For years, I’ve been approached by direct sales companies interested in having me share their information with my clients and for years I turned them away.  Why? 

Quite honestly, I had experienced more than my fair share of over-zealous MLM representatives who just wouldn’t leave me alone -- I found them distasteful and was left with the unfortunate impression that all network marketers worked that way.  But after careful consideration, I've decided to change my tune.  The truth of the matter is that in spite of my skepticism, I've slowly come around to seeing the value of direct sales opportunities. 

What changed my mind?  Several things…

·         Success Stories- Direct selling is a $30 billion dollar industry in the U.S. alone and many of the people sharing in that money are women.  In recent years, I've met Moms who are making excellent work-from-home incomes in direct sales.  They are genuinely enthused about their jobs and clearly have found a good answer to their work-life balance needs.

·         Direct Sales Companies Provide Structure - Many women want to work from home, but they don't want to create their own companies.  Direct sales companies provide infrastructure, support and training -- thereby eliminating many of the stumbling blocks involved with starting your own business.

·         Variety of Opportunities - Gone are the days when direct selling meant selling for just a handful of companies like Avon or Tupperware.  In today's economy, there are an ever-expanding variety of products and services that are being marketed through direct selling channels.

If you’ve been mulling over the possibility of working with a direct sales or multi-level marketing company, here are five important points to consider:

1)  Choose a Solid Company:  You’ll want to associate with a company that provides an outstanding product, a rewarding compensation plan, ongoing training, and opportunities for growth.  Just like in the corporate world, if you have a supportive boss and a reliable management team, you’ll find it much easier to succeed long-term.  To get a feel for the variety of direct sales companies, go to the website of the Direct Selling Association, www.dsa.org, the national trade association for that industry. You’ll be connected to more than 150 companies, including many well-known brand names.     

2)  Evaluate the compensation plan:  Depending upon the company, the sales person (you) will be compensated either for the products or services you sell and/or if the company offers a multilevel (MLM) compensation plan, you will also be compensated both for your own product sales, and on the product sales of your downline.  A downline is the chain of people you have brought into the business, and in turn, those people that they have brought into the business. 

So, when shopping around, think about whether you’d prefer working for a MLM that compensates you primarily for recruiting people into your business or those that compensate you only for your sales efforts, without requiring you to get involved with recruitment. Go with what feels right.  In order to find a work situation that will be productive for you long term it’s important to be true to your personal strengths and comfort zone.  

3)  Find the Right Product:  Without a doubt, one of the most vital components to success in direct sales is finding a product that you are really excited about – something that you enjoy and believe in.  In addition to finding a product you like, it’s helpful to find a product that you can easily sell in your community, or one that you can effectively market online.  When you evaluate the types of products you’ll be selling, think about how frequently people might purchase the product.  Consumables, such as nutritional supplements, can be sold through an automatic renewal system, thereby enabling you to quickly build up your customer base without having to continually source out new customers.  On the other hand, items such as high end clothing or jewelry will be bought less frequently but can be sold for a higher-price point per purchase.

4)  Evaluate Start-Up Costs:  Direct sales companies will require you to purchase a start-up kit.  The cost of the start-up kits is generally modest – sometimes even less than one hundred dollars. In some rare instances, the cost of the start-up kits can be significantly more.  Higher than average start-up costs should not necessarily be a cause for alarm, but you do want to make sure that you understand what you are being charged for, why you need to purchase the materials, and what the company policy is for refunding any unused inventory.

5)  Be realistic about your income potential:  Most people who work in direct sales do not earn large amounts of money nearly as quickly or easily as some would have you believe!  Just like in corporate jobs, there are people who earn small salaries and others who generate six-figure incomes.  But also like corporate jobs, the number of people earning the big dollars is far fewer than those who earn smaller amounts.  Do not be swayed by representatives who promise you “instant riches” – it takes consistent effort and commitment to build up your business with any company. 

Before you sign-up to work for one of these companies as an independent contractor, try to collect information from at least a few companies so that you can compare and contrast their relative merits.  Ask lots of questions, test out their products and do a thorough background check before you invest your time, energy and money into this new venture.  

© Nancy Collamer, www.jobsandmoms.com, 2006.  This article was excerpted from The Jobs and Moms Guide to Careers in Direct Sales and Multi-Level Marketing which can be downloaded by clicking here.