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What is Direct Sales? A Fast Way to Start a Home Based BusinessYou may be asking yourself, what is direct sales? Well according to the Direct Selling Association, it is the sale of consumer products or services, person to person away from a retail location. Independent sales people market these products and services to customers, and depending on the company, these sales people are called distributor, representatives, consultants and various other tittles. Products are sold primarily through in home product demonstrations, home parties, and one-one one selling. Now with the Internet, products can be marketed online from niche websites , though email campaigns, and through social networking sites. Benefits of Direct SalesDirect selling has benefits for company representatives and distributors as well as consumers. The Direct Selling Association research shows the following:• Direct selling is a good way to meet and socialize with people • Direct selling is a good way to earn extra income • Direct selling is a good way to own a business • Earnings are proportion to efforts What is Direct Sales Balance for Success?A balanced direct sales business is one, which utilizes all opportunities available to create business and cash flow. It is desirable because balance will provide you with a solid business with less chance of bad seasons or events jeopardizing your business or income. A few reasons for a balanced direct sales business are:• Multiple streams of income • Constant cash flow • Less stress • Easier maintenance once you get it going Provides Three ServicesIn Direct sales, you have the opportunity to generate income for yourself by providing three services to others. These services are:1. Product Sales 2. Conducting home party shows or events (online and offline) 3. Teaching others how to create incomeWhen you eliminate one of these services, you are reducing your income by one-third. A balanced direct sales business will utilize all three services to generate leads. When Considering a Direct Selling OpportunityStart up cost should be minimal. The starts up fees in direct selling companies are generally modest, usually the cost of a start up kit. Companies want to make it easy and inexpensive for you to start. Pyramid schemes make money through fees paid by new recruits or by loading inventory or training aids on them. High entry fees should be a warning. You should be able to return unwanted inventory. Companies that are members of the direct selling association “buy back” unsold marketable products purchased with in the prior 12 months, if you decides to quit the business, for 90 percent of the price you paid for them. The DSA Code of Ethics requires that member companies do this. Beware of companies that encourage front loading or buying un-returnable large inventories of un-returnable products to reach achievement levels or receive a “special” or “large discounted” price. Is the money you are earning based on the sale of products or services? The answer should be, “absolutely.” This is the key element of a legitimate business. Direct sales, like other methods of retailing, depend on selling to customers who use and/or consume the product. This requires quality products and services sold at competitive prices. Beware, any business that claims you can get rich by solely recruiting new people into the business. If you are looking for a direct selling opportunity that has, minimal start up cost, no large inventory requirement, and that customers are looking for
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Bixter, D.). Getting into direct sales. Home-Based Business & Opportunity Magazine (October 2009). Direct Selling Association (DSA.org)
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