Some Folks Give Direct Sales a Bad Name
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.