home decor stuff anyway….so it was just wrong, wrong, wrong for me. And ME should have known that!
By not thinking it through and having a business plan - I wasted my time and money and their time as well. (Their stuff is really pretty though! And I live in the South!)
So I decided the next go around I would really think about what I wanted. I knew I liked to do most of my business online, that home parties would need to be a smaller portion of the business because of time constraints, and quotas……dang….don’t even get me started on $500 a quarter quotas - I can’t do that unless it’s something I really love to sell. Nor do I want to feel the pressure to do so.
So when thinking about your next home business venture…..if it’s direct sales….which is a GREAT way to make money….just think about how it will fit into your life, personality, budget, schedule….
#1 Understand What You’ll Need to Invest Upfront
This is important. Because if a direct sales kit doesn’t contain everything that YOU personally feel you’ll need to get started on your own - then it’s probably going to be a bummer. There should be at least a training manual, contact info, marketing materials and samples. Kits can be expensive. I’ve seen some around $299! I’m not saying they aren’t worth it - I’m just saying look over what you get carefully - is it enough for you?
#2 Is the Home Party Business/Direct Sales Company a Member of DSA
DSA: The Direct Sales Association. By a company being a member you are somewhat protected when you buy that big ole honkin kit! There is a membership policy in place to “buy back” INVENTORY within 12 months of purchase if you decide you picked the wrong home party plan business for whatever reason.
 SALEHOOWOW! Dreaming of eBay profits? Your own online store? |
#3 What is Being Sold? Is There a REAL Product?
If the main focus of the business is to recruit - and your profit comes from the people you recruit and there is really no product of value being offered - then it sounds like a pyramid scheme to me. We have ALL seen these. Mr. Scammer gets Mr. Don’t Know Better to join for $1000. Of that $1000, Mr. Scammer gets $700. Mr. Don’t Know Better needs to sell the “idea” to someone else for $1000 and make $700. There really is nothing being sold. Or the amount of product you have to carry as inventory is so high each month you have product stacked in your garage! Stay away…..keep looking for a business with real, genuine and unique products.
In the end….it should “feel” right.
Feeling embarrassed, or under pressure….or financially strapped due to a home business or home party plan business is just wrong.
When I talk to someone about Tastefully Simple, Barefoot Books or Avon - I never feel awkward or pressured to sell. I feel comfortable. I feel it’s something that would enhance their lives, or help simplify aspects of their lives. Whether it’s the convenience of shopping at home (or through my website), or products that save them time or energy. I never feel I’m making them uneasy with my product suggestions.
But on that same note….I gotta say….the Reps and/or Consultants that are so peppy and excited you think they’d just had a coffee enema…..over-kill….they make me REAL uncomfortable when they are so damn happy that you think you’ll break their hearts if you aren’t interested. It feels desperate to me. It needs to feel NATURAL. Not forced.
The main way I came to be a consultant with the home party/direct sales companies I am with now is that I was buying products from them anyway!! I knew the catalog, I used the stuff myself….I was already happy with what they sold!
So maybe buy a few things here and there from companies you’re interested in. I wouldn’t hit every rep up for samples….that’s hard on their budgets.
In the end…..you’ll have an “ah ha” moment and it will click if it’s the right business for you.
My site, MoneyMakingMommy.com has a great list of direct sales companies and reps with each company that can help you. You might even be able to find someone local.
Give it time….research it and let your gut be your guide!
Suggestions on picking the perfect home business are welcome!
Direct Sales Drama Momma
I’d say 60% of the women I talk to want to work at home. Another 20% want to have their business based at home - but still want to be “out” of the house mixing and mingling with clients, sales calls….etc. For example….realtors.
Most women I talk to want a high paying, low stress, part time home business.
I’m not sure if that exists? We’ve all seen our share of comp plans - and really…there’s got to be some major recruiting and selling going on to “really” make an actual income.
We all read the stories of women that join a direct sales business and end up making scads of money. But was it easy?I always look at their pictures and see beaming faces, big smiles, perfect make-up…
I don’t mean to stereotype - but so far….they all do seem to be perfectly coiffed, tanned and glamour-shot ready. Which….I WISH I could be. So it’s more of a compliment. I slather on the sunscreen every day (50SPF), have long hair I just pull back or up and make-up…well, if I’ve got a big ole zit. (Yes…at 41 I still break out! Arrgghhh! And please don’t try and sell me a direct sales product for my zits, my hair or make up products that transforms even the average woman into a stunner!) I have my “dot on some concealer” method, and it works for me.
Anyway…
As these successful women talk about “loving” their business….and how it’s changed their lives - I wonder…how much stress and hard work was it to hit that number in sales? To make all those recruiting calls, sales calls…..home parties?
The line….”these products just sell themselves….”
Ummm….no….not buying it…..cuz someone had to buy it. And that someone had to be sold on the product, or had to attend a home party, or receive a catalog. Something.
I love shopping just as much as the next person. But I don’t actively seek direct sales home parties to make my purchases. I go when I’m invited for the most part - but it’s not like running to Target and just grabbing what you need.
So what separates the BIG time earners in direct sales from the average or less than average in sales earner? Personality? Ambition? Time?
And recruiting, team building? I’ve done this….and the attrition was unreal. For every three you sign up - two quit and the one that stays does nothing with their business. I mean….lets get real here. I did five months of heavy recruiting….about 22 calls a day for a company I joined called Melaleuca back in 2002. I was beginning to feel like the smarmy used car salesman guy. It was hard to keep my energy up and stay positive no after no.
I’m not knocking Melaleuca. Hey…I STILL make my monthly purchase. Love their laundry stuff! But out of the 25 I recruited….maybe 2 stayed on board and maybe one ever actually recruited others and built their own team.
| Work at Home Watchdog THE “work at home” product & “money making” system review site. |
My check from Melaleuca each month is around $30 these days and I buy $60 in product to stay “active”. So…..as you can see - it’s not a big money maker for me. At all. And I can’t imagine going back to that high level of recruiting on a constant basis. I think at my peak I was making maybe $125 a month?
So do I just suck? Or does it take a unique personality to really make a go at one of these direct sales home businesses? Maybe it’s deep desire or desperation that motivates? Most women will say…..”You need to BELIEVE in what you’re selling and the opportunity/business.”
I feel I did believe back when I was making a go with Melaleuca. I tried really hard. Listened to the calls, bought leads….trained my own team. But I just ran out of steam.
What does it take to be a successful direct sales person?
Who succeeds and who becomes a whiny direct sales drama momma?
I dunno? You tell me.
