Cook Up Opportunities for Success with Direct Selling

ARA) – If you have ever been to a home party where candles, baskets or makeup was sold, you’ve experienced the phenomenon of direct selling – one of the fastest-growing types of retail sales. Most widely associated with plastic food storage products, direct sales has evolved over the years and grown to include the products mentioned above, as well as jewelry, gourmet foods and even lingerie.
Selling through in-home product demonstrations and parties is a profitable business model, reports the Direct Selling Association (DSA). A survey conducted by the group in 2000 found that 55 percent of American adults reported having purchased goods or services from a direct selling representative. Total revenues from direct sales were $28.7 billion in 2002, and that year an estimated 13 million people were involved in direct selling in the United States.
People from literally all walks of life and age groups have been very successful in direct sales. What makes direct selling an appealing career choice for so many people? There are as many reasons as there are sales consultants, but DSA’s research shows that the most common include the chance to meet and socialize with people, flexible work schedules, the ability to earn extra income, and the opportunity to be self-employed.
Jody Morgan is typical of many people who have found a career in direct sales to be both profitable and fun. She’s a consultant with Tastefully Simple — the nation’s first company to sell easy-to-prepare gourmet foods through home parties. “I started this amazing business,” she said, “to get out of the house a couple times a week. Before I knew it, I was making money and contributing significantly to our household income. However, the biggest blessing for me is the incredible people I have met — hosts, clients, consultants and headquarters team members — and the bonds we have formed are everlasting.”
Tastefully Simple is a textbook example of a successful direct selling company. Founded in Alexandria, Minn., in 1995 by Jill Blashack, the company currently has over 16,500 consultants throughout the nation. Blashack had sold her gift basket business and was promoting a holiday gourmet confection at a crafters’ tour. As an afterthought, she offered a sample tasting of the popular gourmet foods from her gift basket business — and sold over $2,000 worth of food. “I suddenly had this inspiration,” said Blashack. “Why confine these wonderful products to special events or a small retail store? Why not bring the products to the people in their own homes?”
Blashack put together a catalog of privately labeled spices, soups, mixes, sauces and sweets. At in-home parties, customers can see, smell and sample the products before buying. Consultants also provide recipes using the company’s products and offer entertainment suggestions. This popular formula has propelled Tastefully Simple for three years in a row to a spot near the top of the annual Inc. 500 list of the nation’s fastest-growing private companies.
If you are considering joining the growing ranks of direct selling consultants, here are some tips from the Direct Selling Association to help you identify legitimate opportunities:
* Start-up costs should be minimal. Start-up fees in direct selling companies are generally modest, usually the cost of a sales kit. Companies want to make it easy and inexpensive for you to start. High entry fees should be a warning sign.
* You should be able to return unsold inventory. Companies belonging to the DSA “buy back” unsold marketable products, if you decide to quit the business, for 90 percent of the price you paid for them. Beware of opportunities that encourage “front end loading,” or buying large inventories of unreturnable products to reach achievement levels or receive a “special” or larger “discounted” price.
* Is the money you’ll earn based on both the sale of products and getting others involved in the business? The answer should be “absolutely!” This is a key element of a legitimate business.
* And, of course, make sure the company you are considering is a member of the Direct Selling Association.
For more information on direct selling, visit the DSA Web site at www.dsa.org. To find out more about Tastefully Simple, visit www.tastefullysimple.com or call (866) 328-6673.
Courtesy of ARA Content