The following article was shared with a Work At Home Moms group I subscribe to: http://www.brainchildmag.com/essays/summer2008_schultz.asp
It's one of many examples of the "dark side" of work-at-home opportunities. There are some truly wonderful opportunities out there - good products that can earn a person who is willing to work hard some very good money. Many companies are worth signing up with simply to get product for personal use at a significant discount, while others require a certain level of sales to remain active. There is nothing wrong with Direct Sales when the 'system' is worked with integrity.
Unfortunately, for all the good I've seen in Direct Sales (or MLM), I've also seen plenty of examples of the deceit this article focuses on. This is why I have a strict recruiting policy of 100% honesty and no pushiness. I will never promise anyone a certain profit level - profit depends on many factors, including expenses, not just on product sold. I remember being dazzled by "50% Profit!!" with a company, so I signed up and was sorely disappointed. Of the $600 inventory I purchased (but my Director selected the product), barely half of it sold. And that "50% Profit" was after other expenses. So, while a new consultant who signs up with me can earn 20-30% commission, I am clear about other costs that will affect profit.
Another 'lie' I've fallen for - "The product sells itself." Nothing sells itself. If it did, we wouldn't have stores and sales people. In order to "sell itself" a product needs to get into the hands of potential customers so they can see and hear about the features and benefits. In Direct Sales, if you truly believe in your product and work hard, you will get excellent sales - but you need to network and talk to people about the product.
The third one that really gets my goat is, "It's an open market. Company XYZ has 1000 reps in every state; the market is saturated. We only have 200 nationwide, so you're getting in when the market is wide-open." One company told me how lucky I was to be in a certain area, because it was such an open market - yet everywhere I went, I was running into other reps with that company, and at every show, 90% of the guests already had a rep.
Even if a market is 'wide open', there's more to being successful than working a market where your product is not represented. With my current company, I was in fact the first rep in my town - however, that doesn't mean the 17,000 citizens are knocking at my door. It's still up to me to get out there and build the business. And, of those 17,000 people, not everyone is a potential customer. Not everyone is interested in every product - your wingding may be the very best quality wingding on the market, but not everybody uses wingdings. And of those who use wingdings, not everyone is willing (or able) to pay more for better quality.
This is the 4th D.S. company I've been with; I expect it to be the last because I truly love the books, I honestly do get out what I put in, and there were no false promises when I signed up. I have a Team Leader who never pushes me to do more than I want to - she helps me with my goals rather than what she thinks my goals should be.
So, if you are looking to sign up with a company, ask questions - lots and lots of questions. And talk to different sources, not just the person trying to recruit you. And if you are with a D.S. company, please be honest with potential recruits - there is no 'easy money', and your reputation and integrity are more important than your bottom line.
Labels: direct sales, mlm, recruiting, Usborne, work at home
Yesterday, I participated in an event that was a huge success. I was on my feet for four hours. I set up a table of books and business information and a second table for a make & take activity. I helped over 100 children make bookmarks with stamps, ink, and ribbon. I spoke to over 100 adults about my business and the books. I not only paid to participate in this event, I paid for all the supplies for the make & take and all the catalogs and business information I distributed.
I did not sell one item - this was a Kids Share Fair, and selling was prohibited.
So, why was this a huge success? I met people. People who had never heard of Usborne Books. People who have and love Usborne Books. People who work for, or own, daycares, libraries, foster homes, and schools. People who are looking for fundraising opportunities and books for the children they serve. People who now have my website, phone number, and email.
Today and tomorrow, I will be calling these people. I will be asking them to schedule a Home Show or a meeting to discuss how I can help their organization. I will be mailing and dropping off Hostess Packets, Fundraising information, catalogs, and information about Usborne's Business Opportunity.
I may not sell one item.
Over the next couple of weeks, I will be calling these people again - confirming Shows and appointments, answering questions about the information I provided them, and asking what they need from me next.
I may sell some books. I may sign on some new Consultants. I may get some new library customers. I may schedule some fundraisers.
And they will all stem from a seed planted at an event where I didn't make a single sale.
There are many Direct Sales business opportunities that offer similar benefits – make your own hours, decide how much you want to work the business, encouraged to put family first, etc. I've been a consultant for 3 other home business opportunities, and they all had their pros and cons.
Choosing an opportunity comes down to personal priorities and goals and finding a company most in line with those. My top priorities for a home-based business are that it fits my family, does not cost me a lot, selling products I can honestly endorse, and being able to go beyond direct sales and home parties - and, I'd like to be able to benefit others, not just profit myself. Usborne is the first opportunity I've found that fits those perfectly.
These are the top reasons I selected Usborne Books at Home and am far happier with it than any others.
- There are no sales minimums! After just $85 in sales my first 12 weeks, I do not have any sales minimums to remain an active Consultant. I am not looking to become a Supervisor at this point, so the only sales goals are the ones I set for myself. No more overspending on products for personal use just to meet a sales minimum!
- I don’t have to maintain an inventory! I’m not purchasing and storing other people’s products until they buy them. I also don't need to purchase disply copies of our products. I’m simply showing customers what my family already uses each and every day.
- I am adding excellent books to our home library at fantastic discounts – and many for FREE! We have built a substantial collection of excellent, and I never paid retail prices for any of them!
- I earn extra cash! I can use this extra cash for monthly bills, family hobbies, college savings, whatever! In 2007, I earned enough from ONE school event to pay for an entire summer's day camp for my son! And, I can give myself a raise anytime I want - the more I work, the more I earn!
- I support local schools and libraries! With Usborne's Educational Consultant certification, I can help schools and libraries build their book collections, raise funds, and promote reading programs. I love feeling I'm doing something worthwhile with my business! Plus, what better fit for a school fund raiser than books?
- I can support other organizations, such as daycares, parent resource centers, and charities, through fund raisers, book fairs, and vendor events.
- I am promoting products I love! I never feel guilty about telling someone about excellent products that will benefit their children. I’m not just making money; I’m encouraging literacy as well, from birth on.
- My market is diverse, not just limited to home parties & individual sales. Doctors & dentists like our sturdy, engaging books in their waiting rooms. Daycare providers and childcare centers enjoy excellent books that hold children's interest and withstand a lot of use by a lot of hands.
Labels: books, direct sales, home business, Usborne