Know What You’re Paying For

Most direct sales companies require you to pay a fee up front when you agree to be a representative for them. Generally, this fee is a couple of hundred dollars at the most. But sometimes, it can be much more than that. Make sure to find out exactly what you’re getting for the price the company is asking you to pay. Does the cost cover the start-up kit? If so, what’s included in the kit? Does it cover training materials and samples of the product? Also, be aware of the quality of product being sold. If it’s a high-end, high-quality product, most likely your fee will be more expensive.

Ask Lots of Questions

Besides doing your own research, don’t be afraid to ask the company questions, such as “What are your annual sales?” and “How much did you spend on training last year? Other questions you can ask are:

  • How much money did you make last year?
  • What percentage of your sales were made to distributors?
  • How much money did you spend on training and buying products last year?
  • How many people have you recruited?
  • Do you update your catalog regularly?

A good resource to use to fact-check the company you’re investigating (make no mistake, you should treat this as an investigation to protect yourself) is the Direct Selling Association’s website. This organization has around 200 members who are required to follow the group’s code of ethics. On its website, you can search by company name, by product or by service.

It’s Safer to Join an Established Company

It may sound exciting to join  a startup company in the midst of establishing itself. But it’s also riskier. Even if the company is legitimate, it’s still going through growing pains, which means you’ll most likely feel those pains, too. And a lot of direct sales companies are lucky to make it a couple of years, only to close due to poor sales or bad leadership. If you’re looking for a safe bet, go with a company that’s well established and has a good reputation with plenty of experience in the industry.

Thinking about going into direct sales? Join NFICA now for valuable resources and benefits to help you stay ahead in the world of direct sales.

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