Direct Selling:
The Direct Selling Association says it is impossible to estimate the number of direct selling companies operating at any given time. This is a result of several factors. First, most states do not require direct selling companies to register as such. Therefore, no exhaustive list exists. However, the Association estimates 13.6 million people are involved in direct selling in the U.S., and more than 54 million worldwide. Most are women, though nearly a third are men or two-person teams such as couples. The vast majority are independent business people - they are micro-entrepreneurs whose purpose is to sell the product and/or services of the company they voluntarily choose to represent - not employees of the company. Approximately 90 percent of all direct sellers operate their businesses part-time. Source: dsa.org
Direct Selling or Pyramid? How To Tell The Difference
Look at the startup fees. If startup costs are high, beware. Startup for direct selling companies is generally low. You’re often paying for a sales kit. Their goal is to make it easy for you to start selling. Pyramid schemes make almost all their profit on signing new recruits, thus the high rate.
Why Direct Selling?
Direct selling is a good option for moms seeking home based business income opportunities. Direct selling offers flexible work schedules, it’s a good way to earn an extra income, it provides a great way to start a work at home business and earnings are in proportion to effort.
How To Tell If A Direct Selling Opportunity Is Legitimate
- Besides examining the start up cost, look into whether the company will buy back unsold inventory if you decide to quit. Reputable companies do, some for up to 90% of the price you paid.
- The money you earn should be based on the sale of products or services. Avoid any company that claims you’ll get rich by recruiting new people.
- Would you buy the product you would be selling?
How To Get Started
Identify a company and product that appeals to you. You’ve most likely had experience with many direct sales products or services. Research some more. There are many more out there that you don’t know about. They could be your home based business income opportunities.
- Take your time deciding. A legitimate opportunity won’t disappear overnight.
- Ask questions about the company, its leadership, the products or services, start up fees, realistic costs of doing business, average earnings, return policies, and anything else you are concerned about.
- Get copies of all company literature and read it.
- Consult with others who have had experiences with the company and its products. Check to see if the products or services are actually being sold to consumers.
- Investigate and verify all information. Don’t assume that “official looking” documents are accurate or complete, or even produced by the company, as opposed to the person trying to recruit you.
- Need help evaluating a company? Check to see if the company in which you’re interested is a member of the Direct Selling Association. If it is, you can be assured the company has pledged to abide by and uphold the DSA Code of Ethics. In addition, you might want to call your local Better Business Bureau, state attorney general or consumer protection office. Source: dsa.org
Here is a brief listing of some of the industries covered by direct selling companies:
Baby/Childcare, Baskets, Benefits Packages, Books, Brokerage Services, Candles/Candle Accessories, Clothing/Shoes, Coffee/Tea/Specialty Beverages
Cookware, Cosmetics, Crafts/Craft Supplies, Crystal/China, Cutlery, Educational Materials, Homeopathics, Insurance, Lingerie/Sleepwear
Nutritional Supplements, Paper Products, Party Supplies, Rubber Stamps, Scrapbooking/Photo Albums, Skincare, Software/Computers
Telecommunications Services, Toys/Games, Weight Management,Wine/Wine Accessories.
Options Abound
Business opportunities come in all shapes and sizes so to speak. Just about every industry and type of business is available with a vast range of start-up costs. The small list of companies below are presented only to show the variety and range in start-up costs. We are not making recommendations and advise you to investigate companies thoroughly before investing.
Vitamin Power, Inc.
Nutritional supplements and personal-care products
Dealership
Start-up $0*
Since 1976
* Note- there are opportunities in various industries that advertise no start-up costs.
Charmelle, Inc.
European designed fashion jewelry and accessories
Direct Sales
Start-up $30*
Since 1995
* Note- Many direct sales companies offer start-up cost under $100.
Arbonne International Natural Skin Care Products
Skin care/cosmetics/supplements
Direct Sales
Start-up $29
Since 1980
Mary Kay, Inc.
Skin care/cosmetics
Network Marketing/Direct Sales
Start-up$100
Since 1963
Henn
Home decorative products
Network Marketing/Direct Sales
Start-up $150
Since 1982
Jolly Jumps, Inc.
Inflatable amusement rides
Licensing agreement
Start up $3,000-$6,000
Since 1992
Pro-Sight property Inspections
Home Inspections
Licensing
Start-up $6,000 – $12,000
Since 2003
The Senior’s Choice
Non-medical in-home senior care
Licensing
Start-up $13,000
Since 2000