What Does Direct Sales Involve?

Direct Sales is a very popular choice for people who want to work from home. The industry is 28 billion dollar business in the United States, alone. By definition, direct sales is the sale of consumer products or services through person-to-person contact, away from a retail location.

The most popular type of direct sales is “party plan”. When you join a party plan company, you become a consultant. Each company will have its own policies, but most consultants are able to sell a company’s products through home parties, catalog parties, craft shows, fundraisers, and online sales.

Direct sales also encompasses other types of businesses, such as Multi-Level Marketing Companies, also referred to as MLM. While not all MLMs are bad, some of them have been scrutinized for illegal practices in the past. These are sometimes referred to as pyramid schemes. It is wise to investigate any business before getting involved with them.

As a consultant for a direct sales company, you will be paid a commission on the products you sell. You may also receive a commission for the products your team sells. Your team will consist of the people you recruit into the company to become consultants, as well as the people they recruit. Most companies allow you to receive payment immediately by letting you take your commission directly from the payment you receive from your customers. You would then order the products and pay the company. Any bonus checks or commissions earned on your team would be sent to you, usually once per month.

One of the benefits to joining a direct sales company is being able to choose the hours you want to work. Many people choose to work their business part-time. Each company will have its own statistics on average party sales, but if you assume that an average party will have sales of $400 and your commission is 25%, you can make an extra $1,000 a month by booking 2 parties during the week and one on every other Saturday.

Of course, every business has downsides, as well. When you are in direct sales, it can sometimes be a challenge to find people who want to host parties. If you have small children, you will need to find someone to care for them when you are working. And while there are many direct sales companies that have been in business for quite some time, it is not uncommon for a direct sales business to close its doors unexpectedly. This can be aggravating for consultants, as they may get stuck with left over inventory or may not be able to get products a customer has already ordered.

As with any business venture, make sure you check the company’s credentials thoroughly before investing any money. This will help solidify your decision and keep you from getting hurt financially. 

RECOMMENDED:  Moms Talk Biz Guide to Direct Sales - Everything you need to get your direct sales business of the ground - build your website, get more customers, build your team and more!