How To Choose A Direct Sales Company

Author: Susan Squier

Choosing a direct sales company can be difficult; especially with hundreds of new direct sales companies starting up each year. But it doesn't have to be difficult to do.

Start by narrowing down your choices by choosing a few companies with products you love, would use, and believe in. You can’t sell a product that you detest.

Next, eliminate the companies who have not been in business for at least ten years so that you are working with stable companies.

With the remaining companies, do a Better Business Bureau check on each of them.

Once you determine which direct sales companies are in good standing, set up a comparison spreadsheet. There are many of things to consider before choosing a direct sales company and this is the only way to accurately compare each company.

List potential companies across the top and the following list of questions in the left column.

Are consultants assigned territories?
What is the company’s return policy?
How do consultants place their orders?
Do consultants need to stock an inventory?
Does the company have a rewards program?
Does the company have monthly consultant fees?
What does it take to become and maintain leadership?
Is your area already flooded with any of these companies?
How much do consultants make on people they sponsor?
Are consultants required to attend meetings? How often?
What is the consultant pay? How often are consultants paid?
Do consultants receive a company website? What is the fee?
How much is the start up cost? What does that cost include?
Do consultants pay for hostess credits?

Some companies make the consultants pay for their hostesses shopping credits.
Do consultants pay credit card transaction fees?

Some companies make the consultants pay a fee each time one of their guests uses a credit card to make a purchase.
What percentage of the retail sales do the hostesses receive, in credit, for hosting a show?

This can range from 10% - 30% depending on the company. The larger the percentage the more you have to offer potential hostesses and the more likely they will be to host a show.
Are consultants required to submit a certain amount of shows each month?

Some companies require consultants to submit monthly shows. This may not matter if you plan to work full time, but it’s important to know where you stand.
Are shows required to be a minimum amount in sales?

Some companies require consultants to submit $500 a month in sales in order to be considered an active consultant.

Once you’ve entered all of your information into your spreadsheet, look over what each company has to offer, then select the company that best matches your interests, needs, and goals.