A Look at Home Based Businesses

Over the years I have been a stay at home mom, I have sold Avon, Partylite, Mary Kay, and Pampered Chef. I have also had several close friends that sold for other companies. Along the way, I have observed and learned a few things that may help you see if this sort of thing is right for you.

Each time I sold something new, I went in whole heartedly. Home based direct sales companies are known for ramping up your excitment. I swore I would make money. I would be like the company's top earners, at least in our town. Sometimes I did really well. Each time, though, I learned something.

Home bases businesses have grown over the past couple of decades as more women either look to add money to their budget or to get out of the house a couple of nights a week. Some of them are great companies with "easy" sales, but some don't really make a lot of money.

Most home based businesses require some sort of start up fee. Sometimes you can get it waived or discounted. Avon, for example, requires a very small start up fee, but some consultants that sign you up will waive it. Pampered Chef discounts theirs if you hold a show and use some of your show benefits as credit for your kit. This can be an excellent idea, as Pampered Chef's kit is worth substantially more than the un-discounted start up fee. Some suugest, or even require you keep an inventory. This is fine if you have the money and room to do it. If you don't, you can still sell, but it could put you at a disadvantage. If customers are used to using consultants that have product on hand, and you have to order it, they may use the consultant that has it on hand.

After you purchase whatever kit there is, you will start reading training materials that will tell you how their business is run. Most home based businesses emphasize a "downline", that is, signing people up under you. Most of the time, they promise you some small percentage of their sales. It is not necessary to do this to be in the business, but it could add a little extra money to your paycheck.

The next thing you have to do is suck up to family and friends to get them to hold shows for you. Some companies ask that you have a prospect list when you purchase your kit, and some ask that you have shows booked. In the case of Avon, you do not hold shows. The only thing you have to do with them is hand out catalogs and take orders. The idea for the shows is that your family and friends will invite THEIR family and friends and some of THOSE people will book shows and will invite THEIR family and friends and so on. Sometimes it works, sometimes it doesn't. If you are serious about the home based business, you may have to be pushier than you care to be. Most companies will give you training material to pursuade customers to book parties or shows from you. There is also usually an incentive for the hostess for her friends to book shows from her so she will likely help in your quest for bookings.

In being a consultant of various companies, you must be willing to really learn about the products. You must also really like them. People sense insincerity. If you don't truly enjoy using the products, then you can't make anyone else desire to use them. You also have to learn about the company. There is usually a suggested speech about it.

In most home based businesses, you must purchase catalogs, door prizes, order slips, and sometimes, invitations to give the hostesses. You often also have to purchase other items like ink pens, business cards, and folders. Any such purchase is tax deductible, but it also comes out of your bottom line, so be prepared. Usually the kit you purchase will have enough to do a few shows, but not many.

Another thing you should be prepared for is going to people's homes. If you are uncomfortable doing that, home based businesses aren't for you. You can do catalog shows, where you give the hostesses catalogs to take orders, but it is nearly impossible to book shows that way, and without booking shows, your business will soon die out. You also have to be comfortable on the phone. Not only do you talk to your hostesses over the phone, you usually must try to book extra shows over the phone, and must expect customers to call you with questions, concerns and complaints.

Although most home based businesses claim you only work a few hours a week, in order to be successful, you really must put more time into it that that. Learning about products, meetings, phone and internet time, the time it takes to prepare for shows, and the time it takes to gather orders, send them in, and drive to shows must all be counted.

Pay in most businesses is a percentage of what you sell. In some businesses, you use the customer's money to buy from the company what they are ordering and keep the overage. In some, you turn it all in and they send you a check or direct deposit. Some of the companies have a set percentage based on how high in the company you are, whether you have people under you, etc. Some are based on how much you sell. Basically, the more you sell, the higher your percentage is.

The upside to the direct sales businesses are that you can get the products you want and desire at a substantial discount while making extra money for yourself. If you really like people and have the extra time, it is worth it. If you don't, it is best to find something else to do. Despite most companies claims, very few people "get rich" off of direct sales. Many don't even make enough to count as full time pay. The best thing to do is research the company you choose. Don't necessarily ask people who ARE consultants, ask people who USED to be consultants, as they have nothing to gain. Then decide for yourself if it is right for you.