Advantages and disadvantages of direct sales

If you are looking to start a small business from home you might be considering looking into a direct sales business. While these businesses can be successful there are also many challenges to starting a direct sales business. Before you decide on starting a direct sales business you will need to do plenty of research about the company to ensure that they are legitimate company and are not going to con you out of your hard earned money. There are many resources you can use to research these companies and the best place to start is the Better Business Bureau. You will really want to check the Better Business Bureaus website if the company is not a well known company. For example Avon and Mary Kay have been around for years, so you already know they are a legitimate business, but you will still want to find out more on the company and what it requires before investing any money.

Another thing to think about when starting a direct sales business is if you are going to be going around door to door putting on shows to encourage people to buy your products. Not everybody has the personality to talk people into buying a product so door to door sales might not be for you. If you are not a very outgoing person and do not want to put on shows for a direct sales business you can look into companies that do their direct sales over the internet. You can still earn money, but your competition is going to be a bit higher. But at the same time you can expand your customer base by advertising your website on other websites.

Advantages:
 Potential to earn an unlimited amount of money
 Be your own boss
 Initial cost is fairly cheap
 Can receive start-up materials for a few hundred dollars or less
 Opportunities to meet new people
 Help you build confidence and become more outgoing
 You can lower your commuting costs
 Can use the internet to increase your sales
 E-mail potential customers
 Can create a marketing list easily by having an internet site by offering free information to people who subscribe to your site
 Customers can ask questions and get advice in a relaxed environment
 Products are delivered to the customer at home directly to their door
 There is usually a money-back guarantee for the customer
 Flexible working schedule
 Some direct sale businesses allow you to apply for credit so there is no start-up fee for you
 There is no required level of education or experience, anybody can succeed in direct sales if the put forth the effort
 You become an expert on certain products so you are more knowledgeable about what you are selling to your customers

Disadvantages:
 Promoting this type of business can be very time consuming
 This type of business is highly competitive
 Unpredictable source of income, but if you do your research and choose a well known company that does not have a lot of salespeople in your local area you can increase your chances of earning a profit
 Will get quite a bit of rejection before finding people who will buy what you have to offer
 If you are looking for one online it is sometimes hard to find a business that is legitimate
 Sometimes you have to sell so many products or a set dollar amount to remain in good standing with the business
 Some of the products are similar to products you can find in the store but for a much higher price and you will have a hard time trying to convince people to purchase this product instead of one at a store.

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