So we are exploring and researching great ways and options for others to make money on the side and from home. You know we have our list of Over 100 Ways and Counting to Earn Extra Income and want to build the list – but want to include ideas that can realistically make you money, not just add items to fill up a list.
One question that keeps nagging at us is “Are Direct Sales companies and opportunities and good way to make money?”
We freely admit that we don’t have the definitive answer to this! We have had our own experiences with direct sale companies (including being “successful” in one company in particular – see below) but don’t want only our experiences to taint our view of these types of companies.
First, what is a direct sales company?
Well, we turned to Wikipedia for the answer:
Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling.[1] Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.[2] A textbook definition is: “The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.”
We want to answer many of the questions: What are the benefits? Are they worthy being a part of? Can you really make a living or income as many representatives claim? What are the best companies out there?
We both personally are very frustrated by the world of Direct Sales as there are so many different factors. Some companies are legitimate. Some are seemingly a get rich quick type of scheme. Then there are some where it seems like sales are made based on high-pressure or guilt from a friend or neighbor having a party (c’mon admit it, you cringe when your friend invites you to another of those parties!); when you’re invited by your friend you can’t not buy something as it would be so rude to not help the hostess (again, your friend) earn credit. With all of this, it is hard to wade through all of the red tape and figure this out from an honest money-making perspective!
Now I, Cassie, am coming at this from the view point of two perspectives: 1. Having once been in direct sales with one company and 2. As a customer or invited guest to many home parties of direct sales companies.
Before I share my perspective, I am putting this out there for everyone to gain perspective from more than my own experience! I can’t say that it is fair for me to say whether it works or not from just my one little perspective!
So SPEAK UP and share your thoughts on this topic in the comments below!
First, in our Deep in Debt to Debt Free Series, I shared an installment about my hope of joining a direct sales company to help us get out of financial trouble, only to find ourselves thousands more in debt in the end. We bought into the full inventory – you know the line you’ll only get out of it what you invest into it. It was a lot of work and if I didn’t work the 60-70+ hours a week and engage in high pressure sales, then it didn’t work. It was a bad experience financially, even though being a part of the company was a lot of fun, high energy, social and filled that part of life that many women desire. Alex and I joke that in the end, it was like I paid a lot of money to be in a feel-good social club that had high energy continuously! I am not denying that part of it, but I wonder if they really work from the money making perspective? And yes, I “earned” the car (not to praise myself but to let you know how committed I was to the company) although it cost me a lot in the long run (you’ll have to read the story to find out the details).
I also ask because I found some interesting information on the Direct Sales Association (DSA) website in the FAQ section:
Q. How many Direct Sales companies are there?
A. It is impossible to estimate the number of direct selling companies operating at any given time. This is a result of several factors. First, most states do not require direct selling companies to register as such. Therefore, no exhaustive list exists. Second, as with any business, many direct selling companies do not thrive in the direct selling market and have a relatively short life span. In fact, many companies may even come and go before they could even be “counted.” However, DSA estimates that the sales made by its members account for about 90 percent of all direct sales in the United States.
This answer from the DSA just confirms to us that first there are a huge number of direct sales companies, but even more so just how careful you have to be signing up with one. When they state “many companies may even come and go before they could even be ‘counted'”, it makes us wary of where that “high-cost investment” (that ironically most press so heavily for a successful consultant) goes when they go out of business. One answer for sure is not back into your bank account. This is where we need your help to find those reputable companies that you have been of a part of yourself and also those companies to stay away from!
So that brings me to the next question: I get that being a part of a company for the supplies at cost is a great way to save (sometimes they call them “personal use consultants”). So are all of the requirements for the product discount worth it? Is it really helping your budget or too much of a temptation to buy more than you would normally? This answer could vary, but as a customer, I have run across some companies whose products I really do like, but I find them to be WAY out of my budget. I wish I could get them, but we would probably still be debt if I acted upon my likes while attending a party for a companies products. I just have a hard time reconciling the expense, especially if it is something I don’t need. And if it is something I think I need, nearly every time I have been able to find a much more affordable counterpart – even when compared to the representative’s discount.
So help us out with this – is there something to this? We would love your help in answering these questions.
- Have you had experience making legitimate money with a direct sales company?
- Did you have to go into debt or invest money to get started and how much to be successful?
- How much time did it take you?
- What are the best companies out there for someone to consider being a part of? Alternatively, which are the worst?
And from a customer’s experience
- Do you buy regularly from Direct Sales companies?
- If so, why? Because it was a good value? A good product only found through that company and worth the cost? To help the hostess get to her next level of hostess gifts?
