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BBB: Five Questions to Determine if Direct Selling is for You

10/17/2009

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More than 15 billion people in the U.S. sold more than $30.8 billion in products and services through direct selling in 2007, according to recent figures from the Direct Selling Foundation. Cosmetics, jewelry, skin care cleaning products and cookware were top-sellers.

Your BBB recommends asking the following questions before starting a career in direct sales:

Are you a good salesperson? Some people are born to be in sales and others have to force themselves to approach new people. Anyone interested in direct sales should arrange to shadow a couple of successful direct sellers who can show what it takes — every day — to be a success.

Is this a product you believe in and can sell? If you are selling a product you believe in, most of the work is already done for you. Excitement over a product or service is infectious and will grab potential customers. If you wouldn’t buy the product yourself, you’re going to have a hard time selling it.

Do you have the proper resources for direct selling? While startup costs are low for a legitimate direct sales opportunity — around $100 for a startup kit — it helps to have a few basic resources. A car, a computer, a filing cabinet and a dedicated workspace in your home are helpful in order to hit the ground running.

Can you trust the company?  Ask the company plenty of questions and read company literature thoroughly. Familiarize yourself with the official Code of Ethics (dsa.org) established by the Direct Selling Association so you can identify any potential violations. Find the time to sit down with actual representatives and customers for their insight on both the company and the products. Take your time in choosing the right opportunity and always vet the company with the BBB at wynco.bbb.org.

Is it just a pyramid scheme? The biggest red flag for a pyramid scheme is that the money-making potential is in recruiting other people to pay to join. The money is then filtered up the pyramid, which is why pyramid schemes often require large startup fees.

Start With Trust. For more advice on job-hunting, visit wynco.bbb.org or call 800-564-0371 for reliable consumer tips and information.

About the BBB The Better Business Bureau, founded in 1912, is a champion for ethics and trust in the marketplace. Only businesses that meet the high BBB standards are invited to become BBB Accredited Businesses. Today, 128 BBBs across the United States and Canada rate more than 3 million local and national businesses and charities with scores ranging from A to F. Only a BBB Accredited Business may elect to participate in BBBOnLine, one of the most trusted and recognized Internet seal programs in the world. The BBB serving northern Colorado and Wyoming is trending toward 1 million instances of service to consumers and businesses in 2009. These services include reliability reports on local companies and charities, access to companies that can be trusted by industry, help with dispute resolution, and trustworthy information on consumer and business topics. Barbara Read, VP Communications Director, 970-488-2035, bread@wynco.bbb.org
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