Sunday, March 2, 2014

Advantages & Disadvantages Of Direct Sales

The more consumers you contact, the more sales you make.


Direct sales are popular with home business enthusiasts because they already have the elements for success right in their home office -- a computer, a telephone, Internet access and the will to succeed. It puts the entrepreneur in control of his income. There are companies whose entire business model is based on producing products and having independent sales professionals sell them instead of retail stores. However, there can be drawbacks, too, to direct sales.


Unlimited Income


Sales is a numbers game. If you choose products and services that you are passionate about, it won't be hard for you to make your sales pitch. If you believe in a product or even use it yourself, your sales pitches will be more like conversations instead of business transactions. The more you talk about your products to potential consumers, the more sales you make. Your efforts determine your earnings.


Administrative Support


When you start a business, you are responsible for every aspect of that business from product creation to product delivery. With direct sales opportunities, all you have to do is sell. The organization you have partnered up with will handle manufacturing the product and delivering it to the customer. You have a crutch to lean on when you have problems with using software or customer complaints. The company handles it for you. The only administrative task that you have to do on your own is paying the taxes on your income.


Scam Potential


All direct sales opportunities are not created equally. Predators prey on novice entrepreneurs with unachievable sales commission structures and pyramid schemes. You can sell thousands of dollars of their product and get very little in return. By that time, you've already recruited members to sell. If you drop out, there are still others to take your place. Research these opportunities before you commit to anything. The Better Business Bureau can give you information if there have been complaints about this company in the past.


Unpredictable Income


The downside to having complete control of your income through direct sales is that your paychecks aren't guaranteed to be the same every week. Some weeks will be better than others. You will need to develop money management skills so that on slow weeks, you don't fall into a debt trap. Plan ahead with your finances and only spend money that you already have. Never spend money that you think you can make. Something always goes wrong when you really need the money. Customers have buyer's remorse or change their minds all the time.








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