Only you can decide if the direct sales industry is a good fit for you and your family. It can be overwhelming when you start to explore the industry and all the different companies available. How do you know what to look for in a company? What products should you sell? What can you expect after signing up? Here are some basic considerations that will help guide you to your answer.
Do you mind hard work?
It doesn’t matter what company or product you pursue. You will not be successful if you aren’t willing to work hard. This is not an “easy money” model where you just sit back and rake in the loot. To achieve success, you need to be willing to put in the work, and if you lack motivation you may want to look at money earning alternatives.
Success is proportional to how much effort you dedicate to the business. If you treat it as a hobby, you will earn hobby wages. If you treat it as a part-time job, you will get part-time wages. If you treat it as you would a full-time career, you could be a top earner. Its about putting in the work to build the business and necessary systems in the beginning, so that you can enjoy the freedom once established. This means dedicating time every day and week to do business activities like contacting customers, expanding your market, accounting, etc.
What kind of company should you look into?
Ninety percent of new Network Marketing companies go out of business within five years of starting up. This is why you should only consider well established companies. If possible, find out if the company has debt and what country they are based in.
Culture is just as important as the product. Knowing if you are joining a business of integrity, vision, and a worthwhile mission is something you should evaluate. Consider the fact that you will become the face of the company and the products. Plus, fellow distributors will become your “work family”, and I think we can agree, it’s important to enjoy your work.
There are some misconceptions around Network Marketing companies being “Pyramid schemes”. This is a much larger discussion that I’ve address in another post that I hope you take time to read. The short answer is that Network Marketing IS NOT a “scheme” or a way to fleece you out of your money.
What products or services should you sell?
It’s always best to sell something you enjoy or are passionate about. The choices are extensive and spread across multiple industries. Skincare, cosmetics, and health products are popular categories, and there are multiple companies to choose from. Food, kitchen tools, home decor, hair care, energy, legal services, travel, wine, books, jewelry, clothing, tea, nail products, personal safety, the list goes on and on.
Consumable products are the best for repeat customers. We all love pretty things for our home and jewelry, but the number of purchases each customer makes is limited once they run out of wall space and have more pairs of earrings than they can wear. The main challenge for a network marketer, any business owner really, is growing their customer base. Selling a product that doesn’t encourage repeat purchases means you will have to constantly find new customers.
How much are you willing to spend to join a company?
Every company is different when it comes to their membership fees and new distributor kits. Look at what you get for the value such as product for personal use or resale. Is the membership a reoccurring annual fee or a one-time expense? Many companies offer you your own e-Commerce websites for free or with a fee.
Know what a company requires to stay active. Some require monthly sales and recruiting quotas, product auto-ship, and to purchase a product kit when signing up. There may also be penalties to ending a membership.
What income do you need or expect to earn?
Understanding your needs and expectations will help determine what products/services to sell, the company, and the amount of time and effort needed to build the business. If you are only looking for a little extra cash to cover utility bills, you can look into almost any product and work the business as a hobby or part-time. Perhaps you are looking to cover your mortgage, then some extra effort and focus should be expected. Replacing your current salary could be the ultimate goal, then you need to plan how to build the business in a way that it brings in consistent revenue monthly. Products with higher price points are more suitable for the full-time level seller. Selling less will get you to your goal more effectively.
You will be hard-pressed to find out what network marketers actually earn on a public forum. You may see them announce a rank increase or that they earned some perk, but they cannot share actual income or a picture of their check. Why? No, it’s not that we are scheming to keep you in the dark. IT’S THE LAW. The FTC goes after network companies and the individuals who post specific earnings because the folks at the FTC are concerned about creating a “guaranteed success” mentality and want to protect consumers and prospects. We aren’t allowed to talk about the details, so that can make it seem like no one makes money in network marketing. The best way to learn about the earning potential with a company is talk to a distributor one on one about your needs and see if it’s reasonable.
Are you interested in leading a team?
You can earn money by buying products at wholesale and selling at retail, but the bigger checks are typically associated with commission checks. Most Network Marketing companies don’t have a budget for advertising their products. They rely on their army of independent distributors to spread the word to their network…. hence the term “network marketing”.
Commissions are earned by people willing to build and train a team. Think of them as a bonus the Company pays you for mentoring a sales and marketing team. Most people would help their family, friends, and team members build a business for free just to see them succeed, so commissions really are bonuses.
You don’t have to build a team. Decide how much time you have to spend on your personal business then see if mentoring a team makes sense. Sometimes the decision is made for you when people see how your success and they want to join you on the journey. I would be cautious if a company has a stronger focus on recruiting rather than selling products primarily because recruiting is more difficult to maintain and earn a consistent amount.
If leading a team is something you want to pursue, become familiar with the company’s commission plan. Not all plans are created equal and can be quite confusing. Again, if you have any questions, reaching out to a current distributor to explain the commission structure is always a wise decision.
What’s next?
Research is the next step. If additional income is needed, decide how much you need. That will help you decide what type of product you may want to share. At that point you can start to research companies.
Talk to people you know that are in Network Marketing to learn about their company culture, products, commission structure, and their general thoughts on the industry. There are also online forums you can meet people learn about companies.
Direct Selling Association is a fantastic place to research companies and find out which ones are doing well. Npros.com is another resource for network marketing news.
Finally, take your time. If you aren’t comfortable with a company or product, don’t feel pressured to join. Remember to evaluate the culture and integrity because it will reflect on you. Many people get as much or more out of the relationships they build as they do from the income earnings.