Succeeding in an At-Home, Direct Sales Business

When I went broke, one of the (many) factors may have been my direct sales business, which I ran poorly, rarely charged customers the correct amount, and kept way too much inventory.

(Yes, Mom, you were right)


Being honest, though, that was due in large part to a series of my own (bad) decisions, and perhaps as well to the as-yet-undiscovered low calcium, that muted my otherwise micro-managing type personality.

Eventually with that business, I became more of a home office assistant to more successful businesswomen, so I can tell you without hesitation that people do succeed in the business.  They do make extra income, to be able to become stay-at-home moms or pay off debt or build mansions.  They do "win" cars and vacations and other prizes.

More recently, I decided to give the at-home business thing a try again.  Ironically, again to pay off medical bills, and, ironically, again while suffering from undiagnosed low calcium.    This time, though, I had a few things working in my favor.  My eyes were wide open to the dangers of spending money on a business, and my life was significantly more manageable thanks to him being home to keep the dishes clean and food in the fridge.

That second business netted me over $300 a month right from my first month in business.  Eventually I did end that business, as well (a regret that I regularly think of correcting, now that the calcium thing is FINALLY worked out and my energy levels are back above those of the average 110 year old.)

Having been at both ends of the spectrum, I have a few words of advice.  If you are considering starting a direct sales (ie, Mary Kay, Avon, Tupperware, Pampered Chef, Lia Sophia), business, here's some points to consider:

1. Research research research
1. You have no idea what is out there in terms of established direct sales businesses.  There are 203 members of the Direct Selling Association, and that's just one membership organization.  Start there, write down some companies or products you would be interested in.
2. Understand the payment plan options out there!  The first business I had, I bought product, at a discount, and then sold it for what I wanted, basically.  It allowed me to forget tax or shipping, to my detriment.  The 2nd business I had, 100% of party sales went to the company, and then I was paid my commission bi-monthly.  For me that worked.  For people wanting "immediate" income opportunity the first option might be better.  Understand the options.
3. Find out who's in your area.   The second business I started had only one other person serving my entire state when I started.  Think about it, if you want to sell candles, because your best friend makes a lot of money selling candles to you and all your friends...who are YOU going to sell candles to?   Many direct sell companies have a company wide website that lets you search for consultants by zip code.  Make sure your area isn't inundated already.
4. Form a realistic idea of inventory levels.  The second item I sold didn't want me to have ANY inventory that I sold AT a party ~ it was a food item and they wanted to ship direct to customers to ensure freshness.  Other companies would like you to keep popular items on hand, or even all the items.  Look at catalogs and think about the variety of product.  Think about, if you were the client, would it be something you would want to pick up right away, or would you be okay waiting.  With make-up and candles, you might lose sales to the drugstore when customers think "I really like this shade, but I can just stop at the store on the way home."
5. Gain an idea of product roll-over.  This is tied to inventory levels.  In my first business, there were seasonal items that only appeared in one catalog, and then sat on my shelf indefinitely, eventually given away as a door prize.  How often does the parent company put out catalogs and how much of that catalog are specials?  Think about how you would sell that and inventory it.  Regular "new" products helps keep customer's coming back, but regularly "discontinued" products may be hard to sell.
2. Pick something you LIKE!  
1. You want to be thinking about this product in your free time.  You want to be trying out new items and having opinions on them.   You want to enthusiastically call customers and say "Oh my we just got the cutest new lunch bags and you HAVE to see them." and mean it.  Ideally, you want people asking you about the product and chatting you up on the street about it.  So, please.  Pick something you like.  Not to give away the ending, but my first business was make-up.  My second business was chocolate.
2. You want to know about the product.  What other companies are out there, what are their pros and cons.  If you can't eat chocolate, you can't compare your product to something your customers already know.  You can't think on your feet when a customer says "I love Peppermint Patties" and you say "You MUST try our mint-filled baking bits!"  If a customer loves a certain type of jewelry or shops at a certain store, you want to know about that if you're selling jewelry. 
3. PLAN!
1. Don't start a business without already opening a business account.  Really.  No kidding.  OPEN A BUSINESS CHECKING ACCOUNT.   Give yourself a loan.  At least triple whatever the company says is your "start up" costs, because you're going to need things that aren't in your kit, not just product from the company, but pens.  Cotton balls.  Serving ware.  A bag to lug everything to your party.  Labels. Purchase business items from your business account.  Period.    (And don't pay that loan back until you have double that amount in the account, by the way.)
2. Know where you're going to keep your product, both inventory and party supplies.  Know where you're going to keep your paperwork.  If you want to always have inventory on hand, you might need several shelves & a large portion of your basement.  Especially if you're selling baskets or something bulky!
3. Know when you're going to work.  Its a job, even if it's your business.  Look at your calendar, think about your life.  If you're like me and you really enjoy Biggest Loser, then say "I can work Mondays and Wednesdays but I prefer not to work Tuesdays" or "Tuesdays are my paperwork day."  I can not stress this enough because I did learn it the hard way.  HIghlight "party" days on your calendar and work within them.
4. If you have a family, make sure they know, in detail.  "This room is now my office, and will have product in it for my business."  "I will be using the computer for an hour, three nights a week for my business." 

There's more to success, perhaps, but all I can say, in my most been-there-done-that voice, is if you can follow the above, you'll be leaps and bounds ahead of many others signing up for a business on a whim.