Monday, April 1, 2013

Direct Sales: Fact or Fiction (Part 1)

What are the Answers?
Over the years, common misconceptions about the party plan business have mounted dramatically. These negative assumptions have been passed on from one inexperienced network marketer to the next, adding more fuel to the fire. So how are these incorrect notions different from the truth?

To address these challenges, some of the most common questions that many people have regarding the industry will be answered.  

Some of the common questions that I often get from others are:

·        Is Direct Sales really a scam?
·        I just signed up with a Party Plan company; will I get rich in a month’s time?
·        Is this considered a REAL business?
·        Are those in my warm market really my ideal prospects?
·        Should I approach any individual looking for extra income, with my business?

Fact or Fiction

Fiction: Direct Sales/Party Plan is a Pyramid Scheme

Fact: Though there are many companies that pose as Legitimate Direct Sales business models, the industry is not a pyramid scheme.  Although Pyramid Schemes do exist, they are designed as companies that exist solely for the purpose of recruiting people into the organization, without the exchange of goods and services or the selling of any consumable products like lipstick, candles, food or craft items.

With the freedom of the Internet, it isn’t hard to create a website, put a compensation plan together and begin marketing a company.  However, it doesn’t take much to sniff out a pyramid scheme.

Can you call the Corporate Headquarters?
The easiest way to determine if a company is legitimate,  is to find a customer service number and call to see how their support lines are set up.  You can also sniff out a fraud when they don’t have a headquarters.  No legitimate Company will be void of an actual company headquarters. 

There are additional ways that you can determine the legitimacy of a company by doing more due diligence.  But the bottom line is this; before you join any company, spend time researching the people behind the management team, the leader’s history and track record and the professional structure of the company. Not only will this save you money, it will also prevent you from wasting time and effort.

Fiction:  You can get rich quickly by joining a Direct Sales company.

Fact: Money doesn’t come easy. Not even in direct sales. It takes a lot of time, marketing effort, and sales to be extremely successful in this industry. Like any other traditional business, you have to put forth some level of effort in order to generate profits. The major difference between a Direct Sales  business and a traditional business franchise is that it takes less time and less investment to get started. By utilizing effective marketing strategies and techniques, you’ll be well on your way to success in a much more rapid time than it would have taken you in a traditional business setting.

Fiction: Direct Sales /Party Plan is not a “REAL” Business

Fact: What is a Real Business? Generally, they sell a product with an exchange of money. In Party Plan, you have a representiative (usually called a consultant, associate, stylist, distributor ect.) come to your home, demonstrate products in a party-like atmosphere, take orders, attend to new clients, and delivers the products or has
What's the Next Step?
them delivered to yu by UPS.What you don’t see is that the representative keeps records, files taxes, field customer service or referral calls, schedules and has business meetings. The fact that the rep is not in a brick and mortar building, tethered to a desk or cash register for 8 hours does not make this less of a business; it  makes it a more creative and flexible business. In fact, Mary Kay Consultants are often encouraged to think like their large retail counterparts.

Before you start convincing yourself or others to join any Direct Sales or Party Plan company, make sure that you have a fresh outlook on the industry and that the company or companies you are looking into are an ideal fit for you.  

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