With so many new start-up companies entering into the 1099 world, it’s important to know how to choose a party plan or direct sales business. Here are some ideas and things to think about when making your choice of which company to join.
What is Direct Selling?
Direct Selling is a retail channel for the distribution of goods and services. Sales are typically made through party plan, one to one demonstrations, and other personal contact arrangements. A text book definition is: “The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.”
Direct Sales Quotes from World Leaders:
Warren Buffett – “The best investment I ever made.”
Paul Zane Pilzer – We’re in the midst of a boom in home-based businesses and it shows no sign of slowing.”
Jim Collins – “This business offers the most systematic way for ordinary individuals to achieve economic success.”
Stephen R. Covey – “It’s an entrepreneurial opportunity where people can use their talent and their passion towards a greater good.”
Consider the following criteria when choosing a Direct Selling Company to join:
- Select a company that operates globally (Scentsy is Global).
- The company must be approved by an authentic agency (DSA) for reliability and global standard. This one is very important! You want your company to have industry standards regulated by the DSA, giving “best practices” for the longevity of your business. Find out more about the DSA and their role in your company.
- The Company creates a need for customers to return to YOU for products and services (this is know as consumable products).
- The company products must be of high quality, unique and have continued consumption.
- The company offers a generous compensation plan, duplicability and is inheritable.
Qualities to look for when choosing a Direct Sales Company:
- Are they a “family friendly” company offering products I would be proud to show my friends and family? Could I involve my children in the process of building a party plan or direct sales business?
- Does the company offer tools and resources to grow? Are the products fun?
- What kind sustainability does the company have, and how long have they been in business?
- Could I be passionate about the products AND the company? Do they reflect my own core values?
- Are the products easy to demonstrate and sell to my customers?
Other Questions to think about when choosing a Direct Selling Company:
- Does it require me to lug around heavy products, make large investments for inventory, or go into debt to fund my new business?
- Does it require me to do facials or foot scrubs?
- Do I have to cook or clean to show the product line?
- Is there a lot of prep work involved before I would demonstrate the products?
- Are the products simple?
- Is it a product I can sell, even in a down economy?
- Can I advertise online and build an online presence through social media?
- Is this a company that gives back to the community?
There was a lot of criteria from the company that best suited my needs, but I held out for my perfect Party Plan Company and found it in Scentsy Fragrance. Make a list of those things that are most important to you, and to your needs. Do some research and make the investment. With the right company and the right products, you too will find success in the Direct Selling Industry, using the Direct Sales or Party Plan model.