Let’s get this conversation started and SPEAK UP on this topic with open honest discussion. Let’s not make this a taboo subject!
Photo Credit: MLM Files
Merissa @ Little House Living
From a customer’s perspective….
I’ve been to several vendor shows promoting my website and as a customer I might glance at the direct sales booths but I’m not really interested. I love it when an individual takes a chance and has a unique line or product they truly love and want to sell. I also feel like their is much more pressure to buy products from a direct sales rep rather than a unique business. I think this is mostly for the reason I stated above, direct sales reps are in it for the money, no matter how much they have learned to love the products. Individual businesses owners are in it because they love their products and they want to share them with the world.
Cassie
Merissa – I think I wholeheartedly agree with you! I love to support and we love to support on our site those small homegrown businesses. You are right when you state the difference between a Direct Sales product and a product that someone has developed and sell. I think these are two entirely different things and I have in fact had my own products I sold as a business (I made and sold baby girl’s headbands and barrettes) that I put time and quality into and had success for the short time I did it.
At the same time, it certainly isn’t a bad thing to do something for the money, we’re trying to help others figure that out with this post. If a company offers a great product and is offering a good service and using a Direct Sales outlet, I don’t think that is a bad thing – we’re just trying to figure out if they work. The idea of being in business for yourself and your own products is far more legitimate and much sweeter success in the end. But it could be a lot more commitment and investment too.
Michelle
I would much rather give my money personally to a person in Direct Sales Group and pay for her or his child’s dance class or help pay a school fee or help with a Nursing home bill from a parent in their care. Why give big Corporations a dime if not necessary to line their pockets with more money then they know how to spend. There is a regular person behind DS that needs to make extra money so why is this so bad?????
Andria Franklin-Arballo ARBALLO
I agree. Big corporations are the real pyramids. I actually love direct sales and the partys are really fun if I have the time. I always want to support a friend and its a shame more people dont want to. What,a different world it,would be. I don’t mind giving up a buck when I have it. I like to be invited always have. I never understood the push to downplay direct sales specifically. There are plus and minuses as with everything in life.
Sorry for incorrect punctuation typing on this tablet is a challenge.
Sam Kelley
1 – Yes
2 – As a Soylicious consultant, I paid 99 cents to join and pay $4.99 to stay active each month. As a Lady Liberty Designs consultant, I joined this month so sign up was free.
3 – I post some things up every day to promote the sites that take a few hours each day.
4. Best = Soylicious, Lady Liberty Designs
Worst = It Works or any other program you have to pay to get a giant kit up front.
Deek
Yes I am in Direct sales with It Works Global. I have to say that your evaluation is unfair. I am making with this company and it didnt cost me anything to get in. I fear you did not look at all the info or you would kow that. Yes there is a start up of 99.00 but that 1 is minuscule for a company start up and 2 does not come out of your pocket if you let me show you how. This is a real good company to do business with. So for those that think it costs money to get into this company, you are wrong and I can prove it. I have not had to invest any money in the company. It only took a few days to get things going and it builds everyday. As with anything this is not for everyone but ANYONE can do this and it is a fun and easy way to make money. You will not get rich overnight NOT going to happen but you can, as we have, pay some bills and build a steady stream of income that grows bigger with time and effort. I am open to showing this to anyone who wants to see it.
Stephanie
#3 should read “a few hours daily.” By the way, with this post, I’m sure you know that you are opening yourself up to innocent solicitations from every MLM rep on the planet. 😉
Rebecca
Have you had experience making legitimate money with a direct sales company? Yes, I have been making money consistently every month since 2008.
Did you have to go into debt or invest money to get started and how much to be successful? No, you only have to have a40.00 per month auto-ship and you do not have to buy inventory. This is a customer based business not distributor. You will make money even if all of your distributors quit.
How much time did it take you? I made money right away because with this company you are able to purchase customers if you choose and you will get the commission from these customers when they order for life. If you want to make more money just buy more customers. Follow up with them, build a relationship and they will order. Basically, they will order because the products are very excellent.
What are the best companies out there for someone to consider being a part of? The one I am involved is in Trivita. It is a Christian debt free company and you have several ways of making money. You can recruits others, sell the product, or just buy customers and receive the commission rights for life.
Also, it doesn’t cost anything to join. You can join as an affiliate and see if you like the products. If you do, there are lots of ways to make an income with this company’s help.
Alternatively, which are the worst? The worst companies are the ones that expect you to buy tons of inventory that you will never be able to use.
