Choosing a direct sales company might be one of the hardest parts of starting your own home party business. There are so many choices now a days, and a company for every product imaginable, this can be a very daunting task. The most important thing for you to remember is to do is your research before joining any direct sales company. There are many factors involved in what type of company you want to be apart of. How will you know what company is right for you? Take in consideration some of these factors, and you will be well on your way to starting your own home party business.
What products interest you?
First and foremost, you will want to find a direct sales company with a product that interests you. If you actually enjoy what you are selling, this will come across to your customers. Just think back to a time when someone you know raved about a new product she had found to you, weren’t you interested in trying it out for yourself? This is the same concept. Your enthusiasm for your product will make others want to try it too. Passion will keep your business strong.
What are the costs involved with joining?
Money is almost always an issue when joining a direct sales company. Most companies have some kind of initial investment. This does not give a company any less credibility.
Keep in mind the cost of joining and the starter kit and what it includes. Make sure to take note if a company website is included. This will come in handy later on when you want to branch out and do some online networking. You will also need to think realistically on what other costs may be involved in the weeks and months ahead. What kind of inventory will you need? Do you plan on advertising? What other promotional items may you need to get started? Also make sure to find out if your chosen company has any monthly or quarterly quotas you have to meet. Do these seem realistic to you? Make note if there are any minimums when placing orders as well. If for any reason any of the company’s requirements seem unrealistic, take a look at another direct sales company in the same category. They are all a little different somehow.
What is the commission rate?
This is a biggie, and a very important factor to consider when selecting a direct sales company. How much money are you actually going to make? What is their commission plan? Ask yourself, “If I sell $1,000 in product at 25% commission, is $250 worth it to me?” Typically you would want to find a company that has the highest commission rate for the products you are interested in selling.
Are you compensated for building a downline?
Is there any benefit to you in recruiting others and building a downline? Residual income can be one of the easiest ways to make money with a direct sales company. It is the only way to go to make money long term. Have you ever heard of woman making $100,000 or more a year in direct sales? They are all making this because of recruiting, building a downline, and living off of the residual income. Basically residual income is when you are paid for signing up other people underneath you and building a team. You are also rewarded when your team members build their own team, and this goes on for however so many levels. Often you are paid a percentage of what they sell/buy from the company. The more team members you sign up, and the more they sell, they higher your residual income checks will be. This is the easiest way to make money with out ever selling anything yourself. Take note of the percent of residual income you make per member, and on how many levels this goes down.
Do you have any say over what you are selling?
This is important if you want to have control over any aspect of your business. Do your products have a predetermined price that is set, or can you set your own price? How are you allowed to sell your products? Is it only through home parties, or can you do craft shows, and fundraisers too? Another very important thing to consider is can you do advertising. Offline or Online? It may be hard to get a business going that does not allow advertising of any kind. Take a look at the company's list of “rules” before signing up.
Will you have support from the company?
After you have joined a direct sales/home party plan opportunity, will their be any kind of training to get you started? Will you have a sponsor that will be there for you and answer all your questions? What is the customer service like at the home office? Does the phone ring and ring when you are trying to get a hold of headquarters? Basically ask yourself if things are ran in a professional and timely manner. This can tell a lot about the success of the company and how they do business.
What will your competition be like?
Another major factor to consider when beginning a home party plan is knowing what your competition will be like. You usually do not want to be involved with a saturated market. Find out how many representatives are in your area, and if possible, find out how well their business is doing. See if you can spot something they are missing and focus on that aspect of sales. When possible try to be one of the only consultants in your area, and try to offer a unique product that can’t be found anywhere else, but through you.
Can you grow your business online?
As you may know many direct sales and home party plan companies have taken their business online. Find out if the company you are considering allows this. Can you have your own website, that is not affiliated with your company's. Is their online ordering allowed through your website? If you do plan on taking you business online, make sure you can advertising online.
Summing it all up...
Never just jump into any direct sales business opportunity. The key that I am trying to stress to you is to do your research! Direct Sales can be a very fun and profitable venture, and long term, can make you a lot of money. Make sure you get the basics first, and choose the best company that suits your needs. Using these tips on Choosing a Direct Sales Company will have you well on your way to starting your own Home Party Business!
Sunday, January 23, 2011
Raise Money
If you're like many women who want to start a home based business, one of the things that may be stopping you is a lack of funds.
While there are many new Network Marketing and Direct Sales businesses that are free to join, it will take at least some money to get things rolling...money for business cards, inexpensive marketing and advertising methods, postage, your own personal products to experiment with, samples, etc.
