Can You Make Money With A Direct Sales Company?
Can You Make Money With A Direct Sales Company?
Whenever I read workathome blogs or message boards I always see some variation of the question can I make money in direct sales? Most of the answers to this question come from those who have recruited a few people so the answers are always very biased.
So back to the question can you make money in direct sales? The quick answer is yes you can. However Id like to offer more details than just a yes.
Direct sales companies usually offer the distributor two ways to earn money. One is through the actual sale of a product and the other is through sponsoring or recruiting people to become representatives for the company.
This article will speak of industrywide averages only. The average commission on the sale of a product in direct sales is roughly 30 to 35. If in a week you sell 100 worth of products youll earn about 30 to 35 dollars. This will not pay your rent but its 30 you didnt have prior to selling the product!
When someone comes to me and says they want to earn 1000 per month I cringe a little bit. Not because its not possible to earn 1000 per month but because the vast majority of those involved in direct sales never earn this much. Speaking of sales only in order to earn 1000 per month youll need to sell about 3000 worth of products every single month. If the average customer spends 35 on products youre going to need at least 85 customers each ordering 35 worth of product to hit that 3000 sales mark. Again this is not impossible but almost no one can do this their first few months in business. Its not easy finding 85 customers each and every month. For those who stick with it for those who continue to pursue new customers each and every month it is not uncommon to have several hundred customers in a couple of short years. Direct sales becomes especially profitable when youre selling a product that has to be reordered each and every month.
Now lets switch gears and talk about sponsoring others. The AVERAGE industrywide income earned from sponsoring others is about 10. This means for every 100 sold by those you sponsor youll earn about 10. Again using 1000 as our target income youll need to create a group volume of at least 10000. Ten percent of ten thousand is indeed the 1000 you were looking for. Again this is not impossible to do but it does not happen as often as the internet leads us to believe it does. Lets say you sponsor one person per month your first year. This means youll have 12 people in your group at the end of that year. If each of those 12 people sold 500 per month in products youd have group sales of 6000. Not quite 10000 but youre definitely on your way.
The best advice I can give someone is that when they choose a direct sales company they have to dedicate themselves to at least a 3 year plan. If you get involved with a direct sales company expecting to get rich overnight you may be very disappointed. Big money can be made for the average person but it takes time dedication.
About the writer: Chad William Hershey of ManifestYourFortune is founder of his own home based business The Pinnacle Group. He is a student and mentor of the Universal Law of Attraction as seen in The Secret and believes fully in The Master Key System. Chad shares his passion and knowledge of being in the home based business arena for the last 15 years and enjoys helping others succeed with Internet marketing. Chad’s Blog
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