“I’m researching direct sales companies that
are available. I’m kind of new at all this and not quite sure where to start, can you
help?” – Yes I can! Hey, good day folks, I’m André Givogue,
your friendly host here for CareerFH! Direct sales companies can be separated into
two classes: The first type of direct sales companies are
single-level marketing which means that sales representative, the host, the rep or whatever
you’re going to call it deals directly with the clients. Their income is in direct proportion
of the amount of product they personally sell. Some direct sales companies you might have
heard of, that falls under this type of marketing category are: the cosmetics of Avon, kitchen
supplies from Tupperware, Pampered Chef, etc. Usually commission rates are a little higher
than their multi-level marketing counterpart. This leads me to my second point. The second
type of direct sales companies are multi-level marketing. Multi-level marketing companies
are the ones that can be easily mistaken for “those pyramid schemes” and sometimes can
suffer from the negative stigma. Their “per sale’s” commissions are generally lower
from their single-level marketing counterpart. That being said, it is structured in a way
that you can make an override commission on the sales of the other sales representatives
on your team, which is pretty good. Some legitimate direct sales companies that you might have
heard of, that falls under this type of marketing category are: the vitamins and nutritional
from USANA, the world’s largest telecommunications company ACN and there’s a whole lot more. Now which one of the categories are the best?
Well it depends of what type of person you are. If you are a hustler and hate teaching
your skills to others that you might view as your competition, then single-level marketing
is probably best for you. You’ll get a 100% of your own efforts, larger commissions from
each sales and it’s the fastest way to get into profits. The draw back from this type
of sales is that if you fall sick or for whatever reason you can’t perform, you can’t do any
sales, then you get nothing coming, no more revenue. If you’re looking at this in the long term,
then multi-level marketing offers you a way to leverage your time and effort. Not only
you have to sell the products or services, but you also build a team of other representative,
you train them and show them how to become successful sales people. This is a little
bit more work at first, and a little bit more time before you turn your time investment
into profits. The beauty of this multi-level marketing model
is; say you have 100 sales representatives in your organization, you’d get 1% of 100
people’s sales effort. Obviously this is over simplified but it makes it easy to understand
the concept which means that if you do fall sick or you can’t work, you’d still get 1%
of 99 people’s sales effort. Legitimate direct sales companies are governed
by the Direct Selling Association’s (DSA) where they adhere to their code of ethics: “The cornerstone of the Direct Selling Association’s
(DSA) commitment to ethical business practices and consumer service is its Code of Ethics.
Every member company pledges to abide by the code’s standards and procedures as a condition
of admission and continuing membership in DSA. The DSA Code of Ethics speaks to both the
consumer and the seller. It ensures that member companies will make no statements or promises
that might mislead either consumers or prospective sales people. Pyramid schemes are illegal
and companies operating pyramids are not permitted to be members of the DSA. The DSA Code of Ethics is enforced by an independent
code administrator who is not connected with any member company. The code administrator
will do everything possible to resolve any complaints to the satisfaction of everyone
involved, and has the power to decide on remedies. All member companies have agreed to honor
the administrator’s decisions.” If you are looking for a new career from home
or to simply supplement your income part-time, you can realistically make money with direct
sales companies as a consultant, a representative or a distributor. Visit the DSA’s direct sales
companies’ directory to view who’s legitimate. What about you, do you see yourself with single-level
or multi-level direct sales companies? Share your thoughts and comments down below
and thanks for watching this episode CareerFH – Start Your Career From Home Today! If you want more tips and tricks on starting
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