BUSINESS DIARY

Guidelines of how to start a Direct Selling Business

Direct sales can be an exciting career for people who enjoy working directly with customers. People who start direct sales businesses sell perfume, makeup, cutlery, cookware and even gift products. Most direct sellers become affiliated with a particular company. However, some people start from scratch by finding their own products. Direct sellers usually need to obtain doing business as and vendor's licenses from their county or city for tax purposes.

Significance

Sell products that you enjoy or have an interest in. You can also turn a hobby into a direct sales opportunity. For example, if you are into health and nutrition, sell vitamins or protein powders via direct sales. You need to have an interest in the products you sell because you will be working with them every day. You may spend three or four nights per week selling products and one day placing orders. Customers will also call you on the phone. Another reason for selling familiar products is product knowledge. People with product knowledge will usually have more success persuading customers to make a purchase.

Identification

Find a wholesale or manufacturer supplier if you do not join a direct sales organization. Call the National Wholesalers Association for potential wholesale distributors. Visit Thomasnet.com for manufacturer suppliers (See Resources). Another option is reading trade publications related to your particular industry. For example, a person who wants to sell skin products may find a wholesaler distributor in "Skin Care" magazine. Call several suppliers and ask them if they drop-ship products. Drop shipping will keep your inventory levels down, according to Entrepreneur.com. Most drop shippers will allow you to buy single units of products at wholesale prices.

Features

Get prepared to run your direct sales business. Order a distributor kit from you direct sales organization. The distributor kit usually includes an instruction manual on how to sell your products. For example, many direct sellers use the home party plan where reps sell at people's homes. Your distributor kit will also include a catalog, brochures, price list, order forms and shipping information. Your wholesaler or manufacturer supplier may also have catalogs and order forms available, if you start from scratch.

Function

Call family members, relatives or friends to host your first party. Instruct your hostesses to invite some guests. Order some product samples so you can display or show people the products. You will also need to pass out catalogs and order forms at the party so people order the right items. Tally your orders after each party. Order products from your direct sales company each week, then call your hostesses when the products arrive at your home. Many direct sellers pack orders for individual customers. Ask your hostesses to collect money from each customer before they pick up the merchandise.

Considerations

You should spent part of your time recruiting people to sell for your direct sales company. You can earn commissions off each recruit's sales. For example, you may have 10 recruits selling products. In addition, your direct sales company may pay you 10 percent on sales made by each recruit. Consequently, you can earn $200 weekly if your recruits average $2,000 in sales per week.