Business Start Up
I want to become a Salesperson
When considering direct selling as an income option, it is important to remember that direct selling is not "easy income" and no-one will "get rich quick". Anyone who promises either of these is unrealistic and misleading you. However, for people who set realistic goals and enjoy operating in a flexible, self-directed environment, direct selling provides wonderful possibilities, limited only by their efforts.
For some, direct selling means devoting a few hours a week to earn a modest income, or just purchasing products and services for personal and family use at a discount. For others, it's a commitment to develop a network of salespersons to be trained and mentored so they too can be successful.
Each of these scenarios is feasible and common in direct selling. Each requires a very different level of commitment, but the thing they share is that by setting achievable goals from the start and developing and sticking to a workable plan, success will follow. It's important to remember that salespersons who are earning substantial and worthwhile incomes have worked for a long time, perhaps many years, to achieve that level of success. They have developed an understanding of the business, and have very likely recruited and trained a network of salespersons. They have been diligent and consistent in growing their businesses over time.
If you are considering becoming a direct selling salesperson you need firstly to set your own individual goals. All the opportunities available then need to be evaluated in light of those specific goals. It is important not to be swayed by others who may have different goals and expectations.
While working out which of the many opportunities is the right one may seem a daunting task, taking a systematic approach will help.
Who Does it Suit?
Direct selling appeals to a wide range of people due to its flexibility. The ability to be a successful direct seller is not limited to just one type of person. Some examples of the different types of people who have enjoyed success are:
- Men and women who wish to supplement their own or their family's income
- Mothers and other carers who want to find a flexible, rewarding opportunity that fits in with their family commitments
- Ambitious people who are looking for an opportunity to create their own success, where the rewards depend only on effort and ability, and where there is no limit to how much you can earn
- People who may have taken early retirement, but can't resist the opportunity to build new business and social networks. In 2006, almost a quarter of all Australian direct sellers were aged 50 or over
- People with disabilities who find it difficult to obtain conventional employment but want to take control of their working lives
- Fundraisers who see the flexibility of direct selling as an ideal opportunity to make money for a chosen charity or good cause
Ask the Right Questions
Investigate and Verify All Information
Consult With Others with Experience
Take Your Time Deciding
Need Help?
Identifying Illegal Schemes
Identify a Company or Product that Appeals
The first step is to identify an organisation and product range that appeals to you. There's no right or wrong answer, as the right choice is different for every new salesperson. A product or service that has been used in the past is often a good starting place. An alternative approach may be to consider the method of selling that is most appealing as there are a number of different methods available. View the Ways to Sell.
When considering which organisation to choose, it is important to remember that members of the DSAA account for much of Australia's direct selling industry and they are committed to ethical business practices and consumer protection. View a list of our members and the opportunities they offer for new salesperson.
Ask the Right Questions
Before deciding on an organisation, it is vital to have the answers to these critical questions:
What, if any, start-up investment is required?
The start-up costs in legitimate direct selling organisations are usually a modest contribution towards the cost of a sales demonstration kit. Organisations want to make it easy and inexpensive for new salespeople. Beware of any organisation that has a high start up cost, as it may be a scam, such as a pyramid scheme, and not a legitimate direct selling opportunity at all. For more information on pyramid schemes click here.
Can you return unsold inventory?
A legitimate direct selling company will have reasonable provisions for the return of unsold inventory. In fact, a condition of DSAA Membership is that members have a buy back policy. This means if salespersons leave the business, the member will buy back unsold marketable products purchased in the prior 12 months, for 90 percent of what was paid for them.
Think carefully about opportunities that require the purchase of large amounts of unreturnable inventory as a condition of joining. This is often referred to as front end loading. Reputable direct selling organisation's have no such requirements.
Most direct selling organisations discourage salespersons from holding stocks of products and make it easy and convenient for salespersons to obtain product to fill their customers' orders.
Are the company's products sold to consumers?
Earnings from sales, not recruitment, are essential for a legitimate business. Direct selling, like other retail channels, depends on selling products to consumers, which requires quality products at competitive prices. Be careful of any business that claims you can "get rich" by solely using their products or by recruiting new people into the business. You should have a strong belief in the products you will be selling.
What training does the company offer?
A quality direct selling organisation will invest in training its salespersons and will assist you to get started. It's your best guarantee of being well prepared to do your best.
What is the compensation or reward structure?
It is vital to obtain all the facts about bonuses, profits, commissions and responsibilities and be sure that you understand them fully.
Ignore promises of extraordinarily high or guaranteed profits. It's easy to be swayed by promises of a high income, especially if it's said to be guaranteed or easy. Scam artists try to take advantage of human vulnerabilities, which is often very easy if someone is in a situation where they need cash fast. It's important to remember that, as in any business model, earning substantial sums of money requires time and attention to building a business.
In direct selling, the amount of time required will vary. It will be based on your goals and the amount of time you are prepared to spend on your direct selling activities. It may take a relatively short amount of time to begin earning supplemental income, but if your goal is to rely solely on direct selling, be aware it may take a little more time before you can quit your day job.
What are the organisation's guarantees, warranties and return policies?
It will be important to your customers and to you, so make sure that you are aware of and understand them. You must see them as being fair and reasonable.
What happens if you decide to leave the organisation?
There should not be any penalties or difficulties imposed on you. In fact, the DSAA Code of Practice requires that a DSAA Member company permit an independent salesperson to return products in saleable condition on reasonable commercial terms. Find out more about the DSAA Code of Practice. As mentioned earlier there is generally no reason for salespersons to hold stocks of product.
Is the organisation a Member of DSAA?
Check the DSAA website's List of Members.
Investigate and Verify All Information
Get copies of the organisation's literature and read it carefully. Be sure you are aware of all requirements before signing anything. Do not assume that official looking documents are accurate or complete, or even produced by the organisation, as opposed to the person trying to recruit you. If anything seems suspicious, be sure to check it out with the direct selling organisation concerned or with the DSAA. Verify the products or services that are actually being sold to consumers. If it's a party plan organisation it's an excellent idea to attend a party or demonstration to experience first-hand what is involved. Remember, if it's worth your money, it's worth the time to investigate fully.
Consult With Others with Experience
Find out what others have to say about the organisation by talking to people and using all available technology. It's important to consider this information in the context of all the information compiled, but be careful about being swayed by biased information from disreputable sources. Remember that at the same time that the Internet has become an essential resource for gathering information, it can also be a breeding ground for negativity and information taken out of context.
Take Your Time Deciding
Choosing the right direct selling organisation is an important decision. There are many choices out there so if one organisation doesn't seem like just the right fit, explore other options. Be sure not to rush into anything and don't be pressured by statements such as "This opportunity won't last" or "Get in on the ground floor".
Legitimate opportunities will not disappear overnight. It's good to be enthusiastic about getting involved in direct selling (and in fact it's enthusiasm and a love for what they do that drives most salespersons) but it's vital to take the amount of time necessary to feel 100% comfortable before making any commitment.
Need Help?
Check to see if the organisation is a Member of the DSAA. If it is, the organisation has pledged to abide by and uphold the DSAA Code of Practice which is designed to protect both customers and those who sell the products.
