Are You Independent Consultant Material?
Fuller Brush has been selling quality cleaning supplies for 104 years; Watkins began in 1868 and Avon in 1886. Other companies, like Tupperware, have been around more than 50 years. New companies such as Zavita and Numis Network are just starting out. What all of these companies have in common is their marketing approach. They offer all of their products via direct sales through independent consultants. Direct sales is also known as network marketing or sometimes multi-level marketing. Each company is unique in terms of products, the culture of the company, the commission plan and the level of training provided. If you are thinking about becoming a consultant be sure to do your homework prior to signing on the dotted line.
Direct Sales Advantages
Low start-up cost. Compared to starting any other home business, signing on with a direct sales company is very inexpensive. Direct sales companies have start-up costs ranging from free-to-try to hundreds of dollar. On average, most kits cost under $200 and come with order forms, catalogs and a limited amount of product samples. You will be responsible for setting up your home office with the necessary materials, including a computer, printer, printer ink, paper, binders, a desk and a dedicated phone number, be it voice mail only or ringing directly into your home office. You may also need a business license or permit to operate a business out of your home. Eventually, you will also need to purchase customer management software and financial software to keep track of your expenses. These will cost anywhere from $15 per month for an online content management program to $250 and more for stand-alone software.
You are in charge of your earnings. Independent consultants are not paid a salary or by the hour. They work on commission. That means for each sale you make you earn a percentage of the cost. So, the harder you work, the more you sell and the more money you earn. When researching a company be sure to ask any questions you have, no matter how small. Be completely clear on the compensation plan before you agree to join.
You make the schedule. If you are very self-motivated and determined, have a time each day or each week to work on your business, and make your schedule adapt to family responsibilities then you are more likely to succeed. If you are distractible, unorganized and undisciplined, you are basically doomed at the outset.
Direct Sales Downsides
Paid commission. If you work hard, keep updated on the latest sales methods and are disciplined, your business will grow and you will gradually build yourself a nice nest egg. On the other hand, if you work your business like a hobby, expect no more than a hobby income.
Advertising. Without some sort of advertising budget, your business will not grow. Nobody will know about it. Word-of-mouth is great free advertising, but you cannot rely on it as your sole means of getting the word out about your product. A combination of paid and free advertising in varied media works best.
More than 95% of people in direct sales fail within the first 90 days. The odds are definitely against you succeeding in a direct sales business. Sad, but very true. The majority of consultants that sign up with any given company last less than 90 days. This is hardly enough time to even get your feet wet. To be one of the 5% who succeed in direct sales, commit to giving your business at least a year before you even consider calling it quits.
Necessary Skills
People skills. You must be able to talk with other people in order to make sales. Sometimes this means cold calling. Sometimes this means talking to friends. You will hear “not interested” many more times than you will hear “I’d like to buy some…” Can you talk to people without pressuring them?
Organization is absolutely key. Learn to keep your paperwork organized. Use notebooks, folders or anything else (except piles all over your desk) that works for you to keep your customer orders, inventory, and other business forms easily accessible and at your fingertips. Make sure you keep yourself financially organized, as well.
Self-discipline. You must be able to work alone. You must be able to motivate yourself to meet your deadlines, make your calls and get your advertising out by the deadlines you set.
Can-Do Attitude. Patience and commitment to your own success is essential. Know what you know and where to find answers for things you do not know. Promise to give yourself at least a year before you give up and quit.
How to Choose a Company
Find out how many years the business has been operational? Target your research to companies that have been in business for at least two years. Most do not make it that long.
How much cash do you need up front? Starter kits are generally inexpensive; however, if you cannot afford the kit without borrowing money or charging it to your VISA, think twice. Then think again. You have two options at that point. Save up for the kit or find another company with a less expensive starter kit. Do not charge or borrow to buy a starter kit.
Does the company have a sales quota? If you cannot afford to invest $75 month in and month out for the duration of your business, do not sign on with a company who has a sales quota of $75 per month. I prefer to work with companies who have no quota.
Find out what other consultants say. Before signing up with any company, visit some direct sales, network marketing and multi-level marketing boards and see what you can find out about the company. If the majority of comments are positive, that is a very good sign. On the other hand, if most of the comments are negative, find another company to work with.
Due diligence. Be thoughtful, critical and questioning when you research any direct sales or network marketing company. Ask questions. Insist on answers. Do not let your potential sponsor pressure you into joining if you have doubts or are just not ready. The prizes, income and general excitability of your sponsor may lead you to making a bad decision. The time to stick to your guns is before you sign up.
If you are looking for an excellent, solid direct sales company, why not consider Watkins. They have been in business since 1868. Stop by and see what it’s all about. Be sure to look at the free recipes, too. If you see something you like, I’d appreciate your business. My ID number is 381132.
