Tuesday, July 19, 2011

What you should know about direct selling



* Set income goals. Someone wishing to earn only spending money will have a different strategy to direct sales than someone planning to work more hours.



* Verify the product is legitimate and usable. Watch out for scam products.

* To start selling, direct sellers often must purchase as starter kit, usually around $100, which includes samples, catalogs, order forms and a training manual. Compare the cost of the kit to what you get in return.

* Understand the company's compensation plan. Typically, direct sellers earn 25 to 50 percent of a sale.

*Make sure the company has a buy–back policy on products you purchase to sell. They should pay at least 90 percent of the purchase price inventory bought in the last 12 months.

* Direct sales companies that are DSA members must comply with the group's code of ethics. To find a list of members, visit www.dsa.org.

Source: Direct Selling Association

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