Direct Sales, Network Marketing, Home Based Business so many choices.
How do I find what’s right for me?
Ever wondered if owning a Home Based Business is right for you?
Honestly it isn’t a business model that’s one size fits all,
or a good fit for everyone.
But it is a business that everyone can do
So what personality could be right for this type of business
You have an entrepreneurial mindset.
You hate having a boss.
You don’t like being tied to a desk.
You don’t like working 9-5.
You get bored doing the same thing all the time.
You want to be in control of your own destiny.
You are tired of making others rich.
You are just looking for a plan B?
Have you ever considered having a Plan B just in case, and what exactly is that?
A Plan B is your backup making bank plan for:
What if I don’t have enough bookings to pay the rent.
Oh crap how do I make the car/rent payment this month.
What if I get sick or hurt and can’t work for weeks or months.
If you have ever thought about these things then Direct Sales may be a good fit for you.
Direct Sales is first and foremost about building people’s trust in ourselves.
Network Marketing at its finest is simply sharing things we love and use with others.
Everything we do in our life is about Selling Ourselves to someone for some reason. We all sell ourselves to our potential mates, to our bosses, to our clients, and customers. Oh and let’s not forget the huge tax advantages of owning a Home Business, you get to write off so many things.
What Direct Sales Is.
It is a vehicle to supply products to an end consumer outside of a brick and mortar store. It does involve sales of a product or products, as well as team building. With Direct Sales your business is open 24-7 even when your not working it.
What Direct Sales is Not.
The biggest misconception in Direct Sales is people calling it a pyramid scheme. Direct Sales is most certainly not that, and in fact pyramid schemes are illegal in the United States. Direct Sales also often has the misperception of being called MLM or multilevel sales.
There are different types of compensation plans among Direct Sales and one of those is called an MLM compensation plan. A great majority (not all) of Direct Sales have MLM type compensation plans. What that means is that you get paid on team sales volume for a certain percentage of a finite amount of people in your genealogy or downline.
One of the most important things to consider is how any organizations distributors are rewarded for their contributions.
Always do your due diligence to find out full disclosure on how a particular company is going to compensate your hard work.
Compensation Plans fall under 5 different categories.
Unilateral (MLM compensation plan)
Stair Step Breakaway (MLM compensation plan)
Matrix (MLM compensation plan)
Binary (MLM compensation plan)
Bi-Nomial (NON MLM compensation plan)
Here are my 10 keys to look for in a good compensation plan.
1. Is it easy to enter into the opportunity?
2. Are you able to start with a modestly priced kit, with items to retail?
3. Are you rewarded for end consumer sales, and not recruiting?
4. Are you rewarded for team building?
5. Is the focus on selling products to Customers rather than recruitment?
6. Are you rewarded for training and supporting your downline?
7. Are you rewarded for maintaining a monthly volume?
8. Does the plan provide for recognition?
9. Is the plan’s monthly maintenance requirement reasonable – not so high that you can never achieve it, and thus never receive compensation?
10. Does the plan provide multiple ways to earn compensation?
In all Home Based Businesses Distrubutors are expected to find and pursue sales opportunities, as well as encouraging team building for residual income.
What exactly is residual income, as it often seems like an abstract thought in a world full of perform a service and get paid.
A great example explaining residual income is illustrated by way of a good friend, and mentor Tom H. Tom was a roofer and joined a direct sales company in his early 20s. He worked hard at building his business and supporting his team, after a short period of time he married and had 4 children. Unfortunately his wife got cancer, but because of building his direct sales business prior to the 7 years she was sick he did not have to work. Tom was able to devote all of his time to family while she was ill until her passing. During that time of not working every 4 week pay cycle he still received checks totaling $15,000 to $20,000 in residual income just by doing the minimums required by the company he partnered with. Direct sales provides an ongoing and residual income by the use of team building.
Important questions to ask about any business you are considering.
How much does it cost to start?
Are there price options to get started?
For makeup artists is there a pro plan not associated with the business?
Are there different options or levels of distributorship opportunities?
What kind of corporate training will I receive?
How much will I have to pay monthly?
Is it necessary to add partners to become or remain a distributor?
How many business partners are needed to activate and receive bonus checks?
What percentage of my group volume will I get paid on?
How many levels of downline will I get paid on?
Will I loose personal business partners for not meeting requirements?
Will I loose monthly or quarterly points for not meeting requirements?
Am I looking for a company to build my self esteem?
Am I looking for a company to make unlimited income?
Am I looking for a company with a diverse amount of products?
Am I looking for a company with the same value system I have?
Does the company I am looking at have a good social media presence?
Does the company I am looking at have a good Better Business Bureau rating?
The Top 5 Red flags to avoid when starting a home base business:
RED FLAG #1
Company is less than 10 years old (not enough time to prove it will stand the test of time).
RED FLAG #2
Company pays out less than 40% of it’s earnings to distributors. This business system pays out over 50% – highest payout in the industry. Most companies pay out as little as 10% and most won’t even show you the financials.
RED FLAG #3
Company doesn’t publish an annual report. Transparency is a must in today’s market – if they don’t publish an annual audit for you to review – there is something negative they’re trying to hide.
RED FLAG #4
The Company structure is Horizontal or Hybrid Binary (the average person can only build less than 2.8 legs successfully. Any more than 2 legs and the average person will fail. Also Hybrid Binary is a system that combines horizontal flaws with binary building and pays out LESS THAN 1/2 of what this company pays. If a structure consist of matrix, level , uni-level, paying weak leg, less than 100% credit, or breakaway, indicates hybrid binary that has horizontal marketing flaws.
RED FLAG #5
One industry or one product line company. Market conditions change all the time – if you are a one industry or one product company – you will experience challenges that could wipe out your business. Also, not only are you limited on your customer base, but also on who you can bring on as a partner. Being a product broker allows us to change with trends, get paid on every dollar people spend and expand our business with a large variety of people.