DIRECT SALES
COMPANY COMPARISON WORKSHEET
When you start your search
for the perfect Direct Selling or Network Marketing business, here are some
valuable questions to ask when comparing companies and opportunities:
1) Start up cost
should be minimal. Start up cost in direct selling and network
marketing companies are usually modest
and mainly to cover the cost of the sales kit.
Q. What is the
company's start up cost?
Q. What comes with a new Distributor/Consultant kit?
2) Some companies
require a monthly purchase.
Q. Is there a monthly minimum purchase requirement and if so, how much is
the monthly investment?
3) Most companies
submit the local state sales tax, however, there are a few that do
not.
Q. Will I be required to submit my own state sales tax?
4) Check with each
company regarding their return policy. This will be vital to your
business.
Q. Can I return unwanted or damaged products and if so, what is the
company's return policy?
5) Do you have a
"buy-back" policy? Some companies offer to "buy-back" unsold
marketable products purchased within the 12 months prior, should you decide
to quit the business for 90% of the price you originally paid.
Q. Does the company offer a "buy-back" policy?
6) Some companies
require Independent Representatives to pay for portions of the Hostess
gifts, etc. You should know up front whether part of your
commission earned will go to cover these cost. This will reduce the actual
amount of commissions earned.
Q. Will I be required to cover part of the Hostess Gifts or pay admin fees,
etc.?
7) It is always
smart to compare catalog and supplies cost as they vary by company.
Q. What do company catalogs and paperwork cost?
8) Customer
shipping charges are important to your business and can vary
greatly from company
to company.
Q. What are the customer shipping charges?
9) It is customary
for companies to have a monthly or quarterly sales requirement to
stay active and/or receive overrides.
Q. What, if any, are the monthly/quarterly requirements?
10) If you plan to
participate in local fairs, festivals or events, you will want to
know whether the company allows you to sell "cash & carry." Many will not
as they prefer Representatives to provide one on one customer support and
book to increase sales.
Q. Does your company allow Representatives to sell products "cash
& carry" at local fairs and events?
11) Many companies
provide Representatives with a company approved website. If you
plan to market your business online,
this will be vital to your success.
Q. Does your company provide a website and if so, what is the cost?
Q. If they do not, can I
design my own?
Q. Are
Consultants/Representatives allowed to market online and what are the
company guidelines?
12) Some companies
authorize Representatives to deduct their commissions prior to
sending in their Show Order, while others require all monies collected
forwarded to home office and then commission checks are issued monthly or
twice per month.
Q. How are you required to submit payment for a show?
13) How often are
commission checks issued..monthly, bi-weekly or weekly? My
experience has been that most issue monthly. Be sure to ask as there are a
few that offer twice monthly and weekly.
Q. How often are commission checks issued...monthly, bi-weekly, weekly?
Q. At what time of
each month will I receive my commission check?
14) Many companies
now ship their products directly to the consumer or Hostess,
however, there are few that require Representatives to deliver a Show or
products.
Q. Will I be required to
deliver products?
15) With some
opportunities, Representatives are encouraged to stock products to
have on hand for eager customers.
Q. Will I be required to stock or carry inventory?
Q. If no, will my business be more successful if I elect to have on hand
"hot sellers?"
16) Most companies
allow their Representatives to purchase products or display items
at a special
discount.
Q. Are Representatives allowed to purchase products at a discount and if so,
what is the discount?
17) Have them
explain the commission structure and levels of achievement as it
varies greatly by company.
Q. What is your commission structure?
18) Do they offer
additional incentives, such as trips, a cash bonus and etc.?
Q. What additional incentives does the company offer?
19) What type of
support is available?
Q. What type of support can
I expect?
As with any business, finding what works for you
and your lifestyle will be the key. Take time to research opportunities and
consider whether the business and support team are a good match for you.
Another wise decision is to consult with a home business tax professional
before launching your home business. Learn what can and cannot be deducted,
as well as, good record keeping.
Diane Drayer is the owner of DirectSellingOpportunities.com. If you would
like to reprint this article, please send her an email to
info@directsellingopportunities.com
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