Ruth
1. Yes, but not on a monthly basis.
2. Because they offer items I cannot get anywhere else, or because I prefer the convenience of ordering through a friend to shopping somewhere else for what I need.
There are some companies that have gotten me to research certain things more, only to end up buying my product elsewhere. There are other companies that have won my business by offering the best product at the best price.
I cannot offer the perspective of what it’s like to work for these companies, but I think that both Stampin’ Up and Partylite offer high quality products that are worth the money. Now, both companies also sell some things that I think are quite over priced, that other companies do better, etc. But overall they both have a secure niche.
In these economic times, however, when everyone is tightening their belts, is NOT a time to join up with a company hoping to make money, IMO. If it’s a company you already purchase from and you are trying to cut costs my joining, then that would make sense, but sales is a tough market right now, and I think that those who are desperately trying to make a few extra bucks might do well to look elsewhere. I know that my own purchases from such companies has been greatly reduced the last couple years.
Casherie
I like to buy do terra oils from my friend. I’ve seen it to be particularly helpful with diaper rash (lavender) and they have a website to tell you how to use them so udont need to buy the book. My friend let me use samples before I purchased and seeing it work for my family convinced me to buy them.
I was a Mary Kay consultant and hated it. I bought after pressure from family and spent all my graduation gift money on inventory hoping to get a great return only to find that I wasn’t selling enough to maintain the strict quarterly inventory requirements. I basically wasted $2,000 because the product didn’t “sell itself” as promised, even in the good economics at the time. The person I signed up under filed bankruptcy.
Jeff
Have you had experience making legitimate money with a direct sales company?
I work with Dove Chocolate Discoveries, and I have made legitimate money. For awhile my hours were cut at my daytime job and DCD helped me to get by during those months.
Did you have to go into debt or invest money to get started and how much to be successful?
I paid almost $200 for the initial kit, but I made that back within two home parties. Since then, the kit has gone down go $115. I spend about $50/month on supplies. And now and then I order business cards and promotional merchandise, but always through vistaprint because they usually have good deals, especially if you’re a repeat customer.
How much time did it take you?
I devote an hour or two a day to my business.
What are the best companies out there for someone to consider being a part of?
I like Dove Chocolate Discoveries because I enjoy desserts and dessert making, and it’s something that I can get excited about. It’s also a relatively new company – we just celebrated 5 years – so there aren’t many Chocolatiers around.
Alternatively, which are the worst?
I enjoy DCD because there are no quotas or minimum monthly sales, so if I want to take some time off, I don’t have to worry about losing my status. Plus I only buy supplies for my parties, I don’t have to have inventory on hand. I don’t think I could work for a company that required minimum sales or lots of on-hand inventory.
Joan Curtis
Have you had experience making legitimate money with a direct sales company?
YES.. I have been making money consistently for over 12 years in the DS industry. I have worked with several companies, and looked for a perfect fit, but it took me some time. In all fairness I have never been in a company that I did not make my investment back… but some I have made very very good money with.
Did you have to go into debt or invest money to get started and how much to be successful?
I don’t believe you should ever buy into a company that you have to spend more then 200.00 up front investment. I can afford that loss and usually I can use all the products in the kit so it pays for itself. NEVER EVER buy into a company that you would have to reinvest personal money within the first 2/3 months to buy inventory. What products I have in my kit got me through the first 4 to 5 months before I had to reinvest.. but I reinvested out of profit.
How much time did it take you?
A good opportunity will take as much time as you choose.. something you have to work 24/7 to make pennies.. not a good opportunity. A true business should fit into your life naturally. (example: I am overweight, not selling wieghtloss supplements!) I work with a company that I can use the products on my family and my family are my testimony. I choose to work 7 to 10 hours a week on my business.
What are the best companies out there for someone to consider being a part of?
The best fit for YOU! If you are looking for an opportunity, ask yourself how much time do I have (and be honest) 3 hrs a week?? Can you make the money you EXPECT to make in that time. If the answer is yes then move forward. Also make sure it lines up with your values. No that this industry is NOT get rich quick.. it is help me live comfortably with out killing myself. So the answer to that is.. what works best for your LIFE and LIFESTYLE.
Alternatively, which are the worst?
ANY COMPANY that asks for more then 200.00 for a kit. Expects you to be at every opportunity meeting/conference/webinar/call… You have to have balance to be successful. ANY COMPANY that asks you to carry inventory or that you have to BUY your promotion. (meaning To promote to Regional, you have to have 1500 inventory plus you team does…) ANY COMPANY that says you have to use autoship… enough said on that.
And from a customer’s experience
Do you buy regularly from Direct Sales companies?