Even if you are starting an online business that markets a service, or that has no physical product, you will need money for domain name registration, web site hosting, low cost advertising and the like.
Here are some ideas for raising the needed capital.
Get a loan.
Do you have a relative who would loan you the money to get started? What about that Great Aunt who always said you'd be great in your own business? How about Mom or Grandma?
Perhaps they would accept barter (your new product, for instance...good rejection-proof way to get them hooked on it!) in lieu of repayment? Does Grandma have a shed full of stuff that she's been wanting to sell or eBay but doesn't have the energy? Would Mom like to have her house cleaned for the next few months?
Ask your sponsor for help.
Ask your upline sponsor if they would consider buying the starter kit for you, and then taking the profits from your first parties or commission checks as repayment?
Some sponsors do this already, but if not, she may be so impressed with your drive to succeed that she will say yes.
Have a yard sale
This is what I did to get started in my business. This one has twofold benefits...you're making some extra cash but also have a captive audience of people coming to you! If you're really energetic, go around to your neighbors and tell them that if they leave their castaways in a box on the curb, you will come pick them up. Do this before your sale. Slap a price tag on the merchandise and cha-ching!
Be sure to make a sign advertising your new product or service and plenty of flyers or business cards to give to each shopper.
Sell some stuff on eBay.
Sell things from your own home (name brand kid's clothes and popular book titles are easy and almost always pull a good price). Go to library book sales and buy books for .10 or .25 and list those. Use your my eBay page to advertise your new website!
Use your tax return.
Release the clutter, sell a useless piece of furniture or item in your home.
For me, it was the dusty electric guitar Kitchen appliances (you know what I'm talking about here!) that were going to make your life easier, exercise equipment that makes you feel guilty when you trip over it...
Pre-sell the product.
I got this one from my beloved Kim Klaver, aka Ms. Stud. Go around to your tribe (the people who love you enough to do anything you say), your coworkers, neighbors, playgroup Mommies, and show them a *picture* of the product, tell them what it does, collect the checks, deposit them and order your product. Sell it back to them at retail.
Do a quick, temporary odd job.
A friend of mine just did this one. She put a sign up at a local health food market that said "Non-toxic cleaning services". (Notice that she created a niche). That day she got a call, did a job for an elderly women and made $150. Of course, she used her own nontoxic cleaning product and will probably end up getting a customer out of the deal too! Babysitting for a couple of weeks, dogsitting, housesitting...you get the picture.
Talk to dh.
Notice I'm leaving this one until last! Hopefully you have the kind of relationship where your husband will be overjoyed that you want to improve your financial standing. If you garner his support in the beginning he is much more likely to be helpful along your journey, with the inevitable ups and downs of business life.
While there are many new Network Marketing and Direct Sales businesses that are free to join, it will take at least some money to get things rolling...money for business cards, inexpensive marketing and advertising methods, postage, your own personal products to experiment with, samples, etc.
Even if you are starting an online business that markets a service, or that has no physical product, you will need money for domain name registration, web site hosting, low cost advertising and the like.
Here are some ideas for raising the needed capital.
Get a loan.
Do you have a relative who would loan you the money to get started? What about that Great Aunt who always said you'd be great in your own business? How about Mom or Grandma?
Perhaps they would accept barter (your new product, for instance...good rejection-proof way to get them hooked on it!) in lieu of repayment? Does Grandma have a shed full of stuff that she's been wanting to sell or eBay but doesn't have the energy? Would Mom like to have her house cleaned for the next few months?
Ask your sponsor for help.
Ask your upline sponsor if they would consider buying the starter kit for you, and then taking the profits from your first parties or commission checks as repayment?
Some sponsors do this already, but if not, she may be so impressed with your drive to succeed that she will say yes.
Have a yard sale
This is what I did to get started in my business. This one has twofold benefits...you're making some extra cash but also have a captive audience of people coming to you! If you're really energetic, go around to your neighbors and tell them that if they leave their castaways in a box on the curb, you will come pick them up. Do this before your sale. Slap a price tag on the merchandise and cha-ching!
Be sure to make a sign advertising your new product or service and plenty of flyers or business cards to give to each shopper.
Sell some stuff on eBay.
Sell things from your own home (name brand kid's clothes and popular book titles are easy and almost always pull a good price). Go to library book sales and buy books for .10 or .25 and list those. Use your my eBay page to advertise your new website!
Use your tax return.
Release the clutter, sell a useless piece of furniture or item in your home.
