General advice
Key points to remember
• Select a business with a product range that appeals to
you and which you consider to be fairly priced. If you like the product,
then you will find it easier to pass that enthusiasm on to others. It's a
more important consideration than any earnings claim.
• Beware of exaggerated earnings claims. With a sound
business, high earnings are possible, but they require time, hard work and
dedication. They are always based on actual direct sales of products to
consumers.
• Good Earning Opportunities in Direct Selling require only
modest investments. Beware of invitations to take a short cut to a higher
appointment by investing large amounts in stock.
• Always ensure that you receive a proper written contract
and that you understand it. If the opportunity includes the right to
recruit others, then check that it complies with the Law. DSA membership
is a useful indication of legal compliance.
Frequently asked questions
What is Direct Selling?
Direct Selling, as represented by DSA Member Companies, is a method of
marketing and retailing consumer goods and services, based principally on
face to face contact with customers.
Is it for me?
Direct Selling owes its continuing success to the thousands of people of
all ages who either want to be independent or to have a business of their
own. It is particularly suited to women with family commitments as they
can start a business on a part time basis with minimal start-up capital.
What level of income can I expect?
The great attraction of Direct Selling is that it offers a flexible
earnings opportunity where you are in control of the income you generate.
Whilst many people work their Direct Sales businesses part-time, others
put in full time hours and generate a substantial income. Some companies
offer the opportunity to earn from selling the product and others also
offer team development programmes where you can generate further income
from developing a team of other Direct Sellers.
What should I look for in selecting a business
opportunity in Direct Sales?
• You should select a business that markets products which appeal to you
and which seem fairly priced. If you are enthusiastic about the product
yourself sales will be much easier to achieve.
• The appeal of company's product is much more important than the rates of
commission and bonuses that are on offer. Reasonable commissions on easily
achieved sales are much better than high commission on sales that are
difficult to achieve.
• Look for an assurance that the business is a DSA Member. This gives an
assurance that the business opportunity is legal and has agreed to abide
by the DSA Codes.
What is a reasonable investment to make in a Direct
Selling business?
• The amount varies with nature of the product and recommended method of
sales. With most companies the investment in a business kit and a range of
sample products rarely exceeds £100. The law governing MLM does not allow
an investment of more than £200 in the first seven days. The great
advantage of any business opportunity in Direct Sales is that it is not
necessary to buy goods before you have made any sales to consumers.
• Never be tempted to buy more stock than you are certain to sell, nor be
tempted to 'buy' your way into a higher position in the company's sales
organisation.
Can I operate a Direct Selling business from home?
• You can run a substantial Direct Selling business from your home and do
a certain amount of retail sales and recruiting on the telephone and the
internet. However, Direct Selling is a 'people business' - it is all about
establishing personal contacts and relationships and this best done face
to face.
• Compared with direct mail, where commonly only one in a hundred will
respond to a mailshot, the response to Direct Sales or a proposition to
join your business, is much higher – frequently at least one in ten. It
does mean that to be successful, you need to talk to everyone you know or
meet and that you have be able to cope with rejections!
Is it true that you can build a long term retirement
income from a Direct Selling business?
It is possible to build a large team of other direct sellers and
continuously loyal consumers. However, as with any business, personal
contacts and regular customers need looking after. If you don't, you will
lose them. Anyone who imagines they can build a sales team and then, with
no further effort, retire on residual income is likely to be disappointed.
Am I likely to be more successful with a new Direct
Selling business?
• Not necessarily. Some new businesses, even if they are subsidiaries of
successful overseas companies, do not always succeed in the UK. The most
important consideration is your personal opinion of the products.
• In many businesses that have been operating in the UK for 10 years or
more, some of the most successful distributors are those who joined many
years after the business was started. Direct selling companies generally
market products for which there is an established demand. No direct
selling business currently has more than a very small share of the total
UK market for its products and so there is great potential for future
growth at the expense of conventional retail outlets.
What is the difference between MLM (Multi Level
Marketing) and pyramid selling?
• MLM, or network marketing, is a way of organising a Direct Selling
business. In a MLM business earnings are derived solely from sales to
consumers – from an individual's personal retail sales and the retail
sales of those he or she may have recruited.
• Pyramid selling schemes are sometimes disguised to look like MLM but
commonly have the following characteristics:
1. They encourage participants to make substantial investments in stocks
of goods, by offering rewards to participants for getting others to do the
same.
2. They make little reference to Direct Selling and the need to achieve
consumer sales. Instead, they imply that the main source of rewards comes
from getting others to make substantial initial investments.
3. They do not offer contracts to participants, cancellation rights nor
the opportunity to buy back unsold goods – all of which are required under
UK law.
 top of page
|