YES, I believe in supporting the industry that I am in, and I also love that it allows women to stay home with kids and make an extra 600.00 or 1000.00 a month with out putting themselves or their families on the back burner. I try to purchase 40% of my Christmas from DS companies
If so, why?
I also love helping my friends earn free products. It is a blessing to them.
I do seriously buy products that I use, not mercy purchases. If I don’t think I will use the products I politely decline the invite.
Teresa
I too have tried and hated direct sales before, but I also see the possibilities with a legitimate company. I was looking for something that I could physically have in hand to sell instead of always having to invite friends for a makeover or just talk about something. There was a new jewelry line launching with a new concept (VersaStyle) the video is on the website – http://myveryown.mialisia.com/ – not just product, so I checked it out and decided to give it a try. Keep in mind, I have been in Avon, Xango and a few other things that have not worked, so I definitely keep my skepticism. I did have to invest a min of $199, but I went for the $499, thinking – well at worst, I have to give jewelry out as Christmas gifts for the next couple years. But, I got my start up kit on July 25th and as of today, I have sold almost $1500.00 in jewelry. My family bought about $280.00, coworkers $600.00 and I participated in a local event and sold the rest. So – profit. I am going to be at the Colorado State Fair, and if what has happened so far holds true, this could be a money maker. The company just launched in July, so I am one of only about 700 reps in the country, so hopefully being in from the ground floor proves to be a money making wise decision! Wish me luck and if anyone has any tips, or input, please provide!
Crissy
By now everyone knows I sell Younique Cosmetics.
Did you know that Younique is and has been a DEBT FREE company since Day 1? (Oct 1 2012)
Did you know that you are not required to purchase tons of inventory (that you can’t afford anyways) to make a profit?
Did you know know that you can make money before you build your team?
(although building your team will increase your income possibly)
Did you know that Younique is only $99 to Join?
Did you know that by Joining for just $99, that you receive $400 worth of product that you can use for yourself ? You do not have to share or Giveaway!!!
Did you know that commission is paid several times a day?
Did you know that Younique is already in the US and Canada and will be launching in Australia on April 1, 2013 and New Zealand right after?
Did you know that by Hosting a Party after joining you can earn FREE Products that you can use for yourself or giveaway without paying a dime? ‘Did you know that if you do not want to join you can still host a party and earn FREE stuff the same way as a presenter?
Did you know that Younique will always allow you to have a FREE Website? (you will never ever ever forever never have to pay for your website….other companies charge $10 or more per month)
Did you know that Younique does NOT have auto-ships? ( so no tricking you or customers into things you/they do NOT want to pay for?
Did you know that you are not required to have/or find Host for Home parties?
(nope, you can just play on FB all day in your PJs)
www,youniqueproducts.com/crissypeay
I have worked for many Direct Sale companies and none of them really worked for me .. NO! This isn’t a scheme or ploy ! (Who has time for that?) I just realized after my own personal research that Younique – Corporate is the only company for me. I was once told NOT to invest anything in a company unless you can make it back in your first month.That makes sense. So, that means with Younique you would only have to sell about 17 of the 3D Lashes .OMG, easiest product on earth to sell!!! After, that you get a raise and everything is profit. I never ever ever buy tons of inventory to junk up my house and that could possibly send me soaring into debt.(that would be crazy)
With any company it is always super important to keep a Profit/Loss file (Trust me you want the Profit number to be Higher)
Now, do I think you will get rich with Younique?
Probably not!!! But I do think you will have the extra cash to 1) go out to eat with you family more often 2) make your car payment 3) buy for Holidays 4) Pay for your kids extra activities such as sports 5) finally get that family picture taken that you have been wanting forever , 6)get an extra pedicure or two a month the little list goes on and on
I say this because I have DONE this!!!!!!!
I recently read a few articles about Mary Kay, that I would you to know my personal experience with MK and I ask before you join any Company …DO YOUR RESEARCH
But, before I do I would like to say I am in no way bashing the company. I once sold MK and I stopped for 3 personal reasons…
1) The products felt “heavy” to me (that was several years ago and I am sure products have changed …I honestly do not know)
2) To make money I had to buy tons of Products to keep stock ( I did not have the space or funds to keep up)
3) They say 50% commission (that is true if you could get someone to pay full price for products that you now have in stock but had been discontinued) and you are willing to buy tons of inventory
Lavone Janhunen
It is a among its kind. Like no other.
Roger Zimmerle
Consume this, as well as the end result will certainly surprise also on your own.
Darnell Valeri
It’s amazing just how you have actually handled to collect such a vast amount of information on one site!