Over the years I’ve been involved with more than my share of direct sales companies. I am a believer in the business model. At various times in my life, direct sales helped both financially and by providing a discount on products I loved, and worked well while my children were young. Here’s what I believe you should find out before signing up.
- What is the cost of joining, and what does that get you? A huge red flag would be an expensive kit with little or no value. Another would be a huge commission to your sponsor just for signing you up. Neal’s Yard Remedies business kit provides an assortment of full sized products worth much more than the price of the kit, and pays no commission to the sponsoring consultant.
- Is there an ongoing monthly expense, such as website fees? Your website is free with Neal’s Yard Remedies.
- Are there monthly minimums or autoships to stay active or receive commission? No monthly minimums with Neal’s Yard Remedies. Once every 12 months a $100 retail order is required to remain active.
- Is an inventory required? Do you have to deliver products? Customers can order directly from your replicated website and have their order delivered direct with flat-rate shipping.
- How long has the company been in business? Is the product likely to remain in demand, or is it possibly a short-lived fad? Neal’s Yard Remedies started over 35 years ago, and demand for healthy organic products is increasing.
- Will you need to replace your sample products seasonally because of major changes in the product line? Is your product a “consumable?” A small number of new products come out a couple of times a year. No need to replace sample products until you run out from demonstrating. Neal’s Yard Remedies are consumables, encouraging repeat business.
- Are you allowed to have a Facebook business page and market your business online? Neal’s Yard Remedies encourages having Facebook business pages, Twitter, etc.
- What is your commission and how many levels are you paid on? Do you receive a discount on personal purchases? Neal’s Yard Remedies has a very generous commission plan, and you do receive a discount on personal purchases.
- Are there hosting benefits, and who pays for them? The consultant pays about $6.50 for the initial “Thank you” and “Hostess Exclusive” gifts, and the company pays for the rest of a very generous hostess plan. Consultants may take advantage of the hostess plan when they’re ordering $200 or more.
- Are there catalogs, supplies, and samples, and what is the cost and shipping expense? Catalogs and business supplies are reasonably priced and are available for flat-rate shipping.
Finally, investigate the reputation of the business you are looking at. What is being said about them and their products? Is it a company that cares about people, animals and the planet? Doing your homework before you sign on the dotted line will pay off.
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