Is There Money in Direct Sales?

Direct sales are a great way to own a home based business and make extra income. The level of income you generate is highly dependent on the opportunities you choose and business structure.

Looking to start a home based business in the near future? With so many opportunities to choose from it is no wonder entrepreneurs either fall for quick money schemes or jump from one opportunity to the next. Those considering direct sales as a means to generate income or even those with hopes of creating wealth, should take careful consideration in finding opportunities that really work for the average home business newbie. A common misconception shared by most is the idea that hosting parties to neighbors, friends, and family will put significant dollars in their pocket. While some money can be made, the average home business owner in direct sales generates merely $125 a month. If this is your goal, choose from any of the direct sales businesses out there. If you desire to generate more than a mediocre income, put your business decision to the test by considering the following.

Will you be hosting parties? Typically in companies like Arbonne, Mary Kay, and Avon business owners start by hosting home parties. The objective is to eventually ask the party participants if they will host parties at their own homes, thus growing your network of sales and distribution through word of mouth. This approach leads to generating income in direct sales the slow way while running the risk of damaging relationships. Not everyone prefers to be sold to by their peers; some may even get offended just from being asked to attend a party. But there are success stories achieved by a small percentage, we’ve all seen the beautiful pink Cadillacs and white Mercedes. But do not be fooled into thinking that level of success is easily achieved. Those accomplished business owners have put in a lot of hard work through years of patience and diligence to become a top earner. Think twice if your business includes throwing a party at your home!

Who will you market to? While direct sales can work, people tend to look at it as an opportunity to generate income the fun way. Direct sales business owners are trained to market to people they enjoy associating with, mainly friends, family, and neighbors. Marketing is usually placed as the very last priority when it should be number one; and knowing who your target market is the key to success. Over the years there has been a shift in the direct sales business model from selling to recruiting. If the objective is to grow your business through word of mouth and add distributors within your network; it only makes sense to target other people who are like minded and not only believe in the product but also desire to start a business of their own.

Will you stock inventory? Most direct sales opportunities are based on the business owner purchasing products at wholesale prices and marking up for distribution. Some companies will buy back unsold inventory but at a discounted percentage of the purchase price. I suggest you avoid any business that requires a quota and inventory.

In the long run, entrepreneurs only achieve to the extent of where they aim. Therefore it is best that they aim at something high. Today the direct sales industry has embarked on a new, almost cosmic stage of existence on the internet. The message is clear: the internet age has become an accessible arena for internet newbie’s to generate significant incomes. Now you might say, “If that’s true, why don’t more individuals turn to the internet for direct sales opportunities?” The answer is quite simple. People methodically trust what seems familiar when looking to start a work from home business. Making party plans, prospecting relatives and neighbors, and receiving auto-shipped inventory all seem familiar; so naturally that is where people turn. Entrepreneurs tend to ‘graduate’ to direct sales online after failing in traditional opportunities. Business owners typically research Google to find ways to grow their failing business and come across content alluding to the benefits of online direct sales opportunities.

When choosing a home business opportunity, sometimes the mind isn’t used because we take it for granted. Studies have shown that most people operate on less than five percent of their brain capacity. Though we are blessed with unlimited powers of wisdom and discernment, we use only a fraction of it. Unlimited wealth lies all around us, but for numerous reasons, we don’t grasp our share. Choosing an opportunity in direct sales is a great decision, but it is only the first step. Selecting the right opportunity to suit your goals is the rest. Use your head and aim high!

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