Direct Sales - 5 Things Your Sponsor May Not Want to Tell You

Traci Anderson
Are you thinking about joining a direct sales / party plan company? If so, you've probably spent a considerable amount of time deciding what type of product you want to sell and how much time you want to devote to your new business.

The next step is interviewing your recruiter. It sounds strange, doesn't it? In most professions, the recruiter interviews you, however, if you are serious about a direct sales career you'll want to ensure that your recruiter is being honest and thorough when sharing the opportunity with you.

Before you engage in your next interview, here are five important issues that you'll need to know...but your recruiter may not want to share with you.

1). You Will Help Line Their Pockets. If you've spent any time at all researching the structure of most direct sales / party plan companies you obviously recognize that the person who is recruiting you will receive (immediately or eventually) an override from your sales income. As you are meeting with your sponsor to discuss joining the company, keep this in the back of your mind. What is their motivation? Do they want you to be a success for you, or for their own monetary gain?

If you have any doubt, ask to shadow them at a party. See if they will hold a party for you. Attend one of their sales meetings first. You can get to know a lot about a potential sponsor by seeing them in action versus simply talking with them on the telephone. Is she telling you that she has the top selling team in the company or the highest personal sales? Ask her to send you a company newsletter so you can see the figures for yourself.

2). The Products WILL NOT Sell Themselves. How often have you heard, "trust me, the products will sell themselves". If that were the case, then why would a company employ a sales force in the first place? Why would they spend time and money to teach their employees how to "up-sell" and "cross-sell". In the five years I've been involved in the direct sales industry, I've never heard a CEO or Vice President encourage a sales team to "just stand there and look cute". Please steer clear of people who try to make you think a sales business is "easy money". It isn't.

3). You Will Need To Spend Money...to Make Money. How often have you heard a recruiter say, "you'll just need to buy a starter kit and your business will be off and running". What about those ads that say, "start your business for only $10.00".

Realistically, the ad should read..."start your own home business for $10.00".... (plus advertising costs, high-speed internet access, telephone service, business attire, sales incentives, postage, mileage, childcare, files, a stapler, pens, pencils, a calculator, tape, ink, meals, training trips, a briefcase, computer, long distance charges, cell phone fees, etc..).

If someone tells you that you can start a successful home business for less than the cost of a Happy Meal, they are not being honest with you.

4.) You Are Not Always In Business "By Yourself...and For Yourself". This is a popular slogan of many direct sales companies. At first, the slogan is pretty accurate. As a new consultant, you will be "off the company radar". However, the moment you reach a position of leadership in the company you can expect to be assigned a sales manager or corporate trainer.

While will still be "boss-free" in the traditional sense you will likely have corporate trainers that will strongly encourage you to meet company sales goals, training expectations and recruiting promotions.

The company may also have a list of "leader expectations" that you agree to follow when you join. If you plan to take your new business to the next level, make yourself aware of these requirements before you join and don't expect to fly solo if you are going to be successful.

5.) Last, (but certainly not least) don't plan to earn a full-time income working part-time hours. One of the most popular direct sales slogans is, "work part-time hours and earn full-time pay". According to the statistics compiled by the DSA (Direct Sales Association) Only about 5% of direct sellers will earn $35,000 or more per year and only .05 percent will make a six figure income.

I have yet to meet a direct seller who earns a full-time income while working only twenty hours per week. In fact, many of the most successful representatives end up hiring childcare, or nannies while working the equivalent of two full-time jobs. Be very skeptical of anyone who suggests that you can earn a full-time income by working only a few hours per day. The statistics simply don't support that claim.

Published by Traci Anderson

Meet traci with an *i*. i blog. i design. i parent. i love dogs. i crack myself up.  View profile

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  • Nicole12/1/2011

    I definitely agree with your suggestions, although I found a wonderful company and they passed all the skepitism tests with flying colors. My team leaders are making 12,000-15,000 a month after 7 years in the business, were able to quit their corp. job and are retiring next year at 49 yr old. I'm 26, have been with the company for about 6 months, work about 10 hrs a week on it as a second source of income, and average 500-600 a month, and it's constantly rising. You have to find a company whose mission and ethics are sound and clear and respectable. I found it and I love it.

  • Suzee10/4/2009

    Wonderful article! Very true!!

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