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The Direct Selling Association estimates more than 15 million people sold about $30 billion in products and services through direct selling in 2008. Being successful at direct selling doesn’t require special education or experience, but it isn’t for everyone.
Your BBB and the Direct Selling Education Foundation have partnered to create one stop for trustworthy direct selling guidance. Here are five questions to ask when deciding whether to start a direct sales career:
• Do you have what it takes to be a good salesman? Direct selling offers the opportunity to develop fundamental business and personal skills, but success takes time and effort. Consider shadowing some successful direct sellers who can show you what it takes.
• Is this a product you can believe in and sell? Excitement over products or services is infectious and grabs potential customers. If you wouldn’t buy the product yourself, you’ll have a hard time selling it.
• Can you trust the company? Ask companies questions, read literature and talk with actual representatives and customers to gain insight. Familiarize yourself with the DSA’s Code of Ethics to identify potential red flags at www.dsa.org. And, always check companies out beforehand with your BBB. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.
• Is it a pyramid scheme? Pyramid schemes pretend to be legitimate opportunities. The biggest red flag is the money-making potential lies predominantly in recruiting others to pay to join. Your compensation should come primarily from sales of products and services to actual users.
• Do you risk financial loss by joining the company? Start-up costs for legitimate direct-selling companies are generally less than $100. Check out companies’ buyback policies so you’ll know your rights if you decide to quit. The DSA’s Code of Ethics requires member companies to buy back inventory and sales aids purchased in the past 12 months for at least 90 percent of the purchase price.
Direct selling is a great opportunity, but may not be for everyone. Consider everything-your skills, the company and potential risks-to determine if it’s right for you.
John North is president and CEO of the Dayton Better Business Bureau.
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