For me, it was the dusty electric guitar Kitchen appliances (you know what I'm talking about here!) that were going to make your life easier, exercise equipment that makes you feel guilty when you trip over it...
Pre-sell the product.
I got this one from my beloved Kim Klaver, aka Ms. Stud. Go around to your tribe (the people who love you enough to do anything you say), your coworkers, neighbors, playgroup Mommies, and show them a *picture* of the product, tell them what it does, collect the checks, deposit them and order your product. Sell it back to them at retail.
Do a quick, temporary odd job.
A friend of mine just did this one. She put a sign up at a local health food market that said "Non-toxic cleaning services". (Notice that she created a niche). That day she got a call, did a job for an elderly women and made $150. Of course, she used her own nontoxic cleaning product and will probably end up getting a customer out of the deal too! Babysitting for a couple of weeks, dogsitting, housesitting...you get the picture.
Talk to dh.
Notice I'm leaving this one until last! Hopefully you have the kind of relationship where your husband will be overjoyed that you want to improve your financial standing. If you garner his support in the beginning he is much more likely to be helpful along your journey, with the inevitable ups and downs of business life.
Time and Money!
Conference calling can save you money. There is no doubt that in the sales business, every second counts. Whether it be training, sales meetings, or other needs, pulling your employees away from the sales opportunities even for these important tasks, cuts down on the time they can be making you money. If you take the first step and try using conference calling, you may just find yourself saving money and making money. Let’s point out some of the features and benefits of using conference calling here:
Consider the costs of training individuals. You need to fly them to your location. You need to invest the money in teachers, a place to teach them, and the products used. Then, you still need to pay for their lodgings and maybe even their food. This is costly. Even if it is a simple one day training, you still have invested quite a bit of money. Now, what if you could get all of the training in that you need through a conference call? You still provide the training experience to your potential new sales team, but allow them to remain at their current location. With conference calling, you save money by not having to move people around while still delivering a one on one training experience.
Secondly, you keep your employees were they need to be- on the sales floor. You don’t have to invest in much time away from the business at all. You do the training through the conference call and they are right back to work after the call. Not much time is wasted then, and profits can immediately improve.
You can hold many people on the call at the same time. There is the potential for many people to get on it and therefore, you can address a large group of people or only a few.
Consider using conference calling for your sales meetings as well. Again, you provide the information that is needed to reach your sales team while keeping them on the floor, working those sales. It just makes sense to use conference calling to save yourself travel time and money as well. Plus, you can have associates across the state, country, or even the world plug in to the call. All of their input can be provided, then to all other associates.
As you can see, there are many reasons to use conference calling in the world of sales. Let us face the facts that time is money. You save both when you incorporate this system into your training, sales meetings, and staff meetings. Your employees can take what they have learned and apply it only minutes later when they get back to work. This effective means of communication is also quite affordably priced. When you factor in the amount of money you are saving from travel expenses, it gets even better! Conference calling is a simple system that can potentially save you quite a bit of money! See how it can benefit you, right now!
Consider the costs of training individuals. You need to fly them to your location. You need to invest the money in teachers, a place to teach them, and the products used. Then, you still need to pay for their lodgings and maybe even their food. This is costly. Even if it is a simple one day training, you still have invested quite a bit of money. Now, what if you could get all of the training in that you need through a conference call? You still provide the training experience to your potential new sales team, but allow them to remain at their current location. With conference calling, you save money by not having to move people around while still delivering a one on one training experience.
Secondly, you keep your employees were they need to be- on the sales floor. You don’t have to invest in much time away from the business at all. You do the training through the conference call and they are right back to work after the call. Not much time is wasted then, and profits can immediately improve.
You can hold many people on the call at the same time. There is the potential for many people to get on it and therefore, you can address a large group of people or only a few.
Consider using conference calling for your sales meetings as well. Again, you provide the information that is needed to reach your sales team while keeping them on the floor, working those sales. It just makes sense to use conference calling to save yourself travel time and money as well. Plus, you can have associates across the state, country, or even the world plug in to the call. All of their input can be provided, then to all other associates.
As you can see, there are many reasons to use conference calling in the world of sales. Let us face the facts that time is money. You save both when you incorporate this system into your training, sales meetings, and staff meetings. Your employees can take what they have learned and apply it only minutes later when they get back to work. This effective means of communication is also quite affordably priced. When you factor in the amount of money you are saving from travel expenses, it gets even better! Conference calling is a simple system that can potentially save you quite a bit of money! See how it can benefit you, right now!
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