How To Maximize Your Chances of Success in Direct Selling

How To Maximize Your Chances of Success in Direct Selling

There are a lot of advantages to owning a business you run from home. One of those is the low overhead required to sustain the business and high return on investment you could get from it, if it is profitable. Another is the tax incentives you get from owning a business. If you’re reading this post, the chances are that you’re looking to achieve success in your direct selling business. Let me specify here that this post is for those who practice any of the following business models: direct selling, network marketing, home based business, affiliate marketing, etc.

Let’s get into the meat and potatoes of this post. The secret to maximizing your chances of success in direct selling, is choosing the right company the first time you get involved in the industry. This will save you a lot of time, headache and frustration.

Here are 5 tips to guide you through the process of choosing the right direct selling company to represent:

Tip #1: Only get into a business you are passionate about:

Direct selling is a “people business,” in which you have to share with others the product or service you’re offering, whether it be health, wellness, legal protection, travel, clothing, collectibles, home furnishing, or something else. So you need to find a business that you want to talk about all day and dream about all night.

Tip #2: Visit the company headquarters and meet the management of the company:

Nothing beats a face-to-face meeting at company headquarters. It’s by far the best way to get a good sense of what kind of people are running the company, how it is doing, and where it is going. You’ll get a sense of their integrity, and whether or not they are people you can trust. Go with your gut feeling on this one. Even if it costs you $1000 to make the trip, it is advisable to do it. And if the company doesn’t roll out the red carpet to meet you, then cross them off your list. If you can’t afford the expense or the time, then study the materials you get from the company extensively and completely. Really read(and don’t just flip through) the entire distributor agreement and ask questions about items you do not understand. In addition, meet the company’s leaders who are in your local area and attend some company events prior to signing up.

Tip #3: Only sign up with an established company:

The best way to avoid heartache is never to be “first’ in this business. A lot of people run after so called “ground-floor” opportunities. There’s too much risk being first. You want to join a company with a track record of success. Look for revenues of a minimum of say $60 million a year and at least five to ten years of solid earnings and growth before you sign up.

Tip #4: Consider only Direct Selling Association(DSA) members:

The DSA has essentially become the Better Business Bureau of the direct selling industry. It sets a very high standard for its members. Visit their website at, and check out its membership requirements and Code of Ethics. Among other things, it subjects companies to a yearlong review process before it lets them join — and to discourage “front loading,” it requires members to repurchase unsold materials from distributors for at least 90 percent of the original cost within 12 months of the original purchase.

Tip #5: Read the company’s financials:

You may be making a HUGE MISTAKE if you sign up with any kind of company, direct selling or otherwise, without first taking a close look at its financial records. Whether you are buying real estate, investing in a franchise, or getting into direct selling, you have to look at the numbers. You don’t want to do all the work and then the company doesn’t have the funds to pay you, do you? Be sure to only consider direct selling companies whose financials you can obtain. Also, check the company’s history with your local Better Business Bureau, your state’s Attorney General, and the Federal Trade Commission. Specifically, you want to look at some simple areas like: Does the company make money? Does the company have debt — and if so, how much and why? What’s the attrition rate of people who join the business? This kind of information should be readily available if the company is a publicly traded company. If the company you’re considering is not publicly traded, they still should be willing to show you their financials. If they’re not, don’t get involved – PERIOD!


Remember that success in the direct selling industry, or any other industry for that matter, requires that you build your business based on integrity, service to others and a commitment to quality. Legitimate direct selling is not a get-rich-quick business, but if you’re willing to work hard, it can be quite lucrative. Also, if you have any friends or relatives who have been involved in direct selling before, ask them about their experiences.

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Etieno Etuk’s Network Marketing Blog

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