Direct Selling For Dummies. Ellsworth Belinda
Think of these as a kind of book version of “extras” that come on a DVD. At www.dummies.com/extras/directselling you’ll find articles on promoting leaders and training your team, building out your skill set, running your business, and putting sales strategies into practice. You’ll even find an extra “Part of Tens” chapter on using Facebook to promote and expand your business.
Where to Go from Here
You may be thinking, if I can start anywhere, where should I start?
This book wasn’t designed to be linear. It’s a friendly reference, not a tutorial, which means you can start or stop wherever you please. Take a look through the table of contents or index to discover the areas that interest you most. Or check for the sections that cover the topics you need the most help in.
If you’re new to direct sales, the beginning is a great place to start. You will learn a little bit about the direct sales industry, get some info on what type of company may be best for you and your situation, and check out my new representative checklist. No matter where you start, I hope you have fun exploring the book and soaking up my 35 years worth of direct sales knowledge and expertise.
Part I
Exploring the Direct Sales Industry
In this part …
✔ Getting yourself oriented in the world of direct sales
✔ Figuring out which company, and kind of company, may be right for you
✔ Introducing the three main direct selling models
Chapter 1
Direct Sales 101
In This Chapter
▶ Understanding how direct sales works
▶ Checking out the three types of direct sales models
▶ Getting off to a great start with a checklist
▶ Working on the right skills to succeed
▶ Getting an overview on ways to work your business
▶ Knowing a bit about the history of direct sales
You may have been drawn to start your direct sales business for any number of reasons, or perhaps you’re still conducting research before you move forward. Either way, I welcome you to direct sales, a distribution model that has changed many lives.
Direct sales or direct selling refers to the sale of products or services away from a fixed retail location. These products are marketed and sold directly through independent sales representatives, also known as consultants, presenters, distributers, and a variety of other names.
Direct sales reps are not employees of the direct sales company. Rather, they are independent business owners who enjoy all of the benefits of being self-employed with the added perk of being a part of a company that handles operations like shipping, product development, marketing, and more.
Direct selling gives both men and women the opportunity to be in business for themselves, add to their families’ incomes, and create the life they have always imagined. The direct sales industry is filled with success stories from stay-at-home moms paying for dance lessons, women retiring their husbands, and families buying their dream home. Whatever your goal is, direct sales is probably an industry that can get you there.
Was your mother a Tupperware lady when you were a kid? Did your neighbor sell Mary Kay? Did your family know an Amway millionaire? Even if not, you’re probably quite aware of some of the legendary companies that have used this network style of marketing their products. Direct sales companies include some major household names and global brands nearly as familiar as Coca-Cola, McDonald’s, General Mills, or Kraft. Here are a few examples:
✔ Cutco
✔ Kirby Vacuums
✔ Avon
✔ Tupperware
You may have noticed friends on Facebook posting about making extra money, earning free trips, or perhaps even quitting their day jobs! Plenty of people have been successful with businesses like these. Regular people just like you continue to build thriving businesses in direct sales today.
You may be interested in starting your business to generate extra income while working part-time – or maybe you aim to ultimately rely on direct sales as your primary income. Or you could be like a lot of people who have fallen in love with a product, and watched a friend or acquaintance work their business, and decided that you, too, would like to earn free product and some income by sharing something you’re passionate about. If you’re like the vast majority of people who join direct sales companies, your reasons may involve a combination of these possibilities.
The world of direct sales has been very significant in my life for more than 35 years. I am sincerely grateful for all it has provided me and my family. The income and rewards of direct sales companies have afforded me a lifestyle I couldn’t have imagined and have led me to treasured lifelong friendships.
But how does direct sales work, and what does becoming an independent direct sales rep involve? Read on.
How Direct Sales Works
In direct sales, as mentioned, the products are sold by independent representatives, not employees. These salespeople purchase a business starter kit to join a direct sales company. A business starter kit typically requires a low-cost fee for materials, the details of which differ among companies. This starter kit often includes products that you can use to display at your parties and demonstrate for your clients. The kit also includes necessary paperwork and training materials that will help you get your business off to a fantastic start. Your kit has everything you need to run a successful business. This purchase, along with signing the company’s standard agreement, sets you up as a member, or independent representative.
As a representative (or consultant, or brand ambassador, or perhaps other title, depending on the company), you are an independent contractor who works on a commission-only basis, running your own small business. Because you are truly independent, you don’t report to a supervisor. You set your own hours. You decide when, whether, or how often you will work. If you feel like it, you can increase your efforts and earn more money – in effect, giving yourself a raise – or you can pursue a more advanced job title. With direct selling, all job titles, promotions, and pay raises are based solely on production.
You are independent, yes, but you also have a built-in support system from the company and from your team. You are part of a team of other independent representatives who have a vested interest in your success – your upline. Your upline includes your sponsor, the person who helped you join the business (whom you get placed directly under in terms of organizational structure), along with other experienced people whose businesses are connected to your business through a sponsorship line. These upline mentors can really help you. They know how to create success in the business and have sponsored many other independent representatives. They can show you how to do the same. Your access to this mentorship is built in to the direct sales business model.
In addition to being taught how to sell products, you will be trained on how to meet people outside your own personal circle to sell products to and how to introduce people to the benefits of becoming a representative as well.
You