Direct Sales – Chapter 2

Choosing the company which suits you best!

The first step when considering becoming involved in direct selling, is to find a product which you can believe in and enjoy selling. In years gone by, items such as expensive vacuum cleaners and encyclopaedias were sold by salespeople who had to carry heavy demonstration items with them when going door to door to try to sell their product. With the incredible advances in technology things have changed dramatically when it comes to direct selling. It no longer has the stigma with which the “door to door” salesman of the past had to contend.  By the same token there are many people today who wouldn’t know what a set of encyclopaedias looked like!

The most popular direct sales companies nowadays would appear to be those selling household products such as Tupperware, and companies such as Avon, which has salespeople in many corners of the world making a comfortable living from selling their range of goods of which cosmetics form a large percentage. When one is putting out feelers to find a company which you would be happy to represent there are several factors to consider. First of all, is the warehouse which houses the company’s products easily accessible or will there be a considerable time lag between the placing of an order and receiving it?  Buyers tend to be very keen to receive their orders once they have placed them with a representative and If you live in a rather remote area, then it stands to reason that you may not have deliveries as frequently as if you were living in a larger town. The solution here is to collect your customers’ orders early in the month in order to place and receive them in time for month-end deliveries. This applies mainly to countries where people receive monthly pay cheques and budget for their purchases accordingly.

Once you have given some serious thought to joining a particular company as a sales representative, you need to find out whether there is a cost involved. You don’t want to have to take a bank loan in order to begin selling! In most cases the initial outlay is minimal and usually your payment will provide you with a starter pack of catalogues showing the current range of available items, and in some cases a few products for you to show to your prospective buyers. Once you start making some money, you can build up a reasonable supply of items which you can demonstrate to help increase your sales.

Another question to ask is whether or not you will be granted credit when you sign up with the company. In other words, will you have a certain amount of time to collect the money from your customers before having to pay your account or is it purely a cash business. If the latter is the case, then you will always need to collect the necessary amount from your customer as you take their order. You give them a written receipt for the amount paid to you and be very strict on how you handle this money. When you pay your account, the difference between the amount you have received from your customers and the amount you pay your company is your commission.  If you are granted credit then you deliver the products to the customer and only hand them over when you are given the amount due.

It is normal practice when you sign up with a direct sales company to be allocated to an area manager whose job it is to assist you when you have problems. This person may or may not give you regular training sessions themselves, or it may be company policy to encourage you to attend regular sales meetings run at the branch of the company closest to you. It is very important for you to learn as much as you can about the products you will be selling as buyers expect you to be knowledgeable regardless of the length of time that you have been with the company.

Depending upon how well you sell once you have started with your chosen company, there may be seminars which you are invited to attend where you will receive on-going training as well as motivation. Things change according to economic factors as well as management policy but you will find that the more successful you are at selling, the more your company should recognise your efforts.

“Success is never final. Failure is never fatal.
It is courage that counts” – Winston Churchill

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