Choosing a Direct Sales Company
Sample Questions on Sales Quotas, Primary Focus, and Return Policies
With hundreds of direct sales companies to choose from, finding the right company to join can seem overwhelming. Asking questions can make the process easier.
With hundreds of direct sales companies and thousands of products to choose from, how do you narrow down which direct sales company to join? Here is a list of questions to ask.
1. Are you passionate about the products?
The first question to ask yourself is, "If I were not involved with this company, would I still buy these products?" If the products aren't something you would purchase and use, how will you sell the products to someone else? You need to believe in the products or your lack of enthusiasm will show through to potential customers.
2. How much is the starter kit and is the kit worth the price?
When starting a direct sales business, oftentimes a new consultant will be required to purchase a starter kit. Most often, the cost of a starter kit is minimal, although some starter kits can be a few hundred dollars. You should know exactly what is in the starter kit and how much you will get in inventory or business tools. For example, a starter kit may come with catalogs. How many catalogs are included? Be sure that the price of the starter kit is comparable to the value of the products in the kit.
3. What is the company's return policy?
Direct sales companies usually have a return policy for both starter kits and products, but be sure to read the fine print. Some companies require that starter kits and products must be unopened for a refund to be granted, while other companies offer a partial refund even if products are unopened.
4. Is there a monthly sales quota?
Many direct sales companies require a monthly dollar amount of required sales to receive a commission check and/or to remain active as a consultant. Sometimes the sales quotas are quarterly. Be sure to find out if there are any sales quotas and how much is required, then ask yourself if those quotas are in line with your own goals.
5. Will the primary focus be on recruiting others?
The compensation plan of most direct sales companies is structured so that you make a commission not only on your own sales, but the sales of other consultants you bring into the company. Those who you bring in as consultants are called your downline. Your focus as a direct sales consultant should be on the sale of products and not on recruiting a huge downline to make a profit. However, the commission payout of some companies require a lot of recruiting to earn a decent commission. Research the compensation plan to make sure that you are going to earn an acceptable amount through your own personal sale of products.
While these basic questions provide a starting point for examining a direct sales business opportunity, it's a good idea to do further research with the Direct Selling Association.
