Avon. Amway. Herbalife. Qnet
Mary Kay. Natura. Tupperware.
You know the names
Some of these direct sales companies are companies you’ve grown up with and even companies your mother grew up with. You probably have some of their products in your own kitchen and bathroom– and if not, you certainly know someone who does.
These are definitely companies that are around and get around.
They’re also companies that are extremely profitable. The six companies named above, six of the top direct sales companies in the world, made $27.3 billion in 2017. (Amway topped the 2018 DirectSellingNews Global 100 List, making $8.60 billion all by itself). Does that mean that becoming a direct seller for a company such as Amway or Avon is a good business for you to get into?
Here’s what you need to know about direct sales and MLM (Multilevel Marketing) so you can make an informed decision.
Direct Sales Has Great Advantages
Unlike many businesses, there are absolutely no entry barriers to direct sales. You don’t need any particular level or education or training. You don’t need to do it full time or even any set number of hours per week. You can do it from your home.
Normally all you need to do to get started is purchase a starter kit of products; some companies offer these to new sellers for as little as $35, although most in my informal survey run from $99 to $150. Some companies even offer a range of starter kits for beginning representatives.
Direct Sales and MLM Are Not the Same Things
Direct sales describes the business model where independent contractors (or distributors or representatives) sell a company’s products and/or services directly to consumers. They might do this through door-to-door sales, through the internet or by having parties in their homes. There is no fixed retail location, although often direct sellers work out of their homes.
Now I could paste the paragraph and copy above to describe MLM (Multilevel Marketing).
It too is a business model where independent contractors sell a company’s services and/or products directly to consumers. The difference is that in the MLM business model, the independent contractors also make money from recruiting others to work for